Here are some advantages of incorporating a company in Latvia:
In order to receive a comprehensive guidance on incorporating an enterprise, contact our law firm in Latvia.
choosing a country
choosing a bank
payment (by any method)
bank account opening
In Latvia, there are the following organisational and legal forms to choose from:
Foreign companies can establish branch or representative offices in the country. Non-resident entrepreneurs may be registered as sole proprietors. Our lawyers in Latvia will assist you in registering any type of enterprise.
In order to carry out business activities in the country, a bank account and a tax identification number are necessary. Requirements prescribed by various legal acts made bank account opening a more difficult and costly process than it used to be. Any company registered in Latvia is subject to taxation, with its residency being a relevant factor. Non-resident enterprises shall pay tax only on their income from Latvian sources. Foreign companies may also enjoy reduced tax rates under the provisions of double taxation agreements (if the latter are concluded between Latvia and the country the foreign company is resident in).
The Latvian corporate income tax rate is 15%. However, permanent establishments that have been operating in the country for 12 months or less may benefit from a simplified tax regime, under which the taxable income is deemed to be 20% of the turnover. Other payments to be made by enterprises are payroll tax, real estate tax, stamp duty, and social security contributions. There is no capital duty in Latvia.
Our lawyers will provide you with assistance in tax compliance and minimising the tax burden.
What are the key factors that attract foreign investment?
The main advantages of doing business in Latvia stem from the country’s strategic location and its being a member of the Schengen Area and of various organisations, such as the EU and the WTO. Such status allows access to the benefits of free and open trade in the international market.
Good-quality infrastructure characteristic for Latvia also facilitates commercial activities. There are three large ports in the country, and the airport of Riga offers flights to more than 80 destinations worldwide. All the above promote both Latvian exports and imports.
Moreover, the country has significant tourist potential. The services delivered in this field are considered affordable and of high quality at the same time. The tourism sector contributes substantially to Latvia’s GDP.
Business-friendly environment makes the country an ideal location for registering a company. If you are interested in setting up an enterprise in Latvia, let us help you with it. Just give us a call, and we will provide all necessary assistance.