The joint-stock company, commonly abbreviated as JSC, is a public legal entity, meaning its shares can be publicly traded. Similar to a limited liability company, the liability of JSC shareholders is also limited by the capital contributed.

Authorized Capital
The minimum capital amount for JSC is EUR 35,000 and this amount must be paid in full upon registration of the company. For certain legal entities such as insurance companies, banks and other non-bank financial institutions, the minimum share capital amount can be much higher.

Similar to a limited liability company, company shares can be owned by both legal and natural persons. But unlike a limited liability company, JSC shares can be bought and sold publicly. The maximum number of shares is unlimited and additional shares can be issued during the life of the company. There are different types of shares, and usually the voting rights of shareholders and the receipt of dividends depend on the category of shares. Typically, shareholders have the right to express their opinion on the management of the company and other issues such as profit distribution and council appointments. All shareholder decisions are made during a shareholders' meeting.

A council elects and dismisses the members of the board of directors. The Board of Directors is the executive body of the company. Unless otherwise stated, all board members represent the company collectively and decisions are made by voting. Only a private person can be a board member.

Documents needed for JSC formation in Latvia
In order to register a company in Latvia, the following documents must be submitted to the Business Register of the Republic of Latvia:

Application form for company formation;
agreement (or decision in the case of a sole shareholder) to form a company;
articles of incorporation of the company;
Bank reference confirming deposit of share capital;
Directory of the register of founders of the company;
confirmation by the works council;
Confirmations of the board members of the company;
Resolution on the legal address of the company signed by a member of the board of directors;
Resolution on permission to register the company at the given address (signed by the owner of the property);
Proof of payment of state taxes for company incorporation;
Receipt of payment for a publication in the official newspaper "Latvijas Vestnesis"


JSC incorporation process in Latvia
Incorporation of a JSC in Latvia is a complex legal procedure, which requires involvement of experienced corporate lawyers or incorporation agents. JSC incorporation generally consists of the following steps:

Collection of all necessary information and documents for the incorporation of a company;
Preparation of the foundation documents for the incorporation of a company;
Signing of the foundation documents (at the notary);
Opening of a temporary bank account where the share capital is paid;
Payment of state fees for the company formation and the publication in the official newspaper;
Submission of the foundation documents to the Register of Enterprises of the Republic of Latvia;
When the company is registered, you shall receive following documents:

Certificate of registration;
Articles of association;
Decision of the state notary of the Register of Enterprises of the Republic of Latvia
Reporting to tax office
JSC is obliged to report its financial statements once a year and a report on the company’s employee salaries must be submitted each month. In case the company’s turnover exceeds 50,000 EUR, it is obliged to register as a VAT payer. This also needs to be done if the company plans to export goods or services abroad. If a company is registered as a VAT payer, it has to submit VAT reports on a monthly basis.

As more jurisdictions open up to foreign trade, companies can gain access to a large pool of resources abroad. They can establish relationships with foreign partners and relocate their production to foreign locations or simply export their products to new markets. IT and software development companies are also trying to capitalize on moving production to foreign jurisdictions.

In general, the main advantages to offshore software development is lower cost compared to home country. For example, the cost of developing the exact same software in India is 50% lower than in the US. The savings generally come from lower labor costs, but offshoring IT and software production offshore can also expand the company's access to a broader pool of workers with higher skills and expertise. This could explain why 50% of America's Fortune 500 companies use offshore IT and software development. Let's look at some of the jurisdictions where opening a software development company might be more beneficial compared to others and discuss the reasons why.

India
India has long been one of the preferred software development outsourcing destinations for leading multinational companies around the world. This means that one of the biggest advantages of choosing India for your IT and software development business would be multinational demand for outsourced software development services. Meanwhile, the company would benefit from relatively lower labor costs, a broad pool of skilled workers, and a business-friendly environment with the government encouraging start-ups and small businesses. Furthermore, the IT industry is expected to grow in the early to mid teens in the coming years due to favorable political and economic initiatives by the Indian government.

United Kingdom
London was recently described as the city with the most opportunities for business and took first place in terms of technology readiness. While low labor costs are not among the benefits of starting a software development business in London, there are several other benefits that could offset relatively higher wages. Numerous hubs and incubators offer young start-ups and small companies an environment with all the necessary functions and support for less than 300 euros a month. The government is also committed to supporting the software development and technology sectors with organizations such as Tech City UK and Innovate UK with the aim of accelerating the growth of IT companies. Various tax benefits are now available to IT and software development companies in London. Other benefits to consider include a skilled workforce and high-speed Internet access.

Poland
Eastern Europe is becoming more and more attractive for IT and software development companies, with Poland ranking as the number one Eastern European country. While Poland may not offer as low labor costs as India, it can offer other advantages such as proximity to Western Europe and the ability to find common working hours with the rest of the world. Poland also shares a cultural affinity with the western world as well as other eastern countries. It is also believed to offer better product quality and business environment compared to lower cost targets for software development companies.

