On October 14, TEGOS, together with Unicorns Lithuania, Lithuanian Startups Association, hosted their third joint Founders Breakfast – a series bringing together the Lithuanian startup and business community to discuss key regulatory and legal developments shaping the ecosystem.
This time, TEGOS experts Elena Mickevičienė and Rūta Tikuišytė led the discussion on the amendments to the Law on Companies, which will take effect in July 2026. The speakers shared insights on what these changes mean for businesses, how to prepare in advance, and how to make the most of the new opportunities.
So, what’s changing for Lithuanian companies from next July?
- Financial assistance for acquisition of company shares. The most restrictive condition is the need to form a reserve of at least the assistance amount.
- A new type of shares – redemption shares – have a potential to become an alternative to bonds. They can be used to invest in companies or as incentives for employees.
- More flexibility with preference shares – preference shares will not have to be linked to the right of priority to get dividends.
- Authorised capital increase. Shareholders will be able to allow the Board or the CEO to increase the authorised capital within a pre-set limit at their own discretion in a future period, which, however, must not go beyond 5 years, provided that ¾ of shareholders agree to this.
- Dividends. It will become possible to pay dividends more often – for periods shorter than a financial year. This will possible even if the profit for the last year is negative but the company has some accrued profit.
- Authorised capital reduction. It will be possible to take a decision on disbursements to shareholders at any time.
- More flexible borrowing. Companies will be able to borrow from their shareholders and pay them higher interest rate than the banking market average.
We thank Unicorns Lithuania for yet another successful and engaging joint event – and for fostering dialogue between lawyers, founders, and investors.
Unicorns Lithuania is an association that currently brings together 120+ technology companies, employing over half of the sector’s workforce. Its mission is to mobilize and inspire startups and the public to build the future of Lithuania – a successful, modern country driven by a high value-added economy.
