Skilled employees

Latvia is the seventh highest in the world in the list of high school and university graduating students.

Advanced infrastructure

Well-developed IT, communications, and transport and logistics infrastructure.

Cost-effective environment

The Latvian tax system is recognized as the second most competitive in the world and the cost level for doing business is low in all respects.

Strong support system

It is easy to start a business in Latvia and you get support to start it, and the financing opportunities are also very good. Over the years, the Latvian economy has grown into one of the best in Europe in terms of GDP growth and Latvia is listed as the second greenest country in the EU (Eurostat, WHO and the European Environment Agency).

Setting up a company in Latvia

Latvia attracts customers through one of the lowest tax rates in the European Union. The price level in Latvia is also lower than in Estonia or Finland, which makes it very attractive to set up a company. To start a business, it is necessary to register the business in the Trade Register of the Republic of Latvia. Only after registration does it become a legal entity. Registration is a relatively fast process, usually taking 2 to 4 days after the documents have been handed over. The most popular forms of business in Latvia are limited companies and subsidiaries.

Requirements for setting up a Latvian limited liability company (SIA)

• The company must have at least one owner

• The company must have at least one board member

• The owner and board member may be the same persons, and there are no restrictions on the

  person´s country of residence

• The company must have a registered address in Latvia

• The minimum capital is € 1 if the owner is a natural person and €2,800 if the owner is

  a legal entity

Process of setting up an association in Latvia

• Select the name of the company (Latvian Trade Register) or information about the completed company

• Preparation of the company’s founding documents and agreement on the date of the notary

• Starting a business online for EU citizens. Preparation and sending of mandates to the

  founders

• Preparation of Articles of Association and agreements between owners

• Set up a company in a notary

• Opening a bank account (also possible online)

• The company’s founding documents and a certificate of paid-up share capital are sent to the

  Latvian Patent Register

• Editing of the company’s founding documents

• Through us, you can start a business either physically on site or online. We also offer a

  registration and postal address service.

Taxation

Income taxes and taxation of dividends
Corporate income tax is paid in Latvia on the payment of dividends, the distribution of profits or if the profits are used for purposes other than economic activities. The corporate tax rate is 20%.

Income taxes
If income does not exceed €20,004, TM is 20%, €20,005 – € 55,000- 23%, income of €55,000 and higher 31.4%. Equity income tax and return on equity are 20%.

VAT

The general VAT rate is 21%. The reduced 12% VAT rate applies to, among other things, baby food, medicines and books. VAT liability arises if the company’s annual turnover exceeds €40,000

Employer taxes The total social tax is 35.09%, of which the employer’s share is 24.09% and the employee’s share is 11%

Accounting

We offer professional accounting services in Latvia. Our services include monthly accounting either electronically or on paper. The accounting service includes accounting in accordance with Latvian law, monthly reports and announcements, reports to the company’s management and annual reports.

The company has real-time access to the financial situation. We will report the status of the company to you after each tax period, taking into account your wishes.

SIA must have an auditor if any of the following requirements are met

• The annual turnover is more than €700,000 

• The company’s assets are over €350,000euros

• The company has 25 or more employees

Business services

• Registration a company in Latvia from €770

• Registration address + postal service: €350/12 months

• Postal address service €150/12 months

• Secretarial services, telephone number and answering services €70 / hour

• Company registration in VAT register €380

• Accounting package from €75/month

• Financial administration work €70/hour

• Assistance in opening a bank account from €100

Other business services

• Commercial register changes

• Preparation and submission of the required documents and, if necessary, notarization

• Consulting and advice on  setting up an Latvian company

• Agreements

• Marketing and business plans

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Through us, you get all the help you need in Latvia both in setting up a company and in financial administration services. We recommend a consultation before registering the company. Contact us and ask more about our services.