Each continent has additional jurisdictions to consider for registering an IT company - each with their own benefits and characteristics:

America: Brazil, Argentina and Chile;
Asia/Pacific: China;
Europe: Romania, Belarus and Ukraine.
The above countries have large enough populations to have a broad labor pool and good education systems to produce skilled software developers. The business risks in these countries are manageable and the costs are reasonable compared to the USA, Canada and Western Europe.

It is important to remember that while a particular jurisdiction may be considered the best place to start an IT business for one entrepreneur, it may not be suitable for another. Consider the necessities your business is most interested in. This can be language, geographic location, regulation of specific activities, skilled labor, or cost.

A subsidiary or subsidiary is owned and controlled by another corporation known as a holding or parent company. Subsidiaries are common in the business environment and most multinational corporations operate through these structures. There are several advantages to forming subsidiaries as separate legal entities compared to forming divisions of a single company. For example, a subsidiary must comply with the tax, liability and other regulations of its home country, not the country of the holding company. For example, a subsidiary may sue and be sued separately from the holding company, and its obligations typically do not transfer to its parent company.

Singapore has managed to position itself as the preferred jurisdiction for companies of all sizes looking to do business in Asia. Singapore's business environment is conducive to foreign investors due to rather liberal requirements and various advantages such as strategic location, availability of skilled multilingual workforce, smart immigration policy, excellent intellectual property protection and efficient legal system. Among other benefits, Singapore's tax policy and tax treaties are certainly worth mentioning and are discussed below. Some of the more specific benefits of establishing a subsidiary in Singapore include:

Paid-up capital can be in the same currency as that of the holding company (easier settlement procedure)
Free choice of the company's financial year, thereby aligning it with the balance sheet dates of the holding company (simplified accounting procedure)
The name of the subsidiary may differ from that of the holding company
Freedom to repatriate all profits from Singapore

Main basic requirements
During the formation of a subsidiary company, at least one local director needs to be appointed who is a Singaporean citizen or permanent resident or who holds an employment pass. Upon incorporation, a company secretary must be appointed who is also resident in Singapore. The minimum paid-up capital for a subsidiary company is 1 SGD, and this can be 100% owned by the parent company. A subsidiary in Singapore must have an office — either commercial premises or a home office — and statutory records need to be kept there.

To form a subsidiary, the following documents are required:

The holding company’s certificate of incorporation
Proof of the holding company’s directors and current registered address
Authorisation of signature on behalf of the holding company
Copies of the subsidiary directors’ passports
Signed consent to act as directors
Registered address for the subsidiary
Articles of association and memorandum for the subsidiary
Possible applications
In addition to the various benefits of having a subsidiary company in Singapore, there are circumstances when it is crucial to opt for a subsidiary rather than a branch office or simply a new division. The main purpose of a subsidiary is to allow local or foreign companies to expand their operations. But what if you want to expand your business in a completely different direction to that of your current business? While a branch office is an extension of the parent company and is therefore only allowed to carry out activities which are in line with the purpose of that company, a subsidiary is allowed to perform any activities as long as these are stated at the time of its incorporation.

Taxation for subsidiary companies in Singapore
Singapore’s tax system is considered simple and investor-friendly. The corporate tax rate does not exceed 17% and there is no tax on capital gains or dividends. All foreign-sourced income is exempt from tax as long as it has been subject to tax in another country. In addition, Singapore has an extensive list of double tax agreements (DTAs) with over 70 countries around the world, which allows investors to avoid double taxation. This extensive DTA network, together with 0% tax on capital gains and dividends, makes Singapore a smart and financially friendly choice for the incorporation of a subsidiary company.

With the right documentation and initial expenses, it is possible for a foreign citizen to open a bank account in Malta. This international account and investment opportunity offers several advantages based on economic regulations and tax structures. Interest rates, tax laws and fees vary depending on the country in which you invest; Careful research and strategic financial actions could result in significant portfolio growth.

If one is considering opening a bank account in Malta, one needs to enlist the help of international experts to guide them through the process.

Legal structures in Malta
Each international jurisdiction adheres to different legal structures for taxation and banking. Confidus Solutions helps you understand the nuances of each country's legal structure. In order to do business in Malta, it is crucial that you have a thorough understanding of the financial and legal implications.

Initial investments
The vast majority of bank accounts in Malta require an initial financial outlay to secure the account opening. This value differs from bank to bank and also depends on variable exchange rates. An international financial expert will help navigate these conversions, as well as the various fees and minimums associated with maintaining a bank account. Make sure you understand the interest and growth rates associated with each prospective international bank account so you can maximize your returns while minimizing risk.

Tax structures in Malta
To get the best results and avoid bureaucratic and legal pitfalls, enlist the support of an expert in international finance and economics. This initial investment in proper processes and research will help avoid a litany of long-term costs and fees related to unforeseen errors and legal errors. Language skills, financial know-how and bureaucratic experience ensure that your account opening is processed smoothly and without unintended consequences.