LATVIA OFFSHORE COMPANY INCORPORATION

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Form an offshore company in

Latvia

Latvia is strategically located between Western Europe and Russia, making it a crucial connection point for regional trade, in accordance with international legal principles governing cross-border trade.

Offshore company formation in Latvia

To establish an offshore company in Latvia, the most common form is the SIA (Limited Liability Company). This option offers several significant advantages. Firstly, Latvia offers some of the lowest tax rates in Europe, making it an attractive destination for international investors. Profit tax is set at 0% as long as no dividends are distributed. However, if dividends are distributed, the tax rate increases to 20%, which remains competitive compared to other European jurisdictions.

Furthermore, Latvia provides a conducive environment for conducting regulated activities within the European Union, which can be advantageous for businesses looking to operate in the European market.

Opting for an offshore company in Latvia also allows for the benefits of a holding structure. The exemption from tax on dividends from subsidiaries is one of the most significant advantages, contributing to effective tax optimization.

In summary, Latvia offers an attractive legal and tax framework for the establishment of offshore companies, providing opportunities for tax optimization while enabling commercial activities within the European Union.

WHAT TO KNOW ABOUT LATVIA

Latvia, officially known as the Republic of Latvia, is situated in the Baltic region of Northern Europe. It shares its borders with Lithuania to the south, Estonia to the north, Belarus to the southeast, and Russia to the east. Additionally, it maintains a maritime border with Sweden to the west.

From a political standpoint, Latvia operates as a democratic parliamentary republic, featuring a bicameral parliament, a Prime Minister, and a President.

Latvia’s national identity emerged in 1918 following the conclusion of World War I. However, from 1940 to 1991, it fell under Soviet control and was subject to the Russian regime.

Since its accession to the European Union, Latvia has attracted the attention of foreign investors by streamlining business incorporation procedures and introducing enticing tax incentives.

Furthermore, as a member of the World Trade Organization, Latvia reinforces its commitment to international trade and global economic collaboration.

ESTABLISHMENT OF AN OFFSHORE COMPANY IN LATVIA

Incorporation in 5 business days.
100% online.
Efficiency and discretion.

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USES OF AN OFFSHORE COMPANY IN LATVIA
INTELLECTUAL PROPERTY
A good choice for managing and collecting commissions or royalties related to intellectual property.
Financial institution
One of the activities subject to regulation and the requirement to obtain a license from the regulator is online banking services. Although this license is required, it can often be obtained relatively easily, especially in the case of an Electronic Money Institution (EMI).
Investment funds
In the top 10 countries to offer advantages and facilities for the creation of private investment funds.
Holding
A holding is a parent company whose purpose is to bring together partners or shareholders who wish to acquire a significant influence in other companies.
INTERNATIONAL TRADE
A favorable jurisdiction suited for conducting activities such as e-commerce and import-export, with an exemption from income tax.
Consulting Services
To engage in consulting activities, such as a marketing agency, financial advisors, and software development.

ADVANTAGES OF FORMING AN OFFSHORE COMPANY IN LATVIA
Share capital
A minimum capital of 3000 euros is required.
Accountancy
Compulsory monthly bookkeeping. Compulsory annual declaration. Mandatory audit for financial companies.
Residence
There is no restriction regarding the residence and/or nationality of the directors and/or shareholders.
Taxation
Exemption from profit tax, income tax, capital gains tax, and inheritance tax is legally stipulated. Additionally, there is a dividend tax of 20%, with the option to reduce it to 14% within the legal framework.
Private Banking
An extremely stable banking system characterized by a simplified procedure for remote opening of offshore bank accounts.
FREIGHT TRANSPORT
Getting a transport license in the European Union with a company in Latvia is easy

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Company formation and management

LATVIA COMPANY FORMATION MAIN CHARACTERISTICS

Incorporation time frame
3 days
Type of business entity
SIA
Coporate tax
0%
ISO standards
Available
Dividend tax
20%
Information concerning shareholders and directors
Disclosed
EU VAT
EU VAT
EORI
Available
City
Riga

Are you interested in establishing an offshore company in Latvia?

We offer a thorough study of your needs, in compliance with current legal requirements.

Book your consultation.