The share capital of newly registered companies decreased even faster than the number of new companies last year. At the same time, there is no shortage of companies with a share capital of more than one million euros, according to Lursoft information collected.
Lursoft has calculated that the total share capital of new companies registered in 2019 has reached almost 365 million. euros, while last year the indicator was 56.61% lower, totaling 158.26 mln. euro.
Lursoft has researched that 61.29% of all companies registered last year are small capital Ltd. Compared to the previous year, it must be said that the share of small-capital SIA among newly registered companies has decreased, because in 2019 they accounted for 65.96% of the total number of new companies. At the same time, the distribution of small-cap SIA by the amount of share capital has not changed significantly, as slightly more than a third of all small-cap SIA has a share capital of 1 euro. Lursoft points out that for more than half of all small-capital SIAs, ie 57.07%, the amount of share capital does not exceed 10 euros.
At the same time, despite the tendency for more than half of all new companies to be low-capital companies, there is no shortage of companies with a share capital of more than one million euros. According to the extended search results of Lursoft companies, in 2020 there were 37 such companies.
The largest of them is SIA Orkla Biscuit Production, registered in May last year. The initial share capital of the company was 10 million. euro, but doubled at the end of December last year. The holder of the company’s shares is Orkla Eesti AS, registered in Estonia, while the information on the true beneficiaries indicates that it is not possible to identify them. The information published by SIA Orkla Biscuit Production shows that the company will be responsible for the production of biscuits and waffles for all Orkla Group companies in Europe.
The second largest company is SIA “Marijas 2” registered in December last year, which was registered on December 21, 2020 with 2.8 thousand. euros, but already two days later it has been increased to 14.50 mln. euro. The sole shareholder of the company is SIA “REGALS NAMI”, while Ilona Savčenkova is registered as the real beneficiary. SIA “REGALS NAMI” together with “Novira Capital” is developing a seven-storey office and retail building at the intersection of Marija and Satekles streets opposite the Central Railway Station. Developers plan to invest about 40 mln. euro.
Like the companies in the first two places, the share capital of the third largest company of the previous year SIA “LEH INV.CSP” was increased during the first year after registration. Last February, the holding company was registered with 10 thousand. euro in share capital, but in October it was increased to 7.15 mln. euro. According to the information available to Lursoft, the only shareholder in the company and at the same time the real beneficiary is Castella Garcia Marcos Vincente. The person is registered as a true beneficiary in six Latvian companies.
The largest companies registered in 2020 by the amount of share capital:
- 1. SIA “Orkla Biscuit Production”: 20 miles. EUR;
- 2. SIA “Marijas 2”: 14.50 million. EUR;
- 3. SIA “LEH INV.CSP”: 7.15 mill. EUR;
- 4. SIA “RL2A”: 6.11 miles. EUR;
- 5. SIA “Ulmana 115”: EUR 4.79 million.
–
Lursoft has investigated that, like SIA “LEH INV.CSP”, the shareholders of the fourth and fifth largest companies registered last year are foreigners. It should be noted that out of all companies registered in 2020, in 1046 cases at least one of the company’s shareholders was from abroad.
Representatives from the neighboring countries – Russia, Estonia, Lithuania – have most often shown interest in registering new companies in Latvia. Several companies from Germany have also registered new companies in Latvia last year. In general, the amount of foreign investments in the share capital of Latvian companies in 2020 has increased to 7.59 billion euros. Compared to 2019, this is an increase of 147.71 million. euro.
–
