Company formation and accounting in Latvia
Last updated: 2012-07-10
Register of Enterprises excludes a merchant from the commercial register on the basis of:
• Application of a merchant (sole trader, limited liability company)
• Application of a liquidator of a commercial company
• Application of an administrator in the process of insolvency
• Application of a commercial company to make a record about reorganization (reconstruction)
• Court decision.

The application to exclude from commercial register a merchant (liquidator of a merchant) usually submits to complete (end) the liquidation process. In the application must write date, place, registration number, name of a company (firm) and other information.
Before submission of the application to exclude limited liability company a member of a board of directors or liquidator informs creditors about liquidation process, divide property of a company and does other activities required by law.

An administrator at the end of the process of insolvency also submits an application to exclude a merchant from the commercial register. But in such case a base for exclusion is decision is decision of a court and not a decision of an administrator in insolvency process. An administrator just "formally informs" the Register of enterprises.

The Register of enterprises in certain cases has rights to bring an action before the court to exclude company from the commercial register. Such cases are, for example, if company does not submit annual report or is not available in the legal (registered address).
If a court makes decision to exclude a merchant from the commercial register, the court sends the decision to the Register of Enterprises. A governmental notary of the Register of Enterprises then makes record about exclusion based on the court decision.

Need to note that a merchant is not completely erased from the commercial register. Record about the excluded merchant remains in commercial register, but here is mark "liquidated". And usually another merchant can use a name (firm) of the excluded merchant.
Also need to note: if governmental notary of the Register of Enterprises makes lawful decision to exclude merchant from the commercial register, then notary has no rights to annul (revoke) the decision.
Making decision about exclusion of a merchant, a governmental notary has no obligation to examine actual circumstances. A governmental notary just examines documents and checks if the documents matches legislation requirements.

From the moment of exclusion from the commercial register legal (limited liability company) and natural person (sole trader) looses status of a merchant. However liability of natural person related to business activities of a sole trader exists 3 years after the exclusion.



Comments, questions







You might be interested in:
More about company formation and taxes in Latvia