Often foreign merchant acquire shares in an LLC in Latvia. In the process of acquiring shares, a foreign merchant is represented by a member of the board of directors or a director (for example, in the UK this is a director).
When registering these changes in the Commercial Register of Latvia, the notary of the Enterprise Register usually requests a current certificate from the register of legal entities of the country where the foreign merchant is registered. This certificate must contain information confirming registration, legal status, information about beneficiaries, as well as information about persons who have the right to represent a foreign merchant. As a rule, this was enough.
However, quite recently this practice has changed, and now notaries of the Latvian Enterprise Register require confirmation of the right of a member of the board or director of a foreign merchant to represent the company separately, by analogy with the Commercial Law of Latvia.
Not all foreign registers record such information. Theoretically, information about the right to represent the company can be specified in the charters, but providing a notarized copy of the charter with a translation into Latvian, firstly, creates an additional financial burden, and secondly, these charters do not always contain an answer to the question about the right of board members/directors to represent the company individually.
The most effective solutions may be:
- documents are signed by all members of the board or all directors;
- all members of the board/directors issue a simple commercial power of attorney to one of them without notarization, which is submitted to the Register of Enterprises of Latvia along with the rest of the documents.
Law firm Inlatplus has extensive experience in working with the Latvian Enterprise Register and is always ready to provide its clients with competent assistance in resolving issues related to opening companies or changing existing ones.
Recent News
