A liaison office in Latvia, also called a representative office, is a manner in which a foreign company can establish a channel of communication or representation between its main offices located in another country and the business parties and/or clients in Latvia. With the help of our company formation agents in Latvia, you can easily set up such an office. Also, you should note that a liaison office cannot engage in commercial or business activities and cannot derive profit from Latvia but it can represent a convenient first step for those who are looking to open a company in Latvia.
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Requirements to open a Latvian liaison office
The formalities for setting up a liaison office in Latvia are simpler as this office will not derive income and thus will not have to engage in any reporting requirements. The company’s Articles of Association, as well as other references, and information about the company directors and the appointed company representatives, will be needed upon formation.
Investors can start a liaison office with the help of our agents who specialize in company formation in Latvia. Aided by a power of attorney, investors who are not available to travel to the country to establish this office can entrust one of our agents to handle the setup formalities. Here are other documents to prepare for opening a representative office in Latvia:
- the standard application form used for the registration of companies in Latvia,
- the Memorandum of Association,
- the Articles of Incorporation of the parent company,
- the registration certificate of the foreign firm,
- an authorized resolution of the foreign company to open a liaison office in Latvia,
- the decision to choose the representative agent of the liaison office in Latvia,
- a document validating the legal address of the Latvian liaison office,
- a notarized copy of the passport of the liaison office representative,
- an authenticated signature sample of the head of the representative office in Latvia.
Attributes of a liaison officer in Latvia
As it is known, the opening of a representative office in Latvia also requires the appointment of a liaison officer. He or she is the contact person between this office and the foreign company. Among the attributes and characteristics of such an agent, we list:
- He/she is in charge of promoting the foreign business on the territory of Latvia, with guidelines and plans predetermined by the company in question.
- He/she can test and analyze the market in which it wants to be active, to know what kind of products and services can be introduced.
- The liaison office should develop business relationships with those in the niche or field in which the foreign company operates.
- Business partnerships can be established with various collaborators interested in the services and products offered through a liaison office in Latvia.
- The attention of a liaison officer also includes conflict resolution and negotiations, where appropriate.
- Specific marketing reports also come under the attention of a representative officer in Latvia.
- A good liaison officer must know how to communicate, know the business very well, and the promotion methods of the respective company.
Therefore, a liaison officer has quite a few attributions in mind, and his/ her appointment can be made by the foreign company that is going to be represented on a foreign territory.
When you want to open a business, you can opt for the services of our accountants in Latvia. You can benefit from personalized services right from the start of your business.
We invite you to watch a video presentation about the features of a liaison office in Latvia:
What are the costs of opening a liaison office in Latvia?
Opening a representative office in Latvia involves costs related to documents and registration with the relevant authorities. These costs are borne by the foreign company that wants to be promoted in Latvia and are quite small. Also, any expense related to advertising and business promotion in Latvia through a liaison office is borne by the parent company.
If you are interested in company incorporation in Latvia, including the liaison office, we advise you to contact our local agents. Our company can take care of the formalities involved in the process of setting up a company in Latvia.
The uses and advantages of a liaison office in Latvia
A representative office in Latvia is not a legal entity and cannot engage in commercial activities or derive any form of income. However, its uses may be of importance, as summarized below:
- market representation: entering the Latvian market can be useful for several reasons and companies can test their presence on the market before actually incorporating a legal entity.
- no needed capital: there is no minimum share capital needed to open a representative office in Latvia.
- control: the foreign company has complete control over the Latvian representative office and can manage its presence and image on the market.
- low administrative costs: because the office is not a legal entity and does not have tax or reporting requirements, the administrative costs for the foreign company are minimal.
The representative office is often chosen by those investors who need to perform certain marketing or liaison activities before they decide to set up a company in Latvia.
Why is the liaison office in Latvia a good business option?
A liaison office in Latvia is a convenient manner in which foreign corporations can enter the market for the first time, however, without commercial activities. If you intend to start a company in Latvia such as a representative office, you should appoint an officer in charge of testing the market and promoting the foreign business on this territory. Among the benefits of conducting business in Latvia is the relatively low corporate tax rate that the country offers.
Making investments in Latvia
Latvia is a safe business destination that offers multiple possibilities to those interested. Foreign entrepreneurs have various business options at their disposal and can choose the optimal structure for their plans, including a liaison office in Latvia. The following data shows the economic direction of Latvia, to give you an idea before setting up a business in this country:
- The total FDI for Latvia in 2022 was approximately EUR 22.6 billion.
- Around 2% was the GDP growth recorded in 2022 in Latvia.
- Around EUR 39 billion was GDP at current prices, also in 2022 in Latvia.
Contact us for complete details about how to open a representative office in Latvia.