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Legislation of Latvia

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List of state regulatory authorities

Companies Registry
Ministry of Economy
Ministry of Finance
Ministry of Justice
Notaries Association
Latvijas Banka
Financial and Capital Market Commission
Competition Council

Corporate info

Legal system
civil law
Types of entity
limited liability company (SIA); joint stock company (AS); representative office; branch; general partnership; limited partnership
Shelf companies permitted
No
Incorporation timescale for a new company
4 days
Company suffix
SIA
Sensitive words
“state” and “autonomy”
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
Yes
Information to be kept at the registered office
copies of incorporation documents, information about changes, contacts of authorized representatives
Seal required, type of seal
not required
Redomiciliation (to, from) permitted
not permitted

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
No
Directors’ meetings/frequency/location
No requirements
Disclosure to local agent
No
Disclosure to public
No
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
Yes
Corporate secretary permitted
Yes

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
No requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
2000 LVL (~2820 EUR)
Minimum issued share capital
2000 LVL (~2820 EUR)
Minimum paid share capital
2000 LVL (~2820 EUR)
Authorized capital payment deadlines
1 year
Issued capital payment deadlines
1 year
Standard currency
EUR
Standard authorized share capital
2000 LVL (~2820 EUR)
Standard par value of shares
No
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
20-31%
Min. rate for corporate tax
20%
Corporate tax (in detail)
Income tax rate is 20%
Capital gains tax
Regular rate
Capital gains tax. Details
included into the corporate tax base
VAT
21%
VAT. Details
The standard VAT rate is 21%. Reduced rates of 12% and 5% apply to some goods and services
Withholding tax
0%/0%/0%
Other taxes
Social contributions, Real estate tax
Exchange control
No
Government fee
No
Stamp duty
2% (registration of property)

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
Requirement to file Annual Return
Yes
Publicly accessible Annual Return
Yes
Audit required
No

General information shortly

Location
Nothern Europe
Total area
64.589 sq. km
Population
1.908.100 (2020)
Capital
Riga
National currency
Euro
Conditional reduction of currency
EUR
Against USD
0,93 (2022)
Climate, average max and min t°
maritime; wet, moderate winters; avg. maximum temperature (July) +23°; avg. minimum temperature (January) -11°
Time difference from Moscow
No
Dialing code
+371
State language
Latvian
Ethnic groups
Latvian 57.7%, Russian 29.6%, Belarusian 4.1%, Ukrainian 2.7%, Polish 2.5%, Lithuanian 1.4%, other 2%
Literacy rate
99.9% (2019)
History
The history of Latvia dates back to the 3rd century B.C. when the first tribes, among which were Finnish, Slavic, and Baltic ones, came to this territory. By the 12th century a number of proto-states had emerged. At the end of the 12th century Latvia was conquered by crusaders. As part of the Livonian Order, it was called Livonia. Between 1561 and 1721 the territories of Latvia were part of the Polish-Lithuanian Commonwealth and Sweden. Following the end of the Great Northern War in 1721 the Russian Empire bought the territories of the present-day Latvia and possessed them until 1917. The independence of the Republic of Latvia was officially recognised in 1921. In September 1921 Latvia was admitted to the League of Nations. Latvia was a parliamentary republic from 1920 until the coup d’état in 1934. Karlis Ulmanis, Head of the Government, set the authoritarian regime in the country which continued until 1940. Latvia was part of the Soviet Union during the periods 1940 – 1941 and 1944 – 1991. With the beginning of Perestroika mass demonstrations took place. The Popular Front of Latvia called for independence. As a result, on 4 May 1990 the Declaration of the Restoration of Independence was adopted. In 2004 Latvia became a member of the European Union and NATO.
Credit rating
A+
Government type
Parliamentary democracy
Executive branch
Cabinet of Ministers
Legislative branch
unicameral Parliament Saeima
Judicial branch
Supreme Court, Constitutional Court
Unemployment
8.2% (2020)
GDP per capita rank
43 (2019)
Corruption perceptions index rank
57 (2018)

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The cost of opening an account, $
Global rating
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