CORPORATE SERVICE PROVIDERS IN BALTICS

Registration process in Latvia

Company in Latvia

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One of the top jurisdictions for business relocation in EU

According to the macroeconomic data, economy in Latvia is developing and country is following strict fiscal policy to avoid economic instability. Inflation in Latvia is 3.0% while GDP growth rate in 2018 was 5,3%. From January, 2018 Latvia implemented significant tax reforms with goal to raise competitiveness and attract investments. Corporate income tax in Latvia is taxed at 20 % rate only when it is distributed. Such reforms moved Latvia to second place in OECD tax competitiveness rating. Unemployment rate in Latvia is 8,1 % and average monthly gross salary is EUR 1022.


With relatively high level of unemployment, educated work force, lower average salaries than in Western European countries and competitive corporate tax system, Latvia has become one of the top destinations for business relocation or expansion.


General requirements for companies in Latvia:

  • Minimum amount of share capital: EUR 2800.

    • If shareholder of the company is a physical person, it is possible to incorporate a company as a “Small capital” company with share capital in amount of EUR 1,00 - EUR 2799,00.

  • Registered address required in Latvia.

  • Corporate income tax: 20% and levied upon profit distribution. Reinvestments possible.


Company formation in Latvia

There are three ways how to incorporate a company in Latvia:

  1. Company incorporation with e-signature card (e-ID card)

  2. Company incorporation with Power of Attorney

  3. Company incorporation during personal visit in Latvia

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1. Company formation with e-signature card

Company incorporation with e-signature card is the fastest way how to obtain company in Latvia. Please note that according to EC Regulation No 910/2014 (eIDAS Regulation) there is a unified electronic signature format which should be accepted by official institutions across EU Member States. We suggest you to contact us in order to find out does your e-ID card support e-signature and will be accepted in Latvia. Main details about company formation in Latvia with e-signature card:

  • 100% Remote incorporation process.

  • GATE TO BALTICS will prepare all company incorporation documents on your behalf.

  • Company must apply for VAT registration number if turnover in calendar year exceeds EUR 40 000.

  • Company formation process up to 5 business days.

If you don’t have a valid e-ID card, it is possible to apply for it online. e-ID card fee is EUR 100 and timescale to obtain it is 30 business days.

Cost for company registration in Latvia with e-signature card

TOTAL: 585
 

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2. Company formation in Latvia with power of attorney

Company incorporation with power of attorney is a good option if owner of the company doesn’t have e-signature card and is not in a position to wait 30 business days to receive it. Also, this is a good option for companies wishing to establish subsidiaries in Latvia. Main details about company formation in Latvia with power of attorney:

  • 100% Remote incorporation process.

  • GATE TO BALTICS will prepare all company incorporation documents on your behalf.

  • Enterprise Registry of Latvia does not require apostilled PoA if it is verified by a notary in any EU Member State.

  • Company formation takes 7 business days after GATE TO BALTICS have received all documents.

  • Power of Attorney will have to translated in to Latvian. Usually done by GATE TO BALTICS.

In cases of corporate shareholders, timescale will vary depending on the complexity of the structure.

TOTAL costs will depend on jurisdiction where PoA is issued and translated. Contact us for precise quote.


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3. Company formation by traveling to Latvia

Since Latvia has proven to be attractive jurisdiction for expansion or relocation of business, company incorporation during visit to Latvia is a very common thing. Usually, during the personal visit, representatives of the company visit real estates and meet with potential employees of the company. Main details about company formation in Latvia with physical presence in country:

  • Possibility to book real estate visits in advance.

  • GATE TO BALTICS will prepare all company incorporation documents on your behalf.

  • Possibility to conduct future employee interviews.

  • Personal meeting with local banks.

  • Networking opportunities.

In cases of corporate shareholders, timescale will vary depending on the complexity of the structure.

Cost for company incorporation during personal visit in Latvia

TOTAL: 685
 

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