Difference between Shell corporation and Shelf Company

 What is Shell corporation?

Shell corporation is a company or company that only exists on paper and has no office and employee, but can have a bank account or be a passive investment or registered asset owners, such as intellectual property or ship. Shell companies may be registered at the address of the company providing the service that establishes the corporate entities and may act as an agent for receiving legal correspondence. An entity can serve as a transaction for transactions without significant assets or activities.

A shell corporation is an enterprise without active business or substantial assets. These types of corporations are not always illegal, but sometimes they are used illegally, for example, to hide corporate ownership of law enforcement or the public. Shell corporation's corporate reasons include things like starting a business with a company to attract, fund, take, or publicize. As long as the owner has paid all required taxes, none of this is illegal.

Offshore shell company

It is not illegal to create a shell company in an offshore tax paradise. Many service providers can be found online by praising the benefits of a letter-box corporation.

Shelf Company

The names are almost the same, but the meaning is a little different.

A shelf company is a company that is already registered but has never traded or established business and has no assets or liabilities. Essentially, the company is registered to sit on the "shelf", waiting for someone to buy it. Purchasing a shelf company was previously the best way to quickly get business without using a time-consuming new registration procedure. However, company registration is now much faster and more cost-effective than making purchases and shelf changes. As a result, shelf companies are becoming a thing of the past.

Business support you can hope for in Latvia

Setting up business in foreign country or even in your home country is a huge challenge in your usual life. Especially, if you don’t have impressive experience before. Yes, it’s possible to get support and consultancy in Latvia.

Entrepreneurs can get support from agencies subordinated to Ministers.

The Central Finance and Contracting Agency (CFLA) is a direct management institution subordinated to the Minister of Finance. Agency can inform about possible funds supported by projects of EU.

Subordinated to the Minister for Economics of Latvia, Investment and Development Agency of Latvia (LIAA) aims at increasing export and competitiveness of Latvian companies, facilitating foreign investment and implementing tourism development and innovation policies.

In Latvia you can find financial support through programmes and from banks that provide loans and credit guarantees, offers insurance for business export deals and investment to venture capital funds.

Find support and ask for consultancy from company that is specialized in this issue and is located in Latvia. Professionals know what they are talking about based on experience. Baltic Legal is one of this company.

• It will help you solve complex issues and provide you with swift high-quality legal, accounting and business management services;
• It will provide an efficient service thus taking a large share of the workload off your shoulders;
• It will ensure high-quality professional company registration services and an individual approach to your needs, as well as loyalty, privacy and fast servicing;
• clients will need only one partner to incorporate and maintain a company in the Baltic region that will significantly facilitate communication, teamwork and optimize total costs.

When you know about possible support, it is more easier to raise capital for your business and make your dreams come true and realize plans.

E-services in Latvia

E-services make our life rested and give freedom of mobility. The variety and number of e-services is increasing every year. Latvia doesn't stay behind.

Latvia provides portal www.latvija.lv for quick and easy access to services provided by state and municipal institutions. It’s not only for entrepreneurs but also for individuals. In the section "E-services", all the e-services available on the portal are summarized. User also can register for entrepreneurship.

The most popular e-services in Latvia:

Submission of the declaration of the place of residence

Electronic application for studies within the framework of basic study programmes

“My data” in the Population Register

Registration with registers maintained by the Register of Enterprises

Register for place in preschool

Tax payments and other services that connected with finance.

Latvia has unified electronic information system for the health sector. Users can open, extend and close e-disability pages, get medical e-prescriptions. Many clinics administer e-registration for consultancy or visits to specialist through the electronic system.

Banks that located in Latvia also provides e-service from the basic e-services as online payments, automatic payments, to more advanced. Banks bring video consulting as a new banking service that allows a customer to get the same advice as a branch without leaving their computer.

If you want to use e-service you can log in through bank account, username and password for specific portal, e-signature or portal www.latvija.lv.

The Office of Citizenship and Migration Affairs offers the possibility to check or receive information from the Population Register using electronic services.

We mentioned only some possible e-services in Latvia. Such services will pamper you and make your life in Latvia relieved.  

About income from cryptocurrency in Latvia

Virtual currency is also known as cryptocurrency, and each of it has its own name such as Bitcoin, Ethereum, Litecoin, Zcash). Cryptocurrency is visible money on your device but It’s not possible to touch it.

The State Revenue Service (SRS) of Latvia has published a new informative material on personal income tax (PIT) on the income from the sale of virtual currency.

If a person gets a virtual currency within the framework of an economic activity or generates a virtual currency, such income is classified as income from economic activities and it’s necessary to pay personal income tax.

If the revenue from the sale of virtual currency would be classified as income from capital gains, the tax will be 20%. The value of the virtual currency is equal to the value for which the person purchased the virtual currency.

The price of a virtual currency is the same as the price person paid in cash or a natural value.

A resident of Latvia shall submit to the SRS a declaration of income from capital gains on the disposal of virtual currency.

A non-resident is not obliged to submit a SRS declaration of income from capital gains or annual income statements if the payer of the income was withheld tax during act of payment.

Government of Latvia try to keep finger on a pulse, because of fast changes in the digital world. Cryptocurrency isn't something undefined anymore.