| Legal System |
Romano-Germanic legal system. |
| The System of the Common State Registrar |
The company records (name, registration date, shareholder, director, address) are kept by the public registry.
The registering authority is Latvian Republic Registrar of Companies. (Latvijas Republikas Uzņēmumu reģistrs). |
| Registration Procedure |
Documents are submitted to the Registrar on paper.
The beneficial owner is not required to be present at the registration and filing procedures.
Before filing an application for registration, a temporary account is opened in a Latvian bank for a contribution to the authorized capital.
After the registration of the company reissued by the constant. |
| E-Registration |
Not available. |
| Pre-incorporation Procedures (statement of compliance, affidavit, etc) |
Available. |
| Company Name |
Prior approval of the name is required. he name may be in a language that uses the Latin alphabet.
Company name must be ended in SIA or Sabiedrība ar ierobežotu atbildību.
There are limits on the use of word "Latvia". |
| Incorporation Documents |
Memorandum & Articles of Association. Original documents shall be drawn up and kept in the Latvian language. |
| Share Capital |
The minimum of share capital is EUR 2800.
Bearer shares are not allowed.
Before the presenting documents on registration it is necessary to pay the half of state regulation capital at least.
Remaining part of the sum must be paid over year from company registration.
The share capital is paid by money and/or property deposit.
The share capital is from EUR 1 to EUR 2799 if:
- there are no more than 5 shareholders - physical persons (residents or non-residents);
- all founders are the members of rule;
- participants at the same time are only in one company with a capital less than EUR 2800.
|
| Beneficial Owner |
The beneficial owner can be any physical person. |
| Shareholder |
At least one shareholder (physical person or legal entity).
Transfer of shares into trust and use of nominee shareholder is not allowed. |
| Director |
Minimum of one director. The director may be a physical person. |
| Secretary |
Not required. |
| Registered office |
A registered office in Latvia is required. |
| Residency |
Is determined by the place of management of the company. |
| Income Tax |
20% |
| Taxes on Dividends |
0% |
| Taxes on Capital Gains |
2% |
| Taxes on Interest |
0% |
| Tax Withheld at Source |
0% on dividents.
Percent with related parties – 10%.
Royalties– 5% or 15% depending on the type of intellectual property. |
| VAT |
21% |
| Specific National Taxes and Levies |
None. |
| Reporting |
Each month and year is fully reported in accordance with the IFRS. |
| Audit |
Required annual audit at exceeding any 2 from next terms:
sum of balance – EUR 400 000;
net amount – EUR 800 000;
amount of workers in a year – 25. |
| Cost Accounting Rules |
Costs must be justified and documented. |
| Tax Administration |
In accordance with the requirements of the law. |
| Use of Tax Treaties |
Over 50 countries. |
| Terms of Use of Tax Preferences |
Tax residency. |
| Controlled Foreign Corporation in Jurisdictions with Low Tax (CFC) |
Not Applicable. |
| Disclosure of Information |
There are official channels of information disclosure. Information about beneficiaries is revealed by the decision of a Court or general prosecutor. |
| Language |
Latvian. |
| Registration of Company |
From EUR 2 550. |
| Administration of Company |
From EUR 2 400 per year. |