Suspension of the company‘s activity
Service description
Main information
In cases when the company is temporarily inactive, i.e. does not conclude and execute any transactions, does not make settlements with legal entities and does not receive incomes, it may be temporarily exempted from the submission of a tax return and / or other documents specified in legal acts. If a company (UAB, MB, etc.) meets the above criteria, it is considered that it is not operating.
Unlike in the event of bankruptcy or liquidation, the legal entity is not deregistered during the suspension and the suspended activity can be resumed. The company can be suspended for up to 5 years.
What steps have to be taken?
- a decision to suspend company’s activity has to be signed;
- a monthly and annual declarations have to be submitted to the State Tax Inspectorate (STI);
- If the company is a VAT payer, an application for deregistration of a VAT payers registry must be submitted;
- employment contracts with employees have to beterminated and redundancy notices submitted to Sodra;
- a personal income tax (GPM) return have to be submitted if the company had employees;
We recommend to submit a request to suspend your activity from January 1st. If the company’s financial year coincides with the calendar year and the decision of suspension is taken in the middle of the year, declarations for the current year will still be required. From the beginning of the suspension, the company can no longer conclude transactions, issue invoices, buy and sell goods, services, receive settlements, etc.
It is also important to note that in the event of suspension, the financial statements of the Center of Registers still need to be submitted on an annual basis.
If it is decided to resume the activities of the company earlier than specified in the decision, the State Tax Inspectorate must be informed thereof.
Term: from 2-4 weeks.
For more information contact us by phone +370 600 28 001 or by e-mail: info@lamigra.lt