A foundation may be set up by a set of people, legal structures, or associates with akin ambitions commonly spelled out in the articles of association of the organization. Entering foundations into the register of associations and foundations always require at least two persons and lasts seven days. An acquisition is said to have occurred when a foundation transfers its property to another foundation identified as the acquirer. If the acquisition forms a merger, then the joining foundation ceases to exist in default of liquidation and its rights and duties of board members are automatically shifted to the acquiring foundation. All the foundations comprised in the transfer shall submit some necessary documents three months before publishing the notice in the official publication ‘Latvijas Vēstnesis’.
If you are deliberating on transferring property to another foundation or own an acquiring foundation interested in expanding, this article provides information on transferring property from one foundation to another (acquisition) and applying.
Steps to transferring property between foundations
Transferring property from one foundation to another is easy and takes a relatively short time to process, provided the foundations follow the right steps. The following are the steps involved in the process:
- Completing the registration form
- Paying the registration fee
- Submitting necessary documents
Completing the registration form
To hand over a legal property owned by a foundation to another organization, applicants must apply for registration with the Enterprise Register via form B4. This form must be filled out accurately and then signed by either the members of the transferee board or an entrusted person backed by a mandate. The form shall entail the following information:
- Name of the transferee and transferor (transferors)
- The legal address of all foundations
- Types of activities the foundations engage in
- Time of the decision to transfer property
- Information on the members of the foundation, et cetera.
Paying the registration fee
As always, a state fee must be paid to finalize the process of transferring property between the foundations. The fee may vary depending on the kind of service an applicant receives. The Enterprise Register charges EUR 8, 54 as a state fee for each foundation participating in the transfer. This fee should be deposited into the Treasury account two days before submitting the form and required documents. It can be paid in person at any bank or online via a credit card or wire transfer.
Submission of necessary documents
An application submitted without the necessary documents or payment of the state fees will not be processed. It is imperative to prepare these documents beforehand to avoid any delay during the process. The documents should be submitted some months afore to the publishing of a notice in the official publication. These documents are to be presented:
- Application form B4
- Reorganization agreement
- Statement of the conveyed meeting
- A receipt or online printout of the payment of the state fee
- Medium of the transfer of assets
- Power of attorney (if a foreign foundation represented by a fiscal agent is involved in the acquisition)
Method of submission
There are two means a foundation may present an application form and the necessary documents to the register. The first way is by sending electronically via email or using the e-service provided on the website. This can be done from anywhere in the world. Although all documents must be properly authorized by the members of the foundations afore to their submission. The second way is sending by post. This demands the applicant to send an order for the payment of the state fee alongside the attached documents and filled form.