Company Formation in Latvia- Benefits:
There is a new corporate income tax in Latvia. How to benefit from it ?
- 0% corporate income tax if profits are not distributed
- 0% tax for distribution of non- taxable profits
- EU, Euro and English as widely used language
- Well educated multilingual workforce, diversified economy with strong ICT and finance sectors
- EU compatible tax laws
- Large Russian speaking community
- Long days in summer, Good flight connections, a country with a lot of entertainment
For company registration and purchase in Latvia, the following options exist:
- SIA (limited liability company)
- AS (Stock company)
- Limited Partnership (KS)
- General Partnership (PS)
- Silent Partnership: commercial law allows such structures
- Civil Law Partnership: may exist without registration, just by contractual agreement. (e.g. two foreign companies make an agreement)
- Sole Trader (IK)
- Branch office
Company Formation in Latvia: Fast and Easy- 3 Steps without travel:
1. Send us an agreement for company formation with the following key informatio
- company name
- object (= activities)
- capital contribution (minimum share capital 2800 €, 50% has to be paid in)
- director (can be citizen or legal entity of almost any country)
- shareholder (can be citizen or legal entity of almost any country, but for profit distributions to blacklisted countries, there are restrictions)
- legal address (which we can provide): tax authorities sometimes perform physical visit
2. Meet us in person or by Skype, fill in the mandatory customer due diligence papers, make a transfer for capital and costs for company registration
- 2800 € paid in capital (Micro – Company: from 1€), contribution in kind possible
- public fees, notary costs and our costs for the formation of a company in Latvia. In addition, there are usually some translation expenses, because all
- documents have to be submitted to the Registry of Enterprise in Latvian language.
3. Sign the papers that we prepare and email to you. Latvia company incorporation will be within 3 working days and can be seen in the Latvia company registry.
- No audit requirement (if below threshold)
- No residency requirements for the directors
- Corporate directors are possible
- Liberal business laws, AML regulations in average European standard
- Expiration time for tax: 3 years
- Authorities focus on formalistic view, which makes activities predictable
Zugimpex: Professional Services, Reasonable Fees and a Friendly Atmosphere :
- Comprehensive Services from one source for your company in Latvia.
- Quick Customer Due Diligence – you have good financial standing, good qualification and successful experience in your business. (please understand that we serve no US citizens and no customers who are residents in USA, Germany or France).
- Fair fee calculation:
- Company formation in Latvia: 1500 € including domicile, initial due diligence, flexi desk and basic postal service for one year, excluding translations, notary and public fees.
- Annual costs depend on the activities: starting from 2500 € per year including domicile, flexi desk and basic postal service (from the following year), bookkeeping, VAT declaration, financial statement and tax declaration. As an industry standard and including all surrounding tasks like sorting, filing and checks, qualified bookkeepers process around 15-20 bookings per hour which corresponds to 40-60 booking lines. For a financial statement, it takes between 5 and 15 hours.
- Professional consulting:
- Use our experience at Zugimpex, our contacts and our know how in international business and in international tax planning.
- Plan with us your setup, your operations and the transfer of functions, so your company in Latvia will start and operate successfully.
- Our friendly and competent employees are glad to assist you, and when you visit Latvia, we will take care that you enjoy your stay.
(updated May 2018)