Doing business in Latvia

Doing business in Latvia

Are you looking for a reliable, expert, professional service that will help you start up a business?

From creating your business plan to setting up a limited company, from filing annual returns to preparing accounts; we provide the full range of services to get your business off to a great start. 

Back office set-up

Latvia serves as a prime location for back office operations for many Western European corporations as well as Russia, Ukraine and CIS countries. 

Whether you wish to start new business operation, or transfer existing business operations from your country fully or partially, Latvia is a great choice for back office set up! Main reasons are:

Low office rent
Well-educated and multi-lingual workforce
Excellent airport, railway and port connections
Low payroll and administrative expenses

Are you looking for a reliable, expert, professional service that will help you start up a business?

From creating your business plan to setting up a limited company, from filing annual returns to preparing accounts; we provide the full range of services to get your business off to a great start.

Contact us now

Latvia serves as a prime location for back office operations for many Western European corporations as well as Russia, Ukraine and CIS countries. 

Whether you wish to start new business operation, or transfer existing business operations from your country fully or partially, Latvia is a great choice for back office set up! Main reasons are:

  • Low office rent
  • Well-educated and multi-lingual workforce 
  • Excellent airport, railway and port connections
  • Low payroll and administrative expenses
Latvia combines its affordable costs with Scandinavian quality.

Latvia combines its affordable costs with Scandinavian quality.

IBCC can help foreign companies to set-up their back office operations in Latvia. We will help you save time and money by providing fast and qualitative services as:

  • Company and bank account set-up (All incorporation procedures and legal matters are taken care of by IBCC lawyers)
  • Recruitment (Having strong relationships with local recruitment agencies IBCC can assist with finding employees)
  • Office rent (Whether you would like to rent or purchase premises to run your business, we will make sure you have the best location and the most affordable rate) 
  • Accounting services (Outsourcing accounting services always a good idea for back offices. Our accountant can work either from your or our office as you see it more preferable) 
  • Work permit and Visa support (if you or your employees come from non-EU countries and require work permit, IBCC will provide professional assistance in obtaining required permits)

Schengen visa & Residence Permit

The Republic of Latvia has been a member of the European Union since 2004. Since joining the Schengen zone in December 2007, Latvia has become an even more lucrative location for establishing a business. Latvia can offer to the foreigner a multi-entry Schengen visa (the so-called “unified”) or a residency permit.

Please review the table below to determine whether a residency permit or a multi-entry Schengen visa is required and which criteria applies.

  RESIDENCY PERMIT MULTI -ENTRY SCHENGEN BUSINESS VISA
Description A residence permit provides a foreigner the rights to reside in Latvia for a definite period of time (a temporary residence permit) or permanently (a permanent residence permit). A visa is a sticker in a travel document enabling a foreign national to enter Latvia an unlimited number of times within the specified period and stay there for the term indicated in the visa.
Rights to travel? You can travel throughout Schengen area without visas. You can travel throughout Schengen area without special visas.
For what period of time a document is issued? Normally for a period not exceeding five years. Normally for a period not exceeding one year.
How long can I stay in Schengen area? You can stay permanently in Latvia at any time within validity period of residence permit. The duration of stay at any other Schengen state cannot exceed 90 days in a row. The maximum length of stay in Latvia and/or Schengen area shall not exceed 90 days within a six-month period, counting from the day of entry.
How long do I have to stay in Latvia? It is sufficient to visit Latvia once a year. A Permit Holder cannotcontinuouslyreside outside of Latvia for more than 12 months. There is no requirement for a minimum stay period in Latvia in case of multi entry Schengen visa.
Place of first entry in Schengen area? First place of visit must be Latvia. First place of visit must be Latvia.
Can my family members have the same? Yes, in the same application for the residence permit your spouse and children under age of 18 can be included. Spouse and children under age of 18 can be included in the same visa application, but do not guarantee approval.
Requirements?

