{"id":98,"date":"2023-04-26T11:08:57","date_gmt":"2023-04-26T11:08:57","guid":{"rendered":"https:\/\/companyformationlatvia.com\/?page_id=98"},"modified":"2023-11-21T10:50:54","modified_gmt":"2023-11-21T10:50:54","slug":"home","status":"publish","type":"page","link":"https:\/\/companyformationlatvia.com\/","title":{"rendered":"Company Registration in Latvia"},"content":{"rendered":"\n

Our agents specialize in company formation in Latvia<\/strong> and have an extensive experience in working with both local and foreign investors for business projects in all of the major industries<\/strong><\/a> in the country.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 Quick Facts<\/th>\n <\/th>\n<\/tr>\n<\/thead>\n
  Types of companies<\/td>\n\n

Limited Liability Company<\/p>\n

 Joint Stock Company<\/p>\n

Branch<\/p>\n

Sole proprietorship <\/p>\n

Partnership <\/p>\n<\/td>\n<\/tr>\n

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Minimum share capital for LTD Company <\/p>\n<\/td>\n

EUR 2,800<\/td>\n<\/tr>\n
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Minimum number of shareholders for Limited Company <\/p>\n<\/td>\n

 1<\/td>\n<\/tr>\n
Time frame for the incorporation (approx.) <\/td>\n\n

4 weeks<\/p>\n<\/td>\n<\/tr>\n

Corporate tax rate<\/td>\n\n

15% <\/p>\n<\/td>\n<\/tr>\n

Dividend tax rate <\/td>\n\n

20%<\/p>\n<\/td>\n<\/tr>\n

VAT rate <\/td>\n\n

21%, a reduced rate of 12% also applies to certain goods<\/p>\n<\/td>\n<\/tr>\n

Number of double taxation treaties (approx.)<\/td>\n58<\/td>\n<\/tr>\n
Do you supply a registered address?  <\/td>\nYes <\/td>\n<\/tr>\n
Local director required  <\/td>\nNo <\/td>\n<\/tr>\n
Annual meeting required <\/td>\nYes<\/td>\n<\/tr>\n
Redomiciliation permitted <\/td>\nYes<\/td>\n<\/tr>\n
Is accounting\/annual return required? <\/td>\nYes <\/td>\n<\/tr>\n
Foreign-ownership allowed <\/td>\nYes <\/td>\n<\/tr>\n
Any tax exemptions available? <\/td>\n\n

– Individual shareholders are exempt from 10% dividend tax<\/p>\n

– Offshore companies are exempt from paying withholding taxes on interest payments in Latvia<\/p>\n<\/td>\n<\/tr>\n

Tax incentives<\/td>\n\n

– Large investments tax deduction<\/p>\n

– Deferred tax payments<\/p>\n

– Special economic zones<\/p>\n

– Donation relief<\/p>\n

– Tax reduction for research and development<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n

Latvia offers a welcoming business climate, with no restrictions on foreign ownership or the types of companies that can be incorporated by non-residents. The company incorporation is a reasonably simple process and having the help of our agents is useful, especially for first-time investors or for those who are not accustomed to working with Latvian authorities.<\/p>\n\n\n\n

Before commencing the company registration in Latvia<\/strong>, investors need to choose one of the available types of companies<\/strong>. This is a decision based on the available capital, the number of investors and the desire to further expand the company in the future. <\/p>\n\n\n\n

Investors may choose to incorporate a corporation or capital company, a partnership or start a business as a self-employed individual. Our team of Latvian company formation agents<\/strong><\/a> can help you understand the particularities of each business structure and choose the business form based on your needs. If you need information on company registration in Latvia<\/strong>, our advisors can guide you.<\/p>\n\n\n\n

Documents required to open a company in Latvia<\/strong><\/h2>\n\n\n\n

The following documents must be prepared and submitted when opening a company in Latvia<\/strong>:<\/p>\n\n\n\n

