How to establish a limited liability company in latvia. Presentation of Law office Rasa & Ešenvalds, Latvia.

1. How to Establish a Limited Liability Company in Latvia
© Law Office „Rasa & Ešenvalds”
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2. 1. Legal Forms of Companies
Legal forms for running business in Latvia:
● Limited liability company (Latvian abbr. „SIA”)
● Joint stock company (Latvian abbr. „AS”)
● Branch
● Representative office of a foreign merchant
Limited liability company (LLC) is the most popular type of business in Latvia.
How to Establish a LLC in Latvia
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3. 2. Limited Liability Company (LLC)
● LLC is a legal person.
● LLC is liable for its obligations to the extent of its entire property. A founder or shareholder is not
liable for the LLC’s obligations and the LLC is not liable for founder’s or shareholder’s
obligations.
● The decision making body of a LLC is the board and, if needed, the council. The board consists
of one or more individuals, who may be residents or non-residents of the Republic of Latvia.
● There are two types of LLC in Latvia – standard LLC (with an equity capital EUR 2800 or more)
and reduced capital LLC (with an equity capital lower than EUR 2800).
How to Establish a LLC in Latvia
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4. 3. Four Steps to Establish a LLC
1. Preparation of documents of incorporation of the company and
appointment of administrative institutions of the company
1. Equity capital payments
1. Submission of documents to the Register of Enterprises
1. Registration of the company
How to Establish a LLC in Latvia
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5. 3.1. Preparation of Documents and Appointment of
Administrtive Institutions
Documents of incorporation:
● decision on founding a LLC (one founder) or a memorandum of association (more than one
founder)
● articles of association
Administrative institutions:
● Board of directors – Always
● Council – Optional – only if provided by the articles of association
● Auditor – Optional – only if provided by the articles of association
How to Establish a LLC in Latvia
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6. 3.2. Equity Capital Payments
If the equity capital is paid in money:
● Open a bank account in the name of the company.
● Organize the deposit of money into the bank account in the amount of at least 50% of the total
value of the equity capital.
● Receive a written confirmation from the bank that the equity capital is paid.
If the equity capital is paid by property contributions:
● Organize the valuation of property contributions. The property shall be evaluated by a certified
expert.
How to Establish a LLC in Latvia
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7. 3.3 Submission of Documents
Documents that shall be submitted to the Register of Enterprises:
● application form
● decision on founding a company or memorandum of association
● articles of association
● consent to be a member of the board or a member of the council
● announcement on the legal address
● consent from the owner of the immovable property to register the legal address
● written confirmation from bank that the equity capital is paid
● 1st division of the register of shareholders
● document that attests the sate fee payment (EUR 142,29) and the payment for an official
publication (EUR 27,03)
NB! Signatures of founders, members of the board or council on several of the documents shall be certified by a notary.
How to Establish a LLC in Latvia
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8. 3.4. Registration of the Company
● The Register of Enterprises examines submitted documents and makes a
decision on registration within 1 – 3 working days after the submission of
documents.
● After the decision is made the Register of Enterprises sends it to the
company and the official gazette „LatvijasVēstnesis” publishes an official
publication about the new company.
How to Establish a LLC in Latvia
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9. Contacts
Law Office „Rasa Ešenvalds”
attorney at law partnerJānis Ešenvalds
Kr.Valdemara iela 33-35, Riga, LV-1010
Tel.67280685, fax.67280603
esenvalds@readvokati.lv
How to Establish a LLC in Latvia
www.readvokati.lv