Latvia flag

LATVIA


Latvia is one of the Baltic countries that is developing rapidly and offers a number of investment opportunities. The country has a stable economy and good financial infrastructure. Local entrepreneurs pay relatively low taxes and can easily run a company. If you think this jurisdiction is your target, this overview can help you make your choice.


Forms of legal and business presence


If you intend to establish your presence in Latvia, it is easy to do so in one of the following forms:

  • Limited liability company – a company in which the liability of the founders (shareholders) is limited to the value of the investments made. The authorized capital of this company must be at least 2800 Euro, 50% of which must be paid at the time of incorporation.
  • Stock company – a more sophisticated vehicle, designed mainly to incorporate financing and enter the stock markets. The share of this company is freely transferable. The minimum authorized capital of this vehicle is 35,000 Euro.
  • General partnership – an entity that is not a legal entity and can be created by at least two persons who bear full and joint liability for all the enterprises of the partnership.
  • Limited partnership – like the previous entity, this type of partnership is not a legal entity and can be formed by (i) at least one partner who bears unlimited liability for the results of the joint commercial activity and ( ii) at least one partner whose liability is limited to the amount of the contribution made.
  • Branch – this commercial entity of a foreign company performs the same types of activities. In this case, registration is required.
  • Representative Office – this formation does not have a separate legal entity and cannot do business in Latvia. It is mainly intended for exploring local business opportunities and promoting a non-resident in Latvia.


    • Registration Requirements and Steps


    To register a company in Latvia, you must go through these preliminary steps:

  • Preparation of your business plan with specific commercial objectives to fulfill in this country and/or worldwide.
  • Collection of data on the founders, beneficiaries, owners and future management of a future company.
  • Arrangement of the headquarters of the future legal entity (the address must be in Latvia).
  • Introducing the amount of the authorized capital.
  • Preparation of the memorandum and articles of association.
  • Submitting the package of necessary documents to the Register of Enterprises.
  • Registration for tax and social security purposes.
  • Opening a corporate bank account.
  • Obtaining licenses and permits (optional).


    • Legal and Regulatory Framework


    The Latvian legal system is fully tightened to the EU approaches, which ensure a relatively quick process of company creation and operation. The main local government authorities to be dealt with during the registration and operation of the company are the Register of Enterprises, the State Revenue Service, the Financial and Capital Market Commission, the Investment and Development Agency of Latvia. If certain licenses are required to actually start a business, other local authorities may be involved. Smart Startup UK lawyers can carry out all these activities for you.


    Advantages of Jurisdiction


    Establishing a business in Latvia may be promising in view of these potential advantages:

  • Well developed financial sectors, information technology, transport, tourism, real estate sectors
  • Plenty of incentives, including taxes
  • Good intellectual property rights protection
  • Qualified local employees


    • Tax system of Latvia


    If you want to start a company in Latvia, you may need to be aware of the following tax highlights that the jurisdiction has:

  • Corporate Income Tax (CIT) rate – 20% (payable only if profit is distributed)
  • Personal income tax rate – 31%
  • VAT rate – 21%
  • Withholding tax rates – (1) general for non-residents: (i) dividends – 0%, (ii) interest – 0%, (ii) royalty – 0%, (2) for non-residents in tax havens : (i) dividends – 20%, (ii) interest – 20%, (ii) remuneration – 20%,
  • Tax rates on capital gains – (i) corporate – equal to the standard CIT rate, (ii) individual – 20%.


    • Smart Startup UK specialists can advise you on setting up a company in Latvia and any other country that may be suitable for your business. This assistance can cover not only standard registration procedures, but also choosing the most favorable tax regime, opening a bank account, formalizing relations with employees and solving other issues. Contact us soon to discuss in detail all the questions you are interested in.


    CREATE A COMPANY


  • Check and save the company name
  • Company registration, including state fees
  • Legal address for 1 year
  • Statutory documents of the company
  • Company stamp
  • Opening a corporate bank account at Signet Bank AS, Citadele bank, AS BlueOrange Bank
  • Obtaining a personal tax number (codice fiscale)
  • VAT registration
  • Apostilled and translated company documents
  • Free consultation
  • Help with online trading and opening an account at viva.com for online trading
  • Accounting services - 12 months
  • Annual renewal (payable from the second year)

    • *Within 30 days


    IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company. Please, if you are interested, make an inquiry to us.


    What is the procedure!

    1. You submit a request for company registration using the request form.

    2. We check if the registration company name is free and eligible for registration.

    3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.

    4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.

    5. You receive all necessary company documents for verification.

    6. You receive details of your newly opened bank account.

    7. In the specified period (for Latvia it is 30 days), you receive all the services included in the package.

    8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.


    All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!