Company formation in Latvia

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.

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