Latvia

Description

Latvian corporate entities may be founded without any limitations by both Latvian residents and foreign citizens. The usage of Latvian company gives new opportunities for business development and significantly facilitates conducting business in Europe for nonresidents. The most common legal corporate form in Latvia is SIA (in English – LLC – Limited Liability Company).

General information about Latvian LLC (SIA)

  • Minimum number of founders is 1
  • Minimum number of board members (directors) is 1
  • A corporate entity may be founded by both private individuals and legal entities from any country
  • If the founder is a private individual, the registered share capital is from 1 EUR
  • The payment of registered share capital to the bank is not required, if the amount of such capital is from 1 EUR to 2799 EUR
  • If the founder is a legal entity, the registered share capital must be from 2800 EUR. The payment of registered share capital is made to a temporary bank account, which later becomes the corporate entity’s bank account after its registration
  • Latvian legal address is obligatory
  • Accounting is obligatory

 

UniverseLAW offers full range of professional services, associated with business organization in Latvia:

  • preparation and submission of documents, required for business registration in Latvia;
  • legal address;
  • preparation and submission of documents to register the company as a taxpayer (VAT number);
  • arrangement of visits and accompanying clients during visits to notary office;
  • assistance in opening a bank account.

Advantages

  • Simple registration process
  • May be 100% owned by nonresidents (by an offshore company as well)
  • Appointment of a local director is not required
  • Registered capital from 1 EUR
  • Possibility to obtain a multiple Schengen visa, residence and working permit in Latvia
  • Favorable taxation for holding companies; for trading companies the income tax rate is 15%

Taxation

Latvia has signed double taxation agreement with 51 countries, including almost all European countries, USA, Canada, China, Belarus, Ukraine, Kazakhstan, Uzbekistan, Azerbaijan.

VAT number registration

If the company is going to perform transactions, sell products or provide services to EU partners, a taxpayer (VAT) number is obligatory. In order to obtain a VAT number, it is required to submit information about future business partners and provide project agreements with potential business partners. In some cases it is required to arrive to Latvian tax office in person for the interview.

Taxes in Latvia

  • Income tax is at fixed rate of 15%. One of the lowest rates in Europe
  • VAT for transactions in Latvia is 21%
  • VAT for transactions in EU is 0%
  • Social tax (salary) is paid 23,59% by employer and 10,50% by employee

Accounting

Latvian LLC on a monthly basis must submit reports on income tax and social payments, as well as VAT reports. On a yearly basis the company is obliged to submit annual report and VAT declaration to SRS (State Revenue Service). There is also a monthly deposit income tax payment system for enterprises in Latvia.

Documents

  • Scanned copies of identification documents (passport, ID card) of each member of the company
  • Residence address confirmation of each member of the company

 

Time required for company formation:

1-3 working days

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