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  • Taxes in EstoniaDatum19.08.2023 07:31
    Thema von BalticLegal im Forum Dies ist ein Forum in...

    The Baltic Sea region is the fastest growing business region in Europe. The trade flow among the states in this region has been steadily increasing year by year. The taxation system of Estonia is considered one of the most liberal taxation systems in the world. In 2000, Estonia implemented a comprehensive tax reform with an aim to create the simplest, most comprehensible and most convenient taxation system possible. The main advantage of Estonia is the low-tax system that can be described as a simple system with no hidden surprises and that was basically established to promote business and increase profits.

    The taxation system of Estonia includes state taxes stipulated by the tax legislation and local taxes imposed by local governments or city councils in the respective territories according to laws and regulations.

    The state taxes are the following:

    excise duty;
    income taxes;
    gambling tax;
    value added tax;
    land tax;
    social tax;
    customs tariffs;
    heavy goods vehicle tax.
    Corporate income tax
    As a result of reforms, the main benefit of entrepreneurs was the exemption from the corporate income tax in the event of reinvesting the profits. Thus, Estonian enterprises must pay the income tax only on their distributed profits, namely, dividends. The corporate income tax (tax on distributed profits) is 21 % of gross dividends.

    This taxation system is conceptually different from the classic income tax system, because the tax is levied on distributed profits (also hidden distributed profits) instead of company profits.

    Value added tax (VAT)
    The value added tax payers are enterprises the taxable supply (except for import) of which does not exceed EUR 16,000 during a calendar year. The tax is levied on transactions with goods and services in Estonia and on the import of goods. The tax rate is 20 % of the taxable value.

    The taxable period is one calendar month, and the value added tax must be paid into the state budget by the twentieth day of each month. The tax is fully paid into the state budget.

    The registration of enterprises is carried out by the Tax and Customs Board also administering the VAT levied on domestic goods and services.

    Personal income tax
    In 2010, the tax rate is 21 % of taxable income, and residents must pay the tax on their income received both inside and outside Estonia. The taxable income includes the income from employment (salary, wage, bonus and other remunerations), business income, interest, royalties, rent, capital gains, maintenance support, pensions, scholarships (except for scholarships paid from the state budget or pursuant to law).

    Social tax
    This tax is imposed to ensure state pensions and health insurance. It is paid by legal persons, natural persons and non-residents with regular income. The tax rate is 33 % of the taxable amount. The tax must be calculated monthly, and a corresponding amount of money must be transferred no later than by the tenth day of each month.

    Since 1 January 1999 the social tax payments have been personalised, and they form pension funds which will be considered in each specific case. The tax is accumulated in a special account of health and pension insurance funds within the state budget.

    Excise duty
    In Estonia, the excise duty is levied on tobacco, alcohol, fuel, packaging and vehicles.

    The excise duty helps to control the amount of a specific product or provision of a specific service seeking to adjust the consumption of domestically sold goods.

    Like value added tax revenues, also excise duty revenues are affected by changes in domestic demand, increase in imports of excise goods, as well as changes in excise duty rates.

    Gambling tax
    The gambling tax is levied on income from games of skill, totalisators, betting and lotteries, as well as gambling tables and machines used for organising games of chance in licensed places. The tax is based on payments out of which the winnings are paid. The taxable period for organising lotteries, games of chance and skill is one calendar month. The taxable period for totalisators is the period during which the betting is organised (it must be within the same financial year).

    Tax rates are the following:

    EUR 447 per one gambling machine;
    EUR 1278 per one gambling table.
    The tax rate on betting is 5 %, on totalisators - 5 %, on games of skill - 18 %, and on lotteries - 18 %.

    Land tax
    The tax rate is 0.1-2.5 % of the taxable value. The tax on land where the economic activity is restricted has been determined by the decision of Estonian government in the amount of 25 %, 50 % or 75 % of the tax rate. The land tax is paid three times a year - by 15 April, 15 July and 15 October.

    The national land tax is paid on all land except:

    land where economic activity is prohibited;
    land adjacent to buildings or parts thereof of diplomatic missions and consular representations of foreign states;
    cemeteries and land under churches and temples of congregations;
    land in the use of a foreign state or international organisation. In addition, the municipal land tax is not paid on land in municipal ownership or land in public use based on the decision of the local government.
    The value of land is stipulated by the Land Valuation Act. There are exemptions which are the following: the rate of land tax for areas under cultivation and for natural grasslands and forest land is 0.1 % to 2.0 % of the assessed value of the land annually.

