Transition to the EURO

Transition of companies to the euro (denomination to the euro)

From 1 July 2014, those limited liability companies, joint stock companies and cooperative societies with capital still not denominated in the euro can submit amended Articles of Association to the RE changing their capital denomination to the euro.

In the first 6 months from the introduction of the euro, companies were able to submit amended Articles of Association that included changes in the procedure of convening meetings of members (shareholders), while still not stipulating the transition to the euro. However, from 1 July 2014, all amendments to Articles of Association submitted to the RE must also stipulate the denomination of the share capital in whole and part (shares) par value from the lats to the euro. The activity of entrepreneurs during these first 6 months is seen as relatively low, since this option has been exercised by only 7,000, or about 5% of the total number of registered companies.

We remind you that changing the denomination of share capital from the lats to the euro must be carried out by 30 June 2016.

Additional information and advice on the re-registration of share capital is available by contacting our specialists.

To change the denomination of share capital from the lats to the euro, it is necessary to amend the Articles of Association of the company. The amendments shall be introduced at a general meeting of the members (shareholders), passing the respective decision. We remind you that the recalculation of share capital to the euro does not take place automatically.

The entities (according to the law) affected by the introduction of the euro:

Merchants:

• LTD, JSC – shall submit the changes to the Register of Enterprises by 30 June 2016.

• Limited liability partnerships (LLP) – the Register of Enterprises conducted the recalculation of investment amounts for each partner and the total investments of the partners to the euro by 1 July 2014. Unlike capital companies, which are obliged to recalculate their share capital and the share capital parts (shares) par value themselves, from the lats to the euro, the Register of Enterprises conducted the recalculation of investment amounts of each partner and the total investments of the partners from the lats to the euro in the entry of the Commercial Register.

Cooperative societies – shall apply for changes to be registered in the Register of Enterprises by 1 July 2016.

Commercial pledges – the Register of Enterprises completed the recalculation of the amounts registered in the Register of Commercial Pledges from the lats to the euro and made the appropriate changes to the Register of Commercial Pledges on 1 January 2014. If the parties to the commercial pledge shall seek changes in the amounts specified in the Contract on the Commercial Pledge, applying a different conversion procedure than that of the law on the introduction of the euro, it will be necessary to submit the respective applications on such changes – application for amendments or novation – to the Registrar of Enterprises.

Public and Private Partnership Contracts – a public and private partner is entitled to amend a public and private partnership contract to convert the amounts set therein in lats to the euro. The Register of Enterprises will not express the amounts in the euro.