Latvia Business Visa / Company Formation
Latvia, a Baltic country in Northern Europe, boasts a rich tapestry of history, culture, and natural beauty. Nestled between Estonia to the north and Lithuania to the south, Latvia features a diverse landscape that includes dense forests, pristine beaches along the Baltic Sea, and picturesque countryside. Renowned for its medieval Old Town in the capital city, Riga, which is a UNESCO World Heritage site, Latvia melds historic charm with a progressive outlook. With a resilient economy, a welcoming business climate, and a harmonized legal framework in line with the European Union, Latvia stands as an inviting destination for investors and entrepreneurs seeking new opportunities within a vibrant European setting.
What makes Latvia an attractive business destination?
Latvia presents a favorable business climate without constraints on foreign ownership or limitations on company types for non-residents. The incorporation process is straightforward, and guidance from our agents is beneficial, particularly for first-time investors or those unfamiliar with working alongside Latvian authorities.
What considerations are important before initiating company registration in Latvia?
Before commencing company registration, investors must select among available company types, based on capital availability, the number of investors, and future company expansion goals.
How can our team assist with company formation in Latvia?
Our team of experts can help in comprehending the nuances of various business structures and selecting the most suitable business form based on individual requirements. Advisors are available to provide information on company registration in Latvia.
Types of Legal Entities for Company Formation in Latvia
Latvia offers a wide variety of legal entities suitable for registration, catering to both small and large-sized enterprises. The available types of legal vehicles for company registration in Latvia include:
- Sole proprietorship or sole trader.
- Limited liability company, categorized into private and public entities.
- Partnership, with options for general and limited partnerships.
- Branch office, for foreign companies seeking operations they can fully control.
- Subsidiary, available for foreign businesses looking for flexible ways to expand their activities in Latvia.
It’s important to note that companies typically need at least one shareholder and one or more directors, depending on their size. Latvia’s diverse business forms can accommodate various activities both within and outside the country.
Corporations in Latvia
A corporation in Latvia is a business structure with legal capacity and identity, distinct from its founders. Shareholders are only liable to the extent of their capital investment, and they can also be non-Latvian residents. The types of corporations in Latvia include:
- The limited liability company (LLC/SIA)
- The joint-stock company (JCS/AS)
- The European Company (SE)
The incorporation requirements for these business forms may differ in terms of minimum share capital and management structure. Both the LLC and the JCS can be formed by one or more investors, whether natural or legal persons, residents or non-residents.
Company Registry in Latvia
The Register of Enterprises of the Republic of Latvia is responsible for registering companies, traders, representative offices, and branches, along with other types of establishments such as mass-media associations or foundations.
Taxation in Latvia
Latvia offers a favorable corporate income tax rate, which is one of its strongest points for investors. The standard rate was 20% in 2018, with some expenses subject to an effective tax of 25%. Other taxes for companies in Latvia include real estate tax, value-added tax, natural resources tax, and social security contributions.
Tax Incentives in Latvia
Latvia has a tax incentive program as part of its Special Economic Zones. These zones include Riga Free Port, Ventspils Free Port, Liepaja Special Economic Zone, Rezekne Special Economic Zone, and Latgale Special Economic Zone. They offer tax exemptions, such as complete exemption from real estate tax, corporate income tax, withholding tax on dividends, and fees for intellectual property usage for non-residents.