Latvia Company Formation

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ENGAGEMENT COSTS

Year 1 incorporation US$7,100 *

Annual fees from Year 2 US$3,600 *

Nominee director fee
US$1,800 **

Company de-registration
US$1,450

* Fee based on a capital of Includes government licence fees, registered office for 12 months, Company secretary fees for 12 months

**Excludes US$1,100 refundable deposit.

Latvia company formation assists our clients to legitimately conduct business in Latvia, the Baltic States and the European Union (EU). The following information will help you determine whether Latvia company formation is the optimum corporate structure to fulfill your international business objectives:

Advantages of Latvia Company Formation

If properly structured, a Latvian company can act as a tax-efficient subsidiary for an EU parent company under the terms of the EU Parent/Subsidiary Directive. 100% foreign ownership is permitted with Latvia company formation.

A minimum of one shareholder and one director is required for Latvia company formation. Corporate shareholders are permitted. Corporate directors are not permitted. The need for a resident director has been abolished.

A Latvian company can access the double taxation treaties Latvia has signed with countries including Canada, China, France, Germany, Ireland, Singapore, the UK and the US. In addition, a Latvian company is entitled to tax reductions of up to 40% for investment in state-supported projects.

Latvia is positively ranked as the world's 27th easiest place to do business, according to a World Bank's Doing Business 2010 Survey. In addition, in the 2010 Index of Economic Freedom by the Heritage Foundation, Latvia ranks highly as having the world's 50th-freest economy, and scores at 80% in terms of investment freedom and capital flows.

Latvia ranks a positive 48th on the United Nations Human Development Index for its high overall life expectancy, literacy, education and living standards.

It is easy to open global corporate bank accounts to support Latvia company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Disadvantages of Latvia Company Formation

The minimum registered share capital for Latvia company formation is LVL 2,000 (US$3,620). This fee must be paid to the Latvian Registry of Companies prior to Latvia company formation.

A Latvian company is subject to a corporate tax of 15% (one of the lowest in the EU) and a withholding tax of 10%.

Monthly tax reports must be submitted to the State Revenue Service following Latvia company formation. Annual financial statements must be submitted to the Latvian State Revenue Service following Latvia company formation. The accounts must be audited if annual turnover exceeds US$380,000.

All documents required and issued by the Latvian authorities is in Latvian. Documents in another language must be translated and notarised before submitting to the authorities.

Directors' details are available on a public register following Latvia company formation.

The company does not issue share certificates and registration of the shareholders is recorded in the "Shareholders Register".

Latvia negatively ranks as the 56th least corrupt country in the world, according to the 2009 Corruption Perceptions Index by Transparency International.

For more information on Latvia company formation, email email@healyconsultants.com or call (+65) 6735 0120.

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