The company can issue a procuration if it desires to authorize someone else to operate its organizational matters. A procuration is a power of attorney that allows the person who holds it to act on behalf of a company. You can prolong a power of attorney by issuing a formal procuration, allowing someone to represent the firm and its legal matters in front of regulators and judges. You can designate a natural individual or a private corporation as your nominee.
According to the Procurement Act, the authorization is subject to the following conditions:
- A power of procuration can be assigned to a group of people so that it can only be utilized by those people together,
- Without specific permission, the procuration bearer may not transfer, lend, or assign the rights to represent the company to someone else,
- To enable the procuration owner to defend the company in courtrooms and state bodies, the procuration must be authorized in written form.
Issuance of Procuration
The Legislative Council can only approve the procurement with a specific declaration of purpose. Joint procurements can be issued to multiple people simultaneously. In this instance, the joint prosecutor must be given to at least two people who have exclusively shared represented powers.
- Documents required
- A request application form,
- Receipt of state payment.
- Authenticating a signature
- It is important to verify the signatures on the request form KR5 when providing papers in hard copies. Signatures may be certified as a sworn notary or in the Orphan’s Court.
Before submitting a request for certification, the Statutory payment is made. Only once the business registry has verified that the Administration fee has been paid to the Treasury fund can the registration be completed. The State charge can be paid by wire transfer to any bank two days prior to the online or postal filing.
Change in procuration
If the procurer’s private information updates or the contract’s value increases, the modification should be reflected in the Organization Record.
If the specific facts of a prosecutor with a personal code issued by the Republic of Latvia change, only the registration form KR18 must be filed, and the State fee must not be paid.
If a modification in the contract value is requested, it will be essential to authenticate the board members’ signatures on the request form KR18 when providing papers in printed form. If revisions to the Prosecutor’s private information are requested, the Management Panel’s signature will not be notarized on the request.
Benefits of procuration
Following are the benefits of Procuration for LLC:
It is possible to preserve your assets
A comprehensive representative that has broad authority can be used to handle assets, property investment, and commercial activities. These given rights enable the broker to conduct asset-protection activities. This ability could be particularly useful in an emergency or if the company requires long-term care owing to your infirmity.
The dispute between company members can be avoided with the help of an experienced representative. The procuration takes all the important decisions for your company, so who doesn’t require voting. The representative will also supervise the group meeting and advice on essential matters.
Take care of business in your absence
If the company owner or shareholders have to visit a foreign country for corporate or personal reasons, the agent can easily take care of all the essential corporate activities on the shareholder’s behalf.
Avoid financial crisis
When the pro agents hire to represent them in business transactions and financial matters with banks and creditors, they can easily avoid any incoming financial obstacle. The experienced procuration helps the company manage its finances in an effective way so that it won’t face any financial crisis.