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Frequently Asked Questions

Individuals:

If you have a payment card agreement and a bank credit card with a limit has been issued, it is possible to pay the limit and interest on the account of the Bank to be determined. In the details of payment, you must indicate your name, surname, personal code and purpose of payment. For example: "name, surname, p.k.000000-00000, payment of the credit limit."

The exact amount of the paid limit and the amount of interest can be found out from the Bank's specialists.

If you do not have sufficient funds to fully pay off your card debt, please contact the Bank's specialists on restructuring the loan, drawing up a one-year payment schedule.

If you have a loan agreement, a monthly payment or interest payments can be made in accordance with the schedule to the account of the Bank to be determined. In the details of payment, you must specify your name, surname, personal code, credit agreement number. For example: "first name last name, p.k.000000-00000, credit agreement number _____".

The bank calls for the possibility of on-lending in any other commercial bank. Making a deal for on-lending, the Bank will not hold a commission for on-lending.

Legal entities:

If you have an agreement on a payment card and a bank credit card is issued, then the used credit limit and interest can be paid to the account of the Bank to be determined. In the payment details, you must specify the name of the company, the registration number and the purpose of the payment. For example: "SIA Name, reg.number 40000000000, credit card limit payment".

The exact amount of the paid limit and the amount of interest can be found out from the Bank's specialists.

If you do not have sufficient funds to fully repay the amount of debt, we urge you to contact the Bank's specialists to find out about the possibility of restructuring the loan.

If you have a loan agreement (including a credit line agreement, an overdraft agreement), then the monthly payment and / or interest according to the schedule should be transferred to the account of the Bank to be determined. In the details of payment, you must specify the name of the company, registration number, credit agreement number. For example: "SIA Name, reg.number 40000000000, credit agreement number".

The bank encourages you to find the possibility of on-lending in any other commercial bank. Making a deal for on-lending, the Bank does not withhold a commission for on-lending and does not apply penalties for early repayment of obligations.

If you have a contract on factoring, then in the future you need to pay the bills to the account to be determined later. In the details of payment, you must specify the seller's name, registration number, contract number, account number and number. For example: "SIA seller Name, reg.number 40000000000, factoring agreement number, account number 0-00, dd.mm.yyyy."

If you have any other agreement with the Bank (about renting a safe, lease agreement), then in the future you need to pay the bills to the account to be determined later. In the details of payment, you must specify the seller's name, registration number, contract number, account number and number. For example: "name last name, p.k.000000-00000, contract number__, account number ___". Or "SIA Name, reg.number 40000000000, contract number ___, account number ___".

According to Chapter XIV of the Law on Credit Institutions of a Credit Institution on Bankruptcy:

A credit organization may be liquidated:

1) in accordance with the decision of the meeting of shareholders of the credit organization (self-liquidation);

2) in accordance with a court order;

3) in case of bankruptcy.

In case of bankruptcy:

1. The administrator submits an application approved by the FCMC to the court.

2. The decision to initiate a bankruptcy case is taken by the court, after which the bank loses the license. Subsequently, the word "liquidated" should be added to all bank details. Public auctions are organized for the sale of bank assets.

3. Within 3 working days after the court decision on opening a bankruptcy procedure

4. The Administrator publishes a notice in the Official Journal of the Republic of Latvia and two other newspapers.

5. Creditors must submit their claims within 3 months from the date of publication of the report in the Latvian Journal.

6. When the license is canceled, the FCMC shall immediately notify the Bank of Latvia in writing and within 30 days the European banking authority.

7. In accordance with the cost of liquidation creditors' claims procedure (basic amount - net of interest) shall be satisfied in the following order:

7.1. Guaranteed expenses for depositors: up to 100 000 euros for each depositor. It is estimated that 490 million euros will be required to cover the guaranteed costs of ABLV.

7.2. Other expenses for depositors.

7.3. Salary of employees.

7.4. Taxes and other contributions to the state budget.

7.5. National claims for government-guaranteed loans.

Each round of expenses begins only if the previous round is fully paid.

