Holding company structure in Latvia

From 1 January 2013, dividends will not be taxed, thus Latvia will introduce and recognize a corporate structure. The exemption applies to residents and non-residents as well as to natural and legal persons not established in low-tax countries and territories. It is expected to facilitate business through Latvian companies and to limit offshore transactions.

Amendments to the Corporate Income Law provide that, as of January 1, 2013, dividend income arising from a transfer of shares is not taxable, for both resident and non-resident. However, these rules do not apply to countries and territories included in the offshore list.

As far as taxes are concerned, not all offshore areas are included in the list of low tax and free tax zones and territories for tax purposes. The list is set out in Cabinet of Ministers Regulations No. 276 adopted on 26 June 2001. Sixty-four countries and territories have recently updated regulations.

It is common practice in Europe to maintain a holding system. The new events will help Latvia to attract investors and promote the business environment.

Concerning holding companies, the frequency of dividend distribution, the holding period and the number of shares may play an important role. Latvian law does not impose any obstacles in this regard. The Latvian Corporate Income Tax Act does not expressis verbis require either the term of holding or the number of shares. Thus, Latvian law offers advantages over jurisdictions such as Cyprus, Germany or Malta.

Another advantage is the lack of special requirements for foreign entrepreneurs. For example, there are no barriers or restrictions for foreigners to be a director or to become a shareholder, ie citizenship or residence is not relevant. There are also no special requirements for using a Latvian bank account, and foreign bank accounts are allowed.

By the Latvian Company Law, dividends are paid annually based on a resolution of the shareholders.

Offshore company - documents for incorporation

An offshore company is a legal entity established in a tax haven or offshore financial center, being protected by specific legislation which guarantees a status of partial or full tax exemption. Yearly maintenance fees range from US $100 to US $1500 or more, depending of the type of the company and its jurisdiction. In some jurisdictions, annual company fixed tax is paid to the government such as it is the case with the Republic of Panama. Shareholders and directors of an offshore company may enjoy generally a high level of privacy. In some jurisdictions, offshore companies may trade or do business only outside of the country in order to be tax exempt, while in others companies may do local and international business.

What documents are needed to incorporate offshore?

Commercial register of Latvia

Commercial register of Latvia provides following services. Read further to acknowledge Commercial Register functions in Latvia.

Offshore in Gibraltar by Baltic Legal

Baltic Legal LLC opens new quality services - offshore company registration.

Right now Gibraltar is one of top offers. To view Gibraltar offshore company page click here.

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BALTIC LEGAL offers company registration, right now, here!

Business in Latvia: Insurance

Insurance in Latvia has 391 companies taking actions in insurance industry, thus not all of them are direct insurers. However when searching in 1188.lv unofficial local catalog of companies the number grows up to 500 companies.

How much insurance company can earn?

Business in Latvia: Discovery #3 Not Latvia, but Estonia - Don't go to estonia (ironic)

Not Latvia, but Estonia - Don't go to Estonia (ironic)

This video (also viewable below) clearly shows Estonia isn't recommended by it's own people (irony).

 

Although video states some facts about illiteracy, trolls and rappers I can guarantee, Estonia is good place for business.

Business directory for enterprises in market of Latvia

Business directory for enterprises in market of Latvia

Artis Zelmenis just finished a huge milestone in www.artiszelmenis.lv development.

This website is aimed to business opportunities for companies and individuals.

Company offer

Daylight savings in company management

Daylight savings in company management

Why do we spring forward? Why it is important for company manager to do a correct time switch so company's work does not stuck? Do daylight savings work? Get the facts.

5 TOP of Autumn - Articles that did not succeed to enter in chart of top 5 business articles

Articles that did not succeed to enter in chart of top 5 business articles

If you red article about 5 top articles in business of autumn then you noticed there are mentioned only five articles, because it is TOP 5! [mister obvious?]

5 TOP of Autumn - Business in Latvia blog best articles

Business blog about doing business in Latvia

From all of our articles about doing business in Latvia we have gathered a compilation of the best articles of all times succeeded in matter of post views.

To remind:

Business in Latvia blog provides news and reviews of business in Latvia.

The TOP 5 writings

1st place - Alcohol license

The best of all times probably was article about alcohol selling license in Latvia.
Article on alcohol was not so extensive nor provided much of a information, but it succeed most from all.

This is good to know if you wish to open alcohol selling branch in Latvia.

 Click Alcohol license to read this article.

Baltic Legal - How to make a campaign and why you should chose this law office instead of other?

Law office - Baltic legal - Your decision to success

Baltic Legal is young and active law office based in Riga, Latvia. Baltic Legal main goal is to provide best available information on immigration, company foundation and accounting issues.

HOW TO MAKE CAMPAIGN for your company?

Company - the word, synonyms and language of Latvia

Company

Company - the word, synonyms and all the information about company in Latvian language (official state language).

5 top main goals when forming a company

What is company?

Learn More About blog says:

A company is commercial business. A voluntary association formed and organized to carry on a business. Any entity engaging in business, such as a proprietorship, partnership, corporation, limited liability, or public limited company.
Example: "a legal service company"; "the Ford Motor Company"; "a company CEO" etc.

Source link: Learn more about company

What are common types of company in Latvia?