How attractive can Latvia be for foreigners who have chosen this small Baltic country for life and business? Numerous ports in the Baltic Sea, convenient railway system and road junctions, developed air traffic allow maintaining contacts with western and eastern countries. Every year Latvia is included in the ratings of the best states for doing business. This is not surprising, because in Latvia there are no restrictions for companies, investors and startups from other countries. In the last 2 years alone, 50% of new companies were registered in Latvia by representatives of the countries of Europe, America and the CIS.
Most of the business in Latvia is concentrated in tourism and hospitality, computer technology, pharmaceuticals, woodworking, fishing and rural industries, construction and mechanical engineering. Foreign businessmen in Latvia most often open hotels, fitness centers, beauty salons and restaurants, build residential and office buildings.
For a foreign businessman thinking about company registration in Latvia, this country can offer a number of advantages that distinguish it favorably not only from its neighbors in the region, but also from many EU countries.
Simple registration. In Latvia, bureaucratic delays are minimized, and usually the long and complicated LLC registration procedure takes only a few days.
Minimum share capital. The minimum authorized capital is 2.850 euros. There is also an option to open a small capital LLC, with the capital as low as 1 euro.
Low taxes. Corporate income tax in Latvia is 15%, dividend tax – 10%, value added tax – 21%, VAT on trade transactions with companies from other countries – 0%.
Residence. When the process of company registration in Latvia is accomplished, a foreign businessman can obtain a residence permit in Latvia. There are various possibilities, one of them applying for residence permit as member of the board of the Latvian company
Window to Europe. Latvia is a member of the European Union and the Schengen area. Therefore, it will be easy for companies that started their lives in this country to enter the European market and gain access to large financial resources.
After company registration in Latvia, to conduct business in some areas, you will need special licenses and permits. For example, for trading in tobacco products and alcohol, cargo transportation, television and radio broadcasting, pharmaceuticals, construction, and insurance. To obtain the required document, the founder must contact the relevant regulator.