27.10.2018. Company in Latvia – advantages and disadvantages

News

We would like to shortly present advantages and disadvantages of using a company registered in Latvia, that you can use if you have partners in European Union and Latvia.
Advantages:
1) Corporate tax rate is 0% if incomes are invested in the company’s development.
2) In case if dividend is paid, tax – 20%.
3) A director and shareholder can be any nationality.
4) Every Latvian company has resident status, status is not related with management nationalities.
5) Incorporation of a new company takes just 4 days.
6) From 2018 offshore jurisdiction list has been reduced from 64 jurisdictions to just 25 that applicable with 20% withhold tax.

Disadvantages:
1) Now banks is asking for rented office if a manager of the company is not a Latvian resident.
2) Company Register requires to file information about person with significant control (25%).
3) Active companies are required to have at least one employee with minimum salary of 430 EUR.
4) Consultancy costs may be applied with 10 % tax.
5) Required to file monthly social and income tax statements for employees and also corporate tax.

The company should pay one salary if doing business and turnover in a month is more than 2150 EUR.

For our clients we offer a company formation, registered address service, assistance with an account opening, registration with Inland Revenue Services and accountancy services. As well we are offering a real office rent and a meeting room rent in our office on a short or long basis, where you can remotely work or organise meetings with your business partners.

If you are interested in registering a company in Latvia or other services, please let us know – our corporate administrators will be happy to provide you with more detailed information and explain all the details!