Company Registration Latvia

What is the corporate income tax in Latvia?

The corporate income tax rate applied on distributed gross dividends, deemed dividends or notional profit is 25% (the effective tax rate).

Companies registered in Latvia in Register of Enterprises as well as permanent establishments of foreign entities are subject to CIT on their worldwide income.

Companies registered outside Latvia are subject to CIT on their Latvian-source income. Latvia has particular incentives for foreign investors and businesses, for example, an investor has the opportunity to enjoy 0% corporate income tax on reinvested profits, establish a company in SEZ or use the holding company regime. 

CIT is payable at the moment of the distribution of profits and distribution of notional profits, if they are not distributed and dividends are not paid (e.g. the profit is reinvested), CIT for the company established in Latvia is 0%.

Does the company need VAT number in Latvia?

Not necessarily. VAT number in Latvia is required only:

• If the company sells goods to businesses outside Latvia (for more than 10, 000 eur per 12 month period).
• If the company revenue is more than 40, 000 eur in a 12 month period.
• You sell services to businesses outside Latvia.

What is the minimum equity capital to register company in Latvia?

Minimum equity capital changes depending on type of the company, for example, standard Limited Liability Company (LLC) in Latvia requires 2,800 eur minimum equity capital however Low-Capital Limited Liability Company can be registered from minimum capital of 1 eur. To know more about minimum equity capital to register company in Latvia, we invite you to read our articles, where the minimum equity capital is indicated.

Limited Liability Company information can be found here.

Low-Capital Limited Liability Company information can be found here.

Joint-Stock Company information can be found here.

How long does it take to register my company in Latvia?

Company registration in Latvia usually takes approximately 3 business days. But the speed of the registration also depends on number of founders, company can also be registered in a very swift manner - approximately 1 day, but with increased state fee.

Can I register company in Latvia remotely?

Yes! You can register company in Latvia completely remotely from any part of the world through Company Registration Latvia lawyers. All you need is valid passport and a company name. All of the documents are prepared by us - you get full established company in a couple of working days.

How do I find registered address for my company in Latvia?

If you do not have a registered address in Latvia, it is not a problem - Company Registration Latvia provides you with one, we also send you all the correspondence that you receive! If you plan on doing business remotely, we can offer you virtual office in Latvia. 

Where do I pay my tax?

Generally, you would pay your tax in a place where the company is incorporated - Latvia. Latvia also currently has agreements for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital in effect with: Albania, Armenia, Austria,  Azerbaijan, Belarus, Belgium, Bulgaria, Canada, China, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Kazakhstan, Kyrgyzstan, Korea, Lithuania, Luxemburg, Macedonia, Malta, Moldova, the Kingdom of Morocco, the Netherlands, Norway, Poland, Portugal, Romania, Serbia, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Tadzhikistan, Turkey, United kingdom, Ukraine, United States of America and Uzbekistan. Therefore, you will not be taxed twice if you do business in Latvia and any of these countries.

To more elaborate on paying tax in Latvia, you can pay tax yourself, using electronic services of Tax Revenue Service, or you can contact us and we provide you an accountant that will manage everything.

Does having my own company automatically grant type D visa (working visa) or residence permit in Latvia?

Automatically - no. However, almost immediately after establishing your own company Company Registration Latvia lawyers can help you to apply for temporary residence permit or working visa. The process of obtaining residence permit takes approximately 3 months from submission of all of the documents. Residence permit or working visa can be applied for remotely through Company Registration Latvia.

How to get an answer to my specific question?

If you did not find an answer to your question regarding company registration in Latvia, do not hesitate to refer any question you have to our Company Registration Latvia lawyers in EU -

info@eulawfirm.eu

 

+371 26742086

Office address: Eksporta iela 12, Riga, LV-1045, Latvia

We also invite you to use the form below for referring any question regarding company registration and business possibility in Latvia, to receive the quotation in shortest period of time.