Law office Inlat Plus has thirteen years of experience in company formation in Latvia. For our foreign clients we offer a wide range of services including organization of different types of business (such as limited liability company (SIA), joint stock company (A/S), branch office, representative office), staff recruitment, opening of a banking account, complex legal support and bookkeeping support, providing with a legal address, as well as office and warehouse premises.
Latvia is a full member of the European Union therefore a Latvian company enjoys all the benefits of the European company and a full access to EU markets. It should be pointed out that Latvian legislation is in many respects more liberal than in the rest of Europe which provides more possibilities for business and, at the same time, the proce¬dure of company formation is quite simple, fast and cheap in comparison with other member states of the EU.
Since Latvia is a member of Schengen Agreement a foreigner who becomes a member of the board or council in Latvian company is entitled to receive a residence permit enabling him to live in Latvia for a period of between one and five years. A Latvian residence permit allows a foreign investor to enter and leave the country for an unlimited number of times during the period residence permit is valid, as well as to travel without any limitations around the countries of Schengen Agreement which is a great opportunity to find new business contacts.
The system of taxes in Latvia is much more liberal and advantageous for foreigners than in other European countries. For example, if you form a company in Latvia, you pay just 15% corporate income tax from profit you get which is very much appreciated by foreigners.
VAT 0% is applied to purchase and sale deals between Latvian companies and other EU countries companies-taxpayers. VAT 0% rate is also applied to the range of services rendered by Latvian companies to EU companies and persons from third countries. Until January next year, the income received from dividends is also untaxed revenue, though after the New Year it will be set at 10 percent.
There are no restrictions regarding foreign shareholders. It is possible to establish, own or manage a Latvian company for non-residents, both legal entities and physical persons.
Registration of a company in the Register of Enterprises of Latvia can be made in a really short time — from two to four working days. The procedure of registration is relatively simple. As to the capital requirements a minimal equity capital should be just 2000 LVL (or appr. 2800 EUR) which is quite a small sum. Before submitting an application for registration it is necessary to pay at least half of the capital. Equity capital can be paid by money and/or other property.
A foreign investor willing to establish a company does not have to come to Latvia which is a very big advantage. The whole procedure of registration including preparation and submission of all necessary documents can be performed by the authorized representative on the basis of the power of attorney.
Law office Inlat Plus is ready to offer a whole variety of legal services meeting the needs of the most demanding clients. A full range of our services can be found on our web¬site providing description in seventeen languages.