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Incorporating a Company in Latvia
Latvia is in northeastern Europe and is known as the “Baltic Three” along with Estonia and Lithuania. Latvia’s stable political environment, combined with low labour costs, has drawn many companies looking to expand their operations in the European market.
Latvia provides an open and welcoming business environment for companies looking to expand their operations and trade with international markets. Because of the low cost of living and labour, it is also less expensive to run a business in Latvia. Its advantageous geographical location near the heart of the European market facilitates cross-border business. Latvia is also a Eurozone and Schengen visa country, as well as a member of the EU, OECD, and NATO. Businesses registered in Latvia can use Latvia as a gateway to the EU and other European markets, making access to European markets easier.
Although the corporate income tax rate in Latvia is 20%, there is a tax incentive in the form of a 0% corporate income tax on reinvested earnings beginning in 2018. Because Latvia is a Schengen member, foreign nationals who join the board of directors or council of a Latvian business may be granted a residence visa, allowing them to stay in the country for one to five years. This is extremely appealing to any entrepreneur looking to enter the European market. Latvia’s infrastructure should not be overlooked either. The country has some of the world’s fastest internet speeds, making it ideal for the tech industry.
The Following Are the Steps to Registering a Company in Latvia:
To begin, the applicant must select the appropriate type of company based on their business needs, such as a limited liability company (SIA) or a company limited by shares (AS). Following that, you must check the company’s name to ensure that it complies with Latvia naming regulations and is not already in use by another company.
The next step is to prepare the company documents, such as writing the memorandum of association, determining the shareholding structure, creating a register of participants, and determining the beneficial owners of the company.
Furthermore, the applicant must check the company’s address to ensure the accuracy and legality of the registered address.
Filling out registration forms: Complete and prepare all company registration forms and documents.
Then it is time to apply for a digital signature and make sure that the digital signatures on all documents and forms are legally valid. The applicant can submit the registration documents online as well as pay the registration fee.
Finally, if the applicant wishes to apply for VAT status, he or she can do so at the same time as applying for business registration with the Latvian State Revenue Service (SRS).
Contact 3E Accounting to Help You Start Your Business Journey in Latvia!
Despite its small population of 1.8 million people, the majority of Latvians are well-educated and fluent in English and Russian. This makes it easier for foreign businesses to hire local professionals. If you have any further questions about the advantages of forming a company in Latvia, please contact 3E Accounting. Our experts will respond to all your inquiries.