A decision to revoke a license from a credit institution may be challenged in the European Court of Justice.

The financial commission of Latvia launched a hotline for the clients of ABLV Bank -

+37167774841
+37167774958
+37167774876
+37167774843
E-mail: fktk@fktk.lv

The fund has accumulated 236 million euros.

After the cancellation of the banking license for all depositors that correspond to the category of clients eligible for guaranteed compensation, the amount of payment up to 100,000 euros is guaranteed, regardless of when the funds were credited to the client's account.

No. Guaranteed compensation is paid only for the amount that was (or was not) available on the day when deposits became inaccessible. If a sworn bailiff collects the client's funds in a bank, the corresponding recoverable amount up to EUR 100,000 will be transferred to the bailiff or tax administrator. If, after calculation with the bailiff or tax administrator, a part of the pledged sum is released, the client will have the opportunity to receive a guaranteed compensation later. In this case, the time (5 years) during which a guaranteed compensation can be obtained is considered from the day when the guaranteed compensation or its part becomes available to the client.

In order to get a refund, the client needs to submit the application together with the documents, which confirm that the contributions correspond to  the criteria.

In the accounting registers of banks, information is kept about all customers who have rights to guaranteed reimbursement, as well as its volume. This information is checked by the FKTK.

No subordinated debt - this is one of the exceptions for which reimbursement is not supposed.

If the customer's deposit was less than EUR 10 and within two years until February 24, 2018 (the day when the deposits became inaccessible), no actions were taken with him, no guaranteed reimbursement. Other exceptions, when compensation is not required, are described in Article 23 of the Latvian Deposit Guarantee Law (https://likumi.lv/ta/id/274737-noguldijumu-garantiju-likums).

If the bank has identified in time each such depositor, in case of insolvency of the bank, each investor can claim a full amount of compensation in the amount of 100 000 euros.

Guaranteed compensation up to 100 000 is due to all bank customers - both individuals and legal entities, residents and non-residents. The guaranteed compensation also applies to the accounts of the Latvian state and local governments in the bank (if the budget of these institutions does not exceed 500,000 euros).

In accordance with the law, guaranteed compensation is paid in euros. If deposits were in other currencies, then they are converted into euros.

Yes, interest is also included in the reimbursement amount, including the interest that is calculated until the day when the deposits become inaccessible, unless the total amount exceeds 100,000 euros. For example, if the customer has a deposit of 99,000 euros, and the accrued interest up to the day when the deposits became inaccessible, amount to 1,500 euros, then the client will receive 100,000 euros (99,000 + 1,000 percent), but 500 euro will not receive. The fact of inadequate deposits was confirmed on February 24, 2018.

The refund is provided for all types of deposits in all currencies in an amount that does not exceed 100,000 euros in all accounts together, which are opened in the branches of the enterprise. The amount guaranteed by the state refers to deposits, balances on settlement accounts, salary accounts, savings accounts, etc. The refund of deposits, which does not exceed 100,000 euros, is paid in full.

Each client in each Latvian bank in case of inaccessibility of deposits the state guarantees payment of up to 100 000 euros from the Guarantee Fund. Management, accumulation and payment of funds provides FKTK.

On the order, time and place of payment of guaranteed compensation (to individuals and legal entities), the FKTK Board will make a decision and immediately notify. Information will be available both on the home page, in the bank, and in the media.

FKTK will try to start the payment as soon as possible, presumably it will happen in the next 8 working days. The Deposit Guarantee Law provides that the beginning of the payment of guaranteed compensation must occur within 8 working days from the day when the deposits become inaccessible  (not later than March 7, 2018).

http://www.fktk.lv/enNow clients temporarily do not have access to their funds either in the bank's office or in the Internet bank. The card system is disabled, so customers can not pay with bank payment cards, they can not withdraw money from ATMs. Clients need to monitor the FKTK public messages (http://www.fktk.lv/en) about the procedure of payments guaranteed by the state, the place and time of commencement of payments. 

