European companies known as SE for short are types of a company registered in the Commercial Register and are allowed to move their business address from a European Union member state to another without having to create a new company. A European company can be transferred not only between EU members but to certain countries in Europe which are not EU member states. When forming a SE, it could be by a merger of national public limited liability companies, a holding company of a limited liability company, or transforming a PLC into a dependent company within the limit of the third paragraph of Article 2 of Regulation No 2157/2001. To set up this company, the minimum capital is EUR 120 000. It takes at least 1 to 3 working days and costs 85,00 EUR to establish.
For a business owner thinking of setting up this type of entity or a foreign investor considering doing business in the republic, this guide provides everything you need to know about a European company and how to register it.
Registering the company
For a firm, subsidiary, or even branch office to carry out commercial activities in the Baltic region, it has to be duly registered in the Trade Register of the country. Fortunately, company registration in the republic is simple, fast, and very affordable. To register a SE, simply follow the steps below:
- Decide on the address
- Prepare the Articles of Association
- Complete the application form SE1
- Pay the state fees
- Submit the documents
Deciding on the company address
The legal address of a SE is the address of the head office of the company where the management is located. The board has to ensure all correspondents are received at the registered address in the country.
Preparation of the Articles of Association
The AOA shows the principles which guide the activities of the business. For it to be properly accorded, it shall be signed by the founders of the company or an entrusted representative with a notarized mandate. This document has to contain the following information:
- Legal Address
- Company Name
- Members’ rights to make decisions
- Details of the founders, etc.
Completing the application form
For a registration to be processed, an applicant has to complete the application form SE1. After this, he or she must submit the signed form and certain documents to the Register. The form has to be signed by the founders or anyone authorized with a mandate.
Paying the state fees
Before an application is processed, the state fee has to be paid to the Treasury account of the state two days before the submission of the documents. After the payment is confirmed, the registration is completed. The standard amount is EUR 85,00, but this fee can differ in certain situations. The payment can be made to the account below:
The Treasury (Valsts kase)
Reg. No 90000050138
Valsts kase, Account: LV84TREL1060190913200
Submission of required documents
To fully register the company, an applicant has to present the following documents:
- Certified copy of the application form
- Founding treaty
- Agreement of the Council members
- An original receipt or a copy of the bank payment of the state fee, etc.
Note that the documents must be drafted in Latvian and there is no specific deadline for the submission of documents.
An applicant may choose to submit the application and documents through the e-service provided on www.latvija.lv, send by email, or a traditional mail. With the e-service, you can sign the documents on eParaksts mobile on www.eparaksts.lv portal or by using an eParaksta card. Applications through this method receive a 10% discount. When you choose to submit by post, you will have to attach the payment order for the state fee to your submission.