    Recipients of pensions may be exempted from the obligation to pay land tax on up to 0.1 hectares in cities and 1.0 hectare in rural municipalities on the condition that the applicant for the tax exemption uses the land for living and does not receive rent on the basis of the right of use of land.

    The tax is fully paid into the municipal budget of the local government at the primary level. The tax is administered by the Tax and Customs Board.

  • Thema von BalticLegal im Forum Dies ist ein Forum in...

    European Union member state Lithuania has a legal framework to acquire crypto licence for corporate entity. Regulation regarding crypto assets in Lithuania is sufficiently flexible to make it an attractive option where the goal is to have crypto legally in European Union.

    There are two options: registering a brand now legal entity or purchasing a ready-made solution - a shelf company with crypto authorisation setup (with and without bank account available).

    Shelf company with cryptocurrency licence and an optional bank account
    Expected expense for full setup at glance.

    With a bank account 15000€
    Without a bank account 12500€
    Contact us with detailed explanation of what’s included in each option and what are the requirements. However, if ready-made solution is not what you’re looking for – keep reading to find out the other option of registering a brand-new company in Lithuania (European Union).

    Crypto Exchange or Crypto Wallet licence
    Lithuania has established excellent environment for FINTECH business. The jurisdiction has a start-up environment whereby it has introduced two types of cryptocurrency licence – Crypto Exchange (Crypto currency exchange operator licence) and Crypto Wallet (Crypto currency depository wallet operator). Current regulation has greatly simplified the procedure to acquire a crypto licence.

    Crypto Exchange licence in Lithuania
    A company, branch or incorporated legal representative holds the right to exchange between digital currencies and receive a commission for exchange services in addition to providing services regarding fiat currency exchange to cryptocurrency and vice versa.

    Crypto Wallet licence in Lithuania
    A company, branch or incorporated legal representative holds the right to manage and safekeep cryptocurrency depository wallets owned by consumers and other third parties.

    Licence registration
    Companies or branches can apply for the Lithuanian crypto licence. This is regardless of the fact if the entity is a resident or non-resident of the EU.

    The Central Bank of Lithuania aims to strictly separate traditional financial institutions and cryptocurrency service providers – companies buying, selling, storing, or exchanging cryptocurrencies. However, digital assets can be show in turnover of traditional market players.

    The Central Bank has extensive framework to encourage the development of non-banking payment services.

    Continuation requirements
    An entity operating under cryptocurrency regulation must follow specific set of guidelines. The requirements include:

    Customer identification and verification procedure for all customers
    Thorough accounting and records of customer data must be managed
    Mandatory introduction of internal control procedure – transaction monitoring
    AML (Anti-Money Laundering) Policy officer must be appointed
    Mandatory reporting to FCIS (Financial Crime Investigation Service) of Lithuania

  • Live in EuropeDatum12.05.2023 12:51
    Thema von BalticLegal im Forum Dies ist ein Forum in...

    What are the benefits of living in Europe?

    Despite the fact that Europe covers only 10,180,000 km2 (50 countries) and Europe is the second smallest continent, Europe, as a whole, currently has the largest economy in the world, which reflects well on living standards and welfare provisions. In 2009 Europe remained the world's wealthiest region. It's $37.1 trillion in assets under management representing one-third of the world's wealth.

    Free movement and single market
    Existence of the European Union and Schengen area provides excellent opportunities for EU citizens to move and travel freely, without any physical or legal obstacles, which is an obvious advantage. Since there is a single market with unified standards in place within the European Union, the quality of products and services is also generally high.

    Start your business
    Do you want to start your own business? You can do so easily in Europe. In many European countries legal regulations allow you to register your company in as little as just 3 days - sometimes less. The single market is full of new opportunities, so that you can be free to expand your business into other European countries.

    Social security
    Educational standards in European countries are considered relatively high. There are many universities and colleges, which offer education enabling you to compete for the best career opportunities throughout the world. The oldest university in the world – University of Bologna (est. in 1088), which still operates, is located in Europe (Italy). European higher educational facilities operate under single, unified system, which provides an opportunity for students to choose where they want to study. Also, the European Union has grants and discounts available for students who are citizens of the EU, which means that you can often get one of the best educations in the world for a good price.

