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

Company formation*	✓	✓
Necessary paperwork for company registration	✓	✓
Government fees & publication in the official gazette	✓	✓
Registered address	✓	✓
PRICE	from €600	from €1200

*Base price includes opening of a temporary bank account for capital

What documents will you receive upon company registration?

1. Articles of Incorporation or Resolution regarding company formation in the case of a single subscriber;
2. Articles of Association;
3. Register of Members;
4. Register of Enterprises Resolution about company registration;
5. 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 30^th April at the latest. Audit is required if two out of the following three conditions apply:

1. Company’s turnover is equal to or greater than €600 000;
2. Company’s net turnover equal to or greater than €800 000;
3. 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:

1. The company cannot have more than five subscribers;
2. All shareholders are also members of the board;
3. Subscribers can participate only in one company with a share capital of €1 at a time;
4. A company with a share capital of €1 must reserve at least 25% of its profits annually.

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