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On January 1, 2014 amendments to the Commercial Law came into force, according to them the existing equity capitals in lats shall be replaced by sums in euros. The minimum capital requirement from now is as follows:

For limited liability companies nominal value of the shares shall now be expressed in whole euros. As to joint-stock companies, the nominal value of the shares now should not be less than 10 cents  and it must be divisible by 10 cents.

Capital company whose share capital and nominal value of the shares denominated in lats will have to make the changeover to the euro in the period between January 1, 2014 to June 30, 2016 . If within this period the company does not change the equity capital into euro it will mean that the statutory documents of this company breach the law, therefore the Register of Enterprises would be entitled to file a lawsuit to terminate the activity of this particular company.

 
Denomination of the shares into euros is connected with making changes in the company's articles of association. Since implementing the changes to the articles of association is an exclusive competence of the founders (shareholders) of the company the decision to switch to the euro shall be made by the meeting of members (shareholders) - Register of Enterprises itself will not automatically convert the equity capital into euros.

 
Please bear in mind that amendments to the Commercial Law establish a basic principle of the denomination of the equity capital, and namely - to minimize changes in the equity capital of the company. It means that as a result of the denomination in euro equity capital must be expressed in euro as close as possible to the previous size of the equity capital in lats. Equity capital as a result of the denomination shall not decrease by more than 1.6%.

Limited liability companies need to make changes not only in the articles of association but also in the register of shareholders since it also contains information about the nominal value of shares and the number of shares held by each shareholder.

 
We are ready to help you prepare all necessary documents to be submitted the Register of Enterprises as well as provide consultations regarding the changeover to the euro. Do not wait for the end of the deadline since there might arise certain difficulties in the process of reregistration.

Law Office INLAT PLUS
Riga, Latvia, Brivibas St. 40-15
Tel. (+371) 67505970
Mob. (+371) 264 570 45
Fax: (+371) 67505978
www.inlatplus.lv