Company formation and accounting in Latvia
Last updated: 2015-07-09
Here is information regarding company formation in Latvia if shareholders do not want to come to Latvia. Also here is information regarding nominee directors and shareholders.

Formation process:
- Need to prepare and provide information regarding company. Company name, legal address in Latvia, directors, shareholders, equity capital, etc.
- prepares documents and send by e mail.
- Shareholders and directors sign documents. Need to note that signature on some of the documents must be certified before sworn notary (or Latvian embassy, if possible).
- Depending on country some of the documents may need to legalize or certify with Apostille.
- If shareholder is, for example, the Seychelles company, then need to provide documents that the Seychelles company exists and that certain natural person has rights to represent the Seychelles company. Registration agent may provide such documents and these documents and information included in the documents need to be certified by governmental institution (for example, public notary). Apostille also is required.
- All these documents and also money (for state duty, publication and for services) need to be send to Latvia.
- Then in Latvia, a lawyer of goes to translator and orders translation of the documents (to translate the documents to Latvian language).
- Translator translates and certifies the translation before Latvian sworn notary.
- A lawyer of pays payments, takes all the documents and submits to the governmental register (the Register of Enterprises).
- Wait four working days, receive registered documents.
- If Apostille is necessary, a lawyer of goes to Consular department of Foreign ministry, and gets Apostille (but before need special application, signed (simple signature without notary) by director of the company).
- Wait two working days and receive documents with Apostille
- A lawyer of submits necessary documents to the State Revenue Service to get VAT number (before also would need special authorization, signed (simple signature, no notary certification) by director of the company).
- Wait 5 working days and get VAT number.
- A lawyer of sends all documents to the address, you specify (documents can be send before the company gets VAT number).

Regarding bank account. Usually Latvian banks require that director of company personally comes to a bank and signs necessary documents. can open only temporary bank account. In such bank account money can came in, but can not go out before the temporary bank account is changed to permanent. According to Latvian legislation Latvian company is allowed to open bank account in any country. So if it is suitable for you, you can open bank account in your country.

It is not mandatory for shareholder and director to come to Latvia.

Regarding payment of equity capital. There is a requirement that to register company, must pay at least 50% of prescribed share capital. So at least 1400 euro must pay before registration. These 1400 euro partly can be paid with material contribution (for example 2 laptops, mobile phone etc.). So these 1400 euro can pay for example, in such a way: 1300 euro pay by material contribution and 100 euro pay by money in temporary bank account in Latvia. In Latvia you can register company with equity capital less than 2800 euro. For example, you can register company with equity capital of 1 euro. But in such case shareholder must be a natural person (not a company). There are also some additional requirements.

Regarding nominee directors and shareholders. Unfortunately does not provide such services. It is not directly prohibited by laws to use nominee directors and shareholders. So if you have some person that agrees to be a nominee director and shareholder, the person can sign documents and be registered as director and shareholder. But according to part 2 of article 17.1. of Commercial law of Latvia, such person must inform the company about that and also must provide information about actual shareholder of the Latvian company. And then the information must be submitted to the governmental register. So, according to legislation, governmental register must know information about actual shareholders.

So, for example, if a shareholder of Latvian company is a company incorporated in the Seychelles islands, then the Seychelles company must inform Latvian company about actual beneficiary of the Seychelles company and then the Latvian company must inform the governmental register of Latvia.

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