A joint stock firm (AS or SC) is one in which the shares or stocks are exchanged publicly. The business has legal status. In the Enterprise Register, only stock businesses are registered. Since the Enterprise Register does not maintain a list of shareholders, any changes in the ownership structure of shareholders do not need to be reported to the Enterprise Register. The required equity is €35,000. The lowest nominal value of the company’s shares and 10 cents may be used to divide the equity and the nominal value of one share without leaving a leftover.
Memorandum of association
A Memorandum of Association (MoA) serves as the company’s charter. It is a legal document created during a company’s creation and registration procedure that outlines the goals for the organization’s establishment, its connection with shareholders, and how the two will work together. Only the operations listed in the Memorandum of Association may be carried out by the firm. The MoA establishes the limit that the company’s activities are not allowed to cross as a result. The Memorandum of Association details the firm name, registration address, registered agent, business operations, authorized share capital, objectives, and authority of the Latvian corporation.
Amendments to a stock company’s memorandum of association
Once formed, the founding treaty or decision may be modified if the commitments outlined therein have not yet been met. One to three business days are required for the procedure, and the review starts at 20,000 EUR.
Submission of documents
The following papers must be supplied electronically if the memorandum of association is to be amended:
- Form KR18, the application
- Changes to the founding treaty or decision’s language
- Text of the decision’s or treaty’s modifications
- a copy of the receipt, a printout of a bank payment made online, information on the payment of the state fee, or a receipt itself
14 days after the decision is adopted is the cutoff date for submitting papers to the Enterprise Register.
Modification to the founders’ original memorandum of association
All founders are required to sign the amended language of the founding treaty or decision as well as the new version. The other regulations (the founders’ composition and share distribution, the board and council’s makeup, the firm’s information on share capital, etc.) cannot be changed, on the other hand.
Filling out the registration form
The Management Board must sign any modifications to the agreement or decision that created the application form KR18.
Having the fees paid
Before applying for registration, the State fee must be paid. The Enterprise Register must confirm that the State fee has been credited to the Treasury account before registration can proceed. Two days before submitting documents electronically or by mail, the State fee may be paid by way of a transfer to any bank. Within three working days, you can complete the registration. When making a payment, the name of the service, the mandatory registration number (if applicable), and the purpose of the payment must all be stated.
Submission of document online
The Management Board or a person authorized by E-service online must submit the application and the documents that must be attached to it. e-signature on a smart card (eID or eParaksta card) or with eParaksts mobile on the www.eparaksts.lv portal is required for document signing. Online submission of documents is required at www.latvija.lv. Responses come in the form of an e-service or e-address. If an online e-service was not created for document submission or if one of the required document files is larger than 3 MB, the address or email is used.
