A limited liability company (LLC) or SIA is a type of entity with equity consisting of nominal shares. It is a private organization whose shares cannot be publicly traded. When registered, the company becomes a legal person. The minimum equity of the entity must have been EUR 2800. To set up this structure in the country, its founders can be both citizens and legal residents. Normally, equity may be paid in cash or as property contributions.
As a business owner thinking of expanding to this republic, or a foreign investor interested in establishing this company, here is a guide on everything you need to know about an LLC and how to register one.
Registering a company within the country is quite easy and simple. To register an LLC, follow the steps highlighted below:
- Choose a company name
- Draft the articles of association
- Fill out the application form
- Payment of the state fees
- Submission of all documents
Choose A company name
The name of a business is usually entered in the Commercial Register before commercial activities can commence. Certain conditions to keep in mind when choosing a business name include but are not limited to:
- It must be unique and different from other companies’ names
- It should have a relation to the type of entity
- It must use Latvian or Latin letters
- Digits are allowed to be used
Drafting the articles of association
The article of association is a document showing the principles guiding the activities of the company. It should be signed by the owners or entrusted persons and include the following:
- Name of the firm
- Timeline and purpose of the organization (if any)
- Size of the fixed capital, number of shares
- Rights of members to represent the company
- Number of members of the council, if there is one, etc
Note that the AOA should only contain provisions and not details of the registered office, certain members, etc.
Completing the application form
To complete the registration of an LLC, one must fill out the application form KR4. The form should be signed by all the founders, or anyone entrusted by the members, with a notarized mandate. At the time of application, the applicant may choose to register the prosecutor and the Branch. The application form must contain the following:
- Company name
- Registered business address
- Purpose of the company
- Names, and personal identity number of members of the board, etc.
Payment of the state fees
Two days before the submission of the application, a registration fee must be paid to the Treasury account. The Register can only process the application when an applicant has made this payment to any bank within the country. The fee varies depending on how fast one wants the process to be and the number of founders establishing the company. Registration within 1 to 3 working days by a founder cost EUR 75,00. Registration within three working days by two or more founders costs EUR 75,00. While registration in 1 working day by two or more founders costs EUR 225,00. All payments should be made to the following account:
The Treasury (Valsts kase)
Reg. No 90000050138
Valsts kase, Account: LV84TREL1060190913200
Submission of required documents
To duly register a company, the applicants must submit the application form and required documents. The documents include the following:
- Application form KR4
- Proof of power of attorney (if there is a fiscal agent)
- Copy of bank teller or receipt of the payment of the fee
Note that when you are submitting documents signed with a secure e-signature and a time stamp, there is no need to attach a notarial certificate of signatures.
You can submit the form and required documents through three channels. The easiest and fastest method is the e-service. The documents are signed with an e-signature on eParaksts mobile on the www.eparaksts.lv portal or a smart card (eID or eParaksta card). Afterward, they are submitted online on the website, www.latvija.lv. Applicants who submit using this method receive a 10 percent discount on their state fee.
You can opt to submit by sending the form and documents to the Enterprise Register by post. A payment order for the national fee must be attached to the package.