Latvia has long been attracting foreign citizens (especially from post-Soviet countries) as a country for setting up and running a business. Registration of a company in Latvia offers extremely simple conditions for doing business, while the costs are minimal. The state is interested in investments, and therefore it is extremely loyal to businessmen and investors who are provided with effective support.
For those who are interested not only in doing business in the territory of Latvia but also in living here, there is an excellent opportunity to obtain a residence permit (residence permit) based on the establishment of a company.
- Latvia is an EU country;
- As a country of the European Union, Latvia opens up access to the European market for entrepreneurs.
- Low tax rates;
- The tax rate in Latvia depends on the type of activity of the company and some other nuances, but in most cases, it is 20%, which is relatively small by European standards.
- Very simple company registration procedure;
- You can register a company in Latvia in just 2 days, having previously sent only 2 identification documents.
- There are no residency requirements for participants;
- Company registration in Latvia is available for both residents of the country and non-residents. That is, a company in Latvia can be established with 100% foreign participation, which is very convenient and saves time and money needed to find a potential partner.
- The possibility of obtaining a residence permit (residence permit) based on company registration.
- Business immigration is popular in Latvia, which allows an entrepreneur and his family members to apply for a residence permit after the establishment of a company.
Before registering a company in Latvia, you should pay attention to the following aspects:
- All documents will be written in Latvian. This quite often necessitates regular translation and certification of documents.
- The need to submit annual reports;
- Each company registered in Latvia is obliged to prepare and submit annual reports for the company, which reflects all its income and expenses.
- Global principle of taxation for resident companies;
- The global principle of taxation applies to companies-residents of Latvia, which means that the company pays tax on profits received from all over the world.
- If the company is a non-resident and makes a profit in Latvia / from sources in the territory of Latvia, then the company pays tax only on the profit received in the territory of Latvia.
- Payment of the authorized capital.
For the most popular form of the company LLC (SIA), the minimum share capital is 2,800 euros. SIA founders must pay at least 50% of the authorized capital before direct registration, after which the remainder can be paid during the year.
To register a company in Latvia, you must first select its organizational and legal form. Among the most popular organizational and legal forms in Latvia are the following:
- Limited Liability Company (Sabiedrība ar ierobežotu atbildību, SIA). The members of the society do not bear personal property responsibility for the obligations of the company but are responsible for them only within the limits of the contribution made. This organizational and legal form is ideal for small and medium-sized businesses.
- Joint-stock company (Akciju sabiedrība). The authorized capital of a joint-stock company is divided into a certain number of shares. In Latvia, there are open (public) and closed (non-public) joint-stock companies. This form of company is most often used to run medium and large businesses.
Registration of a company in Latvia begins with the collection of documents. To start the process, you will need identification documents for all members of the company (check with our specialists), as well as the following information:
- 2-3 names of the future company in order of priority;
- structure of the future company (who is the director, shareholder, beneficiary);
- type of activity of the future company.
After receiving all the necessary documents and information, the registration procedure will be immediately launched. The whole process from obtaining the necessary documents for registration to preparing the final package of corporate documents for a ready-made company includes the following stages:
- Checking company names and choosing an acceptable one. The term for checking the name takes no more than 1 day;
- Preparation of forms and documents for submission of forms to the Register of Companies of Latvia;
- Opening a consignment account and depositing the amount of the authorized capital;
Company registration procedure. The registration period is on average 2-5 working days from the date of submission of all necessary forms and documents to the Register;
Preparation of statutory documents for a registered company and production of a seal (if necessary);
Certification and apostille of documents (if necessary). The certification process takes 2-3 days, the apostille – from 6 to 8 days. Latvia is a party to the Hague Apostille Convention.