FKTK

According to the decision of the Council of the Financial and Capital Market Commission (FCMC), the disbursement of guaranteed compensation to ABLV Bank customers will begin on 7 March.

There are two ways how to receive the guaranteed compensation:

- Clients may submit applications via the  internet banking system (the compensation will not exceed EUR 100 000) specifying their account number in another bank. The compensation cannot be paid to a third party.* Starting from 7 March, there will be only one payment order form available in  internet banking - Disbursement of guaranteed compensation. The payment of the guaranteed compensation per depositor will be made as a lump sum payment. The entire amount of account balance will be automatically entered into the field “amount and currency” thereby excluding any possibility of making a mistake.

- Clients may submit applications in all bank's branches. 

Applications for the disbursement of guaranteed compensation will be accepted for a period of five years following the date when the unavailability of deposits occurred (7 March 2018), i.e. until 2023.

Bank customers in Luxembourg will be able to claim compensation in the internet bank in Luxembourg or in the office.

Creditors whose outstanding balances and deposits in ABLV exceeds EUR 100 000 (is not guaranteed by the state), as well as other legitimate lenders who received creditor status after making the decision on liquidation, can assert their claims within three months from the day, when an entry was published in the official Latvian publication "Latvijas Vēstnesis" about the beginning of the liquidation process of the credit institution (March 8, 2018), that is, until June 8, 2018.

To submit your creditor's claim, fill out the application form (a sample of the creditor's claim http://www.tkb.lv/assets/files/Jaunumu%20bildes/Creditors_claim_template.docx) and add the copies of documents that justify the creditor's claims - all the documents which form grounds for the creditor’s request.

For instance:
- agreements with the bank for the provision of services (e.g. current account opening agreement, card account opening agreement, deposit or factoring agreement, etc.).;
- account statements (can be found in the Internet banking system);
- copies of payment orders (payment orders not executed due to the liquidation of the bank);
- notarized power of attorney for private persons where a claim of the creditor is not submitted by the customer himself but by his authorized representative.


Please note that this is an approximate list of documents and it may vary according to the individual creditor's claim!


The creditor's claim and the package of documents attached to it must be sent to the liquidator.

It can be done:

- by mail (address and requisites in the form);

- by e-mail (with a reliable e-Signature) to the address;

- personally at the Bank's Customer Service Center in Riga

The application form is available on the FKTK homepage: http://www.fktk.lv/lv/klientu-aizsardziba/garantiju-fondu-darbiba/noguldijumu-garantiju-fonds.html. An application certified by an electronic signature can be sent by e-mail: fktk@fktk.lv, a letter to the address. Kungu, Riga, LV- 1050, and also through the portal Latvija.lv: https://www.latvija.lv/lv/PPK/tiesibuaizsardziba/iesniegums-iestadei/p3395/DokumentiUnVeidlapas

Such clients will be able to lend their credit claims to the liquidator of the process as soon as the deadlines for accepting such applications are established. Despite liquidation, the bank has a positive capital, therefore, the assets are sufficient to pay off all liabilities, but for a longer period of time. 

Then will they in this case have the right to further payments from the Guarantee Fund after the cancellation of the bank's license?  

Yes, even in this case, all customers who meet the relevant category, after the FKTK determines the terms of payments will be paid guaranteed repayment up to 100 000 euros.

According to the current estimates, the number of clients will be about 42,000 (both individuals and legal entities).

The right to receive guaranteed compensation is valid for 5 years after the day when deposits become inaccessible, that is, investors will be able to apply to the bank until 2023.

Yes, there are some types of transactions in which individuals can claim additional reimbursement (up to 200,000 euros), ie, together with a standard refund it up to 300,000 euros. Such an event occurs if, within the last 3 months, the funds have been received from the sale of real estate, social compensation from the state, compensation for damages or compensation for unjust conviction.

Normative acts do not provide for such compensation.

According to article 380, paragraph 3 of the Customs code of Ukraine the temporary import of an air vehicle of personal use by residents into the territory of Ukraine is permitted for up to 1 year under a written obligation to reverse export subject to written Declaration and payment in full of state duties.

