Corporate tax rate in Latvia is 15%
Company registration in Latvia offers an attractive tax regime and the opportunity to open a bank account.
Advantages of using Latvia as your jurisdiction of choice:
- Share capital can be €1;
- Corporate tax rate is 15%;
- Dividends received by a Latvian company from foreign sources, and the dividends that are sent out of the country, are not taxed. An exception is made for countries in the state’s “black list”;
- No residency requirement for shareholders and directors of a Latvian company;
- No controlled foreign corporation rules;
- Subscribers can be corporate persons;
- Minimum number of directors is one;
- Simplified procedure for obtaining VAT number and tax resident status;
- Remote bank account opening is possible.
Price structure for company formation in Latvia
|Necessary paperwork for company registration||✓||✓|
|Government fees & publication in the official gazette||✓||✓|
|PRICE||from €600||from €1200|
What documents will you receive upon company registration?
- Articles of Incorporation or Resolution regarding company formation in the case of a single subscriber;
- Articles of Association;
- Register of Members;
- Register of Enterprises Resolution about company registration;
- Corporate documents package, certified by the Register of Enterprises, must be paid for in addition.
What do you need to form a company in Latvia?
Give us a call, or drop us an email, and we will be glad to detail all the requirements for you.
Taxation and statutory requirements at a glance
Latvian companies have a corporate tax rate of 15% on worldwide income.
Annual accounts are due by the 30th April at the latest. Audit is required if two out of the following three conditions apply:
- Company’s turnover is equal to or greater than €600 000;
- Company’s net turnover equal to or greater than €800 000;
- The average number of employees at the company during the reporting year was over 50.
Additional information about Latvian companies
When forming a company in Latvia, payment of 50% of €2800 authorised share capital needs to be made. There is an option of forming a company with a share capital of €1, but in that case the following conditions apply:
- The company cannot have more than five subscribers;
- All shareholders are also members of the board;
- Subscribers can participate only in one company with a share capital of €1 at a time;
- A company with a share capital of €1 must reserve at least 25% of its profits annually.