ITEUS      
  ITEUS  
   

English   Latviski   По-русски

 
 

Law Office

Legal support

Company Registration

 

Information Technologies

Website's creation

 

 

Contacts

 

Alx Creative Lbboratory - Alexander Shcherbin

Company Registration

We provide services on preparation of constituent documents and changes in them with their further registration in the Commercial register that is managed by Register of Enterprises of the Republic of Latvia.
This implies registration of all kinds of companies, organizations and societies, changes of the constituent documents, reorganization, company liquidation, including the insolvency proceedings, as well as other issue resolutions.

You have decided to open your company or sell part of the business. What should you do for this?
Contact us for appointment by phone +371 29298684 or send us an e-mail. In this way you will avoid unnecessary troubles and save your time, since distance collaboration is possible by using modern means of communication.

 

Registration rates (VAT 21% is not included)

 

Limited liability company (LLC)

Limited liability company – one of the most popular and democratic form of commercial activity in Latvia. Number of founders: from one and more. Board: from one member of the board and more. Founders and members of the board can be not only citizens or residents of Latvia, but also citizens of other states.

Now it is possible to register two types of LLC:

1) LLC with a “small capital”*        fixed capital – from €1,00 to €2799,00:

- service costs – from €70,00;

- state duty – €21,34 (registration within 4–5 working days);

- publication in the "Latvijas vēstnesis" newspaper – €14,23.

*features:
founders and shareholders – only natural persons (up to 5);
composition of the board – 1 and more (chosen only from shareholders of LLC);
each LLC  shareholder is a party to only one LLC with "small capital";

2) "ordinary" LLC – fixed capital from €2800,00 and more:

- service costs – from €85,37;

- state duty – €142,29 (registration within 4–5 working days);

- publication in the “Latvijas vēstnesis” newspaper – €27,03.

Faster registration of LLC is possible.

 

Joint-stock company (JSC)

A joint-stock company – it is less popular and more regulated form of commercial activity in Latvia. Number of founders: from one and more. Board: from one member of the board and more. In addition to the Board, the Council is required; the number of the members of the Council should not be less than 3 and no more than 20.  Fixed capital – from €35000,00. The activity of JSC with publicly traded shares is regulated more strictly.

- Service costs – from €280,00;

- state duty – €355,72 (registration within 4–5 working days);

- publication in the "Latvijas vēstnesis" newspaper – €27,03.

Faster registration of JSC is possible.

 

Individual merchant

An individual merchant – a natural person who is engaged in commercial activities and who is responsible for his/her liabilities with his/her personal property. Has its own name and registration number, but it is not a legal entity.

- Service costs – from €45,00;

- state duty – €28,46 (registration within 4–5 working days);

- publication in the “Latvijas vēstnesis” newspaper – €18,50.

 

Associations (NGOs) and Foundations

Associations (formerly known as non-governmental organizations) – a voluntary association of persons established for the purpose that is not related to a profit-making. Foundations – the aggregate of property, which is provided by a founder for the purpose that is not related to a profit-making. Both have a status of a legal entity.

- Service costs – from €215,00;

- state duty – €11,38) (registration within 10 working days).

 

Branch of foreign merchant with the rights to carry out business activities in the Republic of Latvia

Branch of foreign merchant – an organizationally independent unit, which is separated territorially from the main enterprise, and which on its behalf conducts commercial activities on the regular basis. The main enterprise is fully responsibility for the activities of the branch. In the Register of Enterprises of the Republic of Latvia it is necessary to submit registration documents of the foreign merchant or organization (certificate or extract from the register), as well as a document that confirms the decision to organize a branch in the territory of Latvia and that contains a power of attorney for a specific person to represent foreign merchant’s interests during registration in Latvia.

- Service costs – from €280,00;

- state duty – €28,46 (registration within 5–7 working days);

- publication in the “Latvijas vēstnesis” newspaper – €18,50.

Faster registration of a Branch is possible.

 

Representative offices and representatives of foreign merchants and public organizations incorporated abroad without the rights to carry out business activities in the Republic of Latvia

Representative offices and representatives of foreign merchants and public organizations – do not have a status of a legal entity and do not have rights to engage in commercial activities. Usually, the opening of a representative office is necessary for a foreign merchant advertising, marketing and representation of a foreign merchant or organization in the territory of Latvia. In order to register the representative office, one has to submit to the Register of Enterprises of the Republic of Latvia the registration documents of a foreign merchant or organization (certificate or extract from the register), as well as a document that confirms the decision to organize a representative office in the territory of Latvia and that contains a power of attorney for a specific person to represent a foreign merchant’s or organization’s interests in Latvia.

- Service costs – from €280,00;

- state duty – €28,46 (registration within 14 working days) or €85,37 (registration within one working days).

Faster registration of a Representative Office is possible.

 

The reorganization of A limited liability company (LLC) or A joint-stock company (JSC) – consolidation of companies (acquisition, merger), division of companies (separation, split-up) or restructuring:

service costs – from €250,00 (depends on the type of reorganization);

- state duty – depends on the type of reorganization.

The cost is specified at order acceptance.

 

Changes in the registration documents:

- service costs – from €55,00 (depends on the number of changes);

- state duty – depends on the number of changes;

The cost is specified at order acceptance.

 

 

Additional information

LLC (SIA) – Limited liability company
Advantages of LLC:

  • it is a legal entity;
  • owner’s liability is limited to investement in the fixed capital;
  • simple procedures for the establishment;
  • it is not necessary to come to Latvia in order to register the Latvian company;
  • 100% ownership by foreign persons is possible (including offshore company);
  • simplicity of administration (can be managed by one person);
  • no requirements for the presence of a local director;
  • corporate income tax rate of 15%;
  • fixed capitalstarting from €1,00.

Company taxation in Latvia
Main taxes:

  • Corporate income tax

Rate of 15%.
Taxable income includes received income with the deduction of expenses related to the business activities, and is adjusted (increased or decreased) in the manner prescribed by law.

  • VAT

Rate of 21%.
The VAT systemis common to allEU-countries. Reporting period – a calendar month.If the sumof taxable transactionsexceeds35000LVL a year, registration as VATpayeris obligatory; prior to reachingthis limit-is voluntary.Declaration oflocalVATtransactionshas to be submittedbefore20th day ofthe month followingthe reporting month.

  • Personal income tax.
    Rate of 24%.
    The tax from the employee’s income is withheld and transferredto the budgetby the employer.
  • Mandatorypayments of state social security contributions.
    Rate of 35,09%; of which 11% are deducted fromthe employee's income, and 24,09% arepaid by the employer.
  • The tax oncapital gains.The resultingincome is included inthe totalincome, which is subject tocorporate income tax.

Income tax withheldfrom payments to non-residents of Latvia:
- dividends – 0%;
- payments for consultancyand management services – 10%;
- interestfor associated parties – 10%;
- royalties – 5% or 15% depending on the type ofintellectual property;
- feefor the useof propertylocatedin Latvia – 5%;
- fee foralienation ofimmovable propertylocated in Latvia – 2%.