A Country with Great Potential
Clients of Finexmo who have been conducting business in Europe for a while value Latvia for numerous qualities. The most significant among them are as follows:
- Simple Registration
- By European standards, Latvia offers one of the simplest and fastest procedures of legalization that precedes the beginning of business operations.
- You can register your company online through a portal in just one working day and pay a fee ranging from 20 to 150 euros, depending on the type of company.
- You can also obtain all necessary permits and licenses through the same portal.
- Low Taxes
- Few countries can boast a corporate profit tax that does not exceed 20%.
- The value-added tax varies for different goods and services, ranging from 5% to 21%.
- As an individual, you will pay more taxes than your business: between 20% and 31.4%. The higher your income, the higher the percentage. As the saying goes, “From each according to his ability.”
- Access to the European Union Market
- You immediately gain the opportunity to trade and invest in other European countries.
- Latvia has free trade agreements with other countries such as Norway, Switzerland, Canada, and more.
- Access to the Baltic Sea is convenient for maritime transportation.
- Innovation Support
- Latvia offers various types of financial and non-financial assistance for innovative businesses.
- You can obtain grants, loans, guarantees, or venture capital from governmental or private organizations.
- You can also access qualified specialists, research centers and incubators that will help you develop your business.
We have highlighted not all, but the most important advantages of a Latvian company. Perhaps during the course of developing your operations in this country, you will discover something else you consider worth sharing with us.
Where to Start to Register company in Latvia?
So, you’ve decided to start your business in Latvia. Before you begin the actual management of your legal entity, you need to successfully go through three steps:
- Study the Latvian market and understand its demand, supply, competition, and trends. You must define your target audience, competitive advantages, and promotion strategy.
- Choose a company type that suits your needs. To do this, you need to know the differences between them in terms of responsibility, taxation, management, and other parameters.
- Register your company in Latvia in accordance with legislation and procedures:
- Prepare all necessary documents.
- Sign them in front of a notary or using an electronic signature.
- Submit them to the registration court or through a portal.
Two Paths to Avoid Mistakes in the Company Registration Process in Latvia
Path One: The Hard Way
- Pay attention to details. Verify all data and documents you fill out and sign to avoid mistakes, omissions, or discrepancies.
- Follow the instructions provided on the registration court’s websites or other organizations that assist you with company registration. This will also speed up the process.
Path Two: The Easy Way
- Seek professional assistance. If you’re unsure, don’t hesitate to consult a professional lawyer or Finexmo consultant before long. We will prepare all documents for you, check them for errors, and provide you with necessary consultations on any questions you have.
Small Business or Ambitious Project?
The majority of our clients opt for a limited liability company (SIA) or joint-stock company (AS). The choice of company type for your business depends on your goals, interests, resources, competition, demand, and other factors.
- In general, SIA is suitable for small and medium-sized businesses with simple and flexible management.
- This is illustrated by the fact that the share capital is only 2800 euros, and you can pay it over the course of a year.
- SIA is subject to a 20% corporate income tax, which is not levied until profits are distributed or reinvested. However, SIA can opt for a special tax regime (15%) for micro-enterprises if it meets specific criteria.
- AS is ideal for large and ambitious businesses that plan to attract external investments or go public and seek professional and transparent management through a board of directors and a general meeting of shareholders.
- Share capital is paid before registration and is a minimum of 35,000 euros.
- Taxes amount to 20%.
Company registration in Latvia for Any Economic Cluster
What businessperson wouldn’t want their project to be a trend from the very first days of operation? Let’s take a look at the sectors that are currently riding the wave of success:
- IT and High Technologies
- a multitude of skilled and talented specialists in this field,
- high demand for IT services and products,
- extensive support for IT startups through grants, accelerators, and incubators.
- Green Economy
- renewable energy,
- energy efficiency,
- eco-friendly transportation,
- waste management, and more.
- Creative Industry
- publishing, and more.
The country is committed to sustainable development and reducing its impact on the environment. Here, projects related to are highly valued:
Latvia boasts rich cultural heritage and creative potential, along with many opportunities for businesses in this field:
Of course, these are not all the sectors that can provide fertile ground for your business growth, but these are the most interesting and relevant for this year.