Register a Low Capital Limited Liability Company in Latvia
CR Latvia offers low-capital limited liability company registration in Latvia.
A low-capital LLC, is essentially the same limited liability company, with the only difference on reduced sharecapital requirements from EUR 1 to EUR 2799, and also limits that the board members of the company must also be the shareholders.
A low-capital limited liability company in Latvia is faster to establish than a standard limited liability company, because the sharecapital can be deposited in money, rather than wired on bank account, therefore, the low-capital LLC in Latvia doesn't need a temporary bank account before it is incorporated.
When to choose Low-capital Limited Liability Company in Latvia?
üWhen natural person wants to do business in Latvia.
üWhen the number of the board/shareholders are less than five individuals.
üSimplified procedure. No temporary bank account required to open low-capital LLC in Latvia.
Limited Liability Company with reduced share capital generally is subject to following requirements of the Commercial Law of the Republic of Latvia:
1. The number of board members of the company should not exceed five individuals.
2. The number of shareholders of the company should not exceed five individuals.
3. The board of directors should consist of one or more members, and they all should be shareholders of the company.
4. Each shareholder can be only a member of a single limited liability company with reduced share capital.
5. Only physical (natural) persons can be shareholders in reduced share capital company.
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:
ü Increase the share capital
ü Cover losses of annual report, if they are not covered by the previous annual report
ü Cover losses of previous financial year if they are not covered by the annual report
To find our more information do not hesitate to contact our Latvian company establishment lawyers in Latvia - info@companyregistrationlatvia.lv
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