Ministry of Economy Of The Republic Of Lithuania – Companies to be no longer possess a seal
Ministry of Economy Of The Republic Of Lithuania reports that to improve conditions for business in order to reduce the administrative burden provides suggestions to other public authorities to abolish the requirement for businesses to have a seal . Although the obligation to companies have a stamp canceled in 2004 , however, state and local government agencies prepared forms were preserved the seal place mark ( AV) , and in some cases the laws were still extant provisions relating to the obligation to have a seal .
Seal duplicates person display function and also unnecessarily increase the administrative burden , requires extra costs. However , according to proposals of Ministry of Economy of Lithuania from July the 13th 2013 effected Civil Code acts and other legal acts prepared by the Ministry of Justice of Lithuania by which the stamp of companies are not required unless the obligation to have a seal is not found in the Incorporation documents or legislations.
Company establishment documents (articles of association ) is a binding activity document in itself where voluntary articles have stated that their company has and must use the seal. In this case, these companies will be required to approve the documents by seal , otherwise – need change legal acts.
The obligation to use the stamp remains for state and municipal authorities , notaries and bailiffs .
Legal entities established electronically in own incorporation acts does not claim to have a seal as are established under the flagship of incorporation documents and forms .In this year about 60 per cent . joint stock companies and about 70 per cent small communities are created electronically. Since 2010 . electronically constituted 11,884 private companies, 164 individual companies, 413 public bodies . Since 2012 . electronically are set up 2006 small communities which in their activity is not required to have and use the seal.
World Bank study informs that in Lithuania for just established new venture its business stamp cost from 30 to 90 Lt , stamp making takes two days. This lengthens and expensives more start-up and causes further nuisance in company activity. Lithuania in World Bank survey of business conditions at the “Doing Business 2013” from 185 countries is in 27th place, among EU countries Lithuania is ranked 9th place.
The foreign practice shows that the use of the stamp in business is not required and does not guarantee the deal legality . In the United States does not exists a requirement to companies have a seal . Requirement has been abolished in Australia in the 1988 , in the United Kingdom – in 1989 .
According to the World Bank study “Doing Business 2013 data from the 28 EU Member States, company stamp is stll binding only in Lithuania, Ireland , Greece and Croatia. Just established companies must obtain seal in Russia, Belarus and China.