    Work in European countries can be both interesting and well paid. The open labor market includes freedom of movement for workers, allowing you the possibility to travel to a place, where specialists in your specialty are in high demand. This allows EU member states to exchange specialists in different fields, thus making the local labour market more stable, decreasing unemployment rates and contributing to the economy and welfare of the region as a whole.

    Healthcare is also a very important factor, which must be taken into account. Most European countries provide very comprehensive healthcare benefits for EU residents. That is compares very favorably with many regions and provides many benefits, no doubt.

    European lifestyle
    European lifestyle is considered western by the majority of the world.

    First, there are a lot of things to see in Europe. Not only tourists from other parts of the world come to Europe sightseeing, Europeans also love travelling around the region. Europe has one of the richest cultural heritages in the world, making it a perfect object of curiosity. Open borders and small distances create an environment friendly to travellers. Each country and sometimes each city has its own traditions and language, so cultural diversity is pretty high. You can travel by car and see a lot of things, and that is what many Europeans do for vacation.

    Second, it is people. Most people in Europe are very friendly and open. Europeans have etiquette and respect for many things, especially traditions. Their mindset is often focussed toward living and enjoying life.

    Third, it is about taking it easy. People in Europe sure do know how to relax. You can find any kind of relaxation and entertainment in almost any European city: from theatres and operas to night clubs and bars. Most Europeans work hard, but they also do like to party. In case you prefer more cultural experiences, European cities have many museums, memorials, theatres etc.

    Fourth, it is the cuisine. European cuisine really differs, and not just from country to country, but also from city to city. Because of the high level of European integration, often you can find a wide selection of such cuisines in each city. The cuisine itself varies: from olives, kebabs and pizzas in the south to cooked fish, roasted meat and cold soups in the north.

    European culture
    European culture has a rich historical heritage, which can be seen today in the form of museums, architecture, literature and art. Europe has a long history that dates back to Ancient Greece. Europe is considered the birthplace of a modern western civilization.

  • Cyprus offshoreDatum20.04.2023 11:12
    Thema von BalticLegal im Forum Dies ist ein Forum in...

    Cyprus is an island country located in the Eastern Mediterranean. It is best known for its sunny beaches and stunning mountain ranges. Most Cyprus income is made from tourism, export of goods and sale of real estate. The main languages in Cyprus are Greek and Turkish. English is spoken by most residents.

    Company formation
    Company formation usually takes around 5 days
    The minimum share capital of 1000 EUR, and usually authorised capital of 5000 EUR
    In order to maintain a tax residency in Cyprus, a local director of the company is required and board meetings must be held within Cyprus.
    Secretary is required to have or acquire a residence in Cyprus to maintain tax residency in Cyprus
    Information on tax system
    Cyprus corporate tax is 10%, one of the lowest corporate taxes in the European Union.
    The following activities are not taxable in Cyprus:
    Profits from the sale of listed securities.
    Receiving dividends for a Cyprus company.
    Interest not from ordinary activities or not directly related to the key activity of the company.
    Cyprus has a double tax treaty with more than 40 countries.
    For more information on Cyprus tax system or any related issues please contact us.

    Company management
    There is no annual fee payable to the government to maintain a company. Only filing annual returns is required according to the following rules:

    a company registered before 1 July must file the accounts with the tax authority before 31 December of the following year for the preceding year.
    a company registered after 1 July must file the accounts with the tax authority before 31 December two years after, for the preceding years.

  • Foreign relations of LatviaDatum05.03.2023 10:42
    Thema von BalticLegal im Forum Dies ist ein Forum in...

    Latvia is an active participant in the international arena - the country has a number of embassies, is a member of various international organizations and participates in decision-making on international affairs at various levels. The state organization responsible for maintaining these relations is the Ministry of Foreign Affairs of Latvia.

    Being located in Europe and having limited political resources, Latvia mainly concentrates on building relations with the countries of the Northern Hemisphere, especially those that belong to the Western society. Latvia's foreign relations are also influenced by its past - a couple of decades ago, the country was part of the USSR, and this context affects Latvia's relations with all other former Soviet countries.

