:
registration of legal entity

Cost of registration The cost of the second year Number of Directors Corporate tax rates Payment of Charter Capital Financial statements
1400.00 EUR 670.00 EUR 1 15.00% 1425.00 Yes

Registration of companies in Latvia: procedural rules and peculiarities

Регистрация компании в Латвии

Procedural rules of Latvia provides for lack of foreign exchange control, and publication of the rules on supervision over foreign companies, and as a consequence, the jurisdiction is cost-efficient for the organization of new businesses. Norms of regulation of insufficient capitalization and transfer pricing are also in force in the country.

Company registration in Latvia requires the involvement of legal specialist. Company Law & Trust International offers legal assistance at all stages of the business establishment in Latvia. It is possible to apply for the initial consultation by visiting our office or contacting us by phone. The clients are also being supported on the website in online chat.

Registration of companies in Latvia provides the founders several significant advantages:

  1. The rate of income taxation is 15%, which is the lowest level throughout Europe.
  2. The presence of preferential treatments: if the founder obtains dividends from abroad, such income is not taxable. If dividends are paid to legal entities which are non-residents, and the source is exempt from tax contributions.
  3. The founder is entitled to obtain multiple-entry visa, which makes it possible to move freely within the borders of all states of the Schengen Agreement.
  4. When performing a number of conditions non-resident can get residence permit in the country, and the list of requirements should be specified with the consultants of the company Law & Trust International.
  5. When registering company in Latvia it is very easy to obtain certificate of tax resident, which will enable to pay contribution to the state treasury at the rates corresponding to the rates for Latvian citizens.

Registration of offshore company in Latvia is impossible, because the state is not relating to any offshore zone.

However, Latvia gets benefit from the lack of offshore companies: companies and entities registered in the territory of the State are not included in blacklists. Only fraudsters can offer to register offshore company in Latvia.

How to register a company in Latvia: SIA

In accordance with the law on commercial activities, the whole business in Latvia is classified into the following legal forms:

  • limited liability company - SIA (sabiedrība ar ierobežotu atbildību);
  • full partnership - PS (pilnsabiedrība);
  • joint-stock company - AS (akciju sabiedrība);
  • limited partnership - KS (komandītsabiedrība);
  • private entrepreneur (self-employed person) – IK;
  • branch of a foreign company.

SIA is one of the most common forms of company registration in Latvia. This is due to the following advantages:

  1. Charter capital of the company is divided into shares; each participant takes responsibility within the amount of his contribution.
  2. Establishment of the company in Latvia is possible without visiting the country by means of services of attorney. Lawyers of the company Law & Trust are ready to fulfill obligations concerning representation of your interests.
  3. Registration of offshore company is not possible in Latvia, but the undertaking can be 100% shareholder of SIA, and presence the Director who is resident is also not provided as a mandatory requirement.
  4. When creating company name, only letters of Roman or local alphabet should be used. The name is required to contain references to organizational and legal form of the company, and it is prohibited to use the word «Latvia».
  5. Registration of legal address is obligatory. Its purpose is to send correspondence. The address should be within the borders of Latvia.

There is possibility to clarify the other terms and conditions of registration of SIA in Latvia with our lawyers during personal consultation.

Business in Latvia: establishment of AS

Joint stock company can be registered either by residents or foreign nationals. Applications for registration are accepted from legal entities and natural persons.

  1. Charter capital of the company of this organizational and legal form is divided into shares, which are subsequently in free float. Minimum level of capital ranges from 35,000 euros, and it is required to contribute the sum within one year from the date of foundation of the JSC.
  2. Registered shares are issued in free form, and bearer shares are also permitted, but should be registered with a special depository.
  3. Management should be performed by the board of of directors or the shareholders' meeting.

Company Law & Trust International offers free consultation of the founders concerning registration of businesses in Latvia. With the range of our services you will be able to avoid a lot of legal errors.

