Holding registration in Latvia 2021
Registering a holding company in Latvia in 2021 is relevant for business people seeking to preserve their assets. The country is located in Northern Europe, bordering Estonia, Belarus, Lithuania, and the Russian Federation. The country is a member of the European Union and NATO, the OECD.
The commercial environment is favorable for foreign entities. The economy of the jurisdiction is based on services, including transport, IT, and the financial sector. An important role is played by the construction and light industry, the tourism sector.
The advantages of registering a legal entity in Latvia
There are several advantages of opening a holding company in Latvia in 2021. The territory belongs to the EU members, so the company can use all the advantages of the European organization and gain access to the market in the EU. Legislation provides favorable opportunities for business registration, the registration process is relatively simple.
What advantages can be highlighted:
- The country is a member of the Schengen Agreement, due to which a board member can obtain a residence permit;
- The rates of taxation are relatively low;
- There are no restrictions on foreign shareholders;
- The period of registration of the company in the Register of Enterprises is short;
- The foreign investor does not need to come to Latvia.
To clarify the details of company registration, please contact our experts at IT-OFFSHORE. It is possible to register companies in the form of various legal entities on the territory of Latvia - ask the experts for more details on how to open a holding company.
Taxation nuances of holding companies in Latvia
Corporate income tax in Latvia is considered one of the lowest in the EU - the rate is only 15%, it is possible to arrange a deduction. Tax system in the territory is attractive for local and foreign entrepreneurs after introduction of privileges, which are aimed at attraction of international holdings.
According to the adjustments, the taxation of dividends paid and received is completely abolished. Profits and losses from the shares of subsidiaries are excluded from the income subject to the levy.
In addition, taxation of interest paid to non-residents, taxation of remuneration for the use of patents, licenses, etc. has been abolished in Latvia. Benefits will be valid on condition of conducting any lawful business, regardless of the citizenship of the shareholder and director.
Peculiarities of holding company registration
Investor can choose one of the legal form - it is SIA or JSC. Holdings that have been registered in Latvia are not restricted in the right to conduct their own business. They have the right to dispose of property in the form of immovable assets in Latvia and other countries.
These types of legal entities are allowed to conduct business activities in the country and conclude transactions with residents of the state, both individuals and legal entities.
Opening a holding company is relevant due to the fact that Latvia is located close to major markets. The country has well-developed infrastructure, the territory belongs to the Schengen area, it is relatively easy to open a bank account in Latvia. The cost of business registration and maintenance is relatively low.