    Nearest political neighbors
    Latvia has the closest political ties with neighboring countries and countries with which it shares a common history. In this context, the term "political ties" does not necessarily mean alliances or trade networks, but rather an active political dialogue and special attention to each other's political landscape.

    Historically, Latvia's closest political ties have been with Lithuania, Estonia, Russia, Germany and, to a lesser extent, Sweden. Culturally, Lithuania is the closest neighbor to Latvia, which has always been the basis for cooperation, trade and political alliances. Estonia is also a Baltic country (the others being Lithuania and Latvia itself), sharing much of Latvia's history due to geographical proximity. The three Baltic states were further brought closer together through joint efforts to gain independence from the USSR, marked by such cultural-political events as the Baltic Way - a 675.5 km human chain that crossed in a move to promote independence across extended to all three countries.

    With Latvia being a major trading hub on the Baltic Sea thanks to its geographic position (which nowadays is used as part of Latvia's logistic system), Sweden, Russia (its earlier incarnations) and Germany have all competed for power over the country. Germany was the first to conquer the territories of modern Latvia, spreading its culture and political power across the region. Because of this, Germany has historically been viewed as a political enemy by Latvia. Today, when both Germany and Latvia are member states of the EU, the political discourse has shifted and Germany is seen as one of the allies.

    Similar to Germany, Sweden has historically conquered parts of the territory of modern Latvia. However, unlike Germany, these times are seen in a more positive light as Sweden improved Latvia's economic and social situation. Today Sweden, like Germany, is an EU ally of Latvia.

    Russia's political influence on Latvia has had the most recent and lasting impact on the country. Latvia was a part of the Russian Empire for a long time, and later the country was absorbed into the USSR, and Latvia regained its independence only in 1991. This turned Russia-Latvia relations into an active political discourse, with Latvia viewing Russia as a political opponent. This view has become even clearer since Latvia joined the EU and became an active political supporter of European politics.

  • Thema von BalticLegal im Forum Dies ist ein Forum in...

    Official Name: French Republic
    Capital: Paris
    Total area: 674 843 km2
    GDP per capita: $35,548
    Native Language: French
    Government: Unitary semi-presidential constitutional republic
    Population: 65,350,000
    Major Religion: Roman Catholicism
    Monetary Unit: Euro (EUR)

    France is the largest country in the EU and stretches from the North Sea to the Mediterranean Sea. The landscape is varied, with mountains to the east and south, including the Alpine peak of Mont Blanc (4,810m), the highest point in western Europe. The French lowlands are made up of four river basins, the Seine to the north, the Loire and Garonne flowing to the west, and the Rhône, which flows from Lake Geneva into the Mediterranean.

    The President of the Republic has an important political role. He chairs meetings of the Council of Ministers (Cabinet) and retains overall responsibility for key areas of foreign policy and defence. The day-to-day running of the country is in the hands of the prime minister. The President is elected by direct popular vote for a five-year term. Parliament consists of a National Assembly, directly elected every five years, and a Senate, whose members are elected by an electoral college.

    France has an advanced industrial economy and an efficient agricultural sector. Its main activities include automotive, aerospace, information technology, electronics, chemicals and pharmaceuticals, and fashion.

    France has produced some of the continent's most influential writers and thinkers, from Descartes and Pascal in the 17th century to Rousseau and Voltaire in the 18th, Balzac, Baudelaire and Flaubert in the 19th and Sartre and Camus in the 20th. Over the last two centuries it has given the art world the works of Renoir, Monet, Cezanne, Gauguin, Matisse and Braque, to name a few.

    French cuisine is one of the best in Europe; Cooking and eating are part of the French culture and way of life.

    Health & Wellbeing
    Comprehensive welfare entitlements, including medical coverage, provider selection and 100% reimbursable treatments.

    Economy & Jobs
    Agriculture, forestry, fisheries, banking, retail and tourism.

    Main attraction
    Paris, the city of Arles, the coastal city of Biarritz, the city of Cannes, the Chamonix valley, the valley of Château de Chambord, Saint Malo and the north coast, and the city of Toulouse.

    As a member of the G8 group of leading industrialized countries, it is ranked as the fifth largest and Europe's second largest economy in terms of nominal GDP; With 39 of the world's 500 largest companies in 2010, France ranks 4th in the world and 1st in Europe on the Fortune Global 500, ahead of Germany and the UK. France joined 11 other EU members to adopt the euro on January 1, 1999, with euro coins and notes fully replacing the French franc (₣) in early 2002.
    France gets 79% of its electricity from nuclear power, the highest percentage in the world.

