Share capital interesting arithmetic. Latvia
On January 1st 2014 Latvia entered Euro-zone. Thus standard share capital of Latvian Limited Liability companies (SIA) features various changes:
- up until July 1st 2013 standard share capital was expressed in Latvian Lats and was LVL 2,000
- starting from July 1st 2013 shareholders started denoting shares in Euro
- between July 1st 2013 and December 31st 2013 limited companies were registered with share capitals of EUR 2,846
- as of January 1st 2014 the standard share capital for all new companies equals EUR 2,800
- all existing companies having share capital in Lats are required to re-register share capital into Euro. This must be done not later than July 1st 2016
As a result, Standard share capitals can be expressed in various totals. Currently there can exist limited liability companies with share capital of LVL 2,000, EUR 2,846 and EUR 2,800.
Moreover, share capital of LVL 2,000 can convert into different totals depending on the value of 1 share. For example, if the value of 1 share is LVL 20, the share capital of LVL 2,000 converts to EUR 2,828. And if the value of 1 share is LVL 100, the share capital of LVL 2,000 becomes EUR 2,840.
By all means an experienced lawyer is highly recommended. Don’t forget that when making amendments to the Company Register, the shareholders are now required to submit documents certified by the notary.
Do not hesitate to contact IBCC professionals for any legal questions on your existing and new companies.
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