General Company Formation FAQs

European vs Offshore company - how to make the right choice for my situation?

Below we list some factors which usually serve as incentives for clients to open a company either within the European Union or offshore. They are very general, but still quite helpful.

Why incorporate in Europe?		Why incorporate offshore?
Prestige Trading within the EU EU company VAT number 0% VAT for cross border transactions Company Tax planning tool		Safeguard of assets Manage risk Maintain confidentiality Avoid bureaucracy Reduce operational costs and tax burden

If these reasons alone are not enough to make a decision for company formation in Europe or offshore, the next best approach would be:

• write down a list of business issues that you would like to solve
• create a list of goals that you want to achieve
• and then send it to us or come to our offices for a consultation!

Together with yourself, we will analyze your case and help you make the right choice. Please note that the initial consultation is free of charge, but any more in-dept consultation will be for a fee only.

Which jurisdiction do I choose for my business?

It is best to follow the same approach as above, i.e. consider the general points (see below), and then come to see us for a personal consultation and professional advice:

• Complexity of registration (can the company be registered remotely or personal visit needed?)
• Where your trading activities take place
• VAT registration and tax rates
• Bureaucracy
• Accounting/renewal costs
• Prestige factor
• Timeframes

What is the best structure of company for my business?

New alternatives and routes are coming up all the time, and there always is an aspiring match for every enterpreneur. To discuss the specifics of your business operations, you can visit our offices personally or work with us remotely. Together, we will select the legal form and structure of company that will be tailored to meet your needs: solutions are always available!

What is a Shelf company?

This is a term we use to denote a company that we have already registered in a certain jurisdiction and that we keep „on shelf” in our offices here in Riga, ready for immediate sale. When buying a shelf company, you can save time and hassle.

What do I have to do in order to start my own business in any jurisdiction?

Firstly, it is necessary to clearly understand the purpose of your business and your own personal objectives, such as:
 

• start an import / export business within Europe
• obtain an EU residency and work permit
• purchase real estate overseas
• register my company for a European VAT number
• find a more tax-friendly jurisdiction for my trading business.

Once we have clearly set down your objectives, we will recommend you a sequence of actions to take which will help you to avoid budget overrun and problems in the future.

I need an intermediary company for import/export operations, what do you advise?

Before we can suggest a solution, we need to know the type of goods or services to be traded, the location of clients / suppliers (which countries), what direction funds are being paid (to / from buyers and suppliers) and if a European VAT number is required.

I want to purchase real estate property using a company, what can you recommend?

We usually recommend Cyprus or US companies for this purpose, although there are various other factors that may affect taxation. Therefore, in addition  to consulting with a local real estate lawyer, it is important to know where the property is located, whether the company will purchase / sell other property on a regular basis, and if the buyer intends to lease or renovate the property.

 

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