The sum of subsistence minimum is 4 440 EUR for adult and 2 665 EUR for children from January 1, 2016.  

According to rules of the Cabinet of Ministers № 276 dated June 26, 2001 with last amendments dated March 8, 2013, the areas of low taxation are recognized:

1.24. Hong Kong

Territories of United Kingdom:

1.2. Anguilla

1.12. Bermuda Islands

1.16. Jersey

1.19. Guernsey

1.20. Gibraltar

1.28. Cayman Islands

1.45. Isle of Man

1.47. Monserrat

1.50. Alderney

1.51. Saint Helena

According to the law on company profits, paragraph 3, part 8: " independently of any conditions in this law, tax on company profits, at a rate of 15%, levied on all payments and dividends that are paid by residents or non-residents of Latvia to legal, private or other persons who are located in the territories of the countries which are specified in the rules of the Cabinet of Ministers № 276, making a payment to the bank accounts of their representatives or third parties and payments which are made in the form of settlement payments.

Exceptions are payments for the supply of goods and purchase of security papers in the EU zone if these goods or security papers were purchased at market price.

Also:

5% applies to interest payments if the credit institution registered in Latvia pays them,

30% for the extraordinary dividends".

On request the bank issues a statement about purchase and sale of real estate for amount not less than 250 000 EUR. An applicant who pretends to a residence permit in Latvia, must provide this bank statement to the Embassy of Latvia.

In order to obtain a residence permit in Latvia it is required subordinated deposit opening in the Latvian bank in the amount of 280 000 EUR in the form of subordinated capital with the placement of not less than 5 years. The deposit cannot be cancelled until the efflux of time of the transaction according to the terms. Annual percentage rate – 1-2 %. Also, the state fee must be paid in the amount of 25 000 EUR.

Yes, they can.

But according to the Cabinet of Ministers regulations, the citizens of the listed countries (a list includes Afghanistan) applying for a visa or a residence permit in Latvia, will be additional reviewed (Security Police asks for additional information about the source of funds).

The nearest Latvian Embassy is located in Uzbekistan.

The English LTD should receive a VAT number when income is more than 81 000 GBP.

More information can be found by this link: http://www.gov.uk/vat-registration-thresholds

Registered fixed assets value – if the company has fixed assets (real estate, cars, etc.) it can be taken into account in the requisite capital.

Residence permit in Estonia can be obtained on the basis:

  • Equity participation in commercial association (LLC) + Investment 65 000 EUR.
  • Individual Entrepreneur (IE) + Investment 16 000 EUR.

Investments are considered an equity capital, subordinated loan and registered fixed assets value. In this case, this company should not be dummy, it should produce a profit and has a formally employed workers (at least 3 jobs). A foreigner who has been issued a residence permit for enterprise, cannot work in Estonia under the leadership of another person. The company must exist for at least 4 months before applying for a residence permit.

No, the Latvian Embassy is located in Beijing.

Ambassador: H.E. Mrs. Ingrida Levrence

Address: Unit 71, Greenland Garden, No.1A Greenland Road, Chaoyang District, Beijing

Postcode: 100016

Telephone: (+86)10 6433 3863

E-mail: embassy.china@mfa.gov.lv

Working hours: 09:30 - 11:30 (Mon – Thu)

A non-recurrent refundable insurance deposit is a monetary amount which is transferred to the registration agents (company Intercorp) when using of their nominee service (director is private individual). This amount is refunded to the director when the client refuses a nominee service or when company liquidation.

In accordance with the decree of the Cabinet of Ministers №564, an invitation isn't necessary for a person who is going to receive a residence permit on the basis of opening the representative office in Latvia.

A document issued by the Latvian bank which confirms the introduction of 280 000 EUR in the form of subordinated capital (subordinated loan or subordinated shares) by a foreigner  with the placement of not less than 5 years. According to the conditions of the deposit, it can not be canceled before the expiry of the term of the transaction. Guarantee of EU countries covers all deposits. In the event of problems at the bank, in any case, the state will compensate the client an amount equal to 100 000 EUR.

