The Republic of Latvia is a unitary state located in the Northern Europe. Latvia is a member of such international organizations as: the EU, the Council of Europe, the IMF, the WTO, and others.
Latvia's accession to the European Union has allowed expanding and establishing trade relations with European countries, especially Germany, Sweden, and Great Britain.
Owing to this, registering a company in Latvia will be a favorable option for entrepreneurs interested in conducting international business.
Setting up a company in Latvia is a good idea for the following reasons:
- A good reputation of the country;
- An advantageous geographical location;
- Skilled Russian-speaking workforce;
- An open market economy;
- The lowest tax rates in Europe;
- The anonymity of company shareholders and banking secrecy;
- Free movement within the EU (Latvia is a member of the Schengen Agreement);
- Double taxation agreements signed with other countries.
The most common legal form is a limited liability organization (Sabiedrība ar ierobežotu atbildību – SIA).
The main advantages of such a company are the following:
- The possibility of opening branches of the company in other states;
- SIA can be transformed into a joint-stock company, merge with another company or create a subsidiary;
- Even a non-resident (individual or legal entity) can register a Latvian company;
- Minimum share capital: from 1 EUR;
- All Latvian companies are required to accounting and submitting reports;
- Partner's liability is limited to each share (individually).
In order to set a company in Latvia, you should consider its tax system:
- Income tax is 15%;
- The tax on capital gains is 15%; if certain conditions are met, it can be reduced to 0%;
- The standard VAT rate is 21%, if certain conditions are met, it can be reduced to 0%.
How to open a company in Latvia?
For more information, ask for personal advice on a Latvian company registration from our qualified experts by using contacts on the site.