Winding up - Latvia
Winding up a business in Latvia is governed by the Commercial Law and the Insolvency Law.
Types of winding-up
Legislation of the Republic of Latvia provides for voluntary winding-up and winding-up by order of the court.
When the company itself decides to cease its activities, a voluntary winding-up commences.
Winding-up by order of the court
A company's activities may cease by order of the court:
- where the company’s founding documents are in breach of the law;
- the company’s equity capital does not meet the statutory requirements;
- where the company has not provided an office of the Commercial Registry with the information or documents required by law;
- where the shareholders have not passed a resolution to wind up the company when they were required to do so according to legislation or the company’s Articles;
- where the board has not held the representation rights for more than three months;
- on the occurrence of other events prescribed by law.
An application to the court may be made by the executive board, the supervisory board, a member of the board, a shareholder, an office of the Commercial Registrer and other persons prescribed by law.
A decision on an enforced winding-up is made by an office of the Commercial Registrer - the Enterprise Register. The procedures for an enforced winding-up are prescribed by legislation.
When filing for bankruptcy is the only option left for a business owner, it pays to cut losses, initiate proceedings sooner rather than later, and move on to a new business project.
Striking-off from the Enterprise Register
If you have decide to wind up the company, you must give notice to the Enterprise Register within 3 days of that decision. The winding-up shall be carried out by the members of the executive board, if the company’s Articles do not provide otherwise or if the shareholders or the court have not appointed a receiver. You need to inform the Enterprise Register of the receivers' identity.
Striking-off from the register of taxpayers
As a taxpayer, whether you are an individual or a legal entity (the company) you must give notice to the tax authority of your intention to wind up the business within 10 days of the decision.
Check also the legislation on this topic in: