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| Advantages |
- EU country
- Multi-lingual, highly qualified and motivated workforce
- Banking opportunities
- Enterprises income (corporate) tax only 15 %
- Reasonable formation and maintenance fees
- Low incorporation capital - LVL 2 000 (~ USD 3 400)
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| Disadvantages |
- Monthly taxes reports
- Year end account (balance) should be prepared
- The accounts must be audited if two of the following come true:
- annual turnover more than LVL 200 000
- the balance sheet more than LVL 100 000
- the average number of employees more than 25
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| Corporative legislation |
- Ltd companies incorporated according to "The Commercial Law" form 2000
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| Form of company |
- Private limited company (hereinafter-company)
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| Taxation |
- Enterprises income tax. Companies are subject to enterprises income tax, enterprises income tax rate is 15 % flat. Companies deriving income may be subject to certain withholding taxes. Latvia has a classical income tax system which results in economic double taxation
- VAT. On Latvia companies must register for VAT if their sales turnover is more than LVL 10 000 in a twelve-month period. Registration means that at every stage of production and distribution VAT must be charged on anything that is sold. VAT standard rate 18 %
- Social taxes. Company should have minimum one employee receiving salary, min salary is 120 LVL.
Social taxes 9% paid by employee and 24,09% by employer. Employer is responsible for both social taxes payment
- Personal income tax. Individuals should pay personal income tax from received income including salary, rate is 25 % flat. The company is responsible for payment of Personal income tax from the salary of the employee
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| Name of company |
- Company name must end with the word SIA or Sabiedriba ar ierobezotu atbildibu
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| Equity capital of the company |
- Equity capital of the company minimum is LVL 2 000
- Capital should be paid before registration
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| Shares |
- Only registered shares with par value
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| Shareholders |
- One legal entity or natural person
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| Directors |
- One but only natural person, any nationality
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On the territory Latvia there
has to be:
- registered office
- registered agent
- secretary
- accountant |
- Required
- Not Required
- Not Required
- Required, natural person
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| Publicly accessible information |
- Names and addresses of members, directors, registered office, accountant (auditor)
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| The financial year |
- This is the period covered by the accounts
- For a new company, it starts on the date of incorporation, regardless of when the company actually starts doing business and ends on 31 December
- For a company which has previously delivered accounts, it starts on 1 January and ends on 31 December
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| Reports |
- Taxes reports. Reports should be delivered to State Revenue Service till the next month 15th date. The following taxes reports should be prepared every month:
- VAT report
- employees report
- social taxes
- Accounts. Every company must submit year end accounts even if it has not traded
- Contents of the accounts. The accounts and reports must include:
- a directors' report
- a profit and loss account
- a balance sheet
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| Audit |
- The accounts must be audited if two of the following come true:
- annual turnover more than LVL 200 000
- the balance sheet more than LVL 100 000
- the average number of employees more than 25
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Agreements on the avoidance
of double taxation |
Austria, Armenia, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Georgia, Greece, Hungary, Iceland, Italy, Israel, Ireland, Kazakhstan, Lithuania, Luxembourg, Malta, Moldova, Norway, Poland, Portugal, Romania, Serbia and Montenegro Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, the Netherlands, the United States of America, Turkey, United Kingdom, Ukraine, Uzbekistan
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