Liquidation of companies in Latvia
The process of liquidating a company in Latvia becomes pertinent in times of economic uncertainty and shifts in the business landscape. Companies may need to cease operations for various reasons, including financial difficulties, strategic realignments, or legal compliance. Liquidation enables a Latvian company to formally terminate its existence, fulfill obligations to creditors, and distribute remaining assets among shareholders. A thorough understanding of the liquidation process is essential for entrepreneurs, legal professionals, and auditors to ensure its lawful and efficient execution.

This publication will explore the reasons necessitating company closure in Latvia and the different types of liquidation, such as voluntary and compulsory liquidation. We will outline the detailed process of voluntary winding up, from the adoption of a shareholder resolution to the company’s removal from the register. Additionally, we will examine the stages of compulsory liquidation, including the initiation of the process, court proceedings, and enforcement of the court’s decision.

General information on Latvian legislation regarding company liquidation

The liquidation of a company in Latvia is governed by stringent national legislation, encompassing all aspects from decision-making to the final closure. Understanding the legal and regulatory framework is crucial for successfully completing the liquidation procedure. Latvian laws provide clear and transparent processes designed to protect the interests of creditors, shareholders, and other stakeholders.

Let's examine the principal legislative acts that regulate the liquidation of companies in Latvia:

Legislative Act


The Commercial Law (Komerclikums, 2000)

Regulates the formation, operation, and liquidation of commercial enterprises in Latvia. Includes provisions for voluntary and compulsory liquidation, creditor notification, liquidator appointment, and asset distribution.

The Insolvency Law (Maksātnespējas likums, 2010)

Governs bankruptcy and liquidation of insolvent entities. Details procedures for initiating bankruptcy, appointing administrators and liquidators, and asset distribution among creditors.

The Law on the Register of Enterprises (Uzņēmumu reģistra likums)

Regulates the activities of the Register of Enterprises of Latvia, covering registration, modification, and liquidation of legal entities. Specifies procedures for filing liquidation documents and reporting requirements.

The Law on Taxes and Fees (Par nodokļiem un nodevām)

Encompasses tax regulations in Latvia, including Corporate Income Tax Law and Value Added Tax Law. Defines tax obligations of companies during liquidation.

Key reasons for company liquidation in Latvia

  • Inability to pay debts: When a company's assets and cash reserves are insufficient to cover its debts, it may be declared insolvent. This can lead to voluntary or compulsory liquidation, as mandated by Latvian law, to protect creditors' rights.
  • Owner's decision to close the business: Owners may choose to liquidate the company for personal or strategic reasons, such as retirement, moving to other ventures, or ceasing operations without financial distress. This initiates a voluntary liquidation process.
  • Court order: A court may order the closure of a company due to legal disputes or failure to meet financial obligations. Creditors or regulatory authorities can petition the court, which may mandate compulsory liquidation to settle debts and protect involved parties.

Types of liquidation of a company in Latvia

The process of terminating a company's operations in Latvia can be initiated in various ways:

  • Voluntary liquidation: Initiated by the company's owners for reasons such as business closure, strategic changes, or personal circumstances. It allows owners to control the winding down process and minimize risks.
  • Compulsory liquidation: Conducted based on a court order, often prompted by creditors, regulatory authorities, or other interested parties when the company violates the law or fails to meet obligations. It ensures debts and legal issues are resolved under judicial supervision.
  • Deregistration by decision of the registrar: Initiated by the Registrar of Enterprises if significant irregularities are found during registration, making the company's registration invalid. This upholds societal interests and the rule of law.

Summary guide to company liquidation in Latvia




Key Points


Decision by shareholders: begins with a resolution passed at a general meeting of shareholders.

Appointment of liquidator: shareholders appoint a liquidator to manage the process.

Notification of creditors: liquidator notifies creditors and publishes the liquidation notice publicly.

Preparation of liquidation balance sheet: comprehensive analysis of assets and liabilities.

Asset distribution: satisfies creditor claims and distributes remaining funds to shareholders.

Final report and deregistration: liquidator prepares a final report, gets shareholder approval, and submits it to the Register of Enterprises to deregister the company.

Controlled by the company's owners.

Allows for orderly winding down and risk minimization. Requires thorough documentation and reporting.


Court order: triggered by creditors, regulatory authorities, or other parties filing a claim in court.

Judicial review: court reviews evidence, including the company's financial status and legal compliance.

Appointment of liquidator: court appoints a liquidator to handle the process.

Asset sale and debt settlement: liquidator sells assets and settles debts according to legal priorities.

Final report and court approval: liquidator submits a final report to the court for approval.

Register update: liquidator applies to the Register of Enterprises to close the company.

Mandated by a court due to insolvency or legal violations.

Ensures creditor rights are protected under judicial supervision.

Involves detailed court proceedings and compliance.

