Offshore company – shareholder of Latvian company
Company formation and accounting in Latvia
Last updated: 2015-07-09
Offshore company can be owner of shares of Latvian company, but must take into account some circumstances.

A requirement of the Register of Enterprises of the Republic of Latvia (and legislation) is that founders of SIA (Latvian company) must provide document (documents) proving that the offshore company exists. Also must provide document (documents) certifying that certain person has rights to represent (make decisions on behalf of) the offshore company.
Depending of jurisdiction there may be situation that in the country of registration of the offshore company there is no governmental institution that registers companies (does not exist a public register). In specific country there may be a private (non governmental) company registration agent.
One possible solution is to obtain the registration certificate from the agent, then get approval of the certificate by a public notary. Latvian register of enterprises need document that is issued by a governmental institution. And also depending on a country of registration legalization of all documents or Apostille may be necessary.

Regarding offshore company there may be situation that director of the offshore company is another company. To register company in Latvia certain natural person (individual) must sign documents on behalf of the offshore company - shareholder/owner of Latvian company. So the director (if a legal person) of the offshore company - owner of Latvian company must authorize certain natural person to sign necessary documents.

If a shareholder of the Latvian company is another company, then no rights to register so called small capital company. In such case must register a company with equity capital 2800 euro (until 01 January 2014, - 2000 lats) or more.

And again, depending on jurisdiction, in some countries there are no requirements to do accounting and obligations to pay taxes. Unfortunately, Latvia is not a country of such kind. In Latvia are strong obligations to do accounting and to pay taxes.

Latvia has adopted legislation which requires to inform the Register of Enterprises about actual beneficiaries of the offshore company. If a legal entity owns more than 25% of the shares of Latvian company and the legal entity is not registered under the laws of the European Union, then the legal entity must inform Latvian company about actual beneficiaries. And a board of directors of the Latvian company must submit the information to the Register of Enterprises.

Latvian limited liability company (SIA) is “transparent” company. Anyone, paying small payment, can get information about shareholders and directors of company and other information related to company.



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