LLC share capital rules in Latvia

What is share capital?
Capital is money and other monetary value invested in a capital company for the commencement and continuation of the business.

Rules:

• The share capital and the nominal value of a unit are to be expressed in euros and no cents;
• The minimum share capital is 2800 EUR;
• The share capital is paid by the founders, it can be paid by cash or property;
• Up to the submission of the application, the share capital shall be paid at least 50%;
• The share capital is fully paid in the memorandum or within the term specified in the agreement, but not later than within a year from the date of registration in the commercial register;
• When making a monetary contribution, the founders open a bank account in the name of the company being established, arrange the payment of money into it and receive a certificate from the commercial register office of the bank or another document issued by the bank certifying the amount of the paid-up share capital;
• When making a financial contribution, an opinion on the property investment made by the founders should be provided if the total value of the investments does not exceed EUR 5700 and the total investment is less than half of the share capital of the company or the person included in the list of valuers of property investment in the Register of Enterprises;

Eye on outsourcing accounting in Latvia

Outsourcing service provides efficient and friendly service offering cost effective solutions for accounting and payroll-related needs, full financial analysis of accountancy and timely notification to manager about any risk which endanger successful development of business, manages making accounting reports, all necessary accounting documents related to institutions.

So what’s new according this service in Latvia?

The experts of the Association of Accountants of the Republic of Latvia (LRGA) would like to make changes in Law and have drafted amendments according outsourcing of accounting services and intend to enter this Law into force  from 2020.

The amendments will set requirements and criteria for obtaining a license in order to have the right to provide outsourcing accounting and who will be responsible for the quality provision of accounting outsourcing.

As a result of the adoption of the accounting outsourcing bill, the confidence of foreign investors and other persons in the competence and quality of the outsourcing accounting services of Latvia would increase, thus increasing confidence in the business environment of Latvia. It could also have a positive impact on the inflow of investments, the development of business in the country and, accordingly, increase employment and competitiveness of the economy, as well as increase the budget income in the future.

Unfortunately,mistakes in tax calculations can negatively affect the company's further activities and the state budget. Each operating company provides residents with jobs and revenues from the state budget, so it is important for accountants and tax advisers to be provided by professional accountants with appropriate education, competence and experience so that the company can operate for a long time.

LRGA believes that licensing and monitoring of accounting outsourcing providers will be performed by the Ministry of Finance and the person to whom the licensing, accounting, organization of the register and, and the SRS, in accordance with its competence, will be delegated. This will be some kind of quality mark.

Information how much outsourcing accounting can make your work easier you can read here.