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Company establishment

Company establishment,setting up a company, company registration, company formation is a process aimed to open a company and run business under a firm (legal entity). Company establishment includes drafting incorporation documents, appointment of officials, opening a bank account and registration with state authorities.

[1] Company establishment in Latvia

The Latvian Law recognizes company if during company establishment it is registered with the Registry of Enterprises of Republic of Latvia.

Apart of setting up a company and drafting incorporation documents it is mandatory to register you business activity. In addition, depending on the commercial activity it might be required to apply for VAT status, obtaining licence, registration in other state activities.

The Register of Enterprises of the Republic of Latvia (RE) represents an administrative institution that registers enterprises (companies), merchants, their subsidiaries and representative offices within the territory of the Republic of Latvia, as well as all amendments to the basic documents of ­their activity and takes other actions envisaged by legislative acts. The RE also registers mass media, public organizations, commercial pledges, decisive influences, marriage contracts, public and private partnership agreements, religious organisations, political parties, trade unions, arbitrages and processes of insolvency.

Register of Enterprises of Republic of Latvia is the central state authority maintaining the competence of official registries. Data available at Register of Enterprises is publicly reliable, thus the Registries plays quite vital role in daily business.

[1] Registries of Register of Enterprises

Register of Enterprises of Republic of Latvia

commenced its operation on 1 December 1990, shortly after restoration of independence of the Republic of Latvia when active establishment of private companies began. At that time, it became necessary to form an institution for registration of enterprises that would ensure development and effective monitoring of entrepreneurship. The institution began to operate as a part of the Ministry of Justice.

The work of the Register of Enterprises

The Register of Enterprises is a direct administration institution operating under supervision of the Minister of Justice. The work of the Register of Enterprises is governed by the Law On the Register of Enterprises of the Republic of Latvia, bylaws of the Register of Enterprises approved by the Cabinet of Ministers and other laws and regulations.

The mission of the Register of Enterprises is to register entities referred to in the said Law in order to establish their legal status and ensure the authenticity and reliability of the information (on registered entities and facts of legal relevance) referred to in laws and regulations, as well as to ensure the availability of this information which is done by notaries public of the Register of Enterprises.

The Register of Enterprises has departments in Riga, Daugavpils, Jēkabpils, Liepāja, Rēzekne, Saldus, Valmiera and Ventspils.

The Register of Enterprises has the following functions:

to register undertakings and their branches, representative offices and representatives of foreign undertakings and organisations, co-operative companies, European Economic Interest Groupings, European companies, European co-operative companies, political parties and associations thereof, administrators, insolvent entities, associations and foundations for legal protection and insolvency proceedings, religious organisations and institutions thereof, trade unions, mass media, public and private partnership agreements, decisive influences, commercial pledges, property arising out of a matrimonial relationship and courts of arbitration and to ensure record-keeping of the relevant registers;

to provide information on registered entities and facts of legal relevance;

carry out other functions referred to in laws and regulations.

The Register of Enterprises provides the following services:

it registers enterprises or companies (names of enterprises are governed by specific provisions. For example, a name has to be created avoiding inclusion of any misleading information concerning important conditions of entrepreneurship, in particular the legal form of an enterprise (a company) or volume of business. It must also be taken into account that the name is not to be translated.), mass media, commercial pledges, decisive influences, property arising out of a matrimonial relationship, representative offices and representatives of foreign undertakings and organisations, European companies, European co-operative companies, as well as public and private partnership agreements;

the Register of Enterprises ensures record-keeping of the following registers of entities: the Register of Public Organisations, Commercial Register, Register of Trade Unions, Register of Associations and Foundations, Register of European Economic Interest Groupings, Register of Courts of Arbitration, Register of Political Parties, Insolvency Register and the Register of Religious Organisations and Institutions Thereof;

it accepts and examines the documents to be submitted for registration of entities and facts of legal relevance referred to in laws and regulations, and keeps the said documents;

it confirms signatures (signatures are confirmed only for natural persons registered in Latvia and representatives of legal entities, whose representative rights are registered in the public registered of Latvia.

Upon confirming a person\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s signature, an official of the Register of Enterprises verifies the identity and legal capacity of the signatory. The official of the Register of Enterprises confirming a person\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s signature is not responsible for the content of documents.);

it verifies the names (companies) entered into registers maintained by the Register of Enterprises and the relevance of this information;

it examines and prepares replies to the received submissions and requests for information, drafts derivatives of registration files and official documents of the Register of Enterprises, as well as provides the interested parties with the possibility to access the registration files;

it also imposes sanctions determined by international organisations and deals with cross-border mergers of capital companies.

Making entries in the Register of Enterprises

An official of the Register of Enterprises makes entries based on:

application by an interested party;

court judgement;

decision by a public administration institution (in the event of suspending or renewing the operation of an entity).

Entries in the Commercial Register are made electronically by notaries public of the Register of Enterprises adopting a relevant written decision on making an entry that enters into force after signing and starting from the moment when a notary public of the Register of Enterprises electronically certifies (authorises) the completeness and accuracy of the entry unless the decision envisages entering into force at a later date or its entering into force depends on another decision coming into effect.

Jurisdiction of registration

Undertakings and their branches are registered in the Commercial Register according to their location in the jurisdiction of the relevant department of the Register of Enterprises. The activity area of a department of the Register of Enterprises is determined by the Chief Notary Public of the Register of Enterprises whose relevant order is published in the official gazette Latvijas Vēstnesis.

This page was last modified on 06 May 2014 at 12:39.

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