Company Formation in Latvia
Why Should You Register a Company in Latvia?
Company formation in Latvia offers an excellent opportunity to trade with the Eastern and European Markets as it is a recognised member of the European Union. Additionally, it has an excellent geographical location and is well versed with the Russian market trends and language. According to the Constitution, Latvia is a Parliamentary Republic in which the sovereign power belongs to the people, who are represented by a Unicameral Parliament. The Latvian economy is based on service industries like transportation and financial services as well as light industries like wood, textiles and food processing. Most of the light industry sectors suffered due to the Russian crisis as a result of which Latvian trade is increasingly turning towards Western Europe.
Advantages of Company Formation in Latvia
- If properly structured, a Latvian company can act as a tax-efficient subsidiary for an EU parent company under the terms of the EU Parent/Subsidiary Directive. 100% foreign ownership is permitted with Latvia company formation.
- A Latvian company can access the double taxation treaties Latvia has signed with countries including Canada, China, France, Germany, Ireland, Singapore, the UK and the US.
- A Latvian company is entitled to tax reductions of up to 40% for investment in state-supported projects.
- Latvia is positively ranked as the world’s 24th easiest place to do business, according to a World Bank’s Survey. In addition, in the 2010 Index of Economic Freedom by the Heritage Foundation, Latvia ranks highly as having the world’s 50th-freest economy; and scores at 80% in terms of investment freedom and capital flows.
- Latvia ranks a positive 48th on the United Nations Human Development Index for its high overall life expectancy, literacy, education and living standards.
- It is easy to open global corporate bank accounts to support Latvia company formation.
- Corporate income tax is charged on the company profit. The tax rate is 15% from profit, calculated in the company income tax declaration.
Procedure for Company Formation in Latvia
- Reserving a company name
- Drafting and notarizing the Incorporation Agreement and Articles Of Association
- Deposit of capital in the temporary Bank Account
- Registering with the Commercial Registry along with filing of documents
- Opening a permanent bank account
- Publication in the official gazette
- Registering for VAT
Requirements for Business Setup in Latvia
Basic Requirements for Company Formation in Latvia
- Minimum Share Capital Requirement - LVL 2000
- Minimum 1 Director
- Registered local office address
- Minimum 1 Shareholder
Documents Required Company Formation in Latvia
- Application Form
- Copy of passports and residence address of the owners
- Articles Of Association
- Certificate of deposit of capital in bank account
Our Services for Company Formation in Latvia
- Legal Services for the establishment of LTD
- Services for legal address
- Opening of a Bank account
- VAT Registration
Time Period for Company Formation in Latvia
It takes approximately 16 days for company registration in Latvia.