Opening an LLC in Latvia means a high level of political stability, favorable conditions for entrepreneurs, low taxes, and EU membership. It should be noted that both residents and non-residents of Latvia have equal opportunities in this respect.
The most favorable form for the opening and further development of a business is the form of a limited liability company (SIA). The minimum share capital is 2,800 euros.
4 easy steps towards establish an SIA
It includes the preparation of all the necessary documents, the choice of a name, legal address, type of activity, determination of the composition of participants, management board, distribution of shares of fixed capital, as well as other components.
Opening a temporary bank account in Latvia for the payment of the authorized capital. The minimum amount is 2,800 euros, which must be deposited into a temporary account before submitting documents to the Register of Enterprises. It is possible to pay 1400 euros immediately and deposit the remaining 1400 euros within a year. An individual also has the option to open a company with a minimum capital of 1 euro.
Submission of documents to the Register of Enterprises. All documents in the Register of Enterprises are prepared in Latvian. Regular registration costs € 150 and is completed within 3 working days. The amount of the state fee for registration in an expedited manner within 1 working day is 450 euros. It is also necessary to pay for the publication in the state publication “Latvijas Vestnesis”.
Electronic signature. Residents of Latvia and persons holding a residence permit have the opportunity to submit documents electronically, which reduces the cost of state fees by 10%. In the absence of an electronic signature, the documents must be certified by a notary, which will entail additional costs.
Obtaining a decision from the Register of Enterprises and opening a permanent bank account. Make a company seal and find a specialist in accounting service.
Additionally. You can register a company as a VAT payer.
Business taxes in Latvia
Taxes for business and private activities
- Social tax (Compulsory state social insurance contributions) – 35.09% (part of the employer – 24.09% and part of the employee – 11%)
- personal income tax: 23%
- Corporate income tax: 15%
- Micro-enterprise tax: 9%
- Capital gains tax: 10-15%
- Value Added Tax: 21% (reduced rate 12%)
- Excise tax (on tobacco, alcoholic beverages, natural gas, oil products, soft drinks, coffee)
- Real estate tax: 0.2-3%
Residence permit in Latvia based on business
Opening a company in Latvia not only opens up wide opportunities for the development of your business, but also a number of other advantages, including obtaining a residence permit in Latvia. A residence permit makes it possible to freely stay in other EU countries. A board member registered in the Register of Enterprises has the right to obtain a residence permit for a period of up to 5 years, however, it should be borne in mind that the company must pay taxes to the state budget of Latvia and exist for at least a year before submitting documents to the Migration Board. It is also possible to obtain a residence permit on the basis of an employment contract with your company.