Business Start-Up Costs in Latvia
Business Start-Up Costs in LatviaUpdated on Friday 21st August 2015
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Latvia is a small country with business regulations meant to attract foreign investments and that's why the incorporation process of a company is very quick and simple. Business start-up costs are also quite competitive compared with costs in other European countries.
Company formation steps in Latvia
The first step for setting up a company in Latvia is to choose a name for the company and submit it with the Trade Register for approval. Once the name was approved, the investor can go on with the registration process and draft the articles of association of the company.
Foreign investors must also open an account with a Latvian bank and deposit the minimum share capital for opening a business. The minimum share capital depends on the type of company selected and can influence the start-up costs. If all documents have been prepared and the share capital deposited, the investor can submit the registration file with the Latvian Company Register.
Following this procedure, the incorporation certificate will be issued and the company must register for taxation purposes before commencing its activities. The company will also have to register its employees with the State Revenue Services.
Types of companies in Latvia
Foreign investors can choose the type of company they want to register in Latvia:
- - the most common type of Latvian company is the limited liability company because it requires start-up capital of approximately 3,000 euros of which half must be paid upon the incorporation. Other requirements for a limited liability company in Latvia are that it must have at least one shareholder and one director and it must also have a registered office;
- - the Latvian joint stock company is choosen by larger enterprisers as it requires a minimum share capital of approximately 36,000 euros that must be paid in advance;
- - Latvian general and limited partnerships that do not require a start-up capital;
- - branch offices, subsidiaries or representative offices for foreign companies.
Costs related to company registration in Latvia
The incorporation process of a Latvian company is quite simple and it takes about two weeks. When registering a company in Latvia, the following costs must be considered:
- - drafting and notarizing the articles of association of the company,
- - opening the bank account,
- - company registration with the Latvian Commercial Register,
- - the registration for VAT purposes.
Additional costs may be implied depending on the type of company clients want to set up, but our Latvian lawyers can provide all the details related to business start-up costs.