Register an offshore company in Latvia

Positive Invest offers individuals and legal entities services for opening companies in Latvia. Region advantages:

• the country is a member of the eurozone. Having bought an offshore company in Latvia, you can get a Schengen visa and move around all European countries without any problems. The owner of the company, who has invested at least 36 thousand euros in the business and paid 28 thousand euros or more in taxes to the budget, can apply for a residence permit together with family members.

Opening a company in Latvia: general provisions

Latvia in its purest form is not an offshore territory. But there are laws that make the opening of firms no less profitable than working in Malta, Cyprus or the Netherlands.

Important: it is impossible to buy an offshore company in the country or register a subsidiary of the company if the head office is registered in a blacklisted offshore.

When deciding to register an offshore company in Latvia, you need to know the following:

• information about the owners or management of companies is freely available;
• the name of the company must be written only in Latin letters, it must not duplicate the name of companies already operating in Latvia. Must have a link to the form of ownership;
• both a citizen of Latvia and a non-resident can become the owner. The founders can be both individuals and legal entities;
• the liability of business owners is limited only by their contributions to the authorized capital. Shareholders' property cannot be withdrawn to pay the company's debts;
• offshore companies in Latvia can be merged, divided, sold, bought, separated from subsidiaries, etc.;
• bookkeeping is mandatory. Both an outsourcing organization and a full-time accountant can keep accounting records. Registration of an enterprise in Latvia involves the monthly submission of reports on accrued and paid wages. Reporting for the past financial year must be submitted to the regulatory authorities no later than April 30 of the year following the reporting one. At the same time, taxes are paid;
• the price of a ready-made company starts from 1 thousand euros.

Offshore companies in Latvia: main differences from other European countries

• the percentage of ownership of the parent company in the founding capital of subsidiaries is not regulated by law;
• the minimum period for which shares are owned by a shareholder is not regulated;
• subsidiaries are not required to engage in the same activities as the parent company.

Register a company in Latvia: popular forms of ownership

In Latvia, you can register a micro-enterprise. In this case, all taxes paid on profits and income received are replaced by a single turnover contribution. There must be at least 1 founder.

In addition, you can register companies of the following types:

• joint-stock company. The founder can be one natural or legal person. The board must consist of at least 1 person if the company is not public and its shares are not in free circulation. If the company lists its shares on the stock exchange, the board must consist of 3 or more people. Mandatory creation of the board of directors of the company. Members of the board of directors and members of the board cannot be the same people;
• personal society. There must be at least 2 founders.

Registration of a representative office of a foreign company in Latvia: Taxes for legal entities

Taxes in Latvia for non-residents do not differ from those paid by companies-residents of the country. Registration of an offshore company involves the payment of the following types of taxes:

• corporate tax is paid at the rate of 15%;
• VAT for transactions within the country is paid at a rate of 21%. If an offshore company operates outside the country or trades for export, VAT is charged at a rate of 0%;
• if transactions are made with companies located in "black" offshores, the tax is paid at a rate of 15%;
• income tax is paid at the rate of 23%;
• recipients of dividends pay 21% of the received amounts to the country's budget;
• offshore companies in Latvia pay 34.09% from the wage fund to social funds;
• owners of commercial real estate pay a tax of 1.5% of the appraised value.

With royalties, capital gains are not taxed, but only if the transactions are not related to companies registered in other offshore companies.

If the company has suffered losses in the current tax period, it has the opportunity to write off the losses during the following financial periods.

Latvia offshore: Information on legislation

Buy a company in Latvia - Working with Positive Invest

Positive Invest offers business owners to expand the boundaries of their activities and enter the European market. The fastest and easiest way to do this is to buy an offshore company in Latvia.

Registering a company in Latvia means entering European markets with the possibility of obtaining loans at minimal rates.

It is possible to list the advantages of opening or buying companies in Latvia for a long time. Our lawyers in a minimum time will give you a package of documents giving you the right to work in the Baltics.