Forum for you to have your say on issues affecting Sheffield and district. All subjects are fair game but please keep it friendly and be respectful. You are responsible for all that you post.
The joint-stock company, commonly abbreviated as JSC, is a public legal entity, meaning its shares can be publicly traded. Similar to a limited liability company, the liability of JSC shareholders is also limited by the capital contributed.
The minimum capital amount for JSC is EUR 35,000 and this amount must be paid in full upon registration of the company. For certain legal entities such as insurance companies, banks and other non-bank financial institutions, the minimum share capital amount can be much higher.
shareholder of the company
Similar to a limited liability company, company shares can be owned by both legal and natural persons. But unlike a limited liability company, JSC shares can be bought and sold publicly. The maximum number of shares is unlimited and additional shares can be issued during the life of the company. There are different types of shares, and usually the voting rights of shareholders and the receipt of dividends depend on the category of shares. Typically, shareholders have the right to express their opinion on the management of the company and other issues such as profit distribution and council appointments. All shareholder decisions are made during a shareholders' meeting.
A council elects and dismisses the members of the board of directors. The Board of Directors is the executive body of the company. Unless otherwise stated, all board members represent the company collectively and decisions are made by voting. Only a private person can be a board member.
Documents needed for JSC formation in Latvia
In order to register a company in Latvia, the following documents must be submitted to the Business Register of the Republic of Latvia:
Application form for company formation;
agreement (or decision in the case of a sole shareholder) to form a company;
articles of incorporation of the company;
Bank reference confirming deposit of share capital;
Directory of the register of founders of the company;
confirmation by the works council;
Confirmations of the board members of the company;
Resolution on the legal address of the company signed by a member of the board of directors;
Resolution on permission to register the company at the given address (signed by the owner of the property);
Proof of payment of state taxes for company incorporation;
Receipt of payment for a publication in the official newspaper "Latvijas Vestnesis"
JSC incorporation process in Latvia
Incorporation of a JSC in Latvia is a complex legal procedure, which requires involvement of experienced corporate lawyers or incorporation agents. JSC incorporation generally consists of the following steps:
Collection of all necessary information and documents for the incorporation of a company;
Preparation of the foundation documents for the incorporation of a company;
Signing of the foundation documents (at the notary);
Opening of a temporary bank account where the share capital is paid;
Payment of state fees for the company formation and the publication in the official newspaper;
Submission of the foundation documents to the Register of Enterprises of the Republic of Latvia;
When the company is registered, you shall receive following documents:
Certificate of registration;
Articles of association;
Decision of the state notary of the Register of Enterprises of the Republic of Latvia
Reporting to tax office
JSC is obliged to report its financial statements once a year and a report on the company’s employee salaries must be submitted each month. In case the company’s turnover exceeds 50,000 EUR, it is obliged to register as a VAT payer. This also needs to be done if the company plans to export goods or services abroad. If a company is registered as a VAT payer, it has to submit VAT reports on a monthly basis.