LLC documents for The decision on the founding or the founding agreement Latvia

If there is one founder, the founding decision is to be drawn up. If there are two or more founders, a funding agreement is to be concluded. The founding decision is signed by the founder, the funding agreement is signed by all founders.

The document should be indicated:

• Information about the founders, if the founder is a natural person: name, surname, personal identity number and place of residence;
• Information about the founders, if the founder is a legal person - the name, registration number, legal address, the name, surname, personal identity number, position and place of residence of the representative who signs the agreement on behalf of the legal person;
• Name (company)
• The amount of the share capital, the number of shares and the nominal value;
• The amount of the share capital registered by each founder and the share capital to be paid up for registration, the payment procedure, and terms;
• The number of shares due to each founder in proportion to its share capital;
• The number of shares and the amount of the nominal value which, when the company is founded, is paid by the property contribution, indicating the subject of each property investment and the name, surname, personal identity number and place of each person who undertakes the obligation to make the property contribution;
• Permissible amount of foundation expenses and the procedure for their payment;
• Any specific obligations, rights or benefits granted to a person who participated in the formation of a company at the time of the foundation of the company (not necessarily indicated);
• Names of board members, surnames, personal codes and place of residence;
• Names, surnames, personal codes and place of residence of members of the Council (if the company has a council);
• The name, surname, personal identity number and place of the auditor if the auditor is intended for the company;
• Other provisions found by the founders to be material and not in conflict with the law;
• Place and date of signature;

If the person does not have a personal code of the Republic of Latvia, then, in the places where it is necessary to indicate a personal code, the date of birth, the number of the personal identification document and the date of issue, the country and the institution that issued the document, respectively.

New era of bills “Electronic Bills”

Maybe the e-billing system is unclear and some countries lags behind other European countries in terms of e-invoicing. It is time avoid stucking in paper traps and PDF invoices, in Europe and in other countries, bills are widely used, whose data is read by specially designed software.

Electronic billing is a bill payment method in which a entrepreneurs can prepare and send bills but customer can pay bills electronically over the Internet. It is widely accepted by many government and other organizations. It is available for private business too.

E-billing is good for  both forms of transaction: Business-to-Consumer (B2C) and for Business-to-Business (B2B).

Manager of Infologist from Omniva Latvia says: "The biggest shortage of paper and PDF invoicing is the necessary time resource, which at the same time means financial consumption. The actions involved in handling 1 paper or PDF billing, from e-mail to archiving and error correction, take on average 39 minutes, but for e-invoices only 9 minutes. Thus, the efficiency of work can be increased even more than 4 times, and in cases when companies need to service a large amount of invoices, it can save dozens or even hundreds of hours of work. Time is money, but e-invoicing is an opportunity for anyone - a large, medium or small business - to significantly improve its accounting.”

E-bills can save resources and gives you possibilities to invest your money somewhere else. The paperless mode of transaction is an environmentally friendly and less expensive form of bill payment. It also saves your time and makes business contacts more easier. Your accountant for sure will tell you “Thank you” and customers too, because electronic payment is available 24/7 for access.

What could motivate you to prefer electronic billing?

Low capital LLC vs LLC in Latvia

There are 2 types of LLC in Latvia which are low capital LLC and the regular LLC.

LLC
A limited liability company is a commercial company whose share capital consists of the total nominal value of the share capital.

A limited liability company is a closed company and its shares are not publicly traded. The company is a legal entity.

rules:

• The minimum share capital is 2800 EUR;
• The founders may be individuals(natural persons) and juristic persons;
• Fixed capital can be paid with cash or property.

Low capital LLC
A limited liability company is a commercial company whose share capital consists of the total nominal value of the share capital.

A limited liability company is a closed company and its shares are not publicly traded. The company is a legal entity.

rules:

• EUR 1-2799 share capital;
• The founders and participants are only individuals (natural persons) and their maximum number is five;
• Board members may be held only by members of the LLC;
• A participant may only be at the one low capital company;