Set of documents
   
  • registration certificate
  • decision on registration of the company in the Commercial Register
  • Charter Company
  • application form for registration of companies in Latvia
  • decision to establish a company
  • Notice legal address
  • consent to become a member of the Board
  • attorney nominee director
  • Subscribing Contract EDS
  • appendix to the contract to connect EDS
Nominee director and shareholder
 EUR  
  • Ask our manager

General information
Square64 589.00
Population2 191 580.00
CapitalRiga
Unemployment11.70
State polityParliamentary democracy
Telephone code371
Place in the world in corruption54
locationEastern Europe, bordering the Baltic Sea, between Estonia and Lithuania
Climatemaritime; wet, moderate winters; avg. maximum temperature (July) +23°; avg. minimum temperature (January) -11°
Literacy rate99.70%
Ethnic groupsLatvian 57.7%, Russian 29.6%, Belarusian 4.1%, Ukrainian 2.7%, Polish 2.5%, Lithuanian 1.4%, other 2%
National currencyLat (LVL)
USD exchange rate0.53
GDP per capita90
Official languageLatvian
Credit ratingBB
The judiciaryThe Supreme Court, the Constitutional Court. Parliament confirmed the appointment of judges.
Executive authorityThe Cabinet of Ministers appointed by the prime minister and approved by Parliament
Legislative authoritiesUnicameral Parliament or Seimas. Includes 100 seats; members are elected proportionally from party lists for a period of 4 years.
Corporate information
Opportunity to purchase ready-made companiesДа
Legal systemCivil law
Terms of purchasing ready-made company10-30 days
The use of the Cyrillic alphabet in the nameНет
Local registered officeДа
Organizational and Legal FormsSabiedrība ar ierobežoto atbildību (SIA) - ООО Akciju sabiedrība (AS) - АО Individuālais komersants (IK) - ИП
Terms of registrationStandard: 4 days
Indication of BPA in the nameSIA, AS, IK
Local registered agentДа
The information required to be kept at the registered officeCopies of registration documents, information on the changes, contact details of authorized persons
Shares and share capital
Standard currencyLat
Information about the beneficiary is disclosedSIA - 2 000 LVL; AS - 25 000 LVL
The minimum amount of paid-in capital, nat. currency1000
The minimum amount of the issued capital2000 LVL
Bearer sharesДа
Terms of payment of the issued capital1 year
The usual size of the authorized capital2850 EUR
Terms of capital payment1 year
Possibility to issue shares without par valueНет
Taxation
VATДа
Basic corporate tax rate15.00%
Capital gains taxДа
Withholding taxYes
Currency controlНет
The tax on personal income24%
Corporate tax rates detailsOn 1 January 2018, Latvia moved from tax regime under which companies subject to tax on annual taxable profits to system where tax paid only if corporate profits distributed or deemed distributed. Certain expenses deemed to be similar to profit distributions taxed at an effective rate of 25%.
Government dutyNo
Stamp dutyНет
Other taxesDividends - 10%; Royalty - 5% or 15%; Repealed with effect from 1 July 2013 advisory and management services - 10% are canceled from July 01, 2013; interest 10%. Repealed with effect from 1 July 2013; use property located in Latvia - 5%
Director and Secretary
Minimum number of directors1
The requirement for residency directorsНет
Director of legal entities are allowedНет
The data reveals to the local agentДа
Data field to the public registryДа
Meeting / regularity / placeNo restrictions
The requirement for the presence of the SecretaryНет
Requirement to the residense of the SecretaryНет
Requirements to qualification of the SecretaryНет
Legal entity as the SecretaryДа
Shareholder and beneficiary
Minimum number of shareholders1
Data is entered in the public registerДа
Shareholders residency requirementНет
Information about the beneficiary is disclosedНет
Information may be disclosed to the local agentДа
Shareholders-legal entities are acceptableДа
Meeting / regularity / placeНет ограничений
Reporting
The requirement for filing reportsДа
Open access to reportsДа
Statutory auditНет
The requirement for filing Annual ReturnДа
Open access to the Annual ReturnДа
The requirement for reportsДа
Treaty on avoidance of double taxation (States which signed)51
Membership in the OECDНет
Is it offshore according to Russian legislationНет
Trademark Registration
TM Comprehensive Study TM Registration Request TM Registration Certificate Total
First Class Additional Class First Class Additional Class First Class Additional Class First Class Additional Class
127.00 63.00 320.00 88.00 305.00 0.00 750.00 EUR 140.00 EUR
«TRADEMARK» refers to «Wordmark», «Logo» or «Wordmark + Logo»

Prices include all professional and official fees. If the change of official duties or exchange rates prices may vary.

В Латвии Запрос на регистрацию торговой марки предусматривает описание товара/услуги до 100 слов; каждые 100 дополнительных слов стоят USD 80.
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