    France has a mixed economy, combining sizeable private enterprise (nearly 2.5 million registered enterprises) with significant (albeit declining) state enterprise and state intervention (see dirigisme). The government retains significant influence over key segments of the infrastructure sectors, with majority ownership in railways, electricity, aircraft, nuclear power and telecommunications. It has gradually relaxed its control over these sectors since the early 1990s. France is part of a currency union, the euro zone (dark blue) and the EU single market.

    The government is slowly corporating the state sector, selling stakes in France Télécom, Air France, and the insurance, banking, and defense industries. France has an important aerospace industry, led by the European consortium Airbus, and has its own national spaceport, the Center Spatial Guyanais.

    According to the World Trade Organization (WTO), France was the world's sixth largest exporter and fourth largest importer of manufactured goods in 2009. In 2008, France was the third largest recipient of foreign direct investment among OECD countries, at US$117.9 billion, behind Luxembourg (where foreign direct investment consisted mainly of remittances to banks in that country) and the United States (316, 1 billion US dollars). over the UK ($96.9 billion), Germany ($24.9 billion) or Japan ($24.4 billion).

    In the same year, French companies invested $220 billion outside of France, ranking France as the second most important outward direct investor in the OECD, behind the United States ($311.8 billion), and ahead of the United Kingdom ($111.4 billion), Japan ($128 billion) and Germany ($156.5 billion). With 39 of the 500 biggest companies of the world in 2010, France ranks 4th in the Fortune Global 500, behind the USA, Japan and China, but ahead of Germany and the UK.

    Financial services, banking and the insurance sector are an important part of France's economy. The Paris stock exchange market (French: La Bourse de Paris) is an ancient institution, as it was created by Louis XV in 1724. In 2000, the stock exchanges of Paris, Amsterdam and Bruxelles merged into Euronext. In 2007, Euronext merged with the New York stock exchange to form NYSE Euronext, the world's largest stock exchange. Euronext Paris, the French branch of the NYSE Euronext group is Europe's second largest stock exchange market, behind the London Stock Exchange.

    French companies have maintained key positions in the Insurance and Banking industries: AXA is the world's largest insurance company, and is ranked by Fortune the ninth richest corporation by revenues. The leading French banks are BNP Paribas and the Crédit Agricole, ranking as the world's 1st and 6th largest banks in 2010 (determined by the amount of assets), while the Société Générale group was ranked the world's eight largest in 2008–2009.

    France is the smallest emitter of carbon dioxide among the seven most industrialized countries in the world, due to its heavy investment in nuclear power. As a result of large investments in nuclear technology, most of the electricity produced in the country is generated by 59 nuclear power plants (78% in 2006, up from only 8% in 1973, 24% in 1980, and 75% in 1990). In this context, renewable energies (see the power cooperative Enercoop) are having difficulties taking off the ground.

  • Thema von BalticLegal im Forum Dies ist ein Forum in...

    Ready-made Company, also known as Shell Company, previously formed company, seasoned company or aged company, describes a limited liability company (LLC) or partnership that had no activity, metaphorically put on the shelf to age or how to be an empty shell. As a rule, a complete company is subject to VAT.

    Advantages of the shelf company

    process of business purchase

    Change of company name and/or address

    Recent practice

    Advantages of the shelf company are:

    Time saving. The incorporation process takes time, faster registration costs more money due to higher government fees. It's faster to change ownership of an existing business.

    longevity in the company. Some partners or credit institutions may check the registration date before proceeding with the cooperation. Potential customers will trust older companies that could be used for advertising.

    history of your company. Boosts the company's image with age and increases credibility.

    Need a bank loan. It may be easier if you have proof of your inclusion history.

    Baltic Legal provides legal support in the purchase of ready-made companies and offers first-class services and useful advice in related matters.

    Process of business purchase

    The business purchase takes only a few days. Due to the reliability and cooperation with our partners, we are able to arrange a turnkey company for you in one day! Registration with the commercial register takes 4 working days (can be shortened to up to 2 days).

