Located in the mid-way of northern and eastern Europe, Latvia is rapidly taking advantage of its 2004 EU membership. The Baltic state has done a lot for Foreign investments attractiveness and to soften the incorporation framework, to be more in line with EU standards.
What are the main types of company in Latvia?
There are four main kinds of business entity for foreign investors, and they are as follows:
- limited liability company (SIA)
- joint stock company (A/S)
- branch office
- representative office
Main features of an SIA
- the most common business vehicle in Latvia
- minimum share capital is €2.800, at least half to be paid up
- minimum number of directors is one
- no restrictions on foreign shareholders
- accounts to be maintained in line with statutory requirements
- at least one employee in company is obligatory from 2017
Latvia's economic success since the end of the Soviet era owes much to the motivation of its young, go-ahead workforce. Latvians have enthusiastically embraced free-market reforms and labour costs, although on the rise, remain generally low.
To be in line with international standards, Latvian government is committed to free-market economy, liberal business environment and as member of the WTO, has ratified most international treaties. Foreigners can buy Latvian companies and property with few restrictions. Resident companies are taxed on their worldwide income; non-residents on Latvian-earned income only.
Latvia offers a range of investment incentives, many with EU backing. The types of incentives include tax credits for capital investment projects, free ports and special economic zones, tax relief for small enterprises.
Please contact us and we will be pleased to discuss matters in greater detail.