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Formation Of Latvia Limited Liability Company (Ltd)
Republic of Latvia is member of European Union and is located in the Northeastern part of Europe, at Baltic Sea. Latvia borders with Russia, Belarus, Lithuania and Estonia.
Latvian limited liability company may be useful to do some business related with services providing and business for which is not necessary to employ many employees.
Rate of company income tax for Latvian company is 15%. Withholding tax (dividend) rate is 10%. Directors (member of board of directors) are allowed to fulfil their obligations without remuneration. So no taxes concerned with salaries.
Limited liability company in most cases per month is required to submit one-two tax reports. Each year company must submit annual report.
Directors are shareholders of company can be from any state (no requirement to be Latvian citizen). To operate with company not necessary to arrive (reside) in Latvia. Bank operations can be done by internet bank.
Information necessary for registration of limited liability company:
* name (firm) of company;
* legal address of company;
* information about founders (shareholders) of company;
* information about member of boards of directors of company;
* information about statute capital of company (including information about amount of statute capital, payment method and payment conditions);
* depending on requirements of founders (shareholders) may be necessary additional information (for example, if shareholders decide to constitute supervisory board, then information about members of supervisory board is necessary).
Foundation and registration of company may consist from following stages:
* collection of information necessary for registration;
* preparation of documents necessary for registration;
* signing of documents (including of notarial certification of signature);
* in most cases is necessary to open temporary account in bank and pay statute capital;
* doing payments necessary for registration;
* submission of documents to commercial register;
* receiving of examined documents.
Amount of equity (share) capital is ~ EUR 3000, but on basis of legislation it is possible to register company using only EUR 14 by money.
Payments necessary for registration. State duty 100 lats (if founders of company are natural persons (not more than 5) and member of board of directors also is founder of company, then state duty is 50 lats (~72 EUR)). Payment for publication 24 lats. Additional payments – for certification of signature, bank services and preparing of documents.
For more information, please write to andris at europe-company.com or visit www.europe-company.com
Riga and Vilnius, Latvia and Lithuania, June 2008
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