Transformation of a foreign representation into a branch

A foreign representation office (RO) is an entity set up by foreign corporations to create a presence in a country. Amongst other legal entities, registering a foreign representation office takes the shortest amount of time. ROs are usually not dependent on their parent companies after establishment. Although it is a business structure, the office is not allowed to partake in any commercial activity except that stated in the Act. Because a branch office is considered a legal entity, the process of registering one is quite easy. Branches depend on their parent companies, which are liable for their liabilities. A branch does not engage in business unless they have registered with the Enterprise Register. A parent firm can choose to end the activities of its representation office by transforming it into a branch. This may take one to three days to process and varying costs depending on the time of registration. 

If you are a foreign business owner with a representative office abroad considering transforming it to a branch, or you are interested in how this works, this article provides information on the transformation of a foreign representative office into a branch of the same entity. 

Steps to transforming a foreign representation into a branch

There are three steps involved in changing a RO to a branch of the same company. The steps to follow are:

  • Fill out the application form
  • Pay the fees
  • Submit forms and all necessary documents

Fill out the application form

Obtain the application forms PR-3 and KR7 from the Register and fill them out. Ensure the forms are signed by a representative of the office backed by a mandate. The application will terminate the existence of the RO and register the branch. 

Pay the fees

The state fee should be paid before submitting the application forms for registration. Once the Enterprise Register verifies the payment, the application is complete. The payment should be made to the Treasury account of the state at any bank 2 days before submission. The fee for publication in the official gazette “Latvijas Vēstnesis” should be paid simultaneously. This can be in person or via a wire transfer. For registration within 3 working days, the state fee for the application is 37,11 EUR payable to this account:

Uzņēmumu reģistrs

Reģ. Nr. 90000050138

Valsts Kase, Konts: LV84TREL1060190913200

For a registration timeline of one working day, the state fee for the application is 111,33 EUR to be paid to the same account. 

Submit forms and all necessary documents

The application forms and documents requested are submitted by a representative of the company or an entrusted person mandated by the representative of the firm. The forms must be submitted along with the documents electronically or by post. The documents required for submission are:

  • Application form PR-3 (to register at the end of the representative office)
  • Application form KR7 (to enter the establishment of a branch)
  • Proof of the decision of the owners to transform the RO 
  • Documents to register the branch in the Commercial Register
  • Receipt, a copy, or printout of the payment order for the state fee
  • Receipt, a copy, or printout of the payment order for the publication in the official gazette “Latvijas Vēstnesis”

Submission methods

Applicants can submit online and electronically through the website and e-mail. The documents signed with a secure electronic signature issued outside the country are accepted. Note that the Service pay information must be added. When you choose to submit by post, you can send the signed documents to the Enterprise Register. However, you must attach a payment order for paying the national fee.

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