Located in the heart of the Baltics – Latvia is a hidden gem for Forex License and trading. Entrepreneurs seeking a Forex license will find Latvia particularly appealing. The financial system in Latvia is well-developed and well-established, with clear and transparent regulations, providing the necessary EU compliance. At the same time, certification in the EU is accessible for incorporated firms that receive a Latvian license - this is a major element for many business owners wishing to grow into European markets.

Getting a Forex License in Latvia

Forex trading is intriguing and profitable business. It is rapidly expanding across the European Union, making it attractive not only for those that are considered traditional in the industry and those that have just entered the market. The Baltic region entered the market of Forex recently, however, as a result of the EU membership, has a plenty of  business prospects.

Located in the heart of the Baltics – Latvia is a hidden gem for Forex License and trading. Entrepreneurs seeking a Forex license will find Latvia particularly appealing. The financial system in Latvia is well-developed and well-established, with clear and transparent regulations, providing the necessary EU compliance. At the same time, certification in the EU is accessible for incorporated firms that receive a Latvian license - this is a major element for many business owners wishing to grow into European markets.

Latvia Forex License: characteristics and capital

All EU-States need to offer companies the freedom to perform services covered by their license, according to the current Directive regulating financial instrument operations (MFID Directive), which has been implemented in Latvia.

Legal entities that are residents of the country or EU members are eligible for broker licenses from Latvia (duly certified). It is important to realize that the Republic of Latvia does not have low taxes; instead, corporate activities are subject to regular taxation. A specialized Supervisory Commission that operates in accordance with the applicable laws of the Republic of Latvia regulates all interactions on the market for financial instruments.

Latvia directs investment business units offering fixed services to brokerage companies obtaining Forex licenses. The approved permission includes a list of these units and the financial instruments for which they are created. The right kind of license may also be provided to branches of foreign investment companies so they may offer Forex services. 

Some of the requirements for businesses in the financial sector in Latvia: 

  • Businesses who want to operate in the financial sector must have a physical office in Latvia that is fully operating.
  • Intangible assets cannot be used to create the authorized capital of a registered Forex trading business. The degree of equity capital required for the subject, who is required to maintain the specified "bar," is determined by the supervisory commission. 
  • Entry into the market requires an authorised capital, which includes: EUR 125,000 for STP licenses, equity exceeding 10% of total assets and more than 25% of fixed expenditures paid in the prior year; EUR 730,000 for market makers. It is necessary to pay the entire capital. There shouldn't be more than eight times the amount of stock in high risk transactions.
  • The owner and management must have prior experience in the field.

You must notify the Latvian Supervisory Commission of your intention to begin activities in other EU nations, including the preferred state, the nature of your intended business, and any organizational structure details. The competent receiving authority receives the information from the authority.

 

License applicant and licensed capital company requirements:

·      capital company is registered accordingly with the law of the Republic of Latvia;

 

·      capital company has no tax debts; 

 

·      capital company, shareholder of the capital company, the representative of the administrative body or proxy has no criminal records; 

 

·      shareholder of a capital company, a representative of the administrative body or proxy has not been charged with a crime in the previous year.

Process of obtaining Forex license in Latvia

Typically, you must first create and register the proper company in order to apply for a license. After that, you will need to create a bank account, provide the licensing authorities with the necessary paperwork, and receive approval or a waiver with justifications. Company registration in Latvia usually takes around 7 business days.

Once the account is activated, the licensing authority needs to receive the following documents:

  • an application listing the services the business intends to offer;
  • papers containing personal information about the subject's owners and board of directors;
  • a description of the organization of the subject's internal auditing system;
  • AML compliance documentation and strategy;
  • its administrative structure (with clearly defined management authority);
  • a distribution of tasks based on department; and the communication between the subject and the licensing authority.

Among the advantages Latvia provides as a jurisdiction for Forex activities are the following: 

  1. simple bank account opening; 
  2. the ability to resubmit in the event that the initial application was rejected (subject to compliance with remarks); 
  3. registration processes are completed in less than two or three months.

Work globally. Once your business has been licensed in Latvia, all you have to do now is inform the authorities of other Eurozone countries of your desire to provide services on their territory. All you have to do now is get clearance from the state you want to work in without having to go through the licensing procedure again.

Contact us to obtain a Forex license in Latvia

EU LAW FIRM will help to register the company, apply for Forex license in Latvia and provide legal assistance every step of the way to ensure the success of application.

Today, EU LAW FIRM has a positive experience in obtaining licenses for processing in Latvia.

 

Contact EU LAW FIRM lawyers in Latvia.

E-mail: info@eulawfirm.eu

Telephone: +371 26742086 (Available on WhatsApp/Telegram/Viber/IMO)

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