What You Must Know About Latvia Company Formation
Most of the time, Latvia is chosen as a starting point in reaching the European market, and it is for a lot of reasons. Latvia is part of the European Union and eurozone, which only means goods and labour are free to mobilize. Additionally, Latvia has the largest Baltic air transportation hub, which is the Riga International Airport. It offers more than 100 direct flights. The people here have a low-cost living, but the quality of life is high, and the safety index. Therefore, Latvia company formation is a wise move if you are a foreign investor.
If you want to open a business in Latvia, the most efficient for time and cost is to buy a new shelf company. That is because the founding process is challenging to non-residents because of the hidden requirements like the share capital payment. Most of the time, non-residents choose a tailor-made shelf company in avoiding bureaucracy because you can get assistance for the other requirements.
Latvia Company Formation
- Choose the right kind of company. Your options are sole trader, limited liability company, joint-stock company, and the branch and representative office. Each one has its own characteristics, and businesses suit them based on size.
- Your company needs the Memorandum of Association and Articles of Association, which contain all company details.
- You must deposit the share capital, and this step includes a bank account opening in Latvia where a minimum share capital can be deposited.
- Register the company with the Registry of Enterprises: this is the final step, which consists of the submission of the documents needed to the Register of Enterprises.
- You must sign the registration documents at the notary
- Then, provide share capital payment
- Open a bank account after the company registration
The board members and shareholders must approve signatures on the company registration documents, which can do at an authorized notary. Residents of Latvia can have their signatures approved also in the Register of Enterprises. It is also possible to approve the registration documents by securing an electronic signature. Most country residents can give approval of registration documents in an authorized notary in their country.
If you want to register the legal address in a specific location, you must submit the consent of the building owner allowing you to do this.
The process will take 1 to 4 working days. The terms will depend on the co-founders.
How to Open a Bank Account
Based on the standard procedure, after the company registration, the board members should personally go to the bank. They need to bring their passport to complete the questionnaire, leave a specimen signature, choose the required services, and get a code calculator, as well as passwords for a remote connection to an internet bank. Normally, it only takes one visit and the account is already active the following day at the most. There are times that it takes longer to open an account.
There are banks that let you open a bank account without having to visit Latvia. You can do it if your country has a related bank, representative office or branch.
Since 2013, changes were made to the legislation that has gone through a significant improvement in the country.
The income tax deduction does not come from:
- Dividends that Latvian companies are paying non-residents
- Dividends received from the non-residents
- Subsidiaries bonds income
- Non-residents received royalties
It says that holdings have serious advantages when it comes to working in Latvia. The additional detailed information placed on taxes, that happen in Latvia company formation can be researched.
Take note of this information and you may contact 3E Accounting for assistance. Then, we will be there to guide you. Latvia company formation will be a lot easier with our help.