In an effort to simplify the establishment and operation of businesses, the threshold for in-kind contributions that require expert valuation when founding a limited liability company (SIA) has been raised, according to amendments to the Commercial Law approved in the third and final reading by the Saeima on Thursday, 19 June.

Henceforth, in-kind contributions of up to €25,000 will not require a valuation. If, when increasing the share capital of a limited liability company, the total value of the in-kind contribution exceeds €25,000 but does not surpass €50,000, the valuation and opinion may be provided by the company's board. An expert opinion on the in-kind contribution will only be required starting from €50,000.

Until now, the regulation stipulated that any in-kind contribution exceeding €5,700 at the time of establishment required an independent expert valuation. These were considered disproportionate requirements for small and medium-sized companies, as stated in the explanatory note to the draft law. According to the amendments, it will also no longer be necessary to evaluate in-kind contributions from non-cash loans.

Saeimas Press Service