Euro Adoption in Latvia Requires Changes to Corporate Documents
Latvia adopted the euro as of January 1, 2014, becoming the 18th eurozone member state. In only three months the country has got used to the new currency in its everyday life but most of the companies still need to carry out changes to their corporate documents.
It is widely accepted that joining the eurozone will improve the competitiveness of both Latvian citizens and businesses, as well as create new opportunities for the integration into the EU market. However, Latvia is also facing some additional responsibilities. With the accession to the eurozone, companies registered in Latvia have to make changes to their corporate documents. By 30th of June 2016 al articles of association need to be amended so that registered share capital will be denominated in euros. It is also worth remembering that all companies registered prior to June 30, 2013 must submit their most recent register of shareholders by 30th of June 2015 to the registrar.
It must be noted that the transfer period until 30 June 2014 allows companies to make all sorts of amendments of the articles of association without the change in capital denomination currency. However, from July 1, 2014 any amendments to the articles of association will be registered only if the denomination of the equity is in euros.
It is worth mentioning that during the transfer period until 30 June 2016 amendments to the articles that deal with denomination only shall not be in a notarized form, thus saving certain costs. The same applies for other costs such as those related to stamp fee and publication cost that are exempt.
Although this transition period initially seems rather long (30 months), for time saving purposes, we highly recommend to carry out necessary changes as soon as possible in order to avoid possible problems and disputes later.