Company formation in Latvia
Since a long time, Latvia has been playing role of a bridge between the East and the West. In the past years, it has become a logistics centre of the Baltic region and also one of the leaders in the Eastern Europe in IT sector. Latvia is not only one of the most popular countries for transit, but is also attractive for business and immigration due to the obvious advantages, like similar mentality, knowledge of the Russian language and excellent infrastructure.
Due to the latest changes in the international, and particularly in European legislation the resident status of the company and possession of the VAT number become the most important aspects of operation of your company. An increasing number of European partners prefer to cooperate with companies having the VAT number.
Opportunity of registration of the VAT number and automatic assignment of the tax resident status make the Latvian companies popular for trade within the EU, and also for export of goods outside the EU borders.
In Latvia and there is an opportunity to receive the VAT number without losing tax advantages.
Accounting services include:
- Accounting software license for Tildes Jumis programm
- Bookkeeping (receiving invoices, bank statements, agreements from client, data proceed, information submitting to the accounting programm)
- Monthly Tax (CIT, IIT, Social Tax) calculations
- Monthly VAT reports to the State Revenue Service
- Payroll administration fee (max. 2 employees included in the regular price)
- Monthly salary calculations
- Vacation days /sick leave / business trip calculations
- Collecting and submitting data for the Electronic Declaration system (EDS) per employee related to employee hire / dismissal
- Preparation of monthly individual salary report for each employee (on request)
- Statements regarding employee historical salary payments (on request)
- Monthly tax reporting to State Revenue Service (SRS) on EDS system
- Annual report to SRS about tax, salary payments
- Accounting document storage (not exceeding the limit of the documents mentioned in the service agreement)
- Contact with State Revenue Service regarding client company’s accountancy (representing client interests) 1 hour tax consulting per month
The biggest advantage of Latvia over such traditional “holding jurisdictions” like the Netherlands, Austria and Cyprus is the universality. To benefit from tax concessions to the Latvian holdings There are no additional requirements to enjoy the tax benefits like requirement for participating interest, duration of share ownership, nature of business, taxation level in the country of the subsidiary etc.
The European regulation about the parent companies and subsidiaries allowing the application of the withholding 0% tax rate (before profit distribution) to companies registered in the European Union is still effective. The withholding tax is reduced basing on the agreement on avoidance of double taxation signed by over 50 countries including Russia, Belarus, Ukraine, Kazakhstan and Azerbaijan.
- EXCELLENT INFRASTRUCTURE – Latvia is one of the TOP countries in relation to the speed and quality of Internet
- HIGH LEVEL OF EDUCATION – it is easy to find employees knowing both Russian and English
- STABILITY – logically organised legislation
- LOW EXPENDITURE – affordable rental prices for accommodation and offices
- TAX ECONOMY – 0% tax rate (enterprise income tax before profit distribution)
- An opportunity to get the residence permit as for an employee of a company – no need for investments, which makes Latvia an attractive country for business and immigration.
Today, the most popular way to get a residence permit in Latvia is through investments in immovable property; however this is not the only way! We are specialists in business immigration and will always offer the most easy and cost-efficient way tailored just for you!
How do I start?
Describe your project for us and we will do all the paperwork:
- We will find the optimum solution for ensuring success of your business in Latvia.
- Ready-to-operate solutions – we will register the company, develop a business structure in accordance with your requirements and provide professional tax, accounting and legal services. We value your time and money!
Contact us now! We will gladly assist you with the formation of your business in Latvia.