A foundation is an organization set up by persons looking to achieve the same purpose. A foundation can consider liquidation in the event of certain challenges such as bankruptcy. Liquidation is the process whereby an organization puts an end to its activities and ceases to exist in the Register of associations and foundations. The activities of an existing foundation can be ended by a court adjudication, a decision made by the board when it begins a bankruptcy proceeding, or other situations specified in the Statute. The liquidating foundation must submit a notice of its termination of business activities in the official publication Latvijas Vēstnesis (Latvijas Vēstnesis). It takes seven days to process the liquidation of an organization.
If you are a founding member looking to liquidate a foundation or you are interested in knowing more about the process of liquidation of foundations, this guide provides information on the liquidation of a foundation, stages of liquidation, and other information.
Stages of liquidation of foundation
There are two stages involved when liquidating a foundation in the country. Both stages encompass three similar steps that must be carried out to process the termination on time.
Liquidation of foundations stage one
The first stage is implemented after the board members decide to terminate the activities of the foundation. This stage has three steps namely:
- Fill out the registration form
- Pay the state fee
- Submit all necessary documents
Fill out the registration form
Members of the board should sign application form B7 after filling inaccurate details on the form. Although, the right to do this depends on what is stated in the articles of association. Ensure you include the necessary information about the liquidation in the form and the date the decision is made.
Payment of the fees
A state fee is usually paid before the application for liquidation is approved. The payment is made to the Treasury account at any bank in the country. This should be two days before the submission of the application. The fee for liquidation is 5,69 EUR and should be paid to this account:
Reģ. Nr. 90000050138
Valsts Kase, Konts: LV84TREL1060190913200
Submit all necessary documents
To finalize stage one, submit the application form and the necessary documents to the Enterprise Register. The documents to be presented include:
- Application form B7
- Minutes of the meeting of the management board
- A receipt or a copy of the payment of the state fee
Liquidation of foundation stage two
Stage two of the process has three steps like stage one. They include:
- Completing the registration form
- Paying the fees
- Submitting the documents
Having satisfied the claims of all creditors, the liquidator must prepare a financial statement of the closing of the foundation and share the remaining property with entitled persons according to the articles of association. The liquidator must present his application for liquidation to the registering authority after the distribution of the remaining property. The following documents to be submitted are application form B9, closing financial statement, and a receipt of the payment of the state fee.
Preliminary check of documents
This is simply a verification of the draft application and required documents before submission. A state notary must verify the documents and inform the foundations of any deficiency found. It takes one working day to process this and costs 46,00 EUR. Payment for the service should be paid to the Treasury account with the following details:
Latvijas Republikas Uzņēmumu reģistrs
Reģ. Nr. 90000270634
Valsts Kase Konts: LV67TREL2190464004000
Note that the draft applications, form B7 and B9 and all required documents to be attached can be submitted by the foundering members, management board, the members of the board, or any entrusted person.