Why to establish a company in Latvia:
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 has already been selected by a number of multinationals groups as a location for their shared service centers (finance, IT, back-office functions) due to certain non-tax attributes.
Due to the amendments in the immigration law, procedure and possibilities for obtaining a residence permit for European investors has become much easier.
Latvian banking system is relatively advanced and stable. All of the banks are operating based on the European system and banking legislation complies with the EU legislation.
For what purposes you can use a company in Latvia?
Latvian holding company regime is attractive since it has participation exemption and does not impose any restrictions for ownership of shares in the operating companies.
Latvian companies are used for the purpose of trading within EU and countries of CIS. Furthermore, the geographical position of Latvia and transport capabilities allow to use the Latvian companies as a hub for trading between the East and West.
Very often foreign groups establish in Latvia entities for the purpose of contract or toll manufacturing. The reason for this is motivated workforce, low costs and favorable tax regime for manufacturing entities.