Official Name: The Republic of Latvia
Capital: Riga
Languages: Latvian
Currency: Euro (EUR)
Latvia
The Republic of Latvia is one of the Nordic countries that was part of the country before the collapse of the Soviet Union in the 1990s.
Latvia borders Estonia to the north, Lithuania to the south, and Russia and Belarus to the east. It is separated from Sweden by the Baltic Sea to the west. Latvia has been a member of the European Union and the North Atlantic Treaty Organization (NATO) since 2004.
The country’s GDP is $ 40.4 billion, which grew by 3.10 percent last year.
One million and 136 thousand people make up the labor force of this country and its unemployment rate is 9.5 percent. The Latvian inflation rate is 6.9%.
The country’s exports include wood and wood products, machinery and equipment, metals, textiles and foodstuffs from Lithuania (14.2%), Estonia (12.3%), Russia (11.5%), Germany (8). Exported by 9.9%, UK (7.6%), Sweden (6.3%) and Denmark (4.8%).
Imports of this country include machinery and equipment, chemicals, fuels and vehicles from Germany (15.5%), Lithuania (12.9%), Russia (8%), Estonia (7.7%), Poland ( 7.2%), Finland (5.7%), Sweden (5%) and Belarus (4.7%).
The benefits of company registration in Latvia
100% ownership (no local partner required)
Access to all parts of Schengen Europe for travel, business and long-term residence
Possibility to apply for permanent residence after 3 years
Possibility to apply for a passport 5 years after obtaining permanent residence
Easy visa application for all parts of the world
Opening a corporate and personal account
Use of European trademarks (brands)
Free trade and customs laws within the EU
Four types of investment companies in Lithuania:
State-owned company or public joint stock company (AB)
Private Company (UAB)
General Partnership (TUB) or Limited Partnership (KUB)
Branch or representative office
Public Joint Stock Company (AB)
A public limited company is the most common trading company for dealing with medium and large companies in Latvia. The minimum capital to set up a public company is 150,000 LTL (approximately € 43500) and this amount must be in the bank account and 25% of it must be paid. Capital is converted into stocks that may be publicly traded or traded.
Founder: One or more persons can be the founder (shareholder) of a public limited company and all of them must be legal entities.
Responsibility: The company and its shareholders are responsible for expanding the company’s assets and shares.
Board of Directors: The board of directors of a public joint stock company consists of three directors or supervisors and is elected by the general meeting of shareholders.
Private Company (UAB)
The most common way to invest in Latvia for smaller foreign investments is to start a private company.
Minimum required capital: LTL 10,000 (about 2900 Euros) and this amount must be in the bank account and 25% of it must be paid. Capital is converted into stocks and may not be sold publicly or traded.
Founder: One or more people can be the founder or shareholder of a particular stock company.
Liability: The company and its shareholders have limited responsibilities and their liability is limited to the amount of capital.
Board of Directors: The special stock company is determined by the general meeting of shareholders and does not require a board of directors or a supervisory board. The maximum number of shareholders in a private company is 250 and if the trading volume is more than 1.4 million euros, an annual audit must be performed. .
Public Participation (TUB) or Limited Participation (KUB)
There are two types of partnerships in Latvia, the main difference being the level of responsibilities.
Liability: Public partnership has limited liability and limited partnership has limited liability, meaning that the limited partners are responsible for the expansion of the stock, while there must be at least one public partner with unlimited liability. There must be an agreement signed and registered between the partners of both public and limited partnerships.
Branch or agency
Foreign companies or organizations may open their representative offices or branches in Latvia and at least one manager must reside in Latvia. The branch office can conduct its business within the limits set by the foreign company. The main feature of a representative office or branch is that the foreign company is responsible for all its obligations.
The company registration process
Filing a case through a group of lawyers in Latvia and coordinating with the Ministry of Commerce and the Ministry of Foreign Affairs and receiving approval and approval of the Latvian government for the Business Plan and business license for the applicant
Schedule an interview at the embassy and receive a D visa for the applicant and their family to be in Latvia to receive a one-year residency and complete the company registration process
After one year and submitting the work report of the company, the stay will be extended.
After 3 years of residence in Latvia and in case of positive business activity, the applicant and his / her family will have the right to apply permanently.
