Latvia is one of the Baltic countries that has become an attractive place to do business in recent years. Owing to its strategic location, favorable business environment and membership in the European Union, Latvia offers many advantages for entrepreneurs. Let’s name the main reasons why opening a company in Latvia can be a wise decision.
EU membership and access to the European market
Latvia has been a full member of the European Union since 2004. This means that companies registered in Latvia have access to the EU single market, which unites more than 450 million consumers. This opens up wide opportunities for trade, export and import of goods and services without customs barriers.
Favorable geographical location
Latvia is located at the crossroads of important trade routes between Western Europe, Scandinavia, Russia and the CIS countries. The country has a well-developed transport infrastructure, including large ports (e.g., the Port of Riga), railways and highways. This makes Latvia a convenient logistics hub for international business.
Company Registration
The process of company registration in Latvia is relatively simple and transparent. A minimum package of documents is required to open a business, and the registration period is only a few days. In addition, Latvia allows the registration of companies with one founder, which simplifies the process for individual entrepreneurs.
Low Taxes and a Flexible Tax System
Latvia offers one of the most competitive tax systems in the EU. The corporate tax rate is 20%, but income tax is paid only when dividends are distributed. This allows you to reinvest profits without additional tax liabilities. Latvia also has incentives for small businesses and start-ups.
Access to International Capital Markets
Latvia is part of the Eurozone, which simplifies financial transactions and access to international capital markets. The country’s banking system is stable and focused on servicing international businesses. Many Latvian banks offer services in several languages, including Russian, English, and German.
Skilled Workforce
Latvia has a highly educated and multilingual workforce. Many residents of the country are fluent in Russian, English, and other European languages, which facilitates communication with foreign partners. In addition, the level of education in Latvia meets European standards.
Support for Startups and Innovations
The Latvian government actively supports startups and innovative projects. The country has various funding programs, grants, and incentives for technology companies. Riga, the capital of Latvia, is becoming a center of attraction for IT startups and innovative enterprises.
Stable Economy and Legal System
Latvia has a stable economy and a transparent legal system, which makes the country attractive for long-term investment. The country is also part of the Schengen area, which simplifies travel for businessmen and company employees.
Low operating costs
Compared to other EU countries, operating costs in Latvia remain relatively low. Office rent, service costs and employee salaries are lower than in Western Europe, while the quality of life remains high.
Possibility of obtaining a residence permit
Foreign investors who register a company in Latvia and invest in the country’s economy may apply for a residence permit. This opens up additional opportunities for doing business and living in the EU.
Conclusion
Opening a company in Latvia is a profitable solution for entrepreneurs who want to enter the European market, minimize tax expenses and take advantage of a stable economy. The country offers favorable conditions for doing business, which makes it attractive for both startups and large international companies. If you are looking for a reliable and promising jurisdiction for your business, Latvia is an excellent choice.
Law firm Inlatplus specializes in corporate and immigration law and has accumulated extensive experience and knowledge in resolving issues of opening companies and obtaining temporary residence permits in Latvia.
Law firm Inlatplus is eager to provide its clients with legal assistance on these issues.
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