A sole trader is a natural person conducting business, responsible for their scores with the property. To become a sole trader in Latvia, you have to be registered in the Commercial Register. You should apply for the enrollment if you adhere to any of the following criteria;
- The periodic development of the business exceeds €284,600.
- The business complies with the exertion of a marketable agent or a broker.
- The periodic development of the business exceeds €28,500, and you employ further than five workers contemporaneously.
You may apply for enrollment in the Commercial Register, indeed if you don’t adhere to all the criteria described above.
Being part of the EU, Latvia has a veritably open frugality. Traditional types of artificer, for example, woodworking, metalworking, and specialized manufacturing are well developed in the region because Latvia is rich in natural resources. The transport and logistics sectors are also largely popular, along with IT, energy, water, ultramodern food products, and creative industries. The country might be the best place to set up your own business. The most suitable form for starting your business in Latvia, also the easiest to establish, is a sole trader. A sole trader must also register with the Trade Register if he or she has further than five workers. The Latvian sole dealer’s liability will extend to his or her property, but the individual dealer will also profit from all profit gains the business acquires.
Before you register, you’ll have to choose your business name. A firm name is a name you’ll enter in the Commercial Register and used in its marketable conditioning, in deals, and when starting. The name has to include a reference to its legal form sole trader or its condensation” ST” (IK) at the start or the end. The name must be unique and not formerly registered with the Marketable Register. However, the firm name must not necessarily match the name of the executive home or the place name, and the name must include some other words If the name contains a name of an executive home or a place name.
Next, you’ll have to approve your business address with the State Address Register. You’ll later need to enter the address.
After all, is set and done, fill out the operation form KR2.
To gain the status of a micro-enterprise taxpayer, note it in the KR2 form, section 8. Along with that, fill out the operation for the micro-enterprise taxpayers. Further information can be seen then.
When submitting the documents, it’s necessary to certify the signs on the operation form KR2.
The last step before submitting the documents is paying the freight. There are several freights to be paid;
- The State amount- €3,000 (Treasury).
- The amount for publication in the sanctioned review”Latvijas Vēstnesis”-€1,850 (VISA Latvijas Vēstnesis).
- Product of an outgrowth of a document to be submitted-€3,15 (Commercial Register).
- The amount for the submission of the operation for enrollment-€4,00 ( only if you are applying in person; Commercial Register).
All the freights have to be paid two days before the submission of the operating documents.
Eventually, the operation submission can be made. All documents must be written with an ane-signature. By correspondence; written documents, along with freights attached, can be transferred to the Commercial Register indigenous branch.
Still, you can apply for entry in the register of vat taxable persons, along with your operation for entry in the Commercial Register, If you wish to apply for the value-added taxpayer status. The operation will be submitted to The State Revenue Service
The standard rate of vat in Latvia is 21 percent.