Glossary

Merchant (komersants)

In Latvian: Komersants

Companies Updated

A merchant (komersants) under Latvian law is a natural person (sole proprietor, IK) or a commercial company entered in the Commercial Register: a partnership (general or limited) or a capital company (SIA or AS).

What makes a merchant is the entry in the Commercial Register, not the size of the business. Commercial activity is open economic activity a merchant carries out in its own name for profit. Once a merchant is registered, nobody can argue that activity under its firm name is not commercial activity.

An association or a person registered with VID as performing economic activity may do business, but neither is a merchant, because neither is in the Commercial Register. Associations have a separate register of associations and foundations.

A merchant's firm name (firma) is the name entered in the Commercial Register that it uses in business, when concluding transactions and signing. That is the name to put on contracts and invoices.

Example

SIA "Ozols", IK "Kalniņa darbnīca" and the general partnership "Bērziņš un Liepa" are merchants. A bookkeeper registered only with VID as performing economic activity carries on a business but is not a merchant.

Legal basis

This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.