The advantages of Latvian companies

The advantages of Latvian companies

Latvia in the center of Europe is a highly attractive destination for several reasons.

Attractions

1. European Union membership - An open market economy - a secure business environment
2. An excellent geographical location in the center of Europe between Scandinavia, Russia and Western Europe
3. Highly skilled and professional labour force with fluent international communication in English and Russian
4. A business friendly environment: One of the lowest tax rates in the Europe
5. Schengen Area membership, free travel within Europe
6. Daily flight connections to the major business centers in Europe

Latvia is a EU member

EU membership is the most important advantage. When incorporating the Latvian company, you get all the advantages and possibilities of European Union business at once. The more, Latvia is a rather new country and the legislation system is more liberal than in the other EU countries. In meaning, that all the process of incorporating the Latvian company is much easier, cheaper and also faster in comparison with the other EU countries. This advantage relates to the rest of Baltic states - Lithuania and Estonia, as well.

Latvia - Schengen Agreement member

The Schengen Agreement membership gives Latvia a major advantage. By this agreement, a Latvian residence allows to enter and leave the country without passport controls. If you are a company founder, you may get Latvian residence permit for 1 to 5 years.

Latvia - tax friendly country

Attractive taxes. In addition, remarkable is the fact that Latvia has one of the best and gentlest tax system in Europe. For example, the corporate income tax rate is fixed at 15% which is one of the lowest in the EU. There is no dividend tax when dividends are paid out to corporate shareholders (except tax havens). Micro-enterprises pay 9% tax from the annual turnover. These are just some of the "attractive" Latvian taxation examples.

Easy business environment and rules

Furthermore, the company formation in Latvia is very easy and little effort and time consuming. Not for nothing, Latvia is ranked 21st in the world for ease of doing business (World Bank report). The main reasons for it:

1. The registration of a company is processed by the company register in just three business days.
2. No restrictions in owning or managing the Latvian company. You can be both individual and legal person to run the company. The same relates if you are not a resident. If you are non resident, the same laws and rules apply to you, as well as they apply to local residents.
3. You don't need to be present all the time, you actually can build a company from a distance.
4. A transparent legal and judicial system, lawful treatment to foreign investors;

Euro in 2014

On a final notice, Latvia has entered the euro zone on the 1.1.2014 and will adopt the Euro as its currency.