A business in Latvia is a great alternative to offshore companies due to the adoption of numerous changes in regulations and laws by Latvian government during the past years. Companies in Latvia attract foreign entrepreneurs and investors, who are searching for a sustainable and developing business structure and a possibility to enjoy several tax optimization options for their businesses.

While there is a possibility to incorporate your own company, there is another alternative – you can buy an already existing company. A company that has been incorporated some time ago and currently is inactive is called a shelf or readymade company. Shelf companies are either “clean”, which means that since the incorporation no business transaction has ever taken place in this company, or a company with its own history, which means that it has a previous operational and financial history.

Advantages of acquiring a shelf company
Clean companies are typically established for a sole purpose to be sold after some period of time. The key advantage of such shelf company is that the new owner of the company can be completely sure, that it has no debt or other liabilities from the previous owners. Meanwhile, companies that have been operating previously may have some liabilities and investors should do their own due diligence to make sure that they are not purchasing a shelf company with large debt. Nevertheless, companies with a previous operational history have their own advantages as well. For example, a readymade company with already existing business history is more credible and it is easier to obtain a loan or even open a bank account. Some manufacturers, as well as governments, prefer doing business with a company showing longevity.

If comparing to a possibility to incorporate your own company, shelf company might be the right strategy due to following reasons:

Urgency – incorporating a new company takes time and resources. In case you want to start trading as soon as possible, a shelf company allows you to start business operations almost immediately after the acquisition of the shares.
Image and credibility – often, companies that have been registered recently look unreliable to conduct business with. Meanwhile, a shelf company registered some time ago helps to create a reliable image.
Compliant to formal requirements – in some cases in order to acquire certain business projects, a company has to have a certain age.
Procedure of a shelf company acquisition
The procedure of shelf company acquisition in Latvia is relatively straightforward process and it is typically taken care of by the service provider you have chosen to purchase a shelf company from. Limited Liability Company is the most common legal type of business in Latvia as its shareholders have no personal liability for the company’s liabilities except from the invested capital. Generally shelf companies in Latvia are provided with an active registration number, VAT number, no previous activity and share capital of 2,800 EUR already registered. The latter can vary for different service providers and you should make it clear before choosing your shelf company.

The Latvian shelf company acquisition can be carried out either by scheduling a notary appointment or remotely issuing a power of attorney signed digitally with an electronic signature. Generally, all documents are prepared by the service provider and only the shareholders’ passport copies, addresses of residence and the company’s new name (if wanted) and contacts are required from the client’s side. When all documents are ready and signed by the service provider, they submit the application to Commercial Registry where it takes up to 5 business days to process all changes. For an extra fee, it is possible to hurry up the process to 1 business day. After the Commercial Registry has finished processing the changes, the service provider forwards all legal documentation to the new shareholders and your business can start operating.

Montenegro is a parliamentary republic. In terms of political and civil liberties, Montenegro ranks first. The citizens of Montenegro enjoy complete freedom. The majority of countries in which citizens enjoy broad civil and political liberties are representative democracies, in which civil servants are directly elected by the citizens to represent their needs and aspirations. Free countries are often backed by healthy economies and well-functioning governments. Prime Minister is Milo Đukanović.

According to the World Bank Group, Montenegro's government effectiveness index is 0.28. This suggests that the government of Montenegro is mediocre. While some public and civil services are limited, in other cases they can be considered adequate or even effective. Potential investors should carefully assess the government situation in Montenegro before considering any business maneuvers. In Montenegro, legislative power rests with an assembly. The Global Peace Index (GPI) for Montenegro is 1.854. The strength of the legal rights index for Montenegro is 12. Overall, it is considered quite strong – bankruptcy and collateral laws can protect the rights of borrowers and lenders quite well; Credit information is plentiful and easily accessible. In 2013, Montenegro received US$103.2 million in foreign aid. In 2014, foreign aid was $125.7. Montenegro is a member of the United Nations (UN). On June 28, 2006, it joined the United Nations as a full member. Montenegro is a member of the World Bank.

Multinational companies and governments around the world are increasingly looking to Africa as a new business destination. Africa's economy has grown at a rate of around 5.3% per year over the last decade and six of the world's ten fastest growing economies are located here. These countries have a fast-growing middle class that contributes to rapid urbanization that is increasing faster than their cities' infrastructure can keep up. It is a common misconception that many economies in Africa are heavily dependent on energy production. In reality, the oil and gas sector accounted for only 11% of Nigeria's GDP in 2014, while the construction sector accounted for 20%.

When considering doing business in Africa, it is not a matter of choosing just one country or all 54; A regional approach makes more sense. Sub-Saharan Africa, for example, refers to sub-Saharan countries such as Angola, Kenya, South Africa and Nigeria. Many companies already doing business in Africa are separating their businesses in North Africa and Sub-Saharan Africa due to the stark economic, linguistic and cultural differences between the two regions. Here are our top 5 African countries for doing business:

Mauritius
Mauritius is known for offering an extremely favorable business environment for investment and business growth. The process of incorporating a company and starting new business activities in Mauritius is believed to be straightforward and relatively easy. Mauritius' economy is mainly based on textiles, tourism, sugar and financial services, although recently other sectors such as renewable energy and information technology are expanding rapidly. The World Bank ranked Mauritius 49th in its Doing Business 2017 ranking, largely due to its pro-business approach to dealing with building permits, enforcing contracts and protecting minority investors. Another ranking of African countries places Mauritius first based on factors such as law and security, economy, human development and human rights.

Rwanda
Despite nearly a decade of Rwanda's civil war, the country's leaders and citizens alike have worked to achieve a healthy business climate and a strong overall economy. According to the World Bank, Rwanda is the second easiest place to do business in Africa and ranks 56th in the Doing Business ranking. This is because the procedures for registering a property, obtaining credit and trading across borders have been greatly simplified. Tourism is currently the fastest growing sector in Rwanda. According to our research, businesses can be incorporated and operating in as little as three days.

Botswana
Since gaining independence, Botswana has had one of the fastest per capita economic growth rates in the world. As the government works to diversify the country's profitable industries, the mining of diamonds and other precious metals is currently the main contributor to the country's economy. Recently, Botswana has managed to reduce the time it takes for various processes including import and export and business formation procedures. In addition, technological upgrades have reduced the average court length for commercial disputes to 625 days (from 987 days in 2008). Thanks to these improvements, Botswana ranks 71st in the World Bank's Doing Business 2017 ranking.

South Africa
South Africa's key industries are automobile manufacturing, tourism, mining and information and communication technologies. South Africa has managed to simplify its import and export procedures, resulting in less time and fewer documents being required. In addition, the South African authorities have simplified tax legislation, reducing the number of hours required to prepare tax reports. The World Bank ranked South Africa 74th for ease of doing business in 2017.

Kenya
Another country to keep an eye on is Kenya, which is currently making huge investments in sectors like telecom, transport and energy. With a tech-savvy workforce and high-speed internet, Kenya stands out as one of the top countries in Africa for tech startups, while its diversified economy, strong ownership rights, excellent tourism sector and improving infrastructure make it a great location for general start a new company. If you have further questions about company formation or banking in Africa. Please contact us now.