Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Latvia
Latvia offers excellent prospects for new investors because of its open market economy and its stable business environment. The procedure for forming a new company here is not only cheaper than most other EU countries but also fast and straightforward. Company registration in Latvia takes just two to four days which means the entire process is not at all time consuming and also doesn’t require you to travel again and again if you are coming from a faraway continent. The economy has been developing consistently as of late. Taxation laws are also favourable here ever since it joined the EU in 2004. Foreign shareholders can own and manage a Latvian company, and they also receive a residence permit, which lets them stay here for one to five years.
Latvia’s location is a significant advantage to investors, being just a couple of hours away by flight from other European nations. The country has access to not only European markets but also to CIS countries as well. It has got outstanding transport facilities with an efficient rail network along with three large seaports. It also has the Riga International Airport, which has can handle a large volume of direct flights. Telecommunication is well-developed, and you can get high-speed internet connections everywhere.
The nation has a reputation for being one of the top-most logistic hubs in Eastern Europe. Financial services and the banking sector are excellent here. Corruption levels are low, and foreign investors get adequate protection. One great benefit for investors is the easy availability of skilled labour, which is fluent in English and Russian.
Benefits of Company Registration in Latvia
Investors can get several advantages of company registration in Latvia. They are:
- The registration process is cheaper and quicker than that of other EU nations.
- Physical presence is not mandatory for forming a company.
- Foreign investors can expect impartial treatment here.
- The legal system is transparent and fair.
- No restrictions are imposed on foreign shareholders.
- There is a lower corporate tax.
- Your business gets a legal title and therefore, gains the confidence of customers.
- You get the benefit of operating a bank account under your company name.
Types of Business Structures Available in Latvia
New investors need to choose between the business types available based on factors like their investment, future expansion plans, etc. The business entity most commonly formed is a limited liability company (SIA).
The types of companies available in Latvia are:
- Sole trader
- Limited liability company (LLC/SIA)
- Joint-stock company (JSC/AS)
- Branch or representative office
LLCs and JCSs may have one or more than one investor, who may be residents or non-residents, and legal or natural persons.
Easy Steps to Start Company Registration in Latvia
You need to provide a legal address for your firm that has to be within Latvia’s territory. You also require a proof stating that you are permitted to use the address for business.
The steps for registration are:
- First, you need to open a temporary bank account and then transfer the firm’s equity to your account.
- Next, you need to register your company with the Register of Enterprises and also submit the required documents. The application can be made in person, by email, or online at the official site, or through another person. The application will then be processed in 3 business days.
- The next step after getting your acceptance from the Register of Enterprises is to convert your temporary bank account into a permanent one. You have to bring along your acknowledgment letter face to face as evidence.
- You can now register your company at the State Revenue Service in person or online using Electronic Declaration System (EDS). Further, you can also apply for VAT (Value Added Tax) at the Register of Enterprises.
If looking to start company registration in Latvia, 3E Accounting India will guide and help you in every stage of the registration process from opening a temporary and permanent bank account, getting documents ready, submitting them to the Register, and applying for a VAT number. Contact us to know more details.