COMPANY REGISTRATION IN LATVIA

Company registration in Latvia online with EU LAW FIRM. 

Latvia has one of the greatest tax systems in the world – all reinvested profits are not taxed. Latvia does not tax companies income or turnover, corporate tax rate applies only to distributed profits. Corporate tax of 25% applies only if you pay out dividends or payments which are considered to be similar to dividends.

Namely, if you re-invest your companies profits, you will never pay corporate tax in Latvia.

Latvia is a great jurisdiction with welcoming business environment, highly skilled workforce, developed business environment and infrastructure. 

Latvia is a great jurisdiction for technology companies, with various IT business hubs, business incubators and other beneficial aspects which will ensure successful business and IT product development. 

Nevertheless, as Latvia is member of the European Union, it is a highly respected jurisdiction worldwide and will enable you to enter the EU market with your business.

Latvia Background:

Republic of Latvia is a country located in Eastern Europe – the Baltics, and is bordered by Estonia, Lithuania, Russia and Belarus.

Latvia is highly developed European country with great infrastructure, logistics and bank systems.

A company in Latvia is perfect for all kinds of international businesses – ecommerce, import/export, financial services, information technology companies and other.

A company in Latvia will ensure your gateway to business in Europe and internationally with a reputable European Union jurisdiction.

Choosing company formation in Latvia with EU LAW FIRM does not require your presence in Latvia and you will also have trusted local partner for legal advice in Latvia.

Company formation in Latvia is a simple process that can be accomplished in just a few days, depending on how fast the incorporation documents are prepared. Below, EU LAW FIRM lawyers answer a set of general questions regarding the jurisdiction, company registration in Latvia and the requirements to start your business in Latvia.

Capital city: Riga

Population: 1,907,675

Local currency: Euros (EUR)

Official language: Latvian

Business language: English, Russian, Latvian

Latvia low capital limited liability company (Low-CAPITAL LLC)
From 1100 EUR
All documents and state fees are included

Annual company maintenance fee is EUR 500 (billed annually)

First year annual fee is included in company formation price

(Includes registered office and contact person)

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Description of Low-Capital LLC Registration in Latvia:

  • Minimum sharecapital from EUR 1-2799 (capital is only signed for).
  • No turnover limitations.
  • No limitations on business activities.
  • Fast registration.
  • Board members must be the shareholders of the company.
  • Only private persons can be the shareholders.
  • No temporary bank account is needed.
  • Enables possibilities for European Union residence permit.
STANDARD LIMITED LIABLITY COMPANY IN LATVIA FORMATION
From 1200 EUR
All documents and state fees are included

Annual company maintenance fee is EUR 500 (billed annually)

First year annual fee is included in company formation price

Includes virtual office, postal address

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Description of Standard LLC Registration in Latvia:

  • No turnover limitations.
  • Fast registration.
  • No limitations on board members.
  • No limitations on shareholders.
  • Temporary bank account for share capital deposit is required.
  • Bears the abbreviation “SIA”, which translates to LLC.
  • Enables possibilities for European Union residence permit.

Why do business in Latvia?

  • Tax system 

Even though standard corporate income tax in Latvia is 25%, Latvian corporate income tax follows the cash flow principle. This means if Latvian company keeps the profits (or reinvests them in the company) – 0% tax is payable. The corporate income tax rate is applied on distributed gross dividends, deemed dividends or notional profit. Resident companies in Latvia are generally taxed on their worldwide income. Non-resident companies however are taxed only on their Latvian source income. Both resident and non-resident companies are taxed when a taxable event occurs (pay-out of dividends etc.).

  • Business environment

Latvia offers great business possibilities for companies and private entrepreneurs worldwide. Latvia allows to do various businesses, including investments, real estate, woodworking, manufacturing and production, agriculture, pharmacy and others. Currently, Latvia is home for thousands of IT companies from the United States, India, UAE and other countries because of its highly skilled work force, high scale technological unit production and overall internet speed. 

  • Low business operating costs

Compared to other EU countries, Latvia has low registration and company operation fees. Furthermore, it is relatively easy to set up local office or branch of the company in Latvia, finding highly skilled multilingual employees and cheap office space right in the centre of Riga.

  • Reputable jurisdiction

Since 2004, Latvia is a member of the European Union giving companies incorporated in Latvia a possibility to easily enter and operate in the European market and beyond. A company in Latvia also provides the possibility to trade with both European and Eastern market companies (CIS countries). The major ports in Latvia function as tax-free zones or special economic zones (SEZ), offering great incentives for maritime trade.

Tax system in Latvia

Corporate income tax: standard rate is 25%. Corporate earnings are not taxed until they are dispersed as dividends or are presumed to be distributed. If taxable event does not occur, company in Latvia pays 0% corporate income tax.

VAT: standard value added tax rate in Latvia is 21%, with reduced VAT to some products. 

Withholding tax: Generally, there is almost no WHT, with the exception of tax havens. All payments to corporations based in tax havens are subject to a 20% withholding tax. Exemptions apply to goods and assets purchased at market pricing.

For detailed overview of tax system in Latvia and key tax rates we welcome you to read our Ultimate Guide to Tax in Latvia.

Please note that for company established in Latvia our accounting department can take care of all company bookkeeping and audits, as well as consult about financial and tax questions in Latvia.

HOW THE ORDER SYSTEM WORKS?

1. Choose the most suitable company type and make online order

Choose the most suitable company formation package from STORE EU LAW FIRM, and place an online order with the available payment methods. After successful order you will receive an email confirmation with your order details.

2. Collection of documents and KYC verification

 

After successful order and receipt of payment, our customer support will get in touch with you to acquire the required documentation for company formation in Latvia.

3. Company registration in Latvia

 

The company formation in Latvia takes between 2-7 business days after all required documents have been received. After company has been incorporated, physical company formation documents with apostilles will be sent to your mailing address.

DOCUMENTS REQUIRED FOR COMPANY REGISTRATION IN LATVIA

For individuals:

  • Notarized and apostilled passport copy of all shareholders;
  • Notarized and apostilled passport copy of all directors;
  • Copy of a recent utility bill not older than three (3) months.

If shareholder is a legal person:

  • Notarized and apostilled company extract (visible directors, shareholders, company status, amount of shares and ultimate beneficial owners).

Document preparation instructions:

  1. Please note that in Republic of Latvia, when forming a company it will be necessary to notarize and legalize/apostille company formation documents.
  2. Our support team will prepare all relevant documentation and send to you the company formation documents via email. Afterwards, you will need to sign the company formation documents at notary public and either legalize or apostille the documents at your country’s Ministry of Foreign Affairs or embassy, depending on your location. 
  3. After documents will be notarized and legalized/apostilled, you will need to mail the document originals to our mailing address for translations.

DOCUMENTS REQUIRED TO OPEN THE BANK ACCOUNT FOR COMPANY IN LATVIA 

  • Passport copy of all directors and shareholders.
  • Utility bill not older than 3 months.
  • CV of the company management.
  • Business plan.

Banks may request additional documentation from case to case. Please note that due to AML Regulations it may not be possible to open a bank account in national Latvian banks. However, we offer various possibilities of opening a bank account in EU financial institutions. 

Note: All documents in a foreign language must be translated into English and certified by a qualified translator.

Interested in starting business in Latvia?

All questions regarding company registration in Latvia will be answered promptly by contacting EU LAW FIRM lawyers in Latvia. We usually answer in 2 hours.