Forms of enterprise

Forms of enterprise:

A small partnership (MB) is a private legal entity with limited liability. Its members are not liable for the unfulfilled obligations of the small partnership in respect to their assets. A small partnership may be established by a maximum of 10 natural persons (there may also be only one founder).

A Private Limited Liability Company (UAB) is a private legal entity with limited liability. Its shareholders are not liable for the unfulfilled obligations of the private limited liability company in respect to their assets. The authorized capital of the private limited liability company must be at least EUR 2,500. A private limited liability company may be established by one or more natural and/or legal persons, and the number of its shareholders is unlimited.

Sole proprietorship is a private legal entity with unlimited liability. The owner is liable for the unfulfilled obligations of the sole proprietorship in respect to his/her assets. Only one natural person may be the founder and owner of the sole proprietorship, and he/she cannot be the owner of another sole proprietorship.

 Public Institution (PI) is a non-profit public legal entity with limited liability, and with purpose to serve public interest through the pursuit of activities that are of public benefit. The public institution may be established by one or more natural and/or legal persons, and the number of its founders is unlimited. 

An association is defined as a public legal entity with limited liability, and with purpose to coordinate the activities of its members, to represent and defend the interests of its members, and to serve other public interests.

If you are unsure which enterprise form to choose, please see the Innovacion Agency website for specific features of a small partnership, Private Limited Liability Company, individual enterprise, public institution, or refer therein to the comparison of legal entities.