Investment fund in Latvia

Investment funds (IFs) include real estate funds, hedge funds and private equity funds registered and operating in the European Union. They operate in accordance with Directive 2011/61/EU AIFMD and the Law on Investment Funds and Their Managers in Latvia. In Latvia, IFs are monitored by the Financial and Capital Market Commission (FKTK). Latvian investment funds must be registered as such structures at the official level and managed by a licensed or registered management company.

Our company is highly qualified experts in the field of establishing and licensing commercial structures. Our lawyers work with cases of any complexity, achieving 100% success for each client. We offer full support at all stages for companies that want to obtain an investment fund license in Latvia and other countries.

Latvia investment regulations: features and process of opening a company

Starting a fund in Latvia includes several steps. For residents of Latvia, the procedure is simpler, and for residents of Lithuania, Estonia and other European countries, it is possible to use an electronic signature and easily come to Riga to sign documents. If you intend to establish an investment fund in Latvia, you will need to go through several steps listed below.

1. Collection of necessary information and documents. Registration of companies in Latvia is carried out by the Register of Enterprises of Latvia, which accepts documents only in the Latvian language. Therefore, you will likely need the help of a law firm or company that specializes in company registration and accounting.
2. Signing documents at the notary. Signatures on parts of the registration documents must be certified by a sworn notary. You can sign documents in person in Latvia or at a notary in other countries, then send certified documents by mail to have the certification translated into Latvian.
3. Choosing the legal form of the company. There are several legal forms for registering a business in Latvia. Often the most suitable form will be a limited liability company (SIA).
4. Obtaining the consent of the owner of the legal address.
5. Opening an investment fund in Latvia also requires the availability and payment of initial capital.
6. Opening a temporary bank account.
7. Depositing the amount of authorized capital into the account.

To register investment fund Latvia with the Register of Enterprises, you must submit a certificate of payment of the authorized capital. The minimum amount of authorized capital for SIA is 2800 euros. The capital can be paid in full or in the amount of 50% before submitting documents, and the remaining amount within a year after registration. As an individual, you can open an SIA with a reduced authorized capital, which can be even 1 euro. In this case, there is no need to open a temporary bank account and credit the amount of fixed capital there. In some cases, it is necessary to register an SIA with full capital, for example, to obtain a residence permit in Latvia. Then you need to open a temporary account in one of the Latvian banks and deposit the amount of the authorized capital there. This can be done personally or by proxy through an employee. You should obtain a certificate from the bank confirming payment of the authorized capital.

In order to implement Latvia fund setup, it is necessary to submit the appropriate package of documents to the Register of Enterprises.

1. Payment of state duty.
2. Submission of documents to the Register of Enterprises.
3. Receiving a decision on registration.

Opening a bank account requires the following.

1. Filling out the necessary documents at the bank.
2. Obtaining remote access codes.
3. Providing additional information to activate the account, if necessary.

Obtaining a VAT number involves the following steps.

1. Receiving a letter from the State Revenue Service.
2. Providing the necessary information to the SRS.

Our specialists will provide consulting and practical support to you at each of the above stages. We also have a large number of ready-made options, in particular, we can offer a ready-made alternative fund for sale in the Czech Republic and much more.

Benefits of Latvia investment funds

1. Professional management: Licensed professionals manage your investments.
2. Diversification: investments are distributed among different assets, which reduces risks.
3. Tax benefits: in some cases, it is possible to reduce the tax burden. If we talk about Latvia investment fund taxation, it should be said that in this country the tax rate on profits received is only 19%.

An entrepreneur who intends to implement Latvia fund management should take into account the risks listed below.

1. There is no guarantee of profit: losses are possible.
2. Market fluctuations: changes in the market can affect returns.
3. Regulatory: a firm must comply with all regulatory requirements and obtain appropriate licenses.

Our company’s specialists provide a full range of services for opening investment funds in SVG, in Malta, Cyprus, Spain and other EU countries. We offer professional support at every stage: from selecting and registering a fund to managing capital and completing the necessary documents. Contact us for detailed advice and optimal solutions for your investment goals.

Latvia fund registration: opening a bank account

1. Opening a temporary account: if you are registering a company with full capital, you must open a temporary bank account and deposit the amount of the authorized capital into it before submitting documents to the Register of Enterprises.
2. Account re-registration: after registering a company, the temporary account is re-registered into a regular current account with codes provided for remote access to the Internet bank.

To open an account, the personal presence of a member of the company’s board of directors is required for identification, filling out documents and obtaining remote access codes. Some banks allow you to complete all formalities simultaneously with the opening of a temporary account or offer to open an account without being present in Latvia.

Based on the requirements for the process of registering and implementing Latvia fund administration, in which your presence is required, we offer personal and remote opening and licensing of an organization: signing documents with a notary and completing all formalities for opening a bank account remotely. Our company’s specialists provide a full range of services for registering a private enterprise in Latvia.

1. Analysis and advice on registration of individual funds, including the selection of the most suitable legal form and structure of the fund.
2. Preparation of documents for registration of a fund in accordance with the requirements of Latvian legislation and European Union directives.
3. Submission of documents and interaction with the Financial and Capital Market Commission (FKTK) to obtain the necessary permits and licenses.
4. Legal support at all stages of registration, including certification of documents by a notary and translation of documents into Latvian.
5. Consulting on choosing the most suitable bank for opening a fund current account.
6. Assistance in opening a temporary and permanent current account in a Latvian bank, including obtaining all the necessary codes for remote access to the Internet bank.
7. Renting a legal address for registering a fund, which includes the ability to receive and process correspondence received at this address.
8. Obtaining written consent from the property owner to use the address for registering the fund.
9. Submission of documents for registration of the fund with the tax authorities of Latvia, including obtaining a VAT number.
10. Consulting on tax planning and optimization of the fund’s tax obligations.
11. Providing accounting services and preparation of financial statements in accordance with the requirements of Latvian legislation.
12. Providing legal support in the day-to-day activities of the fund, including drafting contracts, resolving disputes and interacting with regulators.
13. Translation of documents and correspondence into Latvian.
14. Organization of meetings and negotiations with representatives of banks, notaries and other interested parties in Latvia.

We strive to provide our clients with comprehensive and professional support at all stages of registration and operation of an investment fund. The company’s lawyers will be happy to answer your questions and assist in registering an investment fund in Latvia and other jurisdictions.