Eternity Law International News Get a Trust License in Latvia

Get a Trust License in Latvia

Published:
July 5, 2024
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Obtaining such official permission as a trust license Latvia depends on the specific activity that the entrepreneur is engaged in. The issue of licensing trust organizations in Latvia is regulated by the Financial Services Law and the provisions of the EU Directive, which was adopted in the jurisdiction in 2009. As follows from the legislative norms, any company participating in trust transactions acts as a financial link in the country’s economy, which entails the obligation of compulsory licensing of its activities. The regulation regarding trusts in Latvia has flexibility, which makes this jurisdiction an attractive option for foreign investors when the goal is to legally deal with third party assets in the EU. Latvia offers two options: register a legal entity or buy an already registered company – a pre-established organization with a work permit (with or without a bank account). Below we will look at the main features of the establishment, functioning and licensing of trusts in Latvia.

Our team provides advisory and practical assistance in registering and launching businesses. We provide Latvia trust services with full support at all stages. We also have many options for ready-made trusts for sale.

Trusts in Latvia: regulation, functioning and licensing features

There are no specific regulatory requirements for trusts except that a private trust company must be registered as an international business corporation rather than as an LLC. A trust firm in this jurisdiction can freely act as a trustee of any trust created in Latvia or anywhere in the world (in accordance with local law).

According to Latvia trust law, these structures are organizations created for the sole purpose of acting as a trustee. Such a company can store and manage monetary assets and real estate of one or several clients at once. The trust provides fiduciary services similar to those provided by an individual and institutional trustee. These services may also include investment advice, asset management for profit, administrative services, etc. In particular, small trust firms can also open and manage offshore bank and brokerage accounts as a fiduciary on behalf of the master trust.

Trust organizations in Latvia offer the opportunity to create long-term trust agreements for clients in the same way as a corporate trustee would, but without the oversight and formalities of a financial institution. Such ongoing arrangements are not possible with individual trustees. A trust company usually allows clients to change trust services and change them over time to suit changing needs. Trust firms in Latvia are also required to provide clients with the opportunity to participate in key investment, management and investment decisions.

Our experts will help you choose the most suitable jurisdiction for obtaining a trust license. Trust license cost Latvia varies depending on the specific characteristics of the business and is calculated individually by our managers before the start of cooperation. We also provide qualified assistance in opening trusts in Luxembourg, France, Germany, Austria and other countries around the world.

So, how to get trust license in Latvia? As part of trust license requirements Latvia, a potential licensee must comply with the following.

  1. Registration of a legal entity in the jurisdiction. The best option would be a limited liability company, but a joint stock company or cooperative may also be suitable.
  2. The director and founder of the company must have a good business reputation. (You may be required to present a certificate of no criminal record or any criminal activity).
  3. Availability of sufficient financial capital to ensure the stable operation of the company and fulfill its obligations.
  4. Development of a business plan, description of the equipment and software of the project.
  5. The candidate has the appropriate experience and knowledge to obtain trust license Latvia.
  6. Compliance with legislation to combat illicit circulation of funds, the main purpose of which is to prevent illegal monetary transactions and ensure the protection of the confidentiality of customer information.

First of all, the regulator needs to submit a pre-prepared package of documents for all founders and pay the state fee. Trust license fees Latvia required to pay range from 1.5-2 thousand euros. The regulator will need to provide the following documents.

  1. Trust license application Latvia.
  2. National passport/identity document.
  3. International passport.
  4. Resumes and diplomas of directors.
  5. Business plan of the company.
  6. Corporate documents.
  7. AML-policies adopted by the firm.

Advantages of Latvia for obtaining a trust license

  1. Strategic geographical location. Latvia serves as a bridge between Western and Eastern Europe, providing easy access to both markets.
  2. Member of the EU and Eurozone. As part of the EU and Eurozone, Latvia provides businesses with access to the huge single market.
  3. Competitive tax system. Latvia offers one of the most competitive corporate tax rates in the European Union.
  4. Skilled workforce. The country has a highly educated and multilingual workforce with specialists in various industries.
  5. Business-friendly environment. The government has simplified trust business rules for foreign entrepreneurs and is offering support to new businesses, especially start-ups.
  6. Modern Infrastructure Latvia has a robust infrastructure, including ports, roads and IT infrastructure, suitable for various business needs.

Our company is ready to provide you with specialized professional trust services Latvia with full support, regardless of the complexity and complexity of the case. We offer a variety of ready-made trusts licensed for sale in Hong Kong, Vanuatu, Cyprus, Australia, Canada and other countries. Our lawyers are aimed at achieving the most effective and promising results for you. Contact us now.

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