Advantages of running a business in Latvia

Nov 5, 2015 | Accounting, Law

During strategical planning of business development, businessmen sooner or later come to question of tax load, logistics and human resources optimization. A lot of European entrepreneurs choose Latvia to solve these issues because of the vast possibilities this country brings.

Latvia is located on the periphery of the EU and that is why it is perfect for logistics and managerial center creation. It is perfect for those who are actively trading with CIS countries.

In this article, we will see the advantages of registering a company in Latvia. After joining the EU in 2004, the Eurozone in 2014 and the liberalization of tax regulations, this Baltic country became one of the most attractive countries for investment.

Let us show you why registering a company in Latvia is a good idea.

Latvia is a logistic hub of Eastern Europe

  • 3 large seaports;
  • convenient transport and rail junctions;
  • 2 hours away by plane from any European capital;
  • developed infrastructure;
  • developed technical and IT fields;
  • one of the fastest Internet connections.

​ If logistics is important to you, register a company in Latvia. It is a wonderful idea because you will have all the possibilities to deliver your goods to your customers. Latvia is great for setting up an outpost for import to CIS.

When you are in Latvia, you are still in the Eurozone. Here you can hire highly qualified specialists, who can speak fluently both Russian and English. Latvians understand how to deal with partners from CIS which is a big advantage.

Sustainable economic growth in the European Union

  •  during the last 15 years GDP of the country has sustainable growth averagely on 7-8% per year;
  •  EU customs zone;
  •  developed and sound banking system;
  •  service of finance and state offices of European level;
  •  low level of corruption and high level of legal private property and foreign investment protection.

Most of Latvia’s GDP (~71%) is the market of services, which includes tourism sector. If you would like to open a business in Latvia in this field, you will have the developed infrastructure and ready demand ahead of you.

Loyal conditions of business running by non-resident

  • simple procedure of registering a company in Latvia and receiving residence permit for investors;
  • healthy country reputation from the point of view of business running (Latvia is not listed in any blacklists of other countries or as an offshore zone);
  • there are essential tax exemptions for non-residents;
  • possibility to receive residence permit for non-residents who have set up a business in Latvia and is running it in this country.

Culture and human potential peculiarity

  • Up to 95% of population speak at least two languages (Latvian and Russian). It is widespread to speak one more language – English (young people).
  • Aligned business connections not only with the European Union, but also with CIS countries. It is a good help in entering European markets.
  • Deliberate but persistent and laborious local people. This is the case when everything will be done without hurrying and rush but solidly.
  • It is in first ten list of countries, young people of which receive higher education.

If you would like to distance yourself from crisis markets to sustainable zones with Euro as a currency, registering a company in Latvia is one of the most sound ideas. You will have at your disposal the set up connections and people who are able to effectively communicate with Europe and CIS countries.

New tax conditions for holdings

Why is registering a company in Latvia even more beneficial now?

Starting from 1st January 2013, some changes have been made to the legislation, which has significantly improved investment climate in the country.

Which possibilities did companies in Latvia and potential investors non-residents receive?

Income tax is not deducted now from:

  •  dividends, which Latvian companies pay to non-resident;
  •  dividends, which are received from non-residents;
  •  income from selling subsidiaries bonds;
  •  interest, that is being paid to non-residents;
  •  royalties, that are paid to non-residents.

In such a way, holdings received a lot of serious advantages of working in Latvia. More detailed information on the taxes, that occur, when registering a company in Latvia, you can find in our different article.

How to register a company in Latvia in 1 day?

We have already told that the procedure of registering a company in Latvia is very simple. When working with our specialists, it will look as follows:

  1. Registration Application. You contact us and place an application for registration
  2. Documents to be signed. We send the documents to your e-mail. You print those, have those signed and send back to us.
  3. Temporary account. We open a temporary bank account for you to transfer the equity capital (in case the company being incorporated has an equity capital of less than 2800€, this step may be skipped).
  4. Completion. We submit the documents to the Register and complete the incorporation. Should this be required, we also apply for a VAT number.
  5. Permanent account. You open a permanent bank account. For that purpose, you presence at on of the bank’s branch offices would be preferable, through currently bank forms may still be notarized and send by mail.

Furthermore, the whole process will take from 1 to 4 working days. Terms depend on number of co-founders. Read a special article to know more about the procedure of registering a company in Latvia

If you have any additional questions, hesitations or wish to know more details, we recommend you to get preliminary free consultation from our specialists.

Baltic Business Consulting provides consulting services on the choice of the most appropriate enterprise type for your business. We also provide services on

  • further support of companies;
  • all the operations with Latvian companies;
  • restructuring, merger, liquidation and bankruptcy of enterprises.

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