A subsidiary may be set up by any trader irrespective of the type of business. It is not a legal entity - all its rights and liabilities belong to the enterprise that uses it in its commercial activities. Although a subsidiary is an independent entity and has its own management, balance sheet and bank account, the parent company is responsible for all the subsidiary's liabilities.
Many of the requirements and procedures for opening a secondary establishment are the same as for starting up a business.
The Enterprise Register considers the applications and supporting documents submitted by subsidiaries, sole traders, partnerships, companies and their subsidiaries and the subsidiaries of foreign companies. It then checks them for compliance and takes decisions on registration.
If a foreign business wishes to open a subsidiary in Latvia, a person authorised by the business shall produce and present a translation of a document proving the legal status of the business in its home country to which a notarised certificate is attached. This should then be submitted to the Enterprise Register.
Many of the requirements and procedures for opening a dependent business are the same as those for a business start-up.
- Setting up a new business - Latvia
The Services Directive: One-stop shop
The Services Directive is a European law that aims to make life easier for businesses that wish to provide services in the European Union – in their home country or abroad. The Directive defines the rules that apply to entrepreneurs wishing to establish a business or perform temporary services in the EU/EEA area (the 27 EU member states, plus Iceland, Liechtenstein and Norway). It obliges member states to eliminate unnecessary bureaucracy, simplify formalities for businesses and make public administrations more efficient.
For the implementation of the Directive, each member state had to set up ‘Points of Single Contact (PSC)’ , e-government portals which help businesses complete their administrative procedures on-line. The PSCs provide comprehensive information on all administrative matters related to setting up or expanding a services business in a given country. This includes for example:
- Which licences, notifications or permits do I need to obtain to start a business (at home or abroad)?
- What do I need to do when I want to offer my services abroad on a temporary basis?
- What do I need to do to apply for a licence? Which authority is responsible?
- Are the licences subject to a fee? What kinds of deadlines apply?
- Which acts and decrees apply in my sector?
- What do I need to do to establish, for instance, a restaurant or a shop? Or to work as a tour operator in another country without actually setting up a company?
- Where can I turn for personalised advice and further information?
With the PSCs, you no longer need to approach various authorities one by one!! The PSC allows you to find all relevant information and to send in your online applications to the responsible authority through one single contact point, the PSC. You can complete your administrative formalities electronically through the PSC. Just contact the PSC of the country that you want to do business in.
All PSCs are part of the European EUGO network; through a central website you can easily access all PSCs in Europe. Of course, the services of the PSCs are optional. You may always address yourself directly to the relevant authorities, too.