A commercial pledge is the right of pledge registered with the Enterprise Register under the Commercial Pledge Law. A pledge’s subject may be a tangible, or an intangible asset owned by a legal person, assets subject to registration, stocks, shares, and bonds. The subject of a pledge cannot be a ship, financial instruments in a financial instruments account, credit claims within the Financial Collateral Law, or a claim out of a cheque or a bill of exchange. In the event of a pledge reaching its expiration or its purpose has expired, it must be registered in the register of CP.
If you are a business owner interested in knowing how to delete a commercial pledge, or you are considering deleting a company, here is a guide on the deletion of a commercial pledge and the steps to doing it.
Deletion
A pledge may only be deleted if its basis has been deleted by the holders. In the case of a deletion, an application must be submitted in the Enterprise Register for removal, at most five days after the expiration date of the pledge. After an application is filed with the Register, it takes 5 working days to process the deletion of a pledge. Fortunately, deleting a commercial pledge is free. Therefore, the process is simple and takes little time to effect the change.
Steps to deleting a CP
To delete a CP in the register, an applicant must first apply with the Enterprise Register. The steps to follow are listed below:
- Complete the application form
- Pay the state fee
- Submit required documents
Completing the application form
An applicant has to fill out the form for the application on the commercial pledge e-Service site https://komerckila.ur.gov.lv. The application must be electronically signed by the commercial warlord or any entrusted person. If the form is signed by an entrusted person, a certified notary mandate must be attached to the application form. This document must be duly signed with the secure electronic signature of the authorizing board member, beneficial owner, or a business owner. If the application is filed by a person who is not a signatory, a new application on the e-service site has to be made. The applicant should fill in the boxes, add the signed documents, save then click the ‘generate the application’ button to obtain a completed application form. The form may be downloaded and then sent via e-mail to the signer on the signature. It can be updated afterward when the signed application and the accompanying documents are submitted.
Paying the state fee
There is no fee payable for the process. This means an applicant does not need to pay the state fee when a CP has been deleted.
Submitting the required documents
The final step is to submit the form and required documents to the register. They can be submitted by a pledge taker or any entrusted individual. Submission by an authorized person requires the secure electronic signature of the holder. Documents to submit are a true copy of the ruling if the deletion is based on a court ruling and authorization for the signatory of an applicant.
Commercial pledges in e-service
Submitting an application to the Enterprise Register and receiving a response document online is quite easy with the CP e-service. The e-service has to be authenticated and filled in this order; the form and documents are to be attached. Note that if the form and the documents required are signed with an e-signature, there will be no need for additional signature certification.
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