Financial contribution

A tangible or intangible property to be assessed in monetary terms, which may be used in commercial activities of the company, except for things to which recovery cannot be directed in accordance with the Law, may be the object of the financial investment. The financial contribution may not be made in instalments.

The subject matter of the financial contribution may not be:

• obligations to provide services or work;
• expected profit or expected activity in the company;
• expected remuneration, royalties, dividends and similar payments that the founder or Member may receive from the company.

Procedures for evaluation

When establishing a SIA and a co-operative society or increasing the equity capital of a capital company and co-operative society, the financial contribution shall be evaluated and an opinion regarding it shall be provided by the valuer of the financial contribution, which is included in the list of valuers of the financial contribution carried by the Enterprise Register and which is available on the open data portal of Latvia. Open data is available in machine readable format (CSV file) as well as in a user-friendly way in an XLSX file. Learn how to use the open data sets of the Enterprise Register in the open data portal of Latvia?

A relative of the owner of the property to be valued up to the third degree of kinship, a spouse and brother-in-law up to the second degree of affinity, a person who is otherwise interested in the evaluation of the property, may not be the valuer.

Exceptions:

• if, when establishing a SIA, the total value of the property investments does not exceed EUR 5700 and the total amount of the property investments is less than half of the equity capital, the founders themselves may provide an assessment;
• if the equity capital of a capital company of a public person is paid up with a property investment the total value of which does not exceed EUR 14000, an opinion regarding the value of the property investment may be provided by the holder of capital shares;
• if the equity capital is paid up with transferable securities and money market instruments included in a regulated market registered (licensed) in a European Union Member State or European Economic area State for at least two years prior to the signing of the founding contract or the taking of a decision to increase the equity capital, such founders (participants) of the SIA or shareholders of the AS who make the relevant financial contribution may provide an opinion regarding the assessment of the property investment;
• the financial contribution to the equity capital of a co-operative society may be evaluated and provided by all members (founders);
in
• , if the company acquiring the reorganisation is SIA or AS, which, as a result of the reorganisation, must increase the share capital or which is established as a new company, an assessment of the property of each company to be acquired or the relevant property of the company to be divided shall be performed in order to determine the sufficiency thereof for the increase of the share capital of the acquiring company or the establishment thereof. If the reorganisation decision or contract has been examined by a sworn auditor, the same auditor shall provide an assessment of the sufficiency of the property.
  
  List of Sworn Auditors
  List of commercial companies of Sworn Auditors in the

Opinion

The following shall be indicated in the opinion regarding the value of the property investment:

1. a description of each investment subject;
2. the value of each investment item;
3. ownership of property;
4. the method for assessing each investment (this may not be indicated if the valuation is carried out by the founding fathers);
5. include an opinion regarding the conformity of the object of the financial investment with the types of commercial activities of the company;
6. information, which has been used as the basis for the determination of the value of the financial investment, if the equity capital is paid up with transferable securities and money market instruments included in the regulated market registered (licensed) in a European Union Member State or European Economic area State, and the founding fathers shall provide an opinion

If the opinion is delivered by the founders, it must be signed by all founders.

Model opinion

An opinion regarding the valuation of the financial contribution shall be valid for six months from the day of drawing up thereof. An opinion on the valuation of the financial contribution shall also be valid on the day when the founding agreement is signed or a decision is taken to increase the share capital.