SET UP IN BUSINESS IN LATVIA
Introduction to Company Incorporation Latvia
Positioned at the crossroads of northern and eastern Europe, the Baltic state of Latvia is rapidly making the most of its recently-acquired status as a member of the EU. Foreign investment is rising strongly and Latvian authorities have taken steps to streamline the regulations governing Latvian company formation. The range of possible business entities has been reduced from thirteen to five, bringing the commercial landscape more into line with established EU standards.
What are the main types of company registration Latvia?
There are four main kinds of company incorporation Latvia for foreign investors, and they are as follows:
limited liability company (SIA)
joint stock company (A/S)
branch office
representative office
What are the main features of an SIA private limited liability company?
the most common business vehicle in Latvia
minimum share capital is €3,090, at least half to be paid up
minimum number of directors is one
no restrictions on foreign shareholders
accounts to be maintained in line with statutory requirements
What are the main features of an A/S joint stock company?
popular format for larger companies that wish to raise public capital
minimum share capital is €35,572 which must be fully paid up before registration
two-tier system comprising management and supervisory boards
accounts to be audited and filed with authorities
What are the main features of a branch office?
foreign-owned branch taxed at same rate as Latvian company
reporting and audit requirements are same as for Latvian companies
profits can be repatriated without withholding tax
dividends transferred abroad are subject to 10% withholding tax
What are the main features of a representative office?
representative offices are not allowed to trade or do business
they are only permitted to advertise and promote their company
regarded as an effective low-cost means of establishing a presence
Company Incorporation Latvia
How easy is it to recruit staff in Latvia?
Latvia’s economic success since the end of the Soviet era owes much to the motivation of its young, go-ahead workforce. Latvians have enthusiastically embraced free-market reforms and labour costs, although on the rise, remain generally low. There are a number of recommended recruitment agencies in the capital, Riga, and we would be happy to put you in touch with them, please – contact us.
What is the regulatory environment like for those considering Latvian company formation?
government committed to free-market economy liberal business environment
member of the WTO and has ratified most international treaties
foreigners can buy Latvian companies and property with few restrictions
resident companies taxed on worldwide income; non-residents on Latvian-earned income only
Are there financial incentives available for company incorporation Latvia?
Latvia offers a range of investment incentives, many with EU backing. The types of incentives on offer include the following:
tax credits for capital investment projects
free ports and special economic zones
tax relief for small enterprises
Company Registration Latvia
And what about the banking facilities for those wishing to set up business in Latvia?
Latvia’s banking system is well advanced, certainly by Baltic standards and offers all the facilities that are likely to be required by international investors wishing to set up business in Latvia. Few of the local banks are well established internationally, however, and we recommend that you take specialist advice on opening a bank account. We will be happy to help you with this.
How can I get more information on company registration Latvia?
Our company formation Latvia service makes it easy for you to set up business in Latvia, so please contact us for further details on our range of packages for company registration Latvia.
Information