JST Legal Alliance

Business in Latvia

Latvia is one of the Baltic country in the European Union and geographically very conveniently located on the Baltic Sea between Lithuania and Estonia. Its landscape is reflected by wide beaches as well as dense, sprawling jungles. Latvia's capital is Riga, home to famous wooden and art nouveau architecture, a vast Central Market and a medieval Old Town with St. Peter's Church.

Latvia has useful transport links between the Nordic, Scandinavian and Eastern European countries which compares the most effective use of logistics costs

Latvia is the respectable European jurisdiction with unique tax legislation, Latvia can rightfully be considered one of the most attractive countries for the development of international business and access to European markets
Our attorneys have decades of experience in demanding corporate law matters. Incorporate and business law, and our expertise covers all main legal areas, such as company law, shareholder agreements, employment issues and various corporate arrangements.

Clients appreciate us, particularly for our knowledge of practical business operations
Corporate income tax is payable on distributed profits (including deemed profit distributions, enterprise income tax - 0% (on retained earnings)

Tax is imposed only on distributed profits and payments equivalent to the distribution of profits. Tax rate on distributed profits (gross) - 20% or on the amount paid (net) - 25%, Dividend tax - 0%, VAT –21% and 0% VAT on sales transactions between companies in Latvia and other EU countries.

The 0% VAT rate is also applied to a range of services provided by Latvian companies to EU companies and persons from third countries

Company Incorporation

The Latvian Commercial law regulates commercial activities. There are three common forms for companies while entering the Latvian market, Limited liability company (SIA), a branch of a foreign company and permanent establishment.

All of them have advantages and disadvantages, for example, in reporting, audit and taxation. We provided suggestions in a brief meeting with us before choosing which business form is to be established for your business
There are no restrictions regarding the citizenship of company representatives.
Registration with the state registry (Commercial Registry of the Republic of Latvia) is obligatory for doing business in Latvia. The business is recognised as a legal entity after it has been registered at the Commercial Registry Office. Establishing a company is a reasonably fast process, which generally takes 3-10 days after submission of all the required documents

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