What does termination of company’s activity by the Register of Enterprises means?

Pursuant to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing the Register of Enterprises of Republic of Latvia (hereinafter – the “UR”) has already made a number of decisions on the termination of the activity of such companies that have not provided information on their beneficial owners to the UR.

Companies were required to provide the above information to the UR by March 1st 2018. The UR has sent reminders and warnings to companies who had not provided this information via the Electronic Declaration System and also by mail to the companies’ registered addresses. The activity of companies, which have not responded to the sent reminders, are terminated by UR’s decision.

Taking into account that this situation has also been faced by operating companies that simply lack understanding on the consequences of the UR’s Decision, we have prepared this article to illustrate three possible scenarios for such companies and the course of the relevant process following the UR’s decision on termination of company’s activity.

If you have any questions on the process, please contact Leinonen’s Tax and Legal Advisory Department!

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