Business tasks that can be solved by forming a company in Latvia:
Company formation in Latvia has a number of benefits both for Western European and Eastern businesses. Company formation in Latvia for Western European businesses may be interesting because of the following advantages:
Businesses from Russian and other ex-Soviet countries are interested in company formation in Latvia due to the following advantages:
Add to this such generally attractive benefits like:
Another important benefit of Latvia is existence of number of tax treaties (double taxation avoidance agreements). Latvia signed such treaties with more than 50 countires, including almost all european countries, USA, Canada, China, as well as CIS countries, including Russia.
Company formation in Latvia is relatively simple and fast.
The most frequently used legal form for company formation in Latvia is a limited liability company (SIA). The main legal forms can be briefly listed as follows:
Standard minimal amount of share capital is EUR 2,800. The law allows to pay at the registration only half of the minimal amount of the share capital. The rest should be paid in during one year from the company registration in Latvia. It is possible also to register a company with decreased share capital, and pay in as little as only EUR 1. Registration of a company with decreased share capital is allowed only for companies with up to five shareholders who are private persons.
The key taxes that one should be aware of when starting a business in Latvia can be described as follows (applicable exceptions and nuances are not disclosed in this article for simplicity of presentation):
Regarding payroll taxes, the difference between expense to the Latvian company and net amount received by employee is roughly 1.8 times.
The following information is required for company registration in Latvia:
The shareholders and members of the Board of the Company will be required to approve their signatures on the company registration documents at a Latvian Sworn Notary. Latvian residents can approve their signatures also in the Latvian Enterprise Register. It is possible instead of approving the documents at a Latvian Sworn Notary to approve the registration documents by a secure electronic signature. Also, residents of some countries can approve the registration documents at a sworn notary in their country.
There are no specific state duties for company maintenance in Latvia. Key expenses on the company maintenance after registration can be listed as follows:
Please refer to our price list for costs related to company formation and purchase of ready-made company in Latvia.
Sometimes, it is faster and easier to purchase an already registered company, than to register one. Such company may already be registered for VAT and have operating bank account that allows to start operations immediately and provide the requisites of the company to business partners even before official registration of change of ownership. For more information, please see Purchase of ready-made company in Latvia.