Accountinglatvia.net or blv.lv offer all the necessary tools in order to establish new company in Latvia. We will help you in drafting corporation documents, offering a legal address rent or select the best type of business that is more appropriate to you.

Latvian law offers five ways for an entrepreneurs to have business in Latvia: partnership, merchant, joint stock company and most popular type - Latvian limited liability company. Latvian law doesn't limit number of foreign shareholders or directors. Limited liability companies, partnerships must apply to Register of Enterprises in the region of their business registration.

Main types of Latvian companies

If you are small and medium business we advise you to open the most popular form of the business in Latvia -  Latvian limited liability company (S.I.A). This company requires 2800 EUR min share capital and can be registered in 1 day. Company requires at least 1 director and 1 shareholder, which can be of any nationality. As one of the main advantage of having LLC, over other types is that the fact that personal assets of shareholders are protected in case of liquidation, as company has limited liability by their contribution to the capital. The directors of Latvian company is assured by the general meeting of shareholders, which will make all the major resolutions in the company. The Latvian joint stock companies is a form of business designed for large corporations. 

Company incorporation Latvia

In order to start company establishment in Latvia, the entrepreneurs must select an unique name, open bank account and deposit the share capital. As an additional step company directors and shareholders should notarize the company’s articles of association. We also can help the clients to register the company with no need to open account and deposit share capital there. We also can prepare documents in any language needed in order for the client to get notary sign off in his country of residence.

The application of Latvian entity should be filed to Latvian Registrar along with the notarized documents and certificate from the bank, stating that the minimum share capital was successfully paid, the receipt confirming the state fee payment and some other documents. The last step of company incorporation is registration in State Revenue Service in order to be able to submit accounting reports and calculate taxes. 

Overview Latvia

Latvia has the lowest corporate tax in EU. Profit tax here is 0% before distribution of dividends and 20% after. VAT Registered companies will have to pay a tax of 21%, but if services or goods delivered within EU, than 0% reverse charge. There is obligation for audit only for big companies, that's why overall administrative costs are very low.
Before starting up business in Latvia, you should answer very important questions:

·         As a first step, you have to decide what type of business to register (sole trader or partnership, joint stock company or the most  popular type - limited liability company).

·         Secondly, you have to pay the equity capital of the company and choose a tax regime. (You have to pay attention to such things as micro-company tax or standard taxes; as well, you have to decide whatever to register your VAT number and to become a Vat payer or not to register it at all).

·         Thirdly, you have to clarify to yourself how do you want to register the company (there are two options, you can register it without coming to Riga or you can arrive in Latvia personally to solve all the formalities.)

If you have the possibility to come to Latvia, we will prepare in advance all the incorporation documents to sign, afterwards we will organize you a meeting with the notary to certify your signature on two documents. (One of them is an Application to Register a Capital Company and the second one is the Compartment of Registry of Shareholders). We will arrange all the cases related to translation or legalisation of the documents (if needed), all you have to do is to provide us the necessary documents. 

We always try to offer the best solution to our clients, so if you want to open a temporary bank account before the incorporation of your company, we will consult you about all the tiny  details connected to bank opening and will offer you the most appropriate bank that satisfy all your needs.  You must know that if the equity capital of you company is 2800 euro or more, you will need to open a temporary bank account before submitting the documents to the Register (and the part of the amount must be paid in cash).

When your company will be incorporated and we will receive the decision of the Register, our lawyer will prepare the contract about online submission of tax returns and will submit it to the tax authority. If all of your clients are from EU countries, it’s in your interest to become a VAT registered company. We will prepare all the necessary documents for you to sign (for this procedure we will need you as well to provide us the information about your business activity and your business partners) . According to the Latvian law, the company pay taxes and submit monthly tax reports, must do accounting and keep all the records. We can offer you the most profitable accounting package and help you in your business with the best solutions about taxation and the best advises in legal cases.