LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Vygintas Kuprys, WALLESS
4.7 Enforcement of Restrictions on Development and Designated Use The restrictions on development or designated use are usually enforced during zoning and planning procedures. Nevertheless, general architectural requirements or cultural heritage requirements and protected areas’ protection requirements may be introduced and applied during the pre-design, design or even construc - tion stages. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Investors can hold real estate assets through the following main types of entities: • a private limited company; • a public limited company; • a personal enterprise (sole proprietorship); • a general partnership; • a limited partnership; • a small partnership; • a European company ( Societas Europaea ); • a co-operative company; and • an agricultural company. The most common types of investment vehicle among both foreign and local investors are the private company, which is sometimes referred to as a private joint stock company and the limited partnership. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity The private and public limited liability company is a limited liability company where the share - holders’ liability is limited to the amount of share capital that was contributed to those compa - nies. These companies are governed mainly by
the Company Law of the Republic of Lithuania (and other legal acts that are applicable to pub - licly listed limited liability companies). A limited partnership is a legal entity that is formed by at least two members. It has limited liability partners and general partners with no limited liability. An agreement is signed between the partners on the management of a partner - ship. There is no minimum share capital require - ment to conclude a partnership agreement. 5.3 REITs Real estate investment trusts (REITs) are becom - ing more popular in Lithuania. Trusts are usually operated in private form, but some are public, ie, used more as a crowdfunding platform. Under Lithuanian law, there are no general restrictions on the participation of foreign investors in REITs. However, they are subject to the same require - ments as Lithuanian investors (it depends on whether an investor is considered professional or non-professional). The activities of REITs are monitored by the Bank of Lithuania. REITs are simply another type of investment vehicle for real estate development. There are no clear advan - tages to using them in Lithuania. 5.4 Minimum Capital Requirement The minimum share capital required to set up a private limited company is EUR1,000. A small partnership can be established with a minimum share capital of EUR1 but this type of entity is
not popular with developers. 5.5 Applicable Governance Requirements
A private limited company can have a four-tier governance structure, comprising of the follow - ing elements: • a general meeting of shareholders;
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