Government proposes to legalise virtual office


2018 10 24


The Government agreed with the proposal made by the Ministry of Economy to legalise the virtual office to both continually allow the establishment of businesses electronically, which is currently the case, and to ensure an effective, secure, legal proof and evidence providing communication with public authorities and other persons in the virtual space.

‘Employees and employers of a large number of young and rapidly growing companies work remotely. Business is not confined to the boundaries of a single state, and the physical address is therefore no longer a key element identifying the head office of an undertaking and ensuring accessibility. This is well reflected by the fact that more than 8 thousand companies are registered at 6 addresses where they do not actually operate but pay for the possibility to be registered there. The virtual office would therefore facilitate the establishment of a company, reduce administrative costs and encourage the establishment of foreign companies in Lithuania,’ says Minister of Economy Virginijus Sinkevičius.

The head office of a company currently under establishment is characterised by indicating the address of the premises. A legal entity founders who seek to register a business need to apply to those who have such premises and then get their consent. According to the Centre of Registers, more than 8 thousand companies have been registered in Lithuania at 6 addresses.

In the case of a virtual office only the given address of an online delivery box is required to be indicated in the National Electronic Delivery Information System and the territorial administrative unit, i.e., the municipality. The e-delivery system ensures the originality approval of the electronic documents and messages sent, security and the precise fixation of the status of each stage (dispatch, delivery, receipt, rescheduling or signing).

The choice of a virtual location would also facilitate communication with public authorities and other bodies. Communication is often ineffective now because company leaders are often unavailable at their registered address. In addition, the administrative and financial burden resulting from the sending of documents by registered post to the company’s home address would be reduced.

The current provisions of the Civil Code which regulate the office of legal persons were established almost two decades ago and provide for no alternatives, including a virtual location. Eight years ago, the Civil Code waived the obligation to indicate the company’s registered office address in the articles of association since the registered office address was among the most frequently changing information.