When depositing cash to an account at HSBC Bank in terms of USD, the bank charges a fee in the amount 0,25% from total. It is also recommended to provide the supporting documents. It is best to transfer the initial deposit from any personal account of the beneficiary.

Yes, if a representative office begins to carry on a commercial activity then it should be re-registered in a branch. It is a different basis for obtaining a residence permit.

No, the residents/citizens of Hong Kong need not provide a Certificate of no criminal conviction (more information can be found by a following reference: http://www.pmlp.gov.lv/en/home/services/residence-permits/).

But it is important to remember that it is necessary to provide an evidence of stay more than 12 months in the territory of Hong Kong to the Latvian Embassy (for example, ID card).

Advantages: as concerns the director it is only necessary a copy of the passport from him. Nothing is said about the bank statement and/or providing of a utility bill.

Disadvantages: it is difficult to contact the bank by email (an answer from the bank takes a long time) and difficult to get answer by the phone (all operators are busy). Eventually, it isn't clear how to get in touch with the bank in the future and how to open an account if the bank gives an answer so long.

VAT number can be obtained only for LTD company.

No, one person can’t own two Latvian microenterprises.

Yes, it is possible but subject to conditions that the reference is available in the Russian or English language and payment card must be an international standard.

The share capital shall be 2 800 EUR at the company's registration. The first installment shall be 50%. It is necessary to deposit a remainder of an amount over one year.

Personal presence in the bank is necessary requirement after filling out online form.

VAT invoice is required in case of a transaction between the two companies which have a VAT number. If anything is bought for the business activities then the VAT invoice is required in order to return later the VAT from the British internal revenue service namely HM Revenue & Customs (HMRC). The English company should issue VAT invoice in paper or electronic form with a payment time limit.

VAT invoice is not required if the client (second party of the transaction) is not registered as taxpayer. In practice, there is no need to check when the counterparty is a taxpayer.

Certificate of Good Standing corresponds with the document – Certificate of Continuous Registration. More information in English can be found on the website of the Hong Kong Register: www.cr.gov.hk/en/publications/docs/29-e.pdf

The Schengen Agreement does not apply to employment issues. Latvian residence permit gives to foreigner the right to stay but doesn’t give the right to work in other countries of the Schengen Agreement.

The current migration legislation does not require a permanent stay in the territory of Latvia but the reality is that a high probability of non-renewal of a residence permit in the case of stay for a few days in this country. A reason of that if there is no need for the applicant to stay in the territory of the Republic of Latvia then the residence permit is not necessary for him and in this case it would be better way for him to get a visa.

Single exception is the investment in a government bonds. Under this variant, the residence permit is issued for 5 years without need for annual renewal, accordingly, there is no need to stay in Latvia.

 

In obtaining the Latvian residence permit, there is possible to stay no more than 90 days in half of the year and no more than 180 days in the year in each of other EU countries.

The English LLP has no owners / directors. LLP belongs to the partners which should be at least two. Also, there is the obligatory requirement to have at least 2 founders - Designated Members who have the same rights and obligations in the LLP as any other member. However, Designated Members are also responsible pursuant to the law for:

  • Appointment of an auditor (if it's necessary);
  • Signing invoices on behalf of members;
  • Submission of reports to the Registrar;
  • Notification of the Registrar about any changes of the partnership’s composition or any changes of the registered office;
  • Preparation and signing of annual reports;
  • Speech on behalf of the LLP in case of liquidation or dissolution of the partnership.

No, both the company’s name and the cardholder's name must be indicated on the card.

The holder of a Latvian residence permit has the right to request a permanent residence permit if the following conditions have been fulfilled:

  • Fixed term of stay in Latvia: According to the Immigration law for obtaining a permanent residence permit it is necessary to stay in Latvia at least 5 years and during this time the allowable absence is one year. Herewith the absence should not exceed six month in one period.
  • Passing the exam on the knowledge of the Latvian language at least on the category “A2” (this is the second lowest category).

