Company formation in Latvia creates an opportunity to trade with both European companies and the companies in the Eastern markets. Latvia as the European Union member country provides Latvian companies access to the European Union markets. Latvia’s competitive advantages: convenient geographical position and knowledge of Russian language and markets, provide opportunities to penetrate the Eastern market, as well.
Latvia has introduced a lot of tax incentives which makes Latvia competitive to other European countries. Including the low corporate income tax – 15%, as well as the participation exemption rules, allowing tax exemption for the capital gains arising from the sale of shares (holding company regime).
Latvian laws are friendly for the business and provide equal treatment of the foreign and local investments. Latvia has supportive business environment, providing access to reliable and skilled workforce and developed infrastructure in line with international standards and lower business expenses compared with many of the European countries. Furthermore, World Bank’s Doing Business Survey 2014 has ranked Latvia as the world’s 24th easiest place to do business.
The establishment of a company in Latvia sometimes provides an opportunity to minimize business administrative costs and to streamline the business processes. Combination of favorable tax regime with the holding company structures provides tax saving opportunities and tax efficient profit repatriation.
Prior to the company establishment our team will help you to discover the opportunities that Latvia can provide to your business, help to gain the necessary information about company formation and applicable taxes and give an insight into all other requirements for doing business in Latvia.