A procuration is an act of appointing a person or an entity as a representative of oneself or a company. The Company law of Latvia mandates the Governing Board of a company, providing a certain statement of intent is made, to issue a procuration in favor of a person or entity.
The Law further allows more than one person to be simultaneously granted a joint procuration, in which case at least 2 persons will be issued a common prosecutor, who have common rights of representation.
The documents required to be submitted for procuration are as follows:
- Application form KR5 (certified)
- Receipt or e-copy thereof of the state fee payment
The applicant is required to submit the said documents to the Enterprise Registry within 14 days after adopting the decision.
Registration form KR5
For procuration from KR5 is compulsory to be filled and submitted with the Enterprise Registry, and signed by the Management Board.
Furthermore, the application shall lay out the name, surname, and identity number if the person is a Latvian citizen. In case the person is not a citizen of Latvia, the date of birth, number of identity documents such as passport, the date of issue, and the state and institute that issued the document shall be provided.
Signature and certification
It is necessary while submitting the application the paper that the signatures on the KR5 form are certified.
A signature is certified in the following manner:
- A sworn notary in the Orphan’s Court if the procuration is in favor of a person who is a citizen of Latvia. For non-citizens, a sworn notary declares the place of residence.
- In case the documents are being submitted online, an E-signature with a time stamp shall be provided. Whereas if the document is supposed to be signed by more than one person, it may be electronically provided, only when all participants have an e-signature.
Paying the state fee
The Company Law stipulates that the state fee be paid prior to submitting the application for registration. Registration is only possible after the Enterprise Register has ascertained the receipt of the fee in the Treasury account. Note that the state fee may take up to 2 working days before the transaction is reflected; it is prudent to pay the fee at least 2 days before submission of the documents.
As per the official website, the fee for one change is EUR 20 and for two or more changes is EUR 40.
Submitting the documents
The fully filled KR5 form and required documents may be submitted by the Management Board or any authorized person. It is important that while the submission is made online, it must be signed with a secure e-signature and time stamp. In the case of a secure e-signature, notarial certification is not required.
Other important things to remember:
- E-signature issued in a country other than the Republic of Latvia are acceptable
- Mentioning service pay is important
- It is advised to utilize e-address as it is a safer channel of communication between an individual and the country
- In case of paper submissions, the form and the documents shall be submitted to Enterprise Register only
- The submissions must be accompanied by a pay order in favor of the Treasury account for the payment of the state fee
Rights and responsibilities of an authorized person
The Company Law of Latvia lays down the below rights and responsibilities of an authorized person
- Represent the merchant in all activities related to the branch according to the scope of authorization mentioned in the power of attorney. The authorized may be delegated the power to alienate, pledge, procure or rent real estate, enter into certain contracts and transactions, etc.
- An authorized may further be delegated with the rights to perform submissions to various state Registers, terminate and prolong commercial contracts, file insolvency and closure of businesses, liquidation of the merchant, and other similar rights as may be mentioned in the power of attorney.