Opening a company in Latvia is a profitable financial investment. The state policy is aimed at accepting a new flow of foreign investment and accompanies the development of the entrepreneurial activity. This attracts foreign investors. If you want to start your own business abroad, Latvia is one of the best countries to invest in.
Besides, registering a business in Latvia gives you and your family the right to obtain a European residence permit and enjoy all the benefits of Europe: from medicine and education to various social benefits.
Why is a business in Latvia profitable?
Starting a business in the Republic of Latvia promises to be successful. This is due to several reasons. Opening a company in Latvia – advantages:
The income tax rate on retained earnings in the country is 0% per annum. For businessmen, there is a refund of income tax for the sale of shares.
The favorable political atmosphere for business
Latvia is a member of the European Union. Business owners can promote their products in the EU and Eastern Europe.
Freedom for foreign investors
Latvian laws have no restrictions on foreign investment.
You can hire staff on the same terms as Latvian businessmen. Approximately 35% of local mid-level workers speak several languages: Latvian, Russian, and English.
Low administrative costs
Thanks to tax benefits, opening a company in Latvia is cheaper than in several other European countries.
To establish your own company or branch in Latvia, you need to pay a state fee. Its size depends on the form of the legal entity and the urgency of the transaction.
What they pay for when opening a business in Latvia:
- Registration within 4 days. About 22-30 euros.
- Registration in 2-3 days: 150-350 euros.
- Signature: 2-4 euros. Each founder pays.
- Publication in the newspaper “Latvian Bulletin”: 19-27 euros.
- Contribution of the authorized capital: according to the form of the legal entity.
Thus, apart from the size of the authorized capital, which is not obligatory for all companies, the payment of state duties in Latvia will cost about 200-500 euros.
Business in Latvia – main directions
The attractiveness of the Republic of Latvia as a global trading platform is also due to the variety of different forms of activity. Future owners of firms can invest their funds in the opening:
- LLC with a low share of initial capital;
- A branch of a large company. For example, an international holding;
- Representative office, including NGOs;
- Partnership firms;
- The requirements for registering a company differ depending on the form of the legal entity.
Choosing a business direction in Latvia is the prerogative of the future owner of the company. The most promising activities in 2021 are:
Holdings. The minimum authorized capital for opening a holding company in Latvia is 2,850 euros. The term for processing a request in the register of legal entities is no more than 10 days. The founders of the Latvian holding can be any person, including non-resident private investors.
Contract manufacturing. Manufacturing of a part of products, prototypes, and processing of raw materials on outsourcing rights in Latvia is a widespread phenomenon. An example is the opening of the Russian branch of PC Alkonika in the Latvian city of Daugavpils.
Trade company. Due to the favorable transport interchange, the opening of a trading company in the Republic of Latvia is financially successful in 73% of cases.
Securities trading. The abolition of income tax on the sale of securities makes the industry the most promising area of financial development in Latvia.
Small business. Opening a small company (up to 5 people).
The Republic of Latvia is a promising state for business investment. It is not difficult to become a founder of a company or an investor in Latvia.
First, the benefits of business development in this country are due to its attractive geographic location. The state is located on the border with Russia, Lithuania, and Estonia, and is close to Eastern Europe. Moreover, Latvia is part of the Eurozone. This allows you to lay financial flows not only in Europe but also in Asian countries.
Secondly, one of the priority areas of the Latvian state is logistics. The country’s government encourages entrepreneurial activity, which is reflected in the easing of tax and legal requirements for foreign investors.