The legislation enables both natural persons and foreigners to start a business in Latvia. So if you want to open a company in Latvia, you can opt for registering a new company or buying a ready-made one. Registering a business in Latvia is fast and safe for non-EU businessmen who want to enter the European market.
Ready-made companies, also known as shelf companies, are registered companies created to be sold. In Latvia, the most popular companies are the limited liability and the partnerships. These types of shelf companies have no activity and they can be newly formed companies or aged ones. Usually a shelf company has a VAT number.
Benefits of the Latvian shelf company
One of the most important advantages when purchasing a Latvian company is the time you can save on the process of incorporation. It takes a lot less time to change the owner of an existing company rather than register a new one.
Even if you can speed up the registration of a new company, it will usually come with additional charges. In case of Latvian aged companies, you can gain credibility and longevity, some clients considering longevity a key factor when going into business with a company. Also banks or financial institutions may look back at the registration date before granting a loan. An aged company can also help you create a history for your business.
If you are interested in finding out more about the advantages of buying a shelf company, you may contact our law firm in Latvia.
How to purchase a Latvian company
The purchase of a Latvian shelf company takes a few days. Once both parties have come to an agreement on the price, the share transfer can begin. It must be mentioned that a shelf company can be bought by an individual or a legal entity. The share transfer will be made after signing a share transfer agreement in front of a notary public.
After the share transfer has been made, the new owner can change the company’s name, the address, the purpose of the business and appoint a new management board that will require one board member and one shareholder. After all changes have been made, the relevant authorities must be notified.
Before purchasing a shelf company, however, the future owner is advised to verify the following: the economic situation of the company, if any debts exist, the former activities and assets of the business.
If you want to buy a company, you can contact our lawyers in Latvia for legal advice.
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