    Our current offers appear at the top of this page, but we or our partners may have additional offers. If you are interested in buying a ready-made company, contact us: Go to the contact page

    Change of company name and/or address

    The age, but not the name, of the finished business is of primary importance as a name change can be easily accomplished.

    Legal address is mandatory in Latvia. Changing legal address or registering an additional office takes up to four business days or can be changed at the same time as the business purchase.

  • Thema von BalticLegal im Forum Dies ist ein Forum in...

    Legal address / mail forwarding
    If your business isn't fully operational yet, or you simply don't need a physical on-site presence, we can provide your business with a virtual address for a fixed and reasonable fee. Mail and call forwarding services are possible.
    If your business requires a statutory legal address for registration purposes, we can provide this for a set monthly fee.

    Nominated Directors
    While your newly formed or acquired company may not be fully operational, it is possible to provide the services of a nominee director for a set monthly fee. Nominee directors will help you run your business remotely and start economic activities as soon as possible.

    Bank accounts
    Baltic Legal offers its clients advice on requirements imposed by local banks and state institutions in connection with opening bank accounts.

    Assistance in obtaining the required certificates
    We'll help you find the right institution to contact, and we'll also help you apply for certificates and permits. We also provide intellectual property protection services (registration of trademarks, patents, dealing with intellectual property protection organizations).

    Translation Services / Language Solutions
    We provide our clients with various types of translation services required for doing business or related to immigration matters and investments. We offer you the most efficient, cost- and time-saving solutions for translating your documents. When it comes to translating legal/business documents for our clients, we recommend our trusted partner – translation agency BALTTEXT.

    Representation in negotiations
    We can help you overcome the language barrier at meetings by representing clients' interests in negotiations with business partners or government agencies. Our clients can pursue their interests remotely, conclude various transactions by power of attorney and receive necessary information in understandable language.

    Partner reliability verification
    Before building a business partnership, it is important to consider whether you can trust your business partner. We can carry out the assessment of basic economic information of a company (date of registration, ownership, activities, prime contractors, tax matters, etc.), provide information about possible criminal components in the activities of a company, as well as individual personality traits of certain people. BALTIC LEGAL has numerous connections to doing business in Latvia, Lithuania or Estonia and this makes our business support service the best available.

    You know that every business faces a variety of risks. For example, employees can be injured in work-related accidents, goods can be lost in transit; there may be fires in the office and so on. In all these cases, the entire damage is to be borne by the entrepreneur or owner. But the risk of loss or damage is no longer borne solely by the owner. Insurance provides protection against losses from such risks to the business for a nominal fee known as a premium. In other words, it helps the company recover part or all of losses that may arise from various events in the course of business from the insurance company. We can help you choose the best type of insurance and insurance provider in Latvia, Estonia or Lithuania.

  • Wave market entry strategyDatum20.12.2022 17:01
    Thema von BalticLegal im Forum Dies ist ein Forum in...

    The Wave Market Entry strategy is a simultaneous expansion of business into a number of foreign markets, but unlike the Sprinkler strategy, it limits the number of eligible markets by dividing them into groups. It does this by analyzing the culture and business environment of the available markets and grouping them according to how similar they are to the home market. For example, Latvia, Lithuania and possibly Estonia would be grouped together based on similarities in culture, business environment and economic relationships between the countries (although Estonia may not be included due to some parameters, it all depends on the analysis performed by the company itself).

    Similar to the waterfall strategy, the wave-like business expansion can be divided into stages. The first stage includes markets that are similar to domestic ones and are also typically closer geographically. Each successive level includes another group of markets that resemble the domestic market less and less. This is reminiscent of circles of waves that emanate from a single center and first have to traverse the immediate vicinity in order to reach more distant areas.

    The Wave market entry strategy is usually initiated with a thorough analysis and grouping of the available markets. Then, for the initial expansion, a group most similar to the domestic market is selected. Due to the similarities, the business model from the home market can be transferred to these markets. With the initial expansion secured, the company can move into the next group of foreign markets, which now resemble less the domestic markets. Thus, the gains and experiences from each previous group offset the potential risks of each subsequent market as they become less and less known.

    When grouping the available markets, it is important not just to choose one or more parameters, but to integrate them into a system. It would be a good idea to develop a rating table where each country gets its own score based on all the criteria and parameters. This is crucial as a foreign market can be culturally similar to the domestic one but radically different in terms of business environment or political stability. A company that fails to take this into account risks grouping economies that are intrinsically different in their own right, thereby diminishing the benefits of the wave market entry strategy.

