Building a holding structure in Latvia
is a great way to expand and develop your business. The main goal of creating a
holding company is to unite a group of companies in order to administrate a
mutual financial flow and assets. Thus, you can grow your market place,
increase capitalization and the value of your company.

When choosing a country to create a
holding organization, it is necessary to take into account a valid income tax
imposed on companies. After some amendments of the law On Enterprise Income Tax
were made in 2013, holding companies in Latvia began to develop faster than
ever. Comfortable conditions for business sector had been made; as a result,
additional investments were attracted.

It’s necessary to bear in mind, that
since 1st of January 2018 the new Enterprise Income Tax Law came into force,
which also regulates activities of holdings companies in Latvia. That’s why it
is crucial to know about recent changes in legislation. Law firm INLAT PLUS
international lawyers will help you in organizing a holding structure in view
of valid regulation.

<h2>For what purposes holding companies are
created?</h2>

Holding company is created to
effectively administrate a group of companies in order to:

<ul><li>Keep an accounting system of mutual
parts of authorized capital;</li><li>Optimize financial flow of subsidiary
companies;</li><li>Financially support subsidiary
companies;</li><li>Expand market and increase
capitalization;</li><li>Attract loan capital on best conditions.</li></ul>









Tax privileges for holding companies in Latvia

Due to ES jurisdiction, favorable
conditions of organizing a holding company will give an opportunity for
entrepreneurs to decrease taxes for selling authorized capital parts of
subsidiary companies by the amount of earnings. Income tax for dividends also
can be decreased by the amount of obtained dividends from VAT taxable person in
another country. There is also a government-supported financial support for
companies connected to agriculture – income taxes for receiving support are
only 50% of the amount. Latvia also signed conventions for the avoidance of
double taxation with more than 50 countries, including Russia, Belarus,
Ukraine, United Kingdom, USA and others.

To register a holding company in Latvia
you need to keep in mind these factors:

<ul><li>A number of founders and shareholders is
unlimited;</li><li>An authorized capital of a company can
be minimal;</li><li>A director of a holding structure can be
resident or non-resident of Latvia;</li><li>Holding structure can be registered in
Latvia in a week.</li></ul>







It also should be noted that Latvian
legislation is under EU jurisdiction, that’s why there are no limits on
shareholder’s country of residence, doing business with private persons, buying
licenses and other business activities connected to managing holding
organization.

<h2>What makes Latvia so attractive for
holding company registration?</h2>

In contrast to other countries, Latvia
has lots of advantages in terms of holding registration:

<ul><li>Latvia’s advantageous geographic
location gives opportunity for partnership with EU counties, as well as Russia
and Commonwealth of Independent States;</li><li>Advanced transport and telecommunication
infrastructure;</li><li>Favorable investment climate;</li><li>Popularity of Russian and English
language in Latvia;</li><li>EU jurisdiction and euro as national
currency;</li><li>Low-cost specialists of high
qualification;</li><li>Advanced banking sector;</li><li>Low-cost registration and managing a
holding organization;</li><li>Financial privileges for holding
development.</li></ul>

















For holding company registration in
Latvia it is important to have legal support in order to avoid needless
expenses and use privileges granted by law. Law firm <a target="_blank" href="https://inlatplusinter.lv/eng/homepage/">INLAT PLUS international</a>
will provide necessary legal support and help to solve all problems with
registration.

<h2>Contact information</h2>

In order to get a consultation and
additional information you can contact us by phone, email or coming to our
<a target="_blank" href="https://inlatplusinter.lv/eng/homepage/">INLAT PLUS international </a>office:

Mobile phone number: (+371) 296 216 15 
E-mail: info@inlatplusinter.lv 
Address: Lāčplēša iela 41, 2.stāvs,
Rīga,
Latvija, LV-1011

Law Office “INLAT PLUS international”, biznesa konsultācijas

Law Office “INLAT PLUS international”, darījumi ar nekustamajiem īpašumiem

Law Office “INLAT PLUS international”, juridiskais birojs

Law Office “INLAT PLUS international”, biznesa procesu ārpakalpojumi

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