A fund that is established within a foundation that has been granted tax-exempt status contains the Founder’s Endowment as one of its primary purposes. One person or more than one person can establish it, and once it has been registered into the register, it is considered to be a legal person. The categories of activities of associations and foundations that are recognized by the Cabinet Regulations are used to categorize the many types of activities that these organizations engage in. A foundation may engage in commercial endeavors to accomplish the goals it has set for itself. In most cases, the registration process for a foundation will take at least a week to complete.
If you are a business owner considering establishing a foundation or you are interested in knowing how this is a comprehensive guide on foundations and how to register one here.
Registration procedure
The procedure of setting up a foundation in the country is easy and fast. The following steps should be followed when registering a Latvian foundation:
- Select the foundation name
- Prepare the Articles of Association
- Checking for an address
- Complete the application form
- Pay the state fees
- Submit required documents
Selecting A foundation name
A foundation’s name is very important to the success of the organization. Therefore, there are conditions to consider when choosing one. They include the following:
- It must satisfy the laws, and regulations of the country
- It must be special and not similar to existing names in the Register of Associations and Foundations
- It cannot have any misleading information about the purpose, and activity of the foundation
- It should be in only Latvian or Latin letters
Preparing the articles of association
The articles of association specify the principles for the kind of activities it carries out. The document must be signed by the founders of at least two representatives. It must include the following:
- Name
- Aims of the foundation
- Process for transfer of properties to the foundation
- Procedures for utilization of funds
- Timeline of the foundation
- Terms for distribution of property in case of liquidation
- Appointment and removal of a board member
Completing the application form
To completely register for a Latvian foundation, you must fill out the application form B2. The form must be signed by the founding members or two empowered persons backed by the founders. The form shall contain the following:
- Name of the foundation
- Registered address
- Purpose
- Names, and personal identity number of members of the board, etc.
Payment of the state fees
Before an application is submitted, a state fee of EUR 11,38 had to be paid to the Treasury account. The registration can only be processed once the Enterprise Register has confirmed the payment of the state fee to the account. This fee can be paid to any bank in the country at most two days before submitting the required documents.
Submission of required documents
To fully complete the registration process, the application and required documents must be submitted by its owners. The necessary documents to be presented include the following:
- Application form B2
- Decision to establish
- A statement that backs the representative by a fiscal agent
- Application for a psychiatry foundation must be signed by the executor, heir, or trustee
- Bank payment evidence to show proof of the payment of the fee
- Attach a will and trustee documents to a psychiatry foundation
E-service submission
There are three options for submitting the form and required documents. The e-service method is the easiest and fastest. The documents are duly signed with an e-signature on eParaksts mobile on the www.eparaksts.lv portal or a smart card (eID or eParaksta card). Then submitted it online through www.latvija.lv. With this method, you will receive a reply in an e-service or e-address and a 10% State fee discount.
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