Latvia
Introduction
Apart
from the business forms described below,
other types of organisation include the
Individual Merchant.
All
business entities must register with the
Commercial Register (Komercregistrs). On
paying the registration fee, the application
is considered within three working days.
Registration with the tax authority occurs
simultaneously.
Certain
documents required to accompany the application
must be notarised.
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Latvia Limited Liability Company
The
Limited Liability Company is the most common
business vehicle in Latvia. A minimum share
capital of LVL2,000 is required, at least
half of which must be paid up.
Limited
Liability Companies must have at least one
director; there are no restrictions on foreign
shareholders. Accounts must be maintained
in line with statutory requirements.
Documents
needing to be filed with the Registrar include:
-
An
application to register;
-
The Memorandum and Articles of Association;
-
Notice from a bank regarding the
payment of equity capital;
-
If property contributions are made,
the document certifying the value of each
such contribution;
-
Notarised specimen of signatures
of the members of the Board of Directors,
where relevant;
-
Notice of the Board of Directors
of the company’s registered office;
-
Receipt confirming the state fee
payment (LVL100) for recording the limited
liability company in the Commercial Register;
-
Receipt confirming payment (LVL24)
for the announcement in the official newspaper
Latvijas Vestnesis.
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Latvia Joint Stock Company
The
Joint Stock Company is a popular vehicle for
larger companies looking to raise public capital.
A minimum share capital of LVL25,000 is required,
and must be fully paid up before registration.
A Joint Stock Company is a public company,
the stocks of which may be publicly tradable
objects.
Accounts
must be audited and filed with the authorities.
Documents
needing to be filed with the Registrar include:
-
An
application to register;
-
The Memorandum and Articles of Association;
-
Notice from the bank regarding the
payment of the stock capital;
-
Notarised specimen of signatures
of the members of the Board of Directors,
where relevant;
-
Notice of the Board of Directors
of the company’s registered office;
-
Receipt confirming the state fee
payment (LVL250) for recording the joint stock
company in the Commercial Register;
-
Receipt confirming payment (LVL24)
for the announcement in the official newspaper
Latvijas Vestnesis.
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Latvia
General Partnership
A
General Partnership is a company in which
two or more partners operate under a common
business name, and are united on the basis
of the company agreement. A natural person
or legal person may be a member of the partnership.
All partners are jointly liable for the obligations
of the General Partnership with all of their
assets.
Documents
needing to be filed with the Registrar include:
-
An
application to register;
-
Notarised sample signatures of those
members of the General Partnership who are
authorised to represent the company;
-
Receipt for the payment of the state
fee (LVL100) for recording of the General
Partnership in the Commercial Register;
-
Receipt confirming payment (LVL24)
for the announcement in the official newspaper
Latvijas Vestnesis.
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Latvia Limited Partnership
A
Limited Partnership is a company in which
two or more partners operate under a common
business name. A natural person or legal person
may be a member of the partnership. At least
one partner is liable for the obligations
of the Limited Partnership with all of his,
her, or its assets, while the liability of
the remaining personally liable partners is
not limited.
Documents
needing to be filed with the Registrar include:
-
An
application to register;
-
Notarised sample signatures of those
members of the Limited Partnership who are
authorised to represent the company;
-
Receipt for the payment of the state
fee (LVL100) for recording of the Limited
Partnership in the Commercial Register;
-
Receipt confirming payment (LVL24)
for the announcement in the official newspaper
Latvijas Vestnesis.
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Latvia Branches and Representative Offices
Foreign-owned
branches are taxed at the same rate as Latvian
companies; reporting and audit requirements are
also the same as for Latvian companies. Profits
can be repatriated without withholding tax, and
dividends transferred abroad are subject to 10%
withholding tax. Documents required to be filed
with the Registrar include:
-
An
application to register;
-
Receipt for the payment of the state
fee (LVL20) for recording the branch in the
Commercial Register;
-
Receipt confirming payment (LVL16)
for the announcement in the official newspaper
Latvijas Vestnesis.
Representative
offices cannot trade or do business in Latvia,
and are only allowed to advertise and promote
their company. They are regarded as an effective
and low-cost means for establishing a presence
in Latvia. Documents needing to be filed with
the Registrar include:
-
An
application to register;
-
The Memorandum and Articles of Association
of the parent company;
-
The foreign registration certificate
of the parent company;
-
An authorised decision of the parent
company to establish the registered office
in Latvia;
-
An authorised decision appointing
the head of the registered office;
-
A document (passport, lease agreement)
confirming the legal address of the registered
office;
-
A notarised signature sample of the
head of the registered office;
-
A copy of the registered office head's
passport.
-
Receipt for the payment of the state
fee (LVL20) for recording the registered office
in the Commercial Register;
-
Receipt confirming payment (LVL16)
for the announcement in the official newspaper
Latvijas Vestnesis.
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