Business in Latvia for Indians
The financial crisis of 2008-2009 led to a significant decline in the Latvian economy. Because of this, the GDP fell by almost 20%. But over the past time, the situation has completely changed: the economy has stabilized, and the country has joined the EU, which, in turn, has also improved its economic position.
Fortunately, opening a business in Latvia has become very profitable not only for Latvian citizens but also for Indians. Having established their own business here, entrepreneurs have the opportunity to enter European markets.
Features of opening a company
There are no restrictions on business registration by foreigners in Latvia. Investments are very profitable for the local economy: there are few costs, but the return is significant. Most often, citizens of India try to open a business in Latvia in the capital – the business center of the country.
But this does not mean that other cities do not have appropriate conditions for the development of business. Everyone who has opened a business or bought a ready-made company has a bonus: they can apply for a Latvian residence permit. It is a crucial point since a residence permit allows you to conduct business.
Features of issuing a visa:
- The first time a business visa to Latvia is issued for a year.
- After the expiration of the document, it is renewed for another five years.
- Then it is possible to apply for a permanent residence permit for another five years, after which everyone can become a citizen of Latvia. It is one of the opportunities to immigrate to the country.
Advantages and disadvantages of doing business in Latvia
The state supports all foreign businessmen who decide to open a company in Latvia. It is one of the main advantages. Also, the following circumstances are important:
- Opening a representative office or registering a company is easy and inexpensive. The easiest way is to open an LLC. For this, it is required to draw up the articles of association and draw up contracts. To register a company, you will need to present the authorized capital. The maximum amount of the authorized capital for registration is 2,799 euros.
- Both a resident and a non-resident can open a business in Latvia. At the same time, non-citizens of the country have the opportunity to issue a residence permit for themselves and their families.
- Latvia is part of NATO and the Schengen area. Accordingly, every person who starts their own business here becomes a European businessman and goes to a completely different level.
The advantages also include:
- Uncomplicated accounting system;
- The lowest taxes in Europe – 15%. At the same time, the exact amount of business tax depends on indicators such as its specificity and type;
- The opportunity to use the services of state institutions. So, thanks to the effectively developed banking system, entrepreneurs have access to lending, and the ability to use various financial services of any level.
The disadvantages include the following features: all documentation is issued here only in Latvian, so the entrepreneur has to translate it and notarize it. Also, the full share capital must be produced before the formation of the company.
As for tax reporting, it must be submitted to the local state revenue service monthly, quarterly, or annually. It depends on the type and characteristics of the business.
What types of businesses are popular with immigrants?
The following areas are in great demand:
- Information Technology.
- Agricultural activities.
- Leasing out of the housing.
- Innovative technologies.
The woodworking industry is very popular in Latvia. The country has an abundance of wood resources, which can be used for the manufacture of office and home furniture, and many other products for interior decoration and facades.
In 2021, individual residential and commercial construction began to develop in Latvia. For most local entrepreneurs, this area is a priority for investing in finance. According to statistics, in 2015, foreign citizens opened more than 2.6 thousand companies in Latvia. Today it is becoming popular not to open, but to acquire a ready-made company, which is much easier and faster.
The advantages and disadvantages of entrepreneurship in Latvia
It is very beneficial for foreign entrepreneurs to open their businesses in Latvia. In addition to simple registration and a minimum authorized capital, the advantages are the following:
- Monitoring the work of the company. There are states in which foreign entrepreneurs cannot independently manage their companies. These duties are allowed to be fulfilled only by citizens of the country in which the company operates. Business immigration to Latvia does not imply such restrictions. Any foreigner can register and independently manage his own company, and control it.
- You can also manage a company from abroad, so the owner can leave the territory of Latvia if he or she needs it, but for a period that is permitted by law.
- Language features. Any foreigner – a resident of one of the post-Soviet countries is comfortable in this country: almost half of Latvians speak Russian.
Of course, there are various restrictions. To engage in any profitable business, you need to issue special permits. It also requires a license. These documents are issued by the licensing commission under the State Revenue Service. There are restrictions regarding the names of companies. The names of the companies must be in Latvian. Also, the title should contain information about the form of business.