Notification of the Intended Initiation of Legal Entity Liquidation. What to Do Upon Receiving One After 2024-09-01

The Center of Registers launched an initiative in 2020 aimed at ensuring that the Register of Legal Entities (in Lithuanian, Juridinių asmenų registras), hereinafter no longer contains inactive companies and organizations that fail to update their information. This initiative involves the liquidation of legal entities that do not submit the required data.

In practice, however, there have been cases where entities subject to forced liquidation are, in fact, still operational. These businesses are actively functioning and generating revenue, but for various reasons, fail to submit their financial statements to the Register of Legal Entities on time.

Why does this happen, and how can it be avoided? What situations does business face in practice? How can the liquidation process be reversed once initiated? What are the consequences of missing deadlines or failing to submit the necessary data?

Attorney at Law Andrius Lukašonokas, Associate Partner, Dispute Resolution group, answers these questions and provides key insights for businesses to keep in mind.

For article in Lithuanian click here.