Official translation
REPUBLIC OF LITHUANIA
LAW
ON THE AMENDMENT TO THE LAW ON SMALL AND
MEDIUM-SIZED BUSINESS DEVELOPMENT
22 October 2002 No. IX-1142
Vilnius
Article 1. Revised Version of the Law of the Republic of Lithuania on Small and Medium-sized Business Development
The Law of the Republic of Lithuania on Small and Medium-sized business development shall be amended and set forth to read as follows:
Article 1. Purpose of the Law
This Law shall define small and medium-sized business entities, and the forms of State aid applied thereto.
Article 2. Small and Medium-sized Business Entities
1. Small and medium-sized business entities shall comprise medium-sized enterprises, small enterprises (including micro-enterprises) and natural persons who shall, in the manner prescribed by law, enjoy the right to engage in independent commercial, production, professional or similar activities, including the activities which require a business certificate.
2. A medium sized-enterprise shall be an enterprise which complies with all the following conditions:
2) the annual income of the enterprise does not exceed LTL 138 million or the book value of the enterprise’s assets does not exceed LTL 93 million;
3. A small enterprise shall be an enterprise which complies with all the following conditions:
2) the annual income of the enterprise does not exceed LTL 24 million or the book value of the enterprise’s assets does not exceed LTL 17 million;
4. A micro-enterprise shall be a small enterprise which complies with all the following conditions:
2) the annual income of the enterprise does not exceed LTL 7 million or the book value of the enterprise’s assets does not exceed LTL 5 million;
5. Under this Law, independent enterprises shall be all enterprises, except those whose ¼ or more of the authorised capital or voting rights belong to one or several enterprises, which, according to the definitions set in paragraphs 2 and 3 of this Article, are not small or medium-sized enterprises (in cases when medium-sized enterprises are defined) or, according to the definition set in paragraph 3 of this Article, they are not small enterprises (in cases when small enterprises are defined). This limit may be exceeded, if an enterprise belongs to investment companies, funds or other legal persons investing risk capital in small and medium-sized business.
6. When calculating the indicators of an enterprise set in paragraph 2, 3 or 4 of this Article, appropriate indicators of all the other enterprises which are directly or indirectly controlled by the enterprise, must be added to the indicators of such enterprise. An enterprise shall control another enterprise directly, if it has ¼ or more of the authorised capital or the voting rights of the enterprise. An enterprise shall control another enterprise indirectly, if ¼ or more of the authorised capital or the voting rights of this enterprise are held by an enterprise controlled by the said enterprise or jointly by several controlled enterprises, or jointly by the enterprise and an enterprise controlled by it.
7. An enterprise becomes a medium-sized enterprise, a small enterprise or a micro-enterprise, if the data recorded in an annual financial statement of the enterprise two fiscal years in succession comply with the conditions laid down in paragraph 2, 3 or 4 of this Article. A medium-sized enterprise, a small enterprise or a micro-enterprise respectively loses such status, if the data recorded in an annual financial statement of the enterprise two fiscal years in succession do not comply with the conditions laid down in paragraph 2, 3 or 4 of this Article. It shall be deemed that an enterprise becomes a medium-sized enterprise, a small enterprise or a micro-enterprise, or loses such status from the date of approval of an annual financial statement.
8. Compliance of an enterprise which is being established or a newly established enterprise whose annual financial statement has not been approved yet, with the conditions set in subparagraph 2 of paragraph 2, subparagraph 2 of paragraph 3 or subparagraph 2 of paragraph 4 of this Article shall be determined in accordance with planned enterprise’s income and book value of the enterprise’s assets, as well as with enterprise’s income and book value of the assets for a fiscal year.
9. The number of employees specified in subparagraph 1 of paragraph 2, subparagraph 1 of paragraph 3 or subparagraph 1 of paragraph 4 of this Article shall correspond to the average annual number of employees on the pay-roll. The procedure for calculating the average annual number of employees on the pay-roll shall be established by the Government or an institution authorised by it.
Article 3. Granting of State Aid to Small and Medium-sized Business Entities
1. State aid shall be granted to small and medium-sized business entities in accordance with small and medium-sized business development programmes of the Government, counties or municipalities.
2. Preparation and implementation of small and medium-sized business development programmes shall be financed from the State or municipal budgets and financial funds.
Article 4. Forms of State Aid to Small and Medium-sized Business Entities
The following forms of State aid may be applied to small and medium-sized business entities:
2) financial support: granting of loans on favourable terms, partial or full payment of interest, provision of guarantees, credit insurance, investment of risk capital in small and medium-sized enterprises, reimbursement of certain expenses (expenses related to fees on registration, research, guarantee fees, credit insurance premiums, acquisition of quality certificates, and other expenses), subsidies for job creation;
3) advisory, training, skills improvement or re-qualification services offered to enterprise owners, members of enterprise bodies and enterprise employees on favourable terms;
4) establishment of business incubators, business centres, technology parks and services provided by them;
Article 5. Limitations on State Aid to Small and Medium-sized Business Entities
1. The forms of State aid to small and medium-sized business entities, specified in Article 4 of this Law, shall not be applied to the following small and medium-sized business entities (unless otherwise provided for in other laws):
2) enterprises in which more than ½ of the authorised capital or voting rights belong to the State or a municipality;
3) enterprises whose income for the previous fiscal year from the activities which are not supported by the State, amount to more than 1/3 of the total income of the enterprise for the previous fiscal year. Such limitation shall not apply in cases when the granted State aid will be used for starting or developing concrete activities, and the said activities do not belong to the activities which are not supported by the State. A list of the activities which are not supported by the State shall be approved by the Government or an institution authorised by it.
Article 3. Final Provisions
The Government or an institution authorised by it shall, prior to 1 December 2002, harmonise the legal acts adopted by them, establishing the forms of State aid to small and medium-sized business, as well as the procedure for calculating the average annual number of employees on the pay-roll with the provisions of this Law.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.