Foreign countries who wish to enter to start a business in Latvia will come across one of the strongest manufacturing sectors in the Baltics. This is one of the most skilled and educated workforces and has world-renowned competitive tax incentives and a wide range of opportunities for investors within the state. Nevertheless setting up a business in new places might be quite challenging since you must adhere to the rules.
First, you must go through the company registration procedure, which is a straightforward process since the steps can be done online or in person. Online you will be required to have an e-signature called separatists. There are things you must consider before entering the market. Contain local business addresses, acquire additional documents for business operation, open a bank account in Latvia to deposit share capital, register documents, and make sure they are translated into Latvian or English language. Make sure to legalize documents at a notary’s office, register your business and apply for a business tax number. Register for a VAT number that applies if certain criteria are met, register with a state social insurance agency and after you are through with the process you will receive a TAX IDENTIFICATION NUMBER and your company registration is publicly announced by the commercial.
Advantages of setting up a business in Latvia
After completing the registration, start looking for different ways to connect and expand your business. The advantage of Latvia is that the economy is high and labor costs are low and this is provided to all businesses or companies that enter the market. The country’s position in the Baltics offers access to trade between the east and west thus leading to an oriented business environment. Latvia supports a wide range of natural resources and craftsmanship such as metalworking, woodworking, and technical manufacturing; also you have to consider transport and logistics, food production, and creative sectors when setting up your business. In the Latvia market, you will benefit from low labor costs as I stated earlier, this leads to a highly competitive workforce internationally and a low workforce. Also, you will adapt easily to communication since English is well known by a wide range of people, also there’s a competitive tax system, and education workforce since Latvia is ranked seventh in the world for the number of new studies. Latvia being a member of the European Union you will be able to enjoy the trade benefits of other European nations.
There are some challenges facing the Latvia market, due to its small size there are local labeling requirements that could prove costly relative to the possible customer base and also there’s difficulty in protecting business secrets due to the small size market.
What to consider for Market entry
By understanding the market cycle pros and cons, now you are ready to find an office in Latvia for business setup. Due to rising interest in commercial real estate, prices are affordable and the country offers a wide range of commercial types to choose from depending on your needs. To get an office you need to engage yourself with a local real estate agency, but finding the right agent will need a lot of research and time. After setting up your business you must be aware of where to get your manufacturer, with great cost to quality ratios, high employment rates, and a variety of suppliers to choose from, the manufacturing sector is a powerful influence on the economy. Any business seeking to partner with a local manufacturer needs only to select the most beneficial choice for their interest. Working with the right manufacturer will lead to business success and expansion into the Latvian market thus leading to a long-term commitment and good relationship. Also, you need to find a good distributor, for a successful market you must have a local distributor. The distributor will have a great impact on your business. Latvia has three major options for product distribution, there’s an airport in Riga which serves as a transportation hub, a well-connected railway connecting Latvia to both the east and the west, and a new north-south railway being built which will connect the Baltics to the rest of Europe. Also to find the right distributor, you must work with the local business customs and understand the local culture.
Business culture in Latvia values trust and close relationships that partake with their business associates. With all the knowledge you are good to enter the market.