Initiated by the registrar

Registrar decision: initiated if a company is inactive, fails to comply with reporting requirements, or engages in illegal activities.

Notification: registrar notifies the company of intent to liquidate, providing a deadline to rectify issues.

Decision to liquidate: if issues are not resolved, the registrar decides to proceed with liquidation.

Appointment of liquidator: registrar appoints a liquidator to oversee the process.

Asset sale and distribution: liquidator sells assets and distributes proceeds to creditors and shareholders. Final Report and Registrar Update: Liquidator prepares a final report and submits it to the registrar for updating the company's status.

Ensures compliance with legal and regulatory standards. Conducted to uphold public interest and legal integrity.

Involves strict adherence to statutory procedures.

Document package for company liquidation in Latvia

The dissolution of a company in Latvia necessitates the submission of several essential documents.

  1. Application to the Register of Enterprises
  2. Resolution of the owners or minutes of the general meeting
  3. Liquidator's consent
  4. Financial reports
  5. Receipt for payment of state duty
  6. Reports to the State Revenue Service
  7. Division plan for remaining funds and property
  8. Auditor's report

Taxation upon liquidation of an enterprise in Latvia

Taxation during company liquidation in Latvia is crucial to ensure legality and accuracy. Fulfillment of all tax obligations is mandatory before closure.

Final tax returns
Liquidator files returns for all tax liabilities up to liquidation, including corporate tax and VAT.
Liquidation balance sheet
Report detailing all assets and liabilities at the start of liquidation.
Tax audit
Conducted by tax authorities to confirm correct tax payments and obligations met.
Certificate of no tax arrears
Issued after a successful tax audit, required to complete liquidation.

Compliance with these tax requirements is essential for a legal and accurate liquidation process.

YB CASE provides a comprehensive range of services for company liquidation in Latvia, ensuring the legality and accuracy of all procedures. YB CASE specialists possess extensive experience in corporate law and tax legislation, enabling them to effectively address problems of any complexity.

YB CASE offers the following services:

Consultations on choosing the type of liquidation
YB CASE experts will help determine the most suitable type of liquidation, considering your company's specific circumstances and the prevailing legal context.
Preparation and execution of documents
Specialists will prepare all necessary documents for liquidation, including minutes of shareholder meetings, notices to creditors, liquidation balance sheets, and tax returns.
Appointment and assistance in the work of a liquidator
YB CASE will assist in selecting an experienced liquidator and provide support throughout all stages of the liquidation process.
Regulation of tax obligations
The company ensures the accurate fulfillment of all tax requirements, including the payment of taxes, preparation and submission of final tax reports, and conducting the final tax audit.
Alternative solutions
If liquidation is not the only or best option, YB CASE will advise on reorganization, company sale, or bankruptcy proceedings, helping you find the optimal solution for your business.

By engaging YB CASE, you will receive professional assistance and support at every stage of company liquidation in Latvia, enabling you to avoid errors and minimize risks associated with this intricate process.

Alternatives to liquidating a company in Latvia

Liquidation is not always the only option for ceasing a company's operations. Here are alternative methods that may be more advantageous and cost-effective.






Combining two or more existing companies to create a new entity.

Shareholders approve the merger

Document in meeting minutes

Analyze assets and liabilities

Sign merger agreement (details of merger, share distribution, corporate structure)

Official registration in Latvian National Register of Companies.


One company takes over another and continues its existence.

Shareholders approve the acquisition

Document in meeting minutes

Analyze assets and liabilities

Sign takeover agreement (details of acquisition)

Registration with relevant governmental bodies.


Transforming a company into another entity by changing its legal form or status.

Change company name, management structure, and business model

Register new entity.


Splitting a company into two or more new entities.

Allocate assets and liabilities among new entities

Register new legal entities.


Separating one or more parts of a company to form new, independent entities.

Allocate assets and liabilities to new entities

Register new legal entities.


Selling a company as an alternative to liquidation, allowing owners to receive compensation for shares and assets.

Prepare company valuation (assets, liabilities, market position)

Prepare necessary documents (financial statements, legal documents, business information)

Search for potential buyers (marketing, advertisements, negotiations)

Discuss terms of sale

Sign sale agreement

Register ownership change.

These alternatives provide Latvian businesses with flexible and strategic solutions to address financial and operational challenges, preserving some of the company's assets and value.


Engaging YB CASE for the liquidation of a company in Latvia ensures a smooth, legal, and efficient process. Our comprehensive services, including consultations, document preparation, tax regulation, and support in appointing a liquidator, help mitigate risks and navigate the complexities of liquidation. For those considering alternatives, YB CASE offers expert advice on reorganization, company sale, or bankruptcy. Trust YB CASE to provide professional assistance and minimize the challenges associated with closing a business in Latvia.

Tags: Latvia
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