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Open Holding Company in Latvia

Updated on Tuesday 18th September 2018

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Open-Holding-Company-in-Latvia.jpgA holding company is a legal entity that does not engage in specific business activities or commercial activities but it is used to hold stock in other existing companies. It can be seen as a parent company that holds enough stock percentage so as to have voting rights in other corporations. 
This is a guide on how to open a holding company in Latvia prepared by our team of agents who specialize in company formation in Latvia.

What is the function of a Latvian holding company?

The holding company can be seen as a manner of creating a legal entity for the purpose of effectively administering other existing companies. it can provide financial support for subsidiaries, attract loan capital and optimize the financial management in the existing controlled companies.
A holding structure in Latvia unites several other companies or a group of companies, with the purpose of increasing the market value of the said group. This can be a preferred strategy for investors who are interested in company incorporation in Latvia.

What are the incorporation conditions for a holding company in Latvia?

The incorporation of a Latvian holding company is a relatively simple process and there is no need to have a specific number of founders or a certain share capital. The company director can be a non-resident, which makes this structure appropriate for foreign investors interested in establishing their holding in the country because of the tax advantages. Another advantage is that the company can be incorporated in approximately one week. 

How is a holding company taxed in Latvia?

Latvia is a preferred location to establish a holding company in Europe because of the existing advantageous taxation regime for these structures. There is no withholding tax on the dividend payments made to foreign companies, there is no income tax applicable to the sale of shares and the dividends received by a company. There is no stamp duty on share transfers.
Latvia is a good choice for foreign investors interested in opening a holding company not only because of the tax regime but also because of its location in Europe: it is close to other EU countries but also Russia.
For more information about company incorporation in Latvia, please do not hesitate to contact our agents. We can help answer your questions and start doing business in Latvia.

Meet us in Riga

Call us now at +372 51 50 803 to set up an appointment with our lawyers in Riga, Latvia. Alternatively you can incorporate your company without traveling to Latvia.

As a Bridgewest client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Latvia.

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