Latvia LLP

Latvia LLP

An LLP differs significantly from an LP in that it essentially combines the features of a partnership and a corporation. LLP has the business flexibility and tax benefits of a partnership but resembles a private company in other respects.

It is comprised of Members, each of whom benefits from limited liability; members of an LLP are protected from many potential negative consequences of the actions of other partners.

Limited liability protects members of an LLP from personal liability for business debts, employee claims and public liability claims.

Other features and advantages of an LLP:

Profit sharing plans and other arrangements can be agreed flexibly between partners and changed as required
The partnership makes an annual return but members retain self-employed status and report their share of profit on their personal tax return
Perpetual succession applies an important factor for the stable ongoing development of the business
As a separate legal entity, the LLP can enter into contracts and sue (or be sued) without the need for partners to be exposed personally.

As a result, LLPs offer an appealing option for many looking to structure a business operation in a tax efficient manner with minimal personal risk.

Section 34 of the Act allows an LP to be converted into an LLP, while Section 35 allows a Labuan Company to transition to an LLP.

There is no limit to the number of partners in an LLP.

Features of Labuan LLP

Labuan LLP	Corporate Details
General
Type of Entity	LLP
Registered Office in Labuan	Yes
Shelf company availability	No
Our time to establish a new company	4 weeks
Corporate Taxation	Yes
Access to Double Taxation Treaties	No
Share capital or equivalent
Standard currency	US$
Permitted currencies	EUR, USD, GBP
Minimum paid-up	None
Bearer shares allowed	No
No-par-value shares allowed	No
Directors
Minimum number	Two
Local required	No
Publicly accessible records	Yes
Location of meetings	Anywhere
Corporate directorship allowed	No
Shareholders
Minimum number	Two
Publicly accessible records	Yes
Corporate shareholders allowed	Yes
Location of meetings	Anywhere
Company Secretary
Required	No
Local or qualified	No
Accounts
Requirements to prepare	Yes
Audit requirements	No
Requirements to file accounts	Yes
Publicly accessible accounts	Yes
Other
Requirement to file annual return	Yes
Migration of domicile permitted	Yes

Labuan LLP Distinctive Benefits

The reduced tax burden for the business: The members of the partnership are defined as self-employed, which means that the only tax to pay is an income tax as normal on their share of the profits. There is no corporation tax or capital gains to consider.
Asset protection and estate planning tool: assets cannot be touched by creditors or any other claimant, and costly inheritance tax can be avoided through the use of a partnership model.
Effective vehicle for professional practices, joint ventures, special purpose projects and more.

The Valsen Advantage

Speedy, Efficient and consistent Services.
Relentless effort to obtain bank accounts.
Expert advice on structuring options.
Dedicated ongoing compliance support.

Latvia Offering