"A residency permit can be obtained by fulfilling one of below-mentioned criteria:

  1. Placing funds in an interest earning deposit with a Latvian bank a minimum 300 000 EUR for at least five years;
  2. Buying real estate in Latvia for a minimum price 250 000 EUR (plus 5 percent of the value of real estate will have to be paid into the state budget by third-country citizens who apply for Latvia's residence permit);
  3. Investing in a Latvian company's share capital not less than 35 000 EUR, and minimum 40,000 EUR need to paid to Latvian government in taxes yearly.
 

Contact us to learn more."

"Multi entry Schengen visa can be obtained on the basis of:

  1. Acting as a Director (Board Member) of a Latvian company or as a Representative of a local representative office of a foreign company.
  2. on the basis of employment and legal agreement with a Latvian company*

*Work permit based on employment agreement can be obtained together with visa or residence permit.

 

Contact us to learn more."

Licenses

Some companies subject to special registration and licensing requirements.

Such companies are required to file applications with competent state or municipal institutions to obtain a license or permit granting the right to pursue a specific economic activity. License fees vary depending on the activity. 

The procedures for obtaining licenses are as well different for particular area of activity.

The most common types of activities requiring activity license are:

  • Financial services, including activities relating to credit institutions, fund management, investment activities, securities market;
  • Insurance activities;
  • Tourism Services;
  • Utility services;
  • Postal services;
  • Energy-related (electricity, gas, heat) activities;
  • Transport, including commercial cargo; passenger carriage; freight forwarding; professional competence of passenger carrier; air carriage; special aviation works; railroad carriage;
  • Environmental impact and activities, including polluting activities, usage of water, fisheries, ionizing radiation sources;
  • Mining, extraction and exploration of natural resources, geodesic works;
  • Gambling;
  • Trade (wholesale and retail, alcoholic beverages, beer retail), catering, market places;
  • Communication, including broadcasting; cable TV; cable radio (radio translation); retranslation;
  • Excise goods related activities;
  • Warehousing;
  • Strategic goods;
  • Pharmaceuticals (also veterinary pharmaceuticals.

If your business requires special license, contact IBCC first for advice.

Special Economic Zones

The aim of free zones is to promote participation of the Republic of Latvia (LR) in international trade, to attract investments, to develop production and services, and to create new work places.

There are Free ports and Special Economic Zones (SEZ) in Latvia, in which companies that have concluded an agreement with the Port Authority or the Special Economic Zone Authority and obtained an appropriate permit may do business according to the regime of free zone. Territories of such business (commercial) companies are free zones, and the free zone regime applies to these business (commercial) companies, i.e., tax exemptions and special customs control measures.

LATVIA HAS THE FOLLOWING SEZ AND FREEPORTS:

NECESSARY CONDITIONS

The main conditions for granting SEZ company status:

  • Profile of entrepreneurship must comply with SEZ development plans;
  • Legal address of the company should be in the territory of SEZ;
  • Business activities should be conducted in the territory of SEZ and the following duties should be performed, performing business activities within the SEZ territory:
  • Produce goods, provide services or cargo turnover in the port,
  • Invest in property and modern technologies,
  • Create new work places,
  • Provide employees salary not lover then average salary in the city;
  • Company must own or rent real estate in the territory of SEZ.

TAX REDUCTIONS

Due to exemption or relief Taxable subject Tax rate in Latvia Tax rate for companies having SEZ status
Real estate tax Cadastral value of land, buildings and constructions 1,5 % 0-0,3 %
Corporate tax Gross profit 15 % 3 %
For non-residents Dividends* 10 % 2 %
  Payment for management and consultation services 10 % 2 %
  Payment for intellectual property** 5-15% 1-3%

* Except dividends paid to foreign companies (not „black listed” companies).
** Except payments made by a Latvian company to a company or its official representative related with EU Member States in accordance with the provisions of the “Law on Corporate Tax”.

Time-frames

At least 1 month from the date of receipt of the requested documents and information (provided that all the preconditions have been met).

IBCC can help you setting up business in Special Economic Zone. 
We will prepare all necessary documents for your company to achive great tax benefits.

IBCC can help you setting up business in Special Economic Zone. 

We will prepare all necessary documents for your company to achive great tax benefits.

Start now