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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Latvia
Start-ups are mushrooming in Latvia, and you wonder why not register a company in Latvia see it for yourself. But hold your horses! Before you embark on this journey, take a seat back and read up on what goes into register a company in Latvia.
Why Latvia As a Business Place?
Strategically located in Eastern Europe, Latvia is neighbours with Estonia, Lithuania, Russia and Belarus. With vast conserved nature, Latvia’s temperate seasonal climate beckons those who enjoy the environment as much as modern living. Well, if you measure Latvia’s total tax regime against its neighbours, you can immediately see that it is pretty attractive.
Beneficial Business When You Register Company in Latvia
Besides, the Latvian government is always supporting development for IT, green energy, modern food production and creative industries. Despite still using native Latvian language for filling up forms, their business climate is western-oriented. Hiring locals are also a bonus as you will meet with plenty of multilingual workforces. Hence, the possibilities for your business to grow seems endless. The government of Latvia is also supportive of small and medium enterprise or start-ups. The Latvian government has recently passed a law on Aid for the Activities of Start-up Companies. There are also other kinds of supports such as business promotions at an international level, financial assistance as well as a business support network that pools together highly experienced entrepreneurs to share entrepreneurial wisdom and insights.
Business Registration Process in Latvia
As mentioned above, Latvians offer a western-oriented business climate. Hence, if you are accustomed to western-oriented business affairs, then business affairs in Latvia will be pleasant for you. There are several business entities that you can choose to register in Latvia. They are:
- SIA – Similar structure of a limited liability company
- Individual Merchant – a sole trader
- Joint-Stock Company
- Branch Office
- Representative Office
The Most Common Company Registration by Foreigners in Latvia is the SIA or Limited Liability Company
- An SIA (LLC) are companies that have a share capital divided equally among the shareholders. In Latvia, there are two types of SIA. The common SIA has a share capital of €2,800, which does not hold the shareholders any liability. The other famous SIA is the one euro SIA, which must be set up by individuals of up to five members. The one-euro SIA holds the founding members liable for anything that becomes of the company. You get to set up a company with little investment but will be held responsible as a whole. Once you have decided which company to register, the next step is filling out the papers.
- Be prepared to fill out forms if you understand Latvian. If you don’t, you will need to call a local lawyer or your Latvian business partner to help you out.
- Next is setting up the bank account for your company. You could assume that Latvian is the official language, but banks will arrange to have an English speaking adviser on these matters. The costs vary from EUR 0 to EUR15.
- Finally, you can now submit all forms at the Enterprise Registry. The fees to register an SIA is around EUR 170, and it will take a few days to get your company registered.
If you still have doubts on how to go about registering your company in Latvia, you may contact us to assist you. We will ensure the highest quality of service to ensure you can get your business up and running in no time.