Latvia Company Formation

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Latvia

Company Formation and Related Services

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Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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Company Formation in Latvia

F.A.Q.

Company incorporation in Latvia is quick, simple and implies low costs. When establishing a company in Latvia, there are a few steps that must be followed in order to benefit from a quick incorporation process. Any person or legal entity, national or foreigner, can be a director or a shareholder in a Latvian company. The company is required to have a registered office (BridgeWest offers this type of service).

The following steps must be followed for company registration in Latvia:

Firstly, the client must decide upon the name of the company, the shareholding structure and the business’ activities. Even if the business’ activities do not have to appear in the articles of association of the company, they will be required when the company will register for tax purposes. The client must also present identification documents such as passport copies, identification cards or driver license of both shareholders and directors and a recent utility bill or a bank statement as proof of residential address.

The following step for the incorporation of the Latvian company will be to draft the articles of association and other relevant documentation and, in case of representation during the registration process, a notarized power of attorney must be obtained.

The next stage will be to open a bank account. In order to do so, identification documents are required together with the application forms from the bank where the share capital will be deposited.

The last step will be to submit all the required documents that must be previously notarized by a public notary and translated by a Latvian translator. Once the registration certificate is issued, the company can start operating.

BridgeWest provides company formation in Latvia. Our assistance includes:

-       - drawing up the articles of association that can be signed through power of attorney (Latvian laws require power of attorney for any public notary proceedings);

-       -  drawing up documents for company incorporation in Latvia: specimen signatures, identification papers copies, application form required by the Latvian Company Registration Office;

-       - arranging public notary proceedings (all procedures for company incorporation are done in front of a Latvian public notary);

-      -  providing a registered office in Latvia on demand; the registered office serves as headquarters for the company in Latvia and it will be made public;

-       - setting up a bank account for the company in Latvia; BridgeWest will help in setting up the share capital bank account, as well as a current bank account once the company is incorporated.

-        - recommending a Latvian accountant, as accounting services are needed for new businesses in Latvia.

Types of companies in Latvia

- Latvian limited liability company (S.I.A. -Sabiedriba ar ierobežotu atbildibu) - The most popular business in Latvia is considered to be the limited liability company. The minimum share capital required is 2,000 LVL (approximately 2,900 EUR) and at least half of it must be paid in advance. A limited liability company in Latvia only needs a director and allows foreign shareholders.

- Latvian joint stock company (A.S.- Akciju sabiedriba) - The joint stock company in Latvia is used by larger businesses that want to gain public capital. The minimum amount of share capital must be 25,000 LVL (approximately 36,000 EUR) and it is required to be paid in advance. The joint stock company can transfer and trade its shares on the stock exchange.

- Latvian Branch, Subsidiary or Representative Office - Foreign companies are allowed to set up separate enterprises from the parent company, where the foreign company will be a shareholder in a Latvian company. Foreign companies can also open extensions of the parent company in Latvia.

Taxation in Latvia

The corporate tax in Latvia is 15%.

The standard VAT rate in Latvia is 21%, but reduced rates of 12% and 0% apply to certain products.

There is no dividend tax for companies in UE and EEA member states, while for the withholding taxes for other foreign companies, the rates vary between 5 and 15%.

BridgeWest is also able to offer ready-made Latvian companies and VAT registration.

Please contact us for more information and prices.



Articles on Company Formation in Latvia

Types of Latvian Companies

Latvian law permits developing business on its territory on the same grounds, and following the same rules for Latvian merchants as well as for foreigners. The basics of the types of business entities, adopted by the Saeima (The Latvian Government) and written in The Commercial Law, are enlisted bel ...

Setting up a company in Latvia

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Enterprise Register of the Republic of Latvia

The Enterprise Register of the Republic of Latvia (the Latvian Trade Register) is a state institution that regulates the entrance of new enterprises, or business companies, and also controls existing companies, holding information about headquarters, registered offices, managing members and sharehol ...

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 br ...

Shelf Company in Latvia

A well-known way to invest in Latvia is to start a business by setting up a new company. Even though many entrepreneurs choose to incorporate brand new companies, ensuring all their company's needs are met, the easiest and quickest way to start business is to acquire a shelf company. An "off-th ...

Paying Taxes in Latvia

1. What is the corporate tax in Latvia? The general corporate income tax rate for companies in Latvia is 15%. If you set up a micro company, you will benefit from a lower corporate tax rate of 9%. 2. What is the VAT in Latvia? The standard VAT rate in Latvia is 22%, with a reduced rate of 12% f ...

VAT in Latvia

1. What is the VAT in Latvia? VAT is charged in Latvia on all supplies of goods, intra-community acquisitions and imports. The standard VAT rate is 22% since 2011. A reduced rate of 12% applies to some goods and services. For instance, accommodation or newspapers benefit from this reduced VAT rate i ...

Company Liquidation in Latvia

BridgeWest handles company liquidation in Latvia. For more information, please contact us.  A Latvian company is considered liquidated only after it was deleted from the Latvian Register of Enterprises. The liquidation is approved during the general meeting or the decision belongs to the s ...

Open a Representative Office in Latvia

Are there any special requirements for creating a Latvian Representative Office? The representative offices open in Latvia have promotional character and are not allowed to perform any commercial activities. The foreign companies chose this type of representation because of the small administrative ...

Register a Non Profit Organization in Latvia

According to the Association and Foundation law in Latvia, the associations opened in this country are groups of people joined together under a purpose different from the one of making profit for them while the foundations are funds created by founders with the specific role of achieving specific pu ...

Nominee Director in Latvia

 The incorporation of a Latvian company begins with elaborating the articles of association, which contains the legal entity’s internal regulations. In these articles, besides the name of the company, its address, its capital, information regarding the shares and the shareholders, contain ...

Guide to Company Incorporation in Latvia

1. What is the minimum share capital for a Limited Liability Company in Latvia? In order to establish a SIA (Limited Liability Company) in Latvia, a minimum share capital of 2,000 LVL, about 3,000 EUR is required. 2. What is the minimum share capital for a Joint Stock Corporation in Latvia? When a ...

Set up a company in Latvia

In order to be a legal entity and to undertake business activities all companies must be registered with the Latvian Registry of Companies and also as taxpayers with the State Revenue. Preliminary activities before registering a Latvian Limited liability (LLC) and Latvian joint stock companies (JSC) ...

Open Business in Latvia
We guarantee a cost-efficient solution for full company setup, bank account and VAT registration

Meet us in Riga

Call us now at +44 203 287 0408 to set up an appointment with our lawyers in Riga, Latvia. Alternatively you can incorporate your company without traveling to Latvia.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Latvia.