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.