LAW

ON SMALL AND MEDIUM-SIZE BUSINESS

DEVELOPMENT

24 November 1998 No. VIII-935

Vilnius

Article 1. Purpose of the Law

This Law establishes small and medium-size business entities and forms of support applied in respect of them.

Article 2. Small and Medium-size Business Entities

Small and medium-size business entities shall comprise:

1) natural persons who have acquired a patent - for the period of its validity;

2) a micro-enterprise - an individual (personal) enterprise whose only employees are the owner and his family members (spouses, parents, adoptive parents, children, adopted children);

3) a small enterprise - an enterprise with the average annual number of employees on the pay-roll not in excess of 9;

4) a medium-size enterprise - an enterprise with the average annual number of employees on the pay-roll not in excess of 49.

Article 3. Support to Small and Medium-size Business

1. Support to small and medium-size business entities shall be given in accordance with the Government, county or municipal small and medium-size business development programmes.

2. The drawing up and implementation of small and medium-size business development programmes shall be financed with the Government and/or municipal small and medium-size business promotion fund resources.

3. Funds for the promotion of small and medium-size business shall be provided for in the State Budget, municipal budgets and shall be allocated on the Government’s resolution from the Privatisation Fund.

4. Businessmen and their organisations shall draw up business development projects and carry them when taking part in the small and medium-size business development programmes implemented by the Government, counties or/and municipalities.

Article 4. Implementation of State Support

The following forms of support shall be available to small and medium-size business entities:

1) tax credits and tax concessions granted according to the procedure prescribed by law;

2) financial support provided by the small and medium-size business promotion funds;

3) financial support offered by the Government and local authorities in accordance with the small and medium-size business development programmes;

4) advisory and teaching services supplied on easy terms in accordance with business development programmes;

5) services offered by business incubators, technologies fleets;

6) support offered by guarantee institutions and/or insurance companies set up under Articles 7 and 71 of the Law on the National Debt and other institutions which promote business development;

7) skills improvement services offered on easy terms under business development and employment programmes;

8) preferential treatment in the tenders for public procurement contracts;

9) support for the creation of new jobs;

10) system of microcrediting of individuals setting up business;

11) the practice of accelerated depreciation applied in respect of small and medium-size business.

Article 5. Final Provisions

1. Articles 3 and 4 of this Law shall not be applicable (unless other laws provide otherwise) to the following small and medium-size business entities:

1) state-owned and municipal enterprises;

2) enterprise in which over ½ of the voting shares are held by the state, municipalities;

3) enterprises, in which over ½ of the voting shares are held by other enterprises which do not meet the requirements prescribed by Article 2 of this Law;

4) enterprises which engage in non-supportable activities the list whereof shall be approved by the Government.

2. The Government or the institution authorised by it shall:

1) establish by 1 April 1999 the procedure for lending support provided for in Article 4 of this Law;

2) prepare and approve by 15 January 1999 the list of non-supportable activities;

3) each year revise and supplement the measures of the Small and Medium-size Business Development Programme implementation;

4) establish the procedure for acquiring and losing the status of the small and medium-size business entity.

3. The Government shall give an annual report to the Seimas on the financing and implementation of the Small and Medium-size Business Development Programme.

4. The Law shall come into force as of 1 January 1999.

I promulgate this Law passed by the Seimas of the Republic of Lithuania.

PRESIDENT OF THE REPUBLIC	valdas adamkus