Information on beneficial owners of companies and subsidiaries registered in Latvia

Amendments to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, which entered into effect on 1 July 2020, stipulate disclosure of the beneficial owners of foreign companies and organisations that have registered a subsidiary or representative office in the territory of Latvia.

According to the transitional provisions of the law (paragraph 47 and 48), foreign entities were obliged to disclose information about their beneficial owners to the Register of Enterprises of the Republic of Latvia by 1 January 2021. If these transitional provisions to the law are not observed, the Register of Enterprises of the Republic of Latvia is entitled to exclude representative offices or subsidiaries of foreign entities from the register of representative offices or the Enterprise Register of the Republic of Latvia.

Pursuant to Section 1(5) of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, a beneficial owner is a natural person who:

• is the owner of the legal person;
• controls the legal person;
• owns more than 25 per cent of the capital shares;
• directly or indirectly controls the legal person.

Pursuant to Section 18.1 (4) and Section 18.2 (7) of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, the foreign subject shall submit the following information:

• given name;
• surname;
• personal number; 
• nationality;
• country of permanent residence;
• means of control of the legal person;
• documentary rationale for the control.

The Register of Enterprises is entitled to request additional documents confirming the truth of the above information, pursuant to Section 18.2 (1) of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing.

All original documents submitted to the Register of Enterprises of the Republic of Latvia that have been issued in the territory of third countries or copies of original documents that have been made in the territory of third countries must be apostilled or legalised if these countries have not signed the Hague Convention.

It is also worth noting that foreign entities using different documents to identify themselves in the country of residence and in the territory of the Republic of Latvia (passport for travel abroad), when certifying the identity of the beneficial owner must state the information from the document under which they entered the territory of the Republic of Latvia.

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We have extensive experience in dealing with the Register of Enterprises of the Republic of Latvia and we are ready to provide any necessary legal assistance in registering beneficial owners with the Register of Enterprises of the Republic of Latvia.

For more information, please contact us by e-mail mail@l2bmanagement.com or by telephone: +371 67373020.