Founding of a company begins with the idea of a future leader and the desire to turn it into a business. A limited liability company or SIA is the most popular form of business in Latvia, it can be registered even with a share capital of one euro. In total, the establishment of a limited liability company (application in the Register of Enterprises, a bank account, an agreement with the State Revenue Service, and other arrangements) requires the average of two weeks.
SIA types that can be registered in the Register of Enterprises:
low-capital SIA with the share capital of less than 2800 euros;
SIA with the capital of 2800 euros and more;
SIA with one founder and board member;
SIA with two or more founders.
Briefly about the important
Currently, the most popular form of business in Latvia is limited liability company with the share capital of one euro – it is the easiest and cheapest company to be registered.
Before submitting documents to the Register of Enterprises, the founders (one or several) must make the decision of the founding or enter into a founding agreement.
Each SIA requires Articles of Association – it sets out the most important operating principles of the future company, which are approved by the founders with a signature.
All companies have to open an account with one of the banks of Latvia and pay the amount of share capital into it. Once the company is registered, the provided account is transformed into a permanent account.
Any company is a taxpayer – it becomes such immediately after registration in the Register of Enterprises.
Also, every taxpayer must login to the Electronic Revenue System of the State Revenue Service for identifying the taxpayer and later communicate with the Service, submit reports, etc.
Documents to be submitted to the Register of Enterprises
The website of the Register of Enterprises contains the complete list of documents that have to be submitted, when founding a limited liability company, including various forms that can be easily filled in electronically or in printed form. The following documents must be submitted to the register:
- application form with the signatures of the founders, which must be notarized, or secure e-signatures;
- decision on the founding or memorandum of association;
- articles of association;
- a bank statement or other document regarding the payment of the share capital (if it is paid in cash) or an opinion regarding the value of the property investment (if the share capital has been paid for with the property investment);
- a section of the register of participants (with certified signatures);
- consent of the council members to hold positions (if a council has been established);
- consent of the board members to hold a position (with certified signatures);
- a statement of the Board regarding the legal address and consent of the real estate for the registration of the legal address of the merchant;
- receipts or Internet bank printouts confirming the payments made for the establishment of the company and publication in “Latvijas Vēstnesis”.