Overview of Company Formation in Latvia
In recent years, Latvia and company formation in Latvia have been perceived by many foreign investors as an ideal gateway for entering the European market. And such interest is quite justified: Latvia is a member of the WTO, the European Union, NATO, the country has signed the Schengen agreement. At the same time, Latvia is located on the border of the West and the East, acting as a link in trading between Europe and Russian-speaking countries. Add to this a developed banking sector and the presence of English-speaking specialists in the country and the last doubts will disappear without a trace. As a nice bonus – the possibility of obtaining a residence permit in Europe.
Every year more and more non-residents open companies in Latvia – this led to the fact that the government decided to change those points of Latvian legislation that are related to the registration of companies in the country. The requirements have been noticeably simplified, in addition, a holding regime has appeared, the possibility of obtaining a residence permit in Latvia for owners of local companies.
Benefits of Registering the Company
Main advantages of company formation in Latvia
Low cost of company formation in Latvia (the cost is at least twice as less against that applied in other European countries);
Remote registration of the company where personal appearance is not required (servicing based on power of attorney);
Prestige of belonging to Europe;
Double taxation agreements signed with 45 countries;
Good taxes. Income tax – only on distribution of profits (tax rate 20%). Retained earnings will not be taxed (0%).
The minimum number of the directors is 1 person. The director may be of any nationality and may not be a resident of Latvia.
The minimum number of the shareholders is one person – an individual or a legal entity, including a non-resident.
The minimum authorized capital of an LLC – 1 EUR.
If the authorized capital is up to 2799 EUR – founders can only be individuals (no more than 5), including non-residents.
If the authorized capital is from 2800 EUR – the founders can be both individuals and legal entities. Before submitting registration documents to the Register of Enterprises, at least half (50%) of the authorized capital must be paid, in turn, the remaining part must be paid within 1 year.
Possible options of the company registration form: SIA (limited liability company), SE (European-type company), AS (Joint-Stock Company), EEIG (a concern or holding).
from EUR 550
Planning to incorporate a new company? Entrust the document preparation to Private Financial Services – we have already established more than 1500 different companies in Latvia. We will quickly prepare all required documents for incorporating your company.
Will provide you with full support and free consultations during the process of company formation in Latvia.
There are 3 ways for company formation in Latvia:
– Remote company formation with ID card;
– Company formation during the visit to Riga, Latvia;
– Remote company formation with Power of Attorney;
Regardless of the chosen option we will prepare all the necessary documents within 1 business day:
Decision to found a company;
Articles of Associations of the company;
A document certifying the contribution of the authorized capital to a bank account;
Confirmation and information about the legal address;
Section of the register of participants;
Application for registration of SIA (LLC);
Application for VAT number (if necessary) and registration with tax authorities;
Preparation of a set of corporate documents (with translation, certification and apostille if required);
Company Formation in Latvia and Opening Bank Account in 2022
According to Latvian law, Latvian company may have a bank account in any country. Unfortunately, currently as a rule, banks in Latvia do not open accounts for Latvian companies without a substantial presence in Latvia. We will be happy to assist you in opening an account for a Latvian company in one of many other countries (Switzerland, UK, Liechtenstein, Luxembourg, Austria, Cyprus, Russia, Portugal, UAE and many more).
Remote account opening is also possible. You can use our application to open a bank account or you can contact one of our specialists in dealing with banks.
Company Formation in Latvia – Private Financial Services is a Licensed Service Provider Since 1997
We Provide the Following Services in Latvia
Company formation in Latvia;
Legal address for your company;
Translation and attestation of documents;
Assistance in preparing contracts and agreements;
Assistance in obtaining licenses;
Support at government agencies;
Mergers and acquisitions, restructuring;
And much more.
What about after company formation in Latvia? Service and support in Latvia.
After your Latvian company is registered, we recommend the following steps.
Appoint an accountant and start doing accounting from the first day of incorporation;
Prepare a package of corporate documents in English (you will need it for opening a bank account and for contractors);
Open a bank account;
Order a seal. Although the legal obligation to have a seal was abolished long ago in Latvia, contractors from some jurisdictions demand one;
Register your trademark (if required);
Register your employees (if you have some) with state authorities;
As a rule, you need to renew your legal address once a year.