Latvia

Latvia is a parliamentary republic, a Member State of the European Union since 2005, politically stable country with multi-party democracy

Latvia restored its independence on August 21st, 1991. Before that date, the republic was occupied by the Soviet Union for fifty years. Population – 2 003 000.

Latvia legal system is based on Civil Law.

Limited company (LTD), incorporated under the Commercial Law, can conduct business in any part of the world including Latvia.

Taxation till 31.12.2017 ( from 01.01.2018 starts new tax reform)

Tax Rate 
Income (Corporate) tax15 %
Received dividends0 %*
Paid dividends0 %for legal entities *
Capitals gains tax0 %*
Interest received15 %corporate income tax
Interest paid0 %for legal entities *
Royalty income15 %corporate income tax
Royalties paid0 %for legal entities *
*except for offshore companies (companies registered in zero or low tax jurisdictions
Double tax treaties with 50 countries
VAT21 % 
Employee taxes   
Social insurance taxes, total:34.09 %
employer - 23.59%
employee -10.50%
Personal income tax23%
Minimum salary per monthEUR 380

Advantages 

  • Member State of the EU
  • Low corporate income tax rate
  • The company’s management does not have to be located in Latvia in order to receive the status of a resident
  • An LTD can be used as a holding company or for international trade

Disadvantages

  • A corporate tax of 15%
  • Required to file monthly social and income tax statements for employees
  • Active companies are required to have at least one employee
  • Annually required to file Financial Statements with the tax authorities
  • A tax of 15% is withheld from any payments in favor of an offshore company

Please note that nominee structure is not possible

Name Must start or end with the words “Sabiedrība ar ierobežotu atbildību” or “SIA”
Share capital The minimum standard authorized share capital is EUR 2800, required to be paid before the company is incorporated
Shareholders A minimum of one Shareholder, corporate Shareholders are allowed. Required to sign application of a new company formation by Notary
Director At least one Director must be present, real person only, any nationality
Required to file a notarized signature of the Director with the Register
Secretary It is not mandatory to appoint a Secretary
Registered address Required
Annual reporting Annual Financial Statements must be provided to the tax authorities

Company formation prices

Services Price, EUR  
Formation, preparation of documents, company seal,
assistance in opening a bank account
560
Government incorporation fee 170incorporation within 5 days
Registered address for one year 48040 per month
Notary services from 70 actual expenses
Courier mail services 25
line
Additional fee if shareholder is a legal entity, documents must be translated to Latvian
line
Translation to Latvian 14per page
Notary confirmation of translation 14per page
Documents are without Apostille, in Latvian, Statute in Latvian and English
The afore mentioned prices do not include VAT 21%
The basic currency for invoice issuance – EUR

Timeframe
Incorporation of a new company 5 business days

Annual support(beginning with the second year)
Registered address for one year 480 EUREUR 40 per month
The basic currency for invoice issuance – EUR

[span class=”title”]Accountancy services[end-span][span class=”value”]Required monthly[end-span]


[span class=”title black-title”]Annual financial statement[end-span][span class=”value”]Required[end-span]


Required information from the client

Incorporation process is possible as soon as the Due Diligence procedure is completed. Please fill in and send us the Order form; immediately afterwards, we are going to send you the information on the document required within the boundaries of the Due Diligence procedure.

In case the Shareholder is a legal entity, it will also have to provide a document confirming the company’s status and the person authorized to sign documents on behalf of the company

1. Consult to determine the order. To choose a jurisdiction for a company we offer a consulting services:

  • via telephone +(371) 67280645
  • via e-mail: consult@bbp-net.com
  • via online question form found in the header Ask an expert
  • Navigation through our web site will help you to determine: benefits, prices and requirements in respective jurisdiction

2. Complete an application form. After you have made your decision, please complete one of the online application forms:

3. Issue of invoice and settlement of order. Within one business day of filling in the online application form, you will receive an invoice via e-mail. You can pay the invoice using money transfer to the BBP bank account provided in the invoice or via Internet, using PayPal. We suggest using PayPal only in case the amount is less than 200 EUR.

ATTENTION! The invoice number should be written in the details of payment!

A payment acknowledgement will be sent to you as soon as we will receive the payment.

4. After we receive the required Due Diligence documents from you, we shall commence the incorporation or the preparation of the documents required in order to carry out the acquirement of a ready-made company.

5. Document delivery to the client. Documents are sent via international courier mail.

6. Further supporting services. We guarantee to inform, assist and provide you with all the necessary services for further support of the company.

Get acquainted with jurisdiction legislation free of charge!

Select one* legislative act that you would like to receive free of charge:



* Required fields

*Please note that we shall only provide one document for free. If you would like to receive more information please contact us!