Offshore and Latvia

If you are looking for a country where you can open offshore, Latvia may be a good option. The former Soviet republic and current Baltic state is located in Northern Europe. The country is a member of the Schengen area, a member of the EU and NATO. Latvia is not a classic offshore, but the conditions it offers may seem very attractive.

Advantages of Latvian offshore companies

In terms of jurisdiction, Latvian offshore companies have several advantages. One of them is membership in the EU. Latvia has quite effective banking instruments, low corporate tax and the cost of servicing companies. The country provides maximum confidentiality and remote opening of companies. Its jurisdiction is attractive due to the stability of the banking system and good reputation, as well as the increase in the number of agreements with other countries on the absence of double taxation. All this creates attractive conditions for opening an LLC and partner companies. Companies can carry out any activity not prohibited by law. For banking, trust and insurance sectors, you need to buy a license. A positive aspect is a convenient geographical location for the sale of goods exported to the European Union.

Opening bank accounts

The Latvian banking system is considered one of the most stable in Europe. To open an account, it is not necessary to be present and provide recommendations from other banks. Settlements are carried out in any currency both in Lithuania and outside the country. There are no restrictions on the number of transactions and the balance of funds on the accounts. Round-the-clock management of your account is possible from anywhere in the world. Bank policy is protected by a multi-level security system.

Types of companies

Based on the legislation of Latvia and the European Union, an offshore company on its territory can be in the status of a limited liability company or a partner company. Personal presence for registration is not required, it is enough to provide powers of attorney certified by a notary.

A more secure and profitable form is an LLC. Unlike individual entrepreneurship, its founders risk only shares in the authorized capital. It is possible to open a representative office or branch in another country, change the status of a company or merge with another. When creating a company, the authorized capital of which reaches 36,000 EUR or more, with an annual turnover of 20,000, you will be able to obtain a residence permit in a European country.

Latvian offshore companies – registration features

A limited liability company (SIA) must have a minimum authorized capital of 2000 LVL (about $3800). The authorized capital is divided into shares of participants, shares are not issued. The company is managed by a board headed by a director. A participant can be one or more individuals or legal entities. Information about the management and participants is publicly available. Data relating to the beneficial owner can be hidden using a nominee service.

Income-generating companies are required to pay income tax. Depending on the type of activity, value added tax, real estate, natural resources, excise, customs or social tax may be charged. For LLCs, income tax is 15%, for partner firms - up to 25%. Competent management and some other conditions contribute to lowering the tax rate.

Companies are required to report monthly on value added taxes, excise and social taxes, and submit an annual report to the tax office. There is also an income tax return. Partner companies do not pay taxes, but each member (partner) pays them. To open an offshore, you must register an office in the country. For citizens living in Kyiv and other cities of Ukraine, looking for offshore zones, Latvia may be a very suitable option.

Corporate Legislation of Latvia