Company Liquidation in Latvia

Are you interested in liquidating a company in Latvia and need legal representation? You may explore this article for information on this topic and also check our online legal services provided by our Latvian lawyers.

What are the methods to close a company in Latvia?

Through:

• Voluntary method,
• Involuntary method.

What are the reasons to wind up a company in Latvia?

• Financial losses/unprofitability,
• Insolvency,
• Business completion,
• Company restructuring,
• Compulsory actions by the state agencies, etc.

In what situations can a company owner close the firm in Latvia?

If retiring and there is no business continuity. Thus, assets can be restructured or distributed when closing the company.

What does voluntary winding up a company in Latvia involve?

The process of closing a company in Latvia begins with the decision of the shareholders and the resolution signed by them. Here are the next steps:

• a liquidator is appointed to deal with the company liquidation in Latvia. It can be appointed by the company’s shareholders.
• creditors are notified, with the help of the liquidator in charge of winding up the company in Latvia.
• the liquidation notice is then published in the Official Gazette in Latvia.
• the liquidator can collaborate with the company’s accountants to prepare the balance sheet and asset report. The details regarding the company’s debts and their payment will also be worked out.
• after the sale of assets, he goes on to pay the company’s debts.
• deregistration follows after a final report is submitted to the Register of Enterprises of the Republic of Latvia.

Where is compulsory liquidation of a company in Latvia carried out?

• at the Register of Enterprises in Latvia,
• the State Revenue Service can also commence the forced liquidation.

When is compulsory liquidation of a company in Latvia imposed?

For:

• not filing annual reports,
• not having an active board member,
• not having a registered legal address,
• not disclosing Ultimate Beneficial Owners (UBO), etc.

NOTE: Official agencies can detect active companies in Latvia that do not comply with the applicable legislation. If corrections/changes are not made, companies can be closed after receiving an official declaration in this matter.

What happens if a company in Latvia has an expiration date?

Voluntary liquidation is recommended.

What is the time frame to wind up a company in Latvia?

The process of company liquidation in Latvia may take from a few months (when the claims are easy to satisfy) to a few years if there are many claims to cover.

In addition to assistance for company liquidation in Latvia, our specialists can guide you in other situations. For example, we help foreign citizens with immigration to Latvia. Also related to this topic, it is good to know that we offer legal services for those interested in residency in Latvia and even citizenship. Our law firm in Latvia can provide more information about any topic that might interest you. Contact us today!