GLS Law Company Services: Opening a Company in Latvia
Entrepreneurs are constantly looking for opportunities to expand their business and enter international markets. One option is to register a company in Latvia. The country is distinguished by its strategic geographical location, favorable tax regime, and developed economy. If you are interested in this jurisdiction, seek the services of the professionals at GLS Law Company.
Why We Recommend Starting a Business in Latvia
The country is an attractive place for foreign investments for several reasons:
- The state is a member of the European Union, providing businessmen with significant opportunities to work with many other European countries.
- The Republic of Latvia has liberal tax legislation and offers various incentives for entrepreneurs.
- By deciding to register a firm in Latvia, a businessman can qualify for a residence permit in this country.
- Latvia has established trade connections with various European states thanks to its convenient geographical location.
- The country is on the OECD’s “white” list of jurisdictions, so there are no offshore companies in Latvia.
- The state boasts developed infrastructure and information technologies, which is a crucial advantage for entrepreneurs as it makes business operations easier.
- Latvia has many double taxation avoidance agreements.
- The country has a developed banking system. Planning to open a company in Latvia allows for easy and quick registration of an account in a local bank.
Company Registration Service in Latvia: Legal Forms
Latvian organizations are represented by various forms of ownership:
- Limited Liability Company (LLC);
- Joint Stock Company;
- Limited Partnership;
There is also the individual merchant (entrepreneur), which is a form of business for individuals, i.e., without creating a legal entity.
Typically, businessmen decide to open a firm in Latvia as a Limited Liability Company (LLC). This is the most convenient corporate form, providing entrepreneurs with extensive opportunities for conducting business.
Company Registration in Latvia: LLC Nuances
Key features of opening an enterprise in the form of an LLC:
- The minimum share capital is from €35,000. Half of this amount must be paid at the time of the legal entity’s registration, and the remainder no later than 1 year from the opening of the enterprise.
- The issuance of registered shares is carried out in a free form. Bearer shares are allowed but must be registered in a specialized depository.
- Opening a business in Latvia requires the presence of a board, which will be responsible for managing the company. It can consist of 1 physical or legal person (resident or non-resident).
- The presence of at least 1 shareholder (physical or legal person) of any residency is required.
- The company must have a registered office on the territory of Latvia.
- There are no requirements for having a company secretary.
- Information about the board members and shareholders is publicly available.
- The company must keep financial records and compile them annually.
The company must undergo an audit if at least two of the following three conditions are met:
- Company assets from €400,000.
- Annual turnover from €800,000.
- Number of employees from 25.
Opening a Company in Latvia: What Taxes Need to Be Paid
Companies that are tax residents of Latvia must pay a corporate income tax of 15% of the organization’s profit. Non-resident companies are taxed only for:
- Selling property in the country — 2%.
- Renting property in Latvia – 5%.
- Payment for consultations and management services — 10%.
- Payment of dividends, interest, royalties – 15%.
Registering a company in Latvia as a VAT (Value-Added Tax) payer involves not only having a real office but also timely prepared and submitted declarations. The VAT rate is 21%.
How Company Registration in Latvia Happens
Opening a business requires preparing a range of different documents (in Latvian), such as:
- The founding agreement;
- The LLC charter (in three copies);
- The decision to establish the firm;
- Proof of a real office;
- Statement that the director has taken up the position;
- Certificate of contribution of the share capital to the bank account;
- Confirmation of the value of each contribution to the share capital, etc.
If you are interested in company registration in Ukraine at an attractive price, contact our specialists. We will consult you on any questions, handle the process of opening a firm, and provide support at all stages of the transaction. To use our services, leave a request on the website or use the contact phones of GLS Law Company.
