Setting up a company in Latvia is much faster than in Germany (takes place within one week) and often also completely “remotely” for you. That means you don't have to be on site for every step.

There are the following options for setting up a company:

1.       Individual entrepreneur

2.       Partnership

3.       Limited Liability Company/GmbH in Germany and in Latvia – SIA

4.        Joint-stock company 

5.       Branch or representative office

By far, the most popular form of company is the GmbH (SIA). The required share capital is 2,800 EUR and should be paid into the account when the company is founded. In this case, we will take care of a suitable account for you, the correct registration, the tax issues at the beginning as well as the necessary appointments with notaries and, if necessary, authorities. 

0% CORPORATE TAX ON UNPAID PROFITS 

Latvia waives corporate income tax if the profits of a SIA (GmbH) are not paid out. This is primarily intended so that you can build up cash flow within the company, invest or keep it as a reserve in the company. 

FURTHER ADVANTAGES OF ESTABLISHING A COMPANY IN LATVIA

•          0% tax on the distribution of non-taxable profits

•          High reputation of the Latvian corporations worldwide

•          Dividend payments for persons with tax assessment in Latvia are tax-free (also from foreign companies)

•          No auditing (taking into consideration threshold values)

•          No residence requirement for the managing director of a SIA 

•          Legal persons are possible as managing directors

•          Corporate law is considered liberal

•          Double taxation agreements with numerous countries outside the EU

•          Ideal location for expansion into Eastern Europe or Russia

•          Money laundering regulations in the European average

•          Authorities focus on a formal perspective and are therefore predictable

•          Currency EUR, EU zone

•          English language is widely spoken

•          Very well trained, multilingual workforce

•          Economy is diversified and has a strong IT and financial sector

•          Good flight connections within the EU from Riga (over 80 direct flights)