Open Company Branch or Subsidiary in Latvia

The state of Latvia encourages foreign investment, offering incentives for foreign investors as well as a great business environment. Entrepreneurs who wish to engage in commercial activities may incorporate a company or set up a branch of the foreign company on the territory of Latvia. A Latvian branch is not a legal entity separate from the parent company and the liability falls also on the parent company.

Preliminary activities prior to registering a company branch in Latvia
Registering the company branch with the Commercial Registry is mandatory; however there are certain procedures that need to be taken care of before that. In order to come to existence a company branch must develop foundation documents, as articles of association which should be prepared for registration through notarization. Also a representative should be authorized through power of attorney. The parent company registration certificate must be translated into Latvian, as well as the branch's articles of association.

Registering the company branch in Latvia with the Commercial Registry
It is mandatory that the Latvian branch register with the Commercial Registry in order to obtain a registration certificate. In order to do that the founders must submit an application containing the notarized articles of association of the company branch, a certificate of registration for the foreign company issued by the relevant institution of the respective country, sample signatures of the Management Board and list of their names and addresses, legal address of the company in Latvia. Additional information may be requested upon registration; however the registration certificate is issued in approximately 3 days.

After incorporation the branch must be registered with State Revenue Service for VAT. In order to do so an application is submitted and within 15 days upon receiving it the institution adopts a decision. Also an important step implies registering employees for mandatory state social insurance.

Setting up a company branch in Latvia from abroad
Establishing a branch in Latvia requires a simple process, requiring few procedures. Notarizing the company documents is done in one day, as well as translating the required documents. Registering with the Commercial Registry is done in three days. Usually a Latvian branch is set up in two weeks.

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