Competitive advantages for investors in Latvia’s IT sector come from the availability of skilled IT workers, language skills, a mix of Western-style work culture, and proximity to and closeness to the country’s major cities. knowledge of the Russian market. The Latvian IT sector accounts for around 4.3% of GDP in 2018. Today, Latvia is one of the top 10 countries in the world when it comes to average internet connection speed. Increased investment in tangible assets also contributes to Latvia’s IT sector’s competitiveness.
Government policies encourage corporate and general public usage of IT solutions and are aimed at increasing efficiency through the use of e-government solutions. in the public sector, or by utilizing e-health solutions to help the healthcare sector contain rising costs and enhance service quality.
The procedure of registering a company in Latvia
- Set up a temporary bank account in Latvia & transfer equity funds. The application process for setting up a temporary business bank account can be done remotely, using an e-signature, in person, or by a third person with your power of attorney. Transfer of the company’s equity follows. The amount of equity depends on the type of business you intend to have e.g limited liability company (SIA in Latvia) is a minimum of 2800 EUR. Obtain proof of payment from the bank.
- Register your firm with the Enterprises Register. This can be done in person at a bureau of the Register of Enterprises of Latvia (keep in mind that some documents must be certified by a notary, however, it can be done on the spot), by email – separately sign all of the documents with a secure eID e-signature and send them via firstname.lastname@example.org to the Register of Enterprises of Latvia. In this case, notary certificates are not required or online by visiting Latvija.iv and signing all documents with a secure eID e-signature. If you have a Latvian e-signature and/or a Latvian bank account, you can access the platform. Keep in mind that all documents must be in Latvian or accompanied by a notary-approved translation. Within three business days, your application will be processed. A letter confirming your application will be sent to the legal address you supplied during the application process.
- Create a full-fledged bank account after receiving your letter of acceptance from the Register of Enterprises. Go to the bank with your new letter of acceptance as it will include your registration number which will be required by the bank. This can only be carried out in person.
- Register with the State Revenue Service and, if necessary, apply for VAT. Fill out an application form (KR4) at the Register of Enterprises to apply for VAT. After it is completed, the Register of Enterprises will transmit your application to the State Revenue Service, and you will be ready to go.