Incorporation and activities of public institutions (PI) are regulated by the Law on Public Establishments of the Republic of Lithuania, Civil Code of the Republic of Lithuania, and other regulations.

Public institution is a public legal person with limited liability, the aim of which is to satisfy public interests by implementing educational, training, research, cultural, health care, environmental, sports promotion, social or legal assistance activities as well as other activities beneficial to society.

A public institution is not allowed:
1) to allocate earned profit for other objectives of activities than specified in the articles of association of the public institution;
2) to transfer, free of charge, the assets of the public institution into the ownership or under a trust or loan for use contract to a stakeholder in the public institution or to a person related thereto, with the exception of a case specified by the law;
3) to borrow funds at interest from its stakeholder or from a person related thereto;
4) to safeguard the discharge of the obligations of other persons.

The incorporators of public institution may be natural and legal persons, the state, municipalities, and other entities that do not seek benefit from the activities of the institution, having executed a memorandum of incorporation of the public institution. The number of incorporators is unlimited.

A stakeholder in a public institution is person who has, in accordance with the set procedure, transferred a contribution to the public establishment. A stakeholder in a public institution has the right to transfer, in accordance with the procedure laid down by the articles of association and by laws, to another person the rights of a stakeholder, with the exception of the cases when the stakeholder is the State or a municipality.

A public institution must have the following bodies: general stakeholders meeting and a sole governing body – the head. The articles of association of a public institution may also provide for a collegial governing body – the board.
At the general meeting of stakeholders, the right of decisive vote is granted to all stakeholders in a public institution. One stakeholder has one vote at the meeting, unless the articles of association of the public establishment provide otherwise.

Please, contact our team and we will provide professional consultations, help to prepare incorporation documents or upon your request, perform the whole procedure of incorporation of a new institution.

The procedure of PI incorporation takes from 5 to 10 business days.

In order for us to start preparing the documents for PI incorporation, you have to present the following information:
• Information of incorporators (stakeholders) (name, surname, personal number, address of declared place of residence). If an incorporator is a legal person – we need the company name, business ID, legal address, and name, surname, personal number, and address of declared place of residence of the director representing the company;
• Information on the director of future PI (name, surname, personal number, address of declared place of residence);
• Name of the future PI;
• Precise legal address of the future PI;
• Information on precise economic-commercial activities the PI will be engaged in;
• Information on governing bodies (director and/or collegial body).