Joint stock company, commonly abbreviated as JSC, is a public legal entity, which means that its shares can be publicly traded. Similarly as limited liability company, also JSC shareholders liability is limited by the contributed capital.

Authorised capital
The minimum amount of capital for JSC is 35,000 EUR and this sum has to be paid in fully by the registration of the company. In case of specific legal entities, such as insurance companies, banks and other non-banking financial institutions, the minimum share capital amount can be much larger.

Shareholders of the company
Similarly as for a limited liability company, the owners of company shares may be either legal entities or individuals. But contrary to a limited liability company, JSC shares can be bought and sold publicly. The maximum number of shares is unlimited and more shares can be issued during the life of the company. There are several types of shares and usually the shareholders’ rights to vote and receive dividends depend on the category of shares. Typically shareholders are entitled to express their opinion about the direction of the business and other subjects, such as the distribution of profit and appointment of the council. All shareholders’ decisions are made during a shareholders’ meeting.

A council elects as well as revokes members of the board of directors. Board of directors is the executive body of the company. Unless stated otherwise, all members of the board of directors represent the company jointly and decisions are made by voting. Only a private person can be a member of the board of directors.

Documents needed for JSC incorporation in Latvia
In order to register a company in Latvia, below documents need to be submitted in the Register of Enterprises of the Republic of Latvia:

Company incorporation application form;
Agreement (or a decision in case of a sole shareholder) to establish a company;
Articles of association of the company;
Bank’s reference confirming the share capital payment;
Founder registry schedule of the company;
Confirmation by the council of the company;
Confirmations by the board members of the company;
Resolution about the company’s legal address signed by a board member;
Resolution about the allowance to register the company in the particular address (signed by the real estate’s owner);
Proof of payment of the state taxes for a company formation;
Proof of payment for a publication in the official newspaper “Latvijas Vestnesis”
JSC incorporation process in Latvia
Incorporation of a JSC in Latvia is a complex legal procedure, which requires involvement of experienced corporate lawyers or incorporation agents. JSC incorporation generally consists of the following steps:

Collection of all necessary information and documents for the incorporation of a company;
Preparation of the foundation documents for the incorporation of a company;
Signing of the foundation documents (at the notary);
Opening of a temporary bank account where the share capital is paid;
Payment of state fees for the company formation and the publication in the official newspaper;
Submission of the foundation documents to the Register of Enterprises of the Republic of Latvia;
When the company is registered, you shall receive following documents:

Certificate of registration;
Articles of association;
Decision of the state notary of the Register of Enterprises of the Republic of Latvia
Reporting to tax office
JSC is obliged to report its financial statements once a year and a report on the company’s employee salaries must be submitted each month. In case the company’s turnover exceeds 50,000 EUR, it is obliged to register as a VAT payer. This also needs to be done if the company plans to export goods or services abroad. If a company is registered as a VAT payer, it has to submit VAT reports on a monthly basis.

Limited Liability Corporations (LLC) are referred to as corporations with corporate structures where the members (shareholders) cannot be held personally liable for the debts or liabilities of the corporation, meaning only the assets of the corporation itself are at risk. For this reason, this corporate form is considered “limited liability”, while the combination of the characteristics of a corporation and a partnership as a characteristic of limited liability is similar to that of a corporation, and the availability of flow-through taxation for the partners is a characteristic of partnerships. LLC as a viable option if the person wants to incorporate a commercial corporation or small business locally or internationally within certain limits.

The nature of a joint stock company
In the case of a joint-stock company (JSC), the shareholders of such business entities are fully liable for the debts of their companies. This means that the shareholders of the public company have limited liability or liability limited by guarantees or shares. Normally, the shares of a JSC are transferrable and can be traded on a legal exchange between private parties (private JSC) or publicly (public JSC). A public company can raise large amounts of capital by issuing its shares. As a rule, joint-stock companies are formed by one or more persons for the purpose of large-scale business operations. It is represented by a board of directors, which consists of at least one person and can also be represented by an authorized representative.

Differences between LLC and JSC
JSC and LLC are the two most common company types these days. There are some key differences between these two forms of legal entities.

JSC issues stocks and bonds per procuration of stocks that may be offered to the public, unlike LLC, which does not issue stocks or bonds. JSC share transfer can be executed upon consent of both parties, if it is LLC, they can be transferred under an agreement certified by a notary public provided that this agreement is executed with the consent of 75% of the shareholders 75% of capital. In LLC, the capital is not divided evenly, but in JSC, the capital is divided evenly.

The fields of activity of companies can also vary. LLC does not engage in business fields such as banking and insurance and other fields determined by specific laws, unlike JSC, which can operate in all fields. For this reason, financial institutions find the structure of a JSC more credible and influential. Another formal difference between JSC and LLC is that the former can be formed for an indefinite period of time as opposed to the latter which is only intended to be formed for a period of 99 years. At JSC, the minimum number of shareholders is 5 and there is no provision as to the maximum number of shareholders. In contrast, the minimum shareholder number for LLC is 2 and the maximum is 50.

However, these two types of businesses have something in common. There are some similarities between JSC and LLC. Both can be registered by filing a memorandum of association with the state registry. Both may be foreign-owned and have foreign shareholders. In both cases, shareholders' liability is limited to their contributions. Both require that at least one investor is a natural or legal person. The investor can be both a resident and a non-resident. The annual financial statements, consisting of the balance sheet, profit and loss account and annual report, must be approved by the shareholders within 6 months of the end of the financial year.

Adult literacy rate in Romania is 98.8%. Male literacy is 99.1%. Female literacy is 98.5%. Therefore, male literacy and female literacy differ by 0.59999999999999%. Government expenditure on education is 4.3% of GDP. The education index of Romania is 0.748 - formal education levels in the country are average, but most of the population has a secondary school education at least; higher education is possible and not uncommon. People in Romania speak the Romanian language.

English language
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