Before applying for registration share capital has to be signed and paid, in addition, until applying for the company registration it must be paid up in cash.
The company must meet the following requirements of the Commercial Law:
- The number of founders of the company should not exceed five individuals
- The board of directors should consist of one or more members, and they all have to be shareholders of the company
- Each shareholder can be only a member of a single limited liability company with reduced share capital
Every year limited liability company with reduced share capital should create a minimum reserve by making a deduction of at least 25 % of the year’s net profit. The statutory reserve, based on shareholders meeting can be used to:
- Increase the share capital
- Cover losses of annual report, if they are not covered by the previous annual report
- Cover losses of previous financial year if they are not covered by the annual report
Documents to be submitted are similar to those required to limited liability companies. The difference is in the document which confirms the payment of share capital. In this case it can be confirmation of shareholders or bank reference.
The fees and timing
For registration of a limited liability company with reduced share capital the amount of fees are reduced.
- Single stamp duty/ processing time: 21.34 EUR / 3 working days
- Triple stamp duty/ processing time : 64.02 EUR / 1 working day
- Stamp duty for the certification of a signature ER: ~4 EUR (if the certification is submitted for 3 or more signatures in a single registration for each certification of a signature stamp duty of approx. 3 EUR)
- Publication in “Latvijas Vestnesis”: 14.23 EUR
- Notary duties for attesting documents
