What is the best way to grow a business and transform it into a multinational? There are many strategies, such as aggressive marketing and robust product development. However, there is one thing that you need to add to your robust strategy: opening the business in a strategic offshore jurisdiction.
An offshore jurisdiction provides access to a larger market and also allows your business to enjoy additional benefits, like tax advantage and skilled labor. One unique jurisdiction that has become a huge attraction for investors is Latvia. It is perfectly tucked between Asia and Europe, and it can provide the perfect entry point into the EU. Let’s look at this amazing jurisdiction by highlighting important economic facts, reasons to take your enterprise there, and the process of offshore business registration.
A Brief Look at Latvia in Numbers
Latvia is a country of transformation and this is a run you can take advantage of for faster business growth. In 1991, it regained independence from the USSR, and 14 years later, it joined the European Union. The same year, it became a member of NATO, and exactly ten years later, in 2014, it joined the Eurozone. Here are other numbers that tell us more about Latvia:
- Latvia has a population of 1.9 million.
- GDP (PPP) of the country is USD 60.1 billion.
- The average per capita income of the country is USD 31,509.
- The average FDI inflow for the country is USD 873.0 million.
- Latvia is ranked 14th on the World Ease of Doing Business Index.
- The country is classified among the group of states with a very high human development index.
- The average total value of exports from Latvia is USD 12.84 billion, with top markets being Lithuania, Russia, Estonia, Germany, and Sweden.
The Best Way to Register a company in Latvia
For many investors who see Latvia numbers, the first expression is “how can I register a business there?” Here are the main steps required to register a company in the jurisdiction correctly:
- Select a Legal Structure for the Company
Like other countries, Latvia only allows businesses that are legally registered there to operate in the jurisdiction. Therefore, you need to start by selecting the right business structure. Here are the main options:
- Limited liability company.
- Representative office of a parent company registered in another country.
- Joint stock company.
- Prepare the Documents for Incorporation
The good thing about Latvia is that the requirements are pretty straightforward. First, you need to decide the business name and then prepare the articles of association in line with the Latvian Commercial Law. The articles of association are considered the most important during the registration process because almost everything else is hinged there.
Other documents include copies of passports of shareholders and directors of the company, share capital, and address. You also need to prepare the business management structure and submit it together with other documents for company registration.
- Register the Business with the Tax Authority
Once your business is issued with an operating license in Latvia, the next step is registering it with the Tax Authority. This is crucial because it is provided with a tax number that will be required when filing tax returns at the end of every financial year. Finally, open a bank account and acquire any additional licenses (where necessary).
This post has demonstrated that Latvia is an excellent offshore jurisdiction that you can count on for rapid business growth, especially when targeting entry into Europe. Note that although the process of company registration is simplified, many people find it pretty complex because of the required documents and the possible need to visit the country multiple times. The best way to register your business offshore fast and more affordably in Latvia is by working with ICD Fiduciaries, one of the most respected firms of experts.
The agency has helped many brands targeting the European market to quickly set up their companies in the country. You can also count on them, and they will not disappoint. Remember that you can also use their services for executive functions, from accounting to payroll management.
