Foreign entrepreneurs who wish to start a business in Latvia can choose from a variety of options. The Latvian Commercial Code is extremely flexible, allowing international investors to form businesses that are identical to those registered in Latvia without any additional criteria. Furthermore, foreign investors will be eligible for specific benefits when establishing businesses in Latvia.
The business code in this country permits the formation of legal companies to meet the needs of any entrepreneur. Latvia’s attractiveness to foreign entrepreneurs is such that the World Bank’s Doing Business ranking gives it an 80.3 out of 100 scores.
Types of companies to open in Latvia
In Latvia, you can register the following types of businesses:
- Limited liability companies (SIA)
- Joint-stock companies (AS)
Foreign corporations can open branch offices or representative offices. In Latvia, foreign entrepreneurs can also register as sole proprietors. Some Latvian lawyers can help you with the registration process and get your company up and running as quickly as possible.
Steps for opening a company in Latvia
Opening a business in Latvia always necessitates working with the Commercial Registry of the Republic of Latvia (CRRL). At the very least, any investor or entrepreneur should be aware that a company is not regarded as a legal entity unless it is properly registered with the CRRL.
However, before you plunge into CRRL, you must first choose which form of company best suits your goals. In addition, the documentation and requirements may differ depending on the type of company you desire.
In Latvia, a limited liability company must have a minimum share capital of 2,800 euros, whereas a joint-stock company must have a minimum share capital of 35,000 euros. One or more shareholders, who might be natural individuals or legal entities, can form a limited liability corporation or a joint-stock company. The share capital of Latvian joint-stock firms must be submitted in cash only.
Non-residents are also allowed to own limited liability corporations and stock firms. Both allow for the incorporation of many shareholders.
In Latvia, a limited liability company must have a minimum share capital of 2,800 euros, whereas a joint-stock company must have a minimum share capital of 35,000 euros. One or more shareholders, who might be natural individuals or legal entities, can form a limited liability company or a joint-stock company. The share capital of Latvian joint-stock enterprises must be submitted in cash only.
The steps to open a company in Latvia are:
- Presenting the necessary paperwork to the Latvian Companies Registry for incorporation
- Opening a bank account
- Registering for VAT purposes
- Registering employees for social insurance purposes.
Special permits for some Latvian businesses may be necessary based on the nature of their business.
Documents required to establish a business in Latvia
When starting a business in Latvia, the following paperwork must be produced and submitted:
- A Trade Register application that must be signed in front of a Latvian public notary
- The charter
- The Articles of Association
- Proof of depositing the share capital
- Proof of registered address
- State tax receipts, if applicable
- Proof that the publication charge has been paid
- Details about the shareholders and directors of the Latvian company.
For foreign investors, what are the most appealing aspects of the country?
The biggest advantages stem from Latvia’s strategic location and membership in numerous organizations, including the EU, Schengen, and the World Commerce Organization, which gives it access to all of the benefits of free and open trade on the global market.
The solid infrastructure that Latvia has is a benefit in terms of facilitating trade. There are three major ports, and flights fly to more than 80 locations across the world from Riga’s airport. All of the aforementioned facilitate trade, not only between Latvia and other nations but also between these countries and Latvia.
The country also has significant tourism potential, and the services provided by tourism entrepreneurs are considered to be both affordable and of high quality. The tourism industry contributes a significant amount to Latvia’s GDP.
Latvia boasts not only a well-developed communication and transportation infrastructure but also one of the world’s most advanced telecommunications networks. This enables it to give the finest quality connections to its consumers to any type of firm, regardless of the type of business.