This has already happened:
Latvia was invited to join the Eurozone by the European Union in the summer of 2013. The exchange rate was confirmed to remain the fixed EUR 1 = LVL 0,702804. Latvia has been well prepared and a National plan for Euro changeover and a Law on the Procedure for the Introduction of Euro were reinforced by the Saeima already in January 2013.
The Period of Parallel Price Display started on the 1st of October 2013 and it will continue until the 30th June 2014. During this period all prices in invoices, checks, transaction receipts or price tags or in which ever way a price for product or service can be displayed have to be shown both in LVL and EUR. Preparing cashregisters and invoicing systems has had to be done already earlier. Strictly and only the official exchange rate has to be used and rounding done based only on mathematical principles. It is also expected that the exchange rate will be used in its full six-digit form in the calculations and the rounding to be done to the nearest 1/100 of the EUR, the cent.
Getting ready to circulate the new currency is essential for every business handling cash money. Already now, starting from the 1st of November 2013 the EUR coins and banknotes are issued and distributed by the Bank of Latvia for credit institutions (banks etc.). Companies are advised to consult their bank and prepare by ordering a suitable amount of the new currency.
When establishing new companies it has been possible to register the shareholder`s capital in EUR already from 9th of July 2013. It is also adviseable to do so for all new registrations during the rest of the year in order to avoid reregisterings after the EUR has been introduced.
This is still ahead of us, after the 1st of January 2014:
The changeover in banks and accounts is automatically done on this date free of charge and with no commission. Also the banks with their ATM`s and the service providers for cardreaders are preparing their equipment to change over to EUR automatically. Also all IT and money processing systems of companies will have to be prepared for the changeover. Salaries, social benefits and pensions will be paid in EUR. Accounting will be performed in EUR.
Money exchange from LVL to EUR will happen without any commission in the Bank of Latvia from the 1st of January 2014 onwards. The conversion LVL to EUR is possible without any commission in the commercial banks until the end of June 2014 and in 302 branches of ”Latvijas Pasta VAS” until the end of march.
Principle of contract continuity ensures that contracts and agreements made in LVL will be valid concerning the terms, proportional rates and such, and that values expressed in LVL will be converted into EUR using the official fixed exchange rate. There is no need to change or rewrite all normal commercial contracts.
Period of simultaneous circulation of both LVL and EUR from the 1st to the 14th of January 2014 will ensure that most of the old currency will be replaced by the new currency smoothly. During this two-week period cash payments will be accepted in both currencies, but change will be given only in EUR. It is advised to use all coins of the old currency already earlier.
When establishing new companies after the 1st of January 2014, the company`s minimum registered equity is EUR 2800 for a LLC and EUR 35000 for an AS.
There are significant changes every existing company has to make in the Articles of Association, the shareholder`s register in the before mentioned and the Register of Enterprises. These changes are due because of the introduction of the EUR and the simultaneous reform of the shareholder`s register section in the Articles of Association. The information concerning these changes is gathered on a news article of it`s own.
Leinonen Latvia is ready to help in performing these changes.