General Information about Company Formation in Latvia
This is one of the three Baltic States, the Republic of Latvia became independent in 1991, Latvia is a member of the European Union since 2004.
Latvia is an Onshore jurisdiction
Latvia is known for its attractive tax rate and is very close to other European countries economy. The country offers good privacy. Note that at the account level, procedures are simplified for non-resident investors in Latvia.
Basically latvia applies a lower tax on dividends. Dividends are taxed at 10%.
In Latvia on 1st January 2013 the taxation of subsidiaries and holdings has been removed. Latvia since then become one of the major jurisdictions to form holding companies. Another important information is that the fact that Latvia is officially part of the European union will allow you to hold legally any company / organization in Europe.
Then you can and completely legally take back profits without any withholding tax. Your Latvian company will then pay all or part of its profits from its subsidiaries with no tax through an offshore company. The shares of the Latvian holding may be held by an offshore company in RAK for example.
However, we suggest that you consult a tax advisor in order to validate this type of installation to avoid problems with tax authorities in your country of residence.
Please also note that this type of arrangement involves companies but that does not call into questions on your tax responsibilities as a physical person at your place of residence.
1. Company Formation in Latvia: 4 days.
2. Shelf Company: Available.
3. Accounting: Required.
4. Shareholder Nominee: Possible.
5. Nominnee Director: Possible.
• Taxation de 15%
• VAT number possible
• T.V.A Latvian: 21%
• Confidentiality guaranteed
• Stable Jurisdiction
• Efficient and reliable banking system
• Currency EURO
“Type of offshore company” – (SARL) – Sabiedriba
“Capital requirements” – 2000 LVL
“No minimum, limited liability to the amount contributed”
The main activities that you can take with a company formation in Latvia:
“Detention of real estate property”
“Detention and exploitation of IP”
“Organizing Your Estate”