Company Registration

 

Registration of Limited Liability Company in Latvia.

 

Limited Liability Company is the most widespread form of business in Latvia.
Latvian Limited Liability Company is not required to carry on activities in Latvia (so the company's all activities can be outside Latvia). Bank account also can be opened in banks outside Latvia.
To get the limited liability company, you must register it in governmental register (register of enterprises). After registration you receive certificate of registration, decision of governmental notary and certified articles of association. Also you get registration number of company. Even if you change name of company (firm), this number will stay the same.
Limited Liability Company cannot sell it shares on the stock market.
Shareholders of company are liable to creditors of the company only by capital invest in company. If company becomes insolvent, usually shareholders of the company loose money invested in company, but personal assets of shareholders are protected.
Tax reports. Company is obliged to submit annual report one time per year. If company employs employees one time per month, company must submit report regarding employees. If company is managed by member of board of directors, the company does not employs employees and member of board of directors does not receive remuneration, then the company is not obliged to submit reports regarding employees. Also company must submit VAT report (period of submission is 1-6 months). If turnover of company during twelve months is not higher than 14 000 EUR, then company is allowed not to register as VAT payer (so not VAT reports). But there are some other circumstances when company is obliged to register as VAT payer.
Tax payments. Payments concerned with salary must be paid one time per month.
Information necessary for registration limited Liability Company:

 

  Name (firm) of company;
  Legal address of company;
  Information about founders (shareholders) of company;
  Information about member of boards of directors of company;
  Information about statute capital of company (including information about amount of statute capital, payment method and payment conditions);

 

Depending on requirements of founders (shareholders) may be necessary additional information (for example, if shareholders decide to constitute supervisory board, then information about members of supervisory board is necessary).
Foundation and registration of company may consist from following stages:

 

    Collection of information necessary for registration;
    Preparation of documents necessary for registration;
    Signing of documents (including of notaries certification of signature);
    In most cases is necessary to open temporary account in bank and pay share capital;
    Doing payments necessary for registration;
    Submission of documents to commercial register;
    Receiving of examined documents.

Status of company – legal person. Has rights to do all economic activities according to legal norms (for some activities license and other preconditions are necessary).

 

Registration branch of a foreign merchant in Latvia

 

For registration of a branch of a foreign merchant in Latvia necessary the next docs: 
• Document (or notary certified copy of the document), that certifies registration of merchant in foreign country if in legislation of country of foreign merchant is prescribed registration in register;
• Permission to open branch if in legislation of foreign merchant such permission is prescribed;
• Notary certified copy of the articles of association, memorandum of association or documents similar to them of the foreign merchant.;
• Document, certifying authorization of persons to represent foreign merchant in all activities related to branch and scope of such authorization.

 

Registration Representative Offices of foreign traders and foreign-registered public and nonprofit organizations, without any right to engage in commercial activities in the Republic of Latvia and the representatives.

 

For registration offices (representative) of a foreign merchant or organization in the Register of Enterprises in Latvia Republic necessary the next docs: 
1. Statement
2. A document certifying the registration of a foreign merchant in the country if the laws of the respective foreign state provides registration and if such registration law does not provide, and if opened representative offices of foreign organizations - any other document that confirms the legal status of a foreign merchant or organization in the country . 
3. Document of a foreign merchant or organization, which includes:
1. decision to open a representative office in Latvia; 
2. authority representative. 
4. Charter foreign merchant or organization, position or other document is treated as such. 
5. A document confirming payment of state duty for registration. 
For registration offices (representative) of a foreign merchant or organization should pay the state fee in the amount of LVL 20 (29 euro).State fee must be paid prior to applying for registration, and can be paid in any bank. 
Upon payment of the ordinary State fee application will be processed in 15 days. 
If payments of the fee at double the rate application will be processed within four working days. 
If payment of the fees in treble the amount of application will be processed within one working day.