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.
Taxates from 01.01.2018
| Tax | Rate | |
|---|---|---|
| Income (Corporate) tax | 25 % | |
| Received dividends | 0 % | * |
| Paid dividends | 20 % | to corporate person* |
| Capitals gains tax | 20 % | * |
| Interest received | 20 % | corporate income taxru]корпоративный подоходный налог[/ru] |
| Interest paid | 0 % | to corporate person* |
| 20 % | corporate income tax | |
| Royalties paid | 20 % | to corporate person* |
*except for offshore companies (companies registered in zero or low tax jurisdictions)
| VAT | 21 % |
| Employee taxes | ||
|---|---|---|
| Social insurance taxes, total: | 35.09 % | |
| employer - 24.09% | ||
| employee -11.00% | ||
| Personal income tax | if incomes less than 20 000 a year 20% if incomes more than 20 000 a year 23 % | |
| Minimum salary per month (gross)* | EUR 430 |
* requirements to pay if a company’s turnover more than 2160 EUR (5 minimal salaries)
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
- Republic of Dominica in Latvia’s blacklist
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 packages Request package prices
Timeframe
| Incorporation of a new company | 5 business days |
Annual support (beginning with the second year) Request price
Annual financial statement – required
Accountancy services – required monthly
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. 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.
3. 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.
4. Document delivery to the client. Documents are sent via international courier mail.
5. 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:
*Please note that we shall only provide one document for free. If you would like to receive more information please contact us!