    The main benefit of the wave market entry strategy is that it combines the breadth of the sprinkler strategy and the security of the waterfall strategy.

    First, when entering multiple markets at the same time, a company gains multiple sources of profit and experience in internationalizing companies. While not as extensive as the sprinkler strategy, it also gives the company an advantage over the competition. This is particularly effective against domestic competitors who may be interested in the same first wave/group markets as they are the easiest to enter. Such an early and simultaneous expansion into all well-known foreign markets gives the competition no opportunity to gain a technological advantage, unless your business withdraws.

    On the other hand, the Wave strategy also offers a certain level of stability and security in the event of failure to enter another group of markets. If the entry of the first wave fails, the company can withdraw to its domestic positions. If one of the following waves fails, the company can use resources from previous waves to recoup the losses and continue its international expansion. This minimizes the risks of each individual case, making the wave strategy quite cost-effective.

    While the wave strategy combines the advantages of the waterfall and sprinkler strategies, it is also a middle ground between the two and does not take full advantage of their advantages. It does not allow to enter all available markets at the same time, and the competitive advantage there can be lost. This is particularly noticeable when a competitor succeeds in entering more distant markets, and once there, the company in question will lag behind in introducing it to the local market.

    While this is not always a disadvantage, the Wave strategy is sometimes criticized for taking extra time to analyze many markets in order to group them. Although market analysis is required in any strategy, the wave method needs to analyze more markets than the waterfall strategies

  • Banks in LatviaDatum18.11.2022 13:59
    Thema von BalticLegal im Forum Dies ist ein Forum in...

    This is full list of banks in Latvia.

    Baltic International bank
    Big bank
    Reģionālā Investīciju Banka
    SMP bank
    Latvijas pasta banka
    Trasta komercbanka

  • Registration of VAT payers in LatviaDatum22.10.2022 16:39
    Thema von BalticLegal im Forum Dies ist ein Forum in...

    In Latvia, the registration of VAT payers by the State Tax Service (SRS) in the register of VAT payers is subject to the following provisions:

    Article 3 and paragraphs 1 and 9 of Article 26 of the Value Added Tax Act.
    Cabinet Order No. 933 “Procedures for Applying the Provisions of the Value Added Tax Act”, adopted November 14, 2006.
    Due to the accession to the EU, some provisions have been added according to which non-taxable persons who carry out an economic activity in the EU area and purchase goods whose value reaches or exceeds EUR 50,000 (excluding VAT) in the current calendar year must be obliged by the state tax authority within entered in the register of persons subject to VAT within 30 days of reaching or exceeding the said amount. After registration, this person can voluntarily apply for deregistration no earlier than 2 years after the date of registration.

    Registration applies to the following persons and organizations:

    natural persons - registered according to their declared places of residence;
    legal entities - registered according to their registered addresses;
    partnerships - registered according to their registered addresses;
    If a group of people carries out a joint economic activity on the basis of a contract, the natural person authorized to represent this group of people must be registered according to the registered place of residence;
    if a person from another member state or a person who is not registered in the EU territory carries out one or more taxable domestic transactions.
    Only companies, such as general partnerships, limited partnerships, sole proprietorships, limited liability companies (SIA) and joint-stock companies (AS), are obliged to submit VAT returns to the Business Register of the Republic of Latvia.

    Registration as a VAT payer is mandatory if the total value of taxable transactions performed by a natural or legal person whose declared residence or registered address is in the Republic of Latvia has reached or exceeded LVL 10,000 in the last 12 months. 12 months are not to be considered a calendar year, but can refer to any period of 12 months. Registration must be made within 30 days of reaching or exceeding the stated amount.

    The SRS examines the application for registration and decides whether to register a person in the register of persons subject to VAT within 15 working days of receipt of the application.

    If the SRS has decided to reject the registration, it will mail this decision to the person concerned, stating the reason for the rejection, within five working days. A person who has received a decision to refuse registration has the right to amend and resubmit the application for registration to the SRS.

    A person is deemed to be registered in the SRS register of persons liable for VAT from the date on which the certificate of registration of a person liable for VAT is issued to that person.

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