With its attributes, Latvia is tearing through being the new source of attraction for foreign investors. A lot of companies transfer some operations to this place also or find a new company. Factors like being a member of the EU, being much near to European and Russian market requests, and being much near to important roads are the fundamental reasons why Latvia is preferred by foreign investors. Investors who want to benefit from these advantages have to know about the address transferring process in order not to witness any problem. The shareholder interests are defended in Latvia by introducing the obligatory notarial form of the documents regarding the transfer of shares in the company.
The changes in the Latvian Commercial Law embraced on 01.07.2013 introduce a significant reform in the transferability of the shares in Latvia. The amendments relate to the changes in the legal structure of the company in Latvia as well as the changes in the operation board ( changing the direction of the company, appointing/ redundancy of the board members) and making amendments in the Papers of association (the bills).
It means restructuring the process for that company. In the end, the specified company will continue running in Latvia. The process contains 2 phases in general.
The first stage occurs in the origin country. That means, in the first stage, there is no need to give any document to related institutions of the Latvian state.
Still, an up-to-date restructuring agreement must be handed to the registry office, If the draft restructuring agreement handed to the combined company registry office in Latvia is changed although it was added to the company’s registry folder. This way, the restructuring process begins.
A meeting is arranged regarding this agreement and it’s estimated. Also, a decision is taken within a month regarding the situation. However, this advertisement is delivered to debtors after the decision is taken, If the company decides to notify debtors before this process in a formal way.
Also, another detail about company address transfer to Latvia is changing the name or type of companies that are involved in restructuring.
The main company agreement is approved, administrational panels are named and other necessary ways to complete the process are taken.
Some documents must be handed in relation to these articles. However, the Company Registry Office creates a new company registry, If handed documents are okay and there is no other problem before the requested change.
Predicated on the combined papers in Trade Law, members have some rights like attending a meeting ever, advancing ever, and voting before a meeting. Documents to be transferred in this process are;
- Operation form KR4.
- Pre-transformation document (For a registered company to be transferred to a different EU state, a document by the origin state’s company registry office that shows a registered company is suitable to run there).
- The major agreement is done, executive board decision, and if is in existence, assembly decision regarding company address transfer to Latvia.
- Written verification from executive board members as well as auditing board members if available.
- Executive board statement regarding listed office.
- A document or damage that shows necessary payment to state institutions has been completed.
- Letter of opinion from a real estate investment expert regarding property acceptability.
- Main Agreement.
- Party registry section.
The major activities during the company address transfer to Latvia gauge the most important principles regarding company functions. It should be signed and approved by the company founders. An action regarding transferring the company address to Latvia is conducted by the general assembly.
Evaluation of Property
In case of capital increase during the process of company address transfer to Latvia, it’s important to estimate the transformation acceptability of the combined company. In order for this evaluation to be made, property evaluation takes place for the combined portion of means of each company to be divided.
Considering the fact that Company address transfer to Latvia is a legal process. Therefore, it’s truly important for the process to be followed according to Latvian regulations. At this point, in order not to witness any problem, it’s truly important to admit professional consultancy.