When creating a tourism and travel company in Latvia as a foreigner, some legal and regulatory conditions and organizational and functional prerequisites appear. The following is an extensive guide to assist you through the proceeding.

Choosing the legal form

 Decide on the proper legal structure of the business.  Common options include:

 Limited Liability Company (SIA)

 Suitable for small and medium-scale companies only. It has to have a minimum share capital of € 2800. The requirements of legal persons as the subject of civil law activity are regulated by the Civil Code. 

Branch office

 If you already have a company in another country, you can open its branch in Latvia. This does not require any working capital but is done under the guise of the parent company credit. 

Sole Proprietorship (IK)

Small operations are less likely to entail high risk but the owner is at certain risk. 

Company name

Make sure that the name of the company has not been used before or is not in use at the moment.  Which is following the Latvian naming requirements as provided by the Enterprise Register of the Republic of Latvia. 

Instauration documents

To do this, it is important to ensure that all the relevant documents including the Articles of Association are available and certified by a Notary Public. 

Enterprise register

This involves registering the founding documents, verifying the address, and sending information on the shareholders and members of the board to the Enterprise Register. 

Bank account

Obtain a letter of introduction from the Ministry of Trade and Industry to open a temporary account in a bank through which share capital can be deposited.  When one opens an account with this brokerage firm, it automatically becomes a demo account and has to be converted into a standard business account. 

Tax registration

Register for taxes with the State Revenue Service (SRS) and if turnover is more than € 40000 in a year, register for VAT as well. 

Tourism license

Apply for the tourism operator license from the Consumer Rights Protection Centre commonly known as PTAC.  In this respect, it is mandatory for travel agents and tour operators. 

Compliance with regulations

Ensure that your business is abiding by the legal systems that are in the area concerning tourism for instance the consumer laws and the package travel laws. 

Labor law compliance

Ensure that you abide by Latvian employment laws in terms of employment contract, working hours, minimum wage and employee remuneration. 

Work permits

If you have any plans of deploying expatriate employees, ensure that they possess working permits and visas as required. 

Social security contributions

To protect your business, get an identification number from the State Social Insurance Agency (VSAA) and pay for your employees’ social insurance. 

Service offerings

Identify the range of services that you will need to provide to your customers, such as touring and sightseeing, travel and accommodation, and transport services. 

Partnerships

Provide services to hotels, transport companies, tourist attractions, and any other related service provider. 

Insurance

Arrange for sufficient business insurance for the business and also insurance for tour operations and other insurance products for the clients. 

Local marketing

Take a stand at tourism fairs in the country and approach Latvian touristic offices as well as local advertising agencies. 

Customer reviews

Customers who are happy with services should be reminded politely to leave their comments on TripAdvisor, Google, or social media accounts to add authenticity. 

Consumer protection

Should function within the legal requirements of the Latvian and EU Consumer Rights Act and the Package Travel and Linked Travel Arrangements Regulations. 

Data protection

This is especially important when dealing with the personal data of clients and employees, and the GDPR should be followed in this regard. 

Accounting and auditing

Develop a good accounting procedure for the handling of funds. Hire the services of a local firm of accountants in the aspect of ensuring that the accounting procedures of the group comply with the standards that are being practised in Latvia. 

Funding and Investment

Bank credit facilities, EU grants, and other forms of finance that can help to finance the business should be explored. 

Cultural Sensitivity

Understanding the culture and customs of Latvia will enable one to ensure that services are delivered most appropriately to the locals as well as visitors from other parts of the world. 

Language Skills

However, it is possible to come across English-speaking Latvians. However, it will be an added advantage if the organization provides services in Latvian and Russian to reach a larger clientele base. 

Take away

In Latvia, it is also crucial to define the legal framework of the tourism and travel company, registration, licenses, and identification of Latvian and EU legislation. The following are some of the most important conditions that must be met: The legal environment that defines the labour relations, organizational requirements, marketing and promotion, and cultural differences. Hiring Latvian attorneys and Certified Public Accountants is advised because of the structuring of the business. Also, the potential misunderstandings and mistakes that may occur due to the lack of knowledge of Latvian legislation should be avoided. 

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