Success tips when doing business in Latvia in 2023
- Entrepreneurs must prepare a substantial study of Latvian markets. It should include i) an understanding of different market demands & changes ii) a strong feasibility study and iii) research on local competition;
- We advise our Clients not to engage in businesses that rely on the Russian market. Russia has repeatedly imposed embargos on products from the EU;
- “Hello” in Latvian is “sveiki” and “thank you” is “paldies”;
- Latvian business meetings follow strict hierarchy. Follow the pre-written agenda and do not interrupt the leading speaker;
- Alcoholic beverages might be served during business meetings;
- Be careful of your reputation. Due to the small size of the markets, all competitors know each other well and negative remarks and other comments can spread very rapidly;
- Clients should be careful when dealing with business partners from different ethnicities. Underlying ethnic tensions could mean Russian businessmen are unwilling to partner with Latvians and vice versa;
- If you consider doing business in Latvia, you might as well expand your business in the neighboring Baltic states, due to their high interconnectivity;
- You should always carry your business card, preferably having a translation in Latvian and Russian on the back;
- During your business conversations, try not to enter into debates about World War II with Latvians, as it is a very sensitive subject for them.
Interesting facts about Latvia?
- Latvia has been a member of the United Nations since September 17th, 1991. In 2004 the country joined the European Union and NATO, and in 2014, it joined the Eurozone;
- Latvia’s most developed industries include i) woodworking ii) metalworking and electronics iii) transportation and logistics iv) information technology v) life sciences vi) healthcare services and vii) greentech;
- The official, and most used language of Latvia is Latvian and Russian is the second most common language;
- Latvia is in many ways very modern. You can do your tax declaration online, and the tax regime is very simple;
- Latvia is one of three countries known as the “Baltic States”. The other Baltic State countries are Estonia and Lithuania;
- Latvia was one of the most economically well-off and industrialized parts of the Soviet Union. The country declared its independence from the Soviet Union, along with the other two Baltic States on 21 August 1991;
- Christianity is the largest religion in Latvia, although only 7% of the population regularly attend church services;
- About one third of the Latvian population resides in the capital city of Riga;
- Latvia is a relatively safe country, with decreasing crime rates and overall courteous drivers, according to the US Bureau of Diplomatic Security;
- Compared to most European countries, Latvia has a great number of state-owned companies. There are more than 140 state-owned companies amongst which the largest ones are providers of infrastructure services.
Frequently asked questions
What is the minimum required capital for starting a Latvian LLC?The minimum required capital for Latvian LLC is equal to US$4,000 and for Latvian PLC is equal to US$50,000.
What is the timeline for Latvia business registration?Latvia business incorporation process takes up to 6 weeks for completion.
Can an LLC be 100% foreign owned in Latvia?Yes. Non-resident shareholders can own all types of Latvian business entities.
How many shareholders are required for LLC business setup?Only one shareholder is required for LLC setup in Latvia.
Will Lativan residence permit help me obtain Shengen visa?Yes. Healy Consultants assists foreign entrepreneurs obtain a residence permit in Latvia, securing Schengen visa.
What are the advantages to Latvia Special economic zone?Companies incorporated in any of Latvia’s 4 SEZ’s receive 80% rebate on taxes, including: i) corporate income tax; ii) real estate tax; iii) withholding taxes and iv) management fees.
How would you rate Latvia's corporate banking services?Latvia’s banking facilities are generally of moderately high standard.
Where can I view Latvia related video?View Latvia country attractiveness video Micro-management: why small businesses are flourishing in Latvia – business planet
Do you need to visit Latvia for business registration?No. It is possible to incorporate a new business in Latvia without the need of personal travel. Healy Consultants optimizes Client’s costs and provides complete incorporation service for result-oriented entrepreneurs.