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HomeLatvia Company Formation

With years of experience we can support you in establishing your company fast and cost-efficiently in Latvia.

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  • Standardized or individual company statutes
  • Fast registration
  • Low costs

Latvian limited liability companies

There is no limitation to open a company in Latvia for EU or non-EU residents. The minimum paid-in capital for a Latvian limited liability company is 2800.00 EUR (formerly 2000 LVL). The company capital can be immediately used once the company has been established.

There exists also the possibility to register a company with less capital, minimum 1.00 EUR, a so called small-capital company. These companies have certain restrictions.

Latvian company key features

  • 1 Board member and 1 Shareholder required – can be citizens of any country
  • Bilateral Tax Treaties with 51 country
  • EUR-zone convenience starting 2014
  • Professional and multi cultural business and corporate environment
  • Great geographical location for business between Europe and Eastern countries

Taxation

  • Corporate income tax – 15%, one of the lowest rates in EU
  • Payroll taxes – employer social security tax – 23,59%, employee social security tax - 10,5%, personal income tax – 24%
  • VAT registration. VAT rate – 21%. EU VAT regime, the company may apply for applying VAT to its transactions
  • Dividend tax – 0% if paid to companies
  • Minimum wage – 320 EUR
  • Accounting requirements. Latvian companies are required to maintain accounting records and file annual reports. Tax reports have to be filed monthly or quarterly depending on the volume or nature of the business

Reduced taxation of “micro-enterprise ” companies

Micro-enterprise is a standard limited liability company with special taxation. After the company incorpo- ration we can apply by tax authorities for the micro-enterprise tax regime. Micro-enterprise company can be turned into a regular company. This taxation scheme is useful for companies who have mainly payroll expenses and low turnover:

  • Micro-enterprise pays 9% tax on the turnover. Tax must be paid quarterly. No additional social taxes. 9% micro-enterprise tax already covers such taxes
  • 10% withholding tax applies on the distribution of profit after deduction of expenses
  • The yearly turnover must be less than 100 000.00 EUR
  • The maximum number of employees is 5, with a salary limit 720,00 EUR (500 LVL) per person
  • Micro-enterprise can be registered for VAT • Director(s) must also be the shareholder(s) and must be a private person(s)

Required documents for the company formation and domiciliation

  1. Passport copy of the company's shareholders and members of the Board.
  2. Residential address of the company's shareholders and members of the Board.
  3. Power of attorney for the remote formation.
  4. Proposed company name and legal address. Description of proposed business activity of the new company.

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