This article provides all the necessary information about the process of founding and registering an association, including required documents and costs. This article is suitable for NON-RESIDENTS of Latvia.
Quick Links
The Concept of an Association
What is an association? An association is a voluntary union of individuals established to achieve a specific goal outlined in its statutes, which is not for profit.
The founders can be both natural and legal persons, but there must be at least two founders.
An association has the right to engage in economic activities to achieve its goals and support its operations.
The Law on Associations and Foundations governs the fundamental principles, organizational structure, liquidation, and reorganization of these entities.
An association is considered a legal entity.
Goals and Areas of Activity
It’s important to create a clear vision for your association’s purpose, mission, and the areas it will cover.
Associations are classified according to a list of 23 activity areas approved by the Cabinet of Ministers. Association can specify multiple areas of activity simultaneously.
Name of the Association
You’ll need to check if your chosen name is already in use and complies with legal regulations.
Creating the perfect name for your association might not be as difficult as it seems, but there are a few restrictions to keep in mind:
- It cannot include the names of state or municipal institutions, nor the words “state” or “municipality”;
- It cannot include the words “Republic of Latvia” or their translation into a foreign language;
- It cannot contain misleading information about its business form, such as “AS” (Joint Stock Company), “IK” (Individual Merchant), etc.;
- Names containing obscene words or ambiguous terms (contrary to good morals) are not permitted;
- It cannot conflict with a registered trademark or part of one. You can check this using the Patent Office’s trademark search tool
- The name may include numbers, punctuation marks (periods, commas, colons, etc.), and symbols like &, @, %, +, =. Other symbols are not allowed;
- It must not be identical to the name of any entity already registered or submitted for registration with the Enterprise Register. You can check existing names in the Lursoft database
- Punctuation, spaces, and the use of upper or lower case letters are not considered sufficient to differentiate one name from another.
Association Management Structure.
Decide on the formation of a board or council for the association and determine its members and their powers.
A board member is responsible for the association’s assets and their management, commercial activities, proper accounting, and financial resources.
The board is typically appointed during the founding of the association.
Legal Address.
Establishing an association is not possible without a legal address.
This registered address is where official notices, documents, and other correspondence will be sent.
The simplest option is to register the legal address at a property, house, or apartment that you own.
It can also be registered at another property, though in this case, it’s advisable to have an agreement with the property owner to avoid any issues.
Permission from the owner is not required to be submitted to the Register of Enterprises.
For instance, landlords often agree to the registration of a legal address when you rent premises from them.
A popular alternative is a virtual office or address, which is used solely for receiving correspondence.
The Association Founding Process
Below is the step-by-step process for establishing an association.
1. Prepare Founding Documents:
Prepare all the necessary documents for registration with the Register of Enterprises. All documents must be in Latvian language.
2. Initiate the Registration Service:
Start the association registration service with the Register of Enterprises. You can initiate this service electronically or by sending signed, notarized, legalized (apostille) and translated documents together with state fee payment document.
3. Attach Documents and Pay the State Fee:
Don’t forget to electronically sign the submitted documents with QES (Qualified Electronic Signature) and pay state fee Online by card or directly to bank account.
4. Submit the e-Documents:
The submitted documents will be reviewed by a state notary within 7 calendar days. Other way is to send signed, notarized, legalized (apostille) and translated documents together with state fee payment document.
Association Founding Documents.
Here is a list of the necessary documents. You can find templates on the Register of Enterprises website. Specific knowledge and competence are required to fill out and submit these documents correctly.
Association Founding Documents (list):
This must be signed by all founders.
These outline the core principles of the association’s operations and must be signed by all founders or at least two founders who have been authorized in the founding decision.
This application must be signed by all founders or at least two authorized founders.
Each board member must sign and submit their consent to hold the position.
Association Founding Costs.
State Fee.
The state fee for registering an association is €13.
Associations for people with disabilities, orphans, or large families, as well as those whose purpose includes organizing sports events for children and students, are exempt from the fee.
Document Preparation and Submission.
Preparing documents for Association registration typically costs between €60 and €120, depending on the service provider and the number of documents required.
Registration with the Register of Enterprises of Latvia.
The application and accompanying documents can be submitted by the founders or an authorized person.
Via E-service.
Documents must be submitted through the Register of Enterprises service portal or sent to entity official email and signed with an e-signature (QES, eID card or eParaksts mobile). More info regarding e-signatures at www.eparaksts.lv.
The response will be sent to your e-service account or e-address.
An e-address is a more secure communication channel between an individual and the state than email.
By Mail.
Signed documents can be sent by post as registered mail. The package must include proof of payment for the state fee. Please note that this method requires notarized, legalized (apostille) and translated documents, which significantly increases registration costs.
Translating and Authenticating a signature for public registers in Latvia costs around €50 per signature, plus additional fees for data checks, apostille, VAT, additional translations, and other actual expenses.
Don’t forget to check for the latest changes in legislation to ensure compliance with the requirements that will be in effect in future. Regular consultations with experts will help you avoid mistakes and ensure that the business operates in accordance with the law.
Helpful resources
Register of Enterprises of Latvia (Uzņēmumu Reģistrs (UR)): [https://www.ur.gov.lv/]
State Revenue Service of Latvia (Valsts Ieņēmumu Dienests (VID)): [https://www.vid.gov.lv/]
Associations and Foundations Law: [https://likumi.lv/ta/en/en/id/81050]
Commercial Law of Latvia: [https://likumi.lv/ta/en/en/id/5490]