Company formation and accounting in Latvia
Last updated: 2012-07-10
According to Latvian Commercial law a firm is a name of a merchant (company, sole trader, partnership). The Commercial law contains multiple restrictions regarding company name - firm.

A firm must not include misleading information on the circumstances that are important in business, especially about the type of a merchant or type of business, and the amount (volume) of commercial activity (for example, if you register company with limited liability, then you must not use the words "Joint Stock Company" and "Sole trader (Individuālais komersants in Latvian)" in a name/firm of the company).

Type of a merchant is and important factor in commercial relations (circulation). As the firm contains information about a type of a merchant, so the firm provides important information about the merchant. From the name - firm the third persons can know if the merchant is sole trader, company with limited liability, joint stock company or partnership.

Aim of some of the restrictions regarding a firm is to prevent possibility to mislead the third persons. Misleading means not only explicitly false information but also information which implicitly or unconsciously indicates on not existing circumstances and information, that is mutually contradictory. So the third person may make wrong conclusions regarding a particular merchant.

Regarding the above mentioned the Department of Administrative cases of the Supreme Court of the Republic of Latvia made judgment in following case. A Latvian company has registered a trade mark with name that includes words "IK". In Latvia "IK" is abbreviation of "Individuālais komersants" or Sole trader. The Latvian company decided to change its name/firm so that the name included words "IK". The Register of Enterprises and court prohibited to include word "IK" in a name/firm of the company. Because if included, then the name/firm of the company would contain two indications to a type of a merchant, - "SIA (limited liability company)" and "IK (sole trader)".

Firm must not contradict good morals.

Latvian legislation prohibits to include in firm the words "Republic of Latvia" and a translation of these words.

If in a firm you include a name of the administrative area or settlement (populated place), then the firm must not be the same as a name of the corresponding administrative territory or settlement (populated place), except for the country estate.

The firm must not include the name of the state and local government institutions, and must not include the words "state" and "municipality".

The use of trademarks regulates legislation relating to trademarks.

In a firm (name of Latvian company) must use only Latvian and Latin letters.




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