Creation company in Latvia
Latvia is one of the Baltic countries of Europe, alongside Estonia and Lithuania. Apart from the Baltic nations, Latvia shares its land borders with Russia and Belarus, its maritime borders with Sweden. Latvia is located in the center of the Baltic States (Estonia to the north, Lithuania to the south). With an area of 64 km², Latvia has only a little over 600 inhabitants, following a massive migration of its nationals.
The vast majority of the population speaks Latvian, which is considered the official language. However, Russian is also widely used in Latvia. Other Slavic languages such as Polish and Baltic languages are also frequently used. French and English are spoken to communicate with foreigners.
Latvia joined the European Union in 2004. It is also included in the Schengen area, which makes it easier to enter its borders. Finally, Latvia is the second Baltic country to join the euro area. This integration gives the country a strong currency and attracts investors. In summary, Latvia represents a country where to invest in a company in Latvia through the creation of an SIA or SA company in Latvia can be very interesting.
The creation of a company in Latvia takes on average 3 to 24 Hours with FIDULINK, our business creation agents in Riga, Latvia provide full service and 24 / 24 support via internal messaging MY OFFICE.
The peculiarities of the taxation of the Latvia
Latvia's tax system is one of the most flexible in the European Union. Tax measures are put in place to encourage the company creation in Latvia.
The Latvian tax rate remains one of the lowest among the countries of Europe. The Latvian tax system fixes the rate of profit tax at 15%. The taxation of capital gains is made at the same rate. Micro-enterprises are taxed at a reduced rate, only 9%.
Latvian taxation allows deductions and tax credits for depreciation, payments to entrepreneurs, income from the sale of real estate, and dividends.
Regarding VAT, several possible rates are applied, depending on the nature of the activity. It is 21% for the general scheme. VAT is 12% for food, medical products, hotel services, among others.
A double taxation agreement has been signed between Latvia and France 14 Avril 1997. This agreement limits the risks of fraud and tax evasion between the two countries. It mainly concerns income tax and wealth tax.
Why create a society in Latvia ?
The very low tax rate and the tax facilities motivate entrepreneurs to create their own Latvian company. These particularities are of interest to investors, since they give rise to greater profits.
Other advantages point to Latvia as a favored country from the point of view of investors. In the first place, all legal activities can be carried out without any constraint.
Secondly, Latvia is known as a nation that works very hard to maintain the stability of its policy and economic activities. Note that the Latvian workforce is among the cheapest in the European Union.
Lastly, anonymity is required for all investors. Moreover, Latvia is one of the countries in which investments receive special protection from the state. Finally, its geographical location makes it possible to reach a vast potential market, composed of Russia and the former Soviet republics.
What status to choose for your company in Latvia ?
There are several possible statuses for a outsourcing company created in Latvia. An entrepreneur who wishes to set up a business in Latvia may opt for a Limited Liability Company, a Limited Company, a Company in a Collective Name or a Company with Unlimited Liability. The investor will essentially consider his share of responsibility and the number of partners required to make his choice.
Who can create a society in Latvia ?
Professionals and individuals can build their own company in Latvia. These professionals can be business leaders, web developers, subcontractors, or consultants.
FIDULINK gives you the opportunity to start your business in Latvia in minutes from your secure area MY OFFICE. Our Latvian company creation package has been specially designed for entrepreneurs wishing to start a business in Latvia with the creation of a company in Latvia or a branch or subsidiary in Latvia of your company.
