Latvia is very attractive for foreigners in terms of doing business. This is facilitated by a well-developed transport interchange and the ability to maintain contacts with European partners. It is not for nothing that Latvia annually occupies high positions in the lists of the best countries for doing business. There are many reasons for this, and if you do not know where to start a small or medium business, consider Riga. In the capital of Latvia, by the way, you can not only put things right but also have a place to stay to work comfortably and relax after a busy day.
Benefits of Latvia for a foreign businessman
- The possibility of independent management of the company, without restrictions – in many countries, an entrepreneur is not allowed formally to fully manage the company himself. To register a legal entity, you need to contact a citizen of the country in which you plan to do business. In Latvia, a foreigner can open a company and manage it himself.
- Elementary registration – here you will not find such bureaucratic delays, since they are minimized. The most complicated LLC registration procedure takes only a few days.
- Small authorized capital – the minimum amount is about 2,800 euros (2,000 lats), and it is not possible to pay them immediately. It is permissible to invest only LVL 1 (approximately EUR 1.4) at the initial stage, and deposit the rest over the next two years.
- Low taxes – income – 20%, value-added – 21%, on profit of legal entities – 15%, on dividends and VAT on trade transactions with foreign companies – 0%. Small businesses with an annual turnover of 100,000 euros enjoy special benefits – a 9% rate.
- Easy obtaining of a residence permit – it is enough for a foreign businessman to contribute 35,000 euros to the authorized capital. After obtaining a residence permit, you can easily travel around Europe and study in EU countries.
- Multilingualism – most of the inhabitants of Latvia are fluent in Russian and English.
- Window to Europe – from Latvia, it is easier to enter the European market and significantly expand your business thanks to the country’s membership in the EU.
Business organization and operation laws
The tax legislation in force in the Republic of Latvia is considered one of the most loyal in the European Union. Sometimes the Baltic state is referred to as an offshore zone. If we consider this issue from the point of view of the law, then this is not entirely correct, although the amount of taxes on business in Latvia resemble the figures in effect in real offshore companies.
Most of the foreigners and residents organize their small businesses in the territory of Riga or the vicinity of the capital. The Latvian leadership is interested in the development of all regions of the state, therefore, special economic zones have been created to address this issue.
In the FEZ there are additional discounts for taxes already reduced by European standards. Such zones are located in Rezekne, Liepaja, and the free ports of Riga and Ventspils.
Business registration in Latvia is relatively fast. The owner of the future company does not have to come to Latvia, since the necessary documents can be drawn up by lawyers authorized by him.
The legislation does not restrict the equity participation of foreign citizens in the capital of local companies. Also on the territory of Latvia, a foreigner can open a company and be its sole owner. If you do not have your premises, you can rent a legal address in Riga.
It can be concluded that the legislation of Latvia by all available methods stimulates the opening of a business that contributes to the development of the country’s economy. At the same time, the leadership of Latvia does not focus on the nationality of the owner of the company, he can be a citizen of Latvia and another state. This position is attractive for residents from different CIS countries.
