Company formation and accounting in Latvia
Last updated: 2012-07-10
According to Latvian Commercial law a merchant is a person, that is registered in the commercial register. In the commercial register can register sole traders, partnerships and companies (company with limited liability and joint stock company).

Details of a merchant/company is the list of data (identification data), than helps uniquely to identify the merchant/company.

A merchant (company) in business letters and other documents of paper or electronic form, as well as in a web page, specifies the following information:
• Company name (firm),
• Registration number in the commercial register,
• Address of registered office (legal address/registered address),
• Where appropriate, an information that the merchant is in a process of liquidation or insolvency.

If a merchant has opened a branch, then additionally need to provide the following information:
• Name (firm) of the branch, if it is different from the name of the merchant,
• The registration number of the branch in the commercial register,
• Legal address of the branch.

If the amount of the share capital (equity capital) is specified in the details of a merchant, then the merchant also must inform about the amount of paid-up share capital.

According to the Accounting law, in accounting source documents (for example, in invoices) a merchant additionally to the above mentioned details must specify following details:
• name, number and date of a document,
• description of the transaction and basis for the transaction,
• measurements (quantity/volume and amounts),
• persons that are directly involved in the transaction,
• signatures of persons that are responsible for the transaction.

According to the Value added tax law, on the value added tax (VAT) bill (VAT invoice) must write following additional details:
• a sequence number of series to uniquely identify te invoice,
• registration number in the register of VAT payers,
• VAT rate,
• price without VAT, VAT amount and total amount,
• in certain cases must specify basis for VAT rate (for example, if VAT rate is less than standard rate),
• for the sale of goods must specify address of delivery (place where the goods will be delivered),
• depending on the type of transaction and other conditions you may need to use/specify additional details.
To get rights to deduct VAT, it is important to have all necessary details on the received VAT bill/invoice.

In documents a merchant may also use following details:
• phone and fax number,
• email address,
• website address,
• banking details (bank name, SWIFT/BIC and bank account number/IBAN),
• postal address,
• physical(actual) address (if different from the registered address),
• name and surname of a director.

Comments, questions

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