A branch is an organizationally independent part of an enterprise, which is territorially or otherwise separated from the main enterprise. At the location of the branch, in the name of the main enterprise, systematic commercial activities are carried out.
Mandatory requirements for a branch are: independent / separate management (director), employees and assets (property). A branch may have (use) its separate bank account and accounting department. But the legal owner of all property (assets) of the branch is the main enterprise (foreign company).
The branch does not have the status of a legal entity and the main company is responsible for the obligations arising from the activities of the branch. But, according to the decision of the Latvian court, the branch is a separate (independent) taxpayer in Latvia and after the liquidation of the branch, the main company is not entitled to receive overpaid taxes.
One of the goals of opening a branch is the territorial expansion of the business.
The headquarters of the company is the registered office. The entire company (including branches) is managed from the main enterprise.
The branch has the right to use a name (company) that differs from the name of the main company.
The branch needs a legal address in Latvia.
The name may be the same as the name of a foreign merchant. You can also choose a different name, in which it is necessary to include the name of the foreign merchant, the name of the branch or the location of the branch and the word “branch”.
The decision of the state notary of the Register of Enterprises on registration.
On a separate request, you can get a registration certificate (contains the name, registration number, place and date of registration).
All documents are in Latvian.
To prepare documents, you need the following information:
- Name, registration number and legal address of the foreign enterprise.
- Type of foreign merchant (for example, limited liability company or joint stock company).
- The name of the register in which the main enterprise is registered (if the relevant legislation provides for the registration of this merchant).
- The name of the branch, if different from the name of the main enterprise.
- Legal address of the branch in Latvia
- The size of the authorized capital of a foreign enterprise. Separately, you need to indicate the size of the registered, signed and paid authorized capital.
- Information about the person who is authorized to represent a foreign merchant in activities related to the branch (name, surname, place of residence, year of birth, passport data). You also need to indicate the scope of authority.
- Application of a specific form.
- A document (or a notarized copy) confirming the registration of a foreign merchant.
- Permission to open a branch (if such permission is provided for by the laws of the country of registration of the merchant).
- A notarized copy of the articles of association, articles of association or documents equivalent to them.
- A document confirming the rights of a person to represent a foreign merchant in activities related to the branch.
- The consent of the owner of the real estate to register the legal address of the branch in this real estate.
- Documents confirming payment of the state fee and publication in the official newspaper.
The registration procedure for a branch of a Latvian company and a foreign company is similar. The main difference is that to register a branch of a foreign enterprise, additional documents must be submitted (for example, a charter, a registration certificate or a certificate from a foreign register).
The registration procedure in a normal situation is as follows:
- Collecting and obtaining the necessary information.
- Preparation of documents for registration.
- Preparatory actions and signing of documents.
- Payment of payments (government duty, publication fee).
- Submission of documents to the Register of Enterprises of the Republic of Latvia.
- Obtaining reviewed documents.