Profit of micro-enterprise should be more than 1 400 EUR (as the salary of board member must be not less than 1 400 EUR if he received a residence permit in Latvia). The company's profit is taxed – 11%. The salary is paid to the employee after the payment of profit tax.

An example:

Profit of micro-enterprise – 1 600 EUR.

Tax – 176 EUR (11% of 1 600 EUR).

1 600 EUR (profit) - 176 EUR (tax) = 1 424 EUR (rest).

The salary is paid to the employee from these 1 424 EUR.

Income which is received by a Hong Kong company from a source outside Hong Kong (such as dividends which have been paid by a foreign company) is not taxed in Hong Kong.

It is necessary to send the Estonian notary the following documents:

  • Scanned copies of the passports of the current owner and the future owner.
  • Scanned copy of the Memorandum of Association.
  • Purchase and sale conditions (written in free form).

It is necessary to come to Estonia in 2-4 days for the signing of documents on the change of owner. The residency status of owners doesn't matter. It costs about 50 EUR.

Corporate tax in the UK is 20% if the company's profits is less than 300 000 GBP or – 21% if the company's profits is more than this amount. The changes of a single corporate tax equal to 20% took effect from April 1, 2015. More information can be found by this link: www.gov.uk/corporation-tax-rates

The state, where the opening of a branch is planned, will require the registration papers in the English language.

Advantages of opening a company in the Netherlands:

  • An absence of taxes on dividends and royalties.
  • Tax treaty.
  • Funds, which are received as dividends, will not be taxed in the Netherlands.

Annual accounts for Hong Kong companies is submitted yearly from the date of company’s registration. The last term – the 42nd day after the date of registration. The cost of filling the annual accounts is about 12 EUR. If the annual accounts is submitted after the 42nd day then the fee may increase from 100 EUR to 400 EUR. A calculator of submitting the annual accounts can be found by this link (it is necessary to specify the date of the company’s registration and the calculator will show the deadline of submitting for the next annual accounts): www.companies-registry.hk/e-alert/calculator.asp?lang=1

Yes, do this requires:

  • Submit an application to the exchange for obtaining a work permit.  
  • Processing a job offer. Draft of an agreement of employment for 90 days. Employee can stay in the country with this annual visa (no more than 90 days out of 180) and if he works and stays longer, it is necessary to issue a residence permit.
  • Visit to the Embassy of Latvia in the country of residence for obtaining a visa. 

There is another option when it is possible to conclude a cooperation agreement between the enterprises of foreign state (country of residence) and Latvia then the enterprise of foreign state sends to work its employee to Latvia. But there is also restriction: the employee can stay in the country not more than 90 days out of 180.

If a student is a foreigner who is studying at the Latvian higher education institute then he is given a residence permit for a time of study. After graduation, he is given time to find a job and he can get a residence permit according to employment contract. If the student wishes to issue a permanent residence permit then the training period will be counted for him only 50% with all his training period and he should get himself a job in order to reach the rest 50%.

Example: a student who studied at the Latvian higher education institute for 5 years (he had a residence permit during this all time), wants to get a permanent residence. For this he needs to work two and a half years in order to that a period of stay in Latvia would be equal to 5 years.

The holder of Latvian residence permit can submit the documents for getting the USA visa to the Embassy of the USA of that country where an applicant actually lives and works independent from citizenship.  

  • CV of the beneficiary.
  • Completed application form from the bank.
  • Scanned copy of the beneficiary's passport.
  • Company's license (if the company has license).
  • Public information (sources).
  • Documents evidencing the company's activities (contracts).

It is Citibank, the one of the largest banks in the United States. Commission for account opening – HK$ 30 000 (approximately € 3 800).

According to the Commercial Code (Äriseadustik1), §180Compensation of the Board members (§1801 Juhatuse liikme tasustamine):

(1) Decision of an amount of the paid salary to the Board member is decided by the owner or Board of the company (if the company has the Board).

This legal norm doesn’t establish a minimum or maximum limits on the salary of the Board member. Therefore, the Board member can work without a payment for labour.