    \n
  1. a registration application issued by the Trade Register which must be signed before a Latvian public notary<\/a><\/strong>,<\/li>\n\n\n\n
  2. the charter,<\/li>\n\n\n\n
  3. the Articles of Association,<\/li>\n\n\n\n
  4. proof of depositing the share capital,<\/li>\n\n\n\n
  5. proof of registered address,<\/li>\n\n\n\n
  6. proof of payment of the state duty,<\/li>\n\n\n\n
  7. proof of payment of the publication fee,<\/li>\n\n\n\n
  8. details about the shareholders and directors of the Latvian company<\/a><\/strong>.<\/li>\n<\/ol>\n\n\n\n

    For complete information about company registration or for notary services you can contact<\/a><\/strong> our law firm in Latvia. <\/strong>Once your company is up and running, you are required to comply with all accounting requirements. So, if you need expert assistance, please get in touch with our accountants in Latvia<\/strong><\/a>. They will not only guide you about payroll, tax filing, and bookkeeping services, but also provide you with practical assistance in these matters. <\/p>\n\n\n\n

    How easy is to start a business in Latvia?<\/strong><\/h2>\n\n\n\n

    The necessary time for\u00a0establishing a Latvian business<\/strong><\/a>\u00a0is no longer than one week if all the required documents are submitted in due time. The time frame for company incorporation in other countries, such as Korea<\/a>, could be much longer – up to four weeks, that’s why you need support from experienced specialists who can help you pass through a smooth process. The process of\u00a0company incorporation<\/strong>\u00a0includes the following steps:<\/p>\n\n\n\n

      \n
    1. drawing up the deeds of incorporation,<\/li>\n\n\n\n
    2. notarizing the deeds of incorporation,<\/li>\n\n\n\n
    3. opening a bank account and depositing the minimum share capital,<\/li>\n\n\n\n
    4. registration at the Commercial Register of Enterprises and at the State Revenue Service,<\/li>\n\n\n\n
    5. registration of the employees for the state social insurance contribution at the State Revenue Service,<\/li>\n\n\n\n
    6. registration for VAT in Latvia.<\/strong><\/a><\/li>\n<\/ol>\n\n\n\n

      The formalities are relatively few compared to other European jurisdictions. In part, this is what has allowed Latvia to remain in the top twenty countries in the world in terms of ease of doing business for locals and foreign investors alike.<\/p>\n\n\n\n

      Types of legal entities that can be used to open a company in Latvia<\/strong><\/h2>\n\n\n\n

      Latvia is a very appealing European destination to open a company<\/strong><\/a> in, one of the reasons being the variety of legal entities available for registration and the fact that these can be used for the creation of both small and large-sized enterprises.<\/p>\n\n\n\n

      The following types of legal vehicles can be used for company registration in Latvia<\/strong>:<\/p>\n\n\n\n

      1. the sole proprietorship or sole trader which is the simplest enterprise that can be set up by a single businessperson;<\/p>\n\n\n\n

      2. the limited liability company which is categorized into private and public entity, each with its characteristics;<\/p>\n\n\n\n

      3. the partnership which is also divided into the general and limited one;<\/p>\n\n\n\n

      4. the branch office which can be used by foreign companies seeking to establish operations they can fully control;<\/p>\n\n\n\n

      5. the subsidiary which is available for foreign businesses looking for flexible ways of expanding their activities in Latvia.<\/p>\n\n\n\n

      What need to be considered when setting up a business in Latvia<\/strong><\/a> is that companies require to have at least one shareholder and one or more directors, depending on their size.<\/p>\n\n\n\n

      As you can see, company formation in Latvia<\/strong> relies on various business forms that can be used for numerous activities in and outside the country.<\/p>\n\n\n\n

      Corporations in Latvia<\/strong><\/h2>\n\n\n\n

      A corporation in Latvia<\/strong> is a business form that has legal capacity and identity, separated from that of its founders. The shareholders are only liable to the extent of their capital investment and they can also be non-Latvian residents. <\/p>\n\n\n\n

      The types of corporations in Latvia are as follows:<\/p>\n\n\n\n