Immigration to Latvia through company formation in Latvia

Riga – The capital of Latvia is the prettiest European City

10best readers choosed Riga as the prettiest European city.

Riga, the capital of Latvia and the 2014 European Capital of Culture, is only beginning to get the attention it deserves. The “Gem of the Baltics” combines a pulsating big city vibe with a UNESCO-listed Old Town and one of Europe’s richest cultural scenes. Architecture buffs will recognize Riga as home to Europe’s largest collection of Art Nouveau buildings.

The winners in the ‘Prettiest European City’ contest category for 10Best Readers’ Choice are as follows:

1. Riga, Latvia
2. Bergen, Norway
3. Innsbruck, Austria
4. Dubrovnik, Croatia
5. Chester, England
6. Prague, Czech Republic
7. Budapest, Hungary
8. Santorini, Greece
9. Venice, Italy
10. Bruges, Belgium

Latvia is also one of the best places where to set up business in Europe, because there are one of smallest tax weight in whole EU. More about company formation you can read on section Company formation.

Issuing the Parity Coin

On 6 November, the Bank of Latvia issued a new special 1-lats circulation coin, the Parity Coin, featuring the exchange rate of the lats to the euro on the reverse. It is legal tender in the Republic of Latvia. These coins will be put into circulation like any other circulation money, reaching commercial and other enterprises as well as population through banks.

The Bank of Latvia commenced minting special 1-lats circulation coins 12 years ago, and theParity Coin concludes the cycle. As of 1 January 2014, Latvia will introduce the euro and become a fully-fledged member of the Economic and Monetary Union; nevertheless, the tradition to issue special circulation coins will continue. A coin with an image of a stork opened the series, and since 2004 a new coin to mark a special occasion has been put into circulation twice a year. The Parity Coin is the 23rd special 1-lats circulation coin.

Some deals can be already done in euros, for example, share capital of Latvian company can be expressed now also in euro. More you can read section on company formation in Latvia.

The central motif of the Parity Coin resembles a tree trunk keeping roots and branches, the earth and the sky together. It symbolises a road leading to new challenges, dreams and opportunities.

The reverse of the new 1-lats coin shows a symmetrical mirror image of numeral "1", a component of the inscription "1 LATS" and "1,42 EIRO". The obverse displays the number 2013, the year of minting, below the coat of arms of the Republic of Latvia. In terms of edge, size, metal or weight, there are no other distinctive features between the new coin and its other 1-lats circulation counterparts.

The total circulation of the coin is 500 000, and, like all other special 1-lats circulation coins, it will not be supplemented.

Latvia's unemployment level is the lowest since the crisis

Latvia’s level of unemployment was 9.1% of the total number of economically active residents, as noted by Director of State Employment Agency Inese Kalvāne.

In her interview to Latvijas Radio, she noted that Latvia’s unemployment level is relatively low. “Ever since the end of beginning of the crisis, the level of unemployment in Latvia has reduced two times,” – she said.

“People tend to find jobs more easily this year – there were 79 thousand people who registered as unemployed persons throughout 2013. 95 thousand people had lost their status of unemployed person. 63.1% of them lost this status because they managed to find jobs,” – she said.

She reported that unemployment levels of Latvia’s regions differ. The situation is the best in Riga and Ventspils (7.6%). Liepaja’s unemployment level is slightly above average – 9.2%.

Kalvāne also added that more than 1,000 people could end up jobless in Liepaja because of the insolvency process at Liepājas metalurgs.

More than 120 former employees of LM have registered at SEA as unemployed persons. Other formed employees of LM are advised to do the same. According to Director of SEA, this will increase their chances of finding jobs. The situation in Liepaja does not provide for many vacancies related to metallurgy. SEA has met with the current Board and trade union of LM to discuss the employment situation. “We have reached an agreement on the necessary course of action when the insolvency process has been completed: what people should do, when they should come to SEA, how to register, what they should know about the services available to them,” – Kalvāne explained.

Advantages of company in Latvia

  Latvia is full member if European Union.

  Incorporating the Latvian company you will get European enterprise. Latvian company has all advantages and possibilities of business in European Union. Latvia is new country and legislation system is more liberal than in other EU countries and process of incorporating Latvian company is much easier, cheaper and also faster. If there will be just one founder, incorporating of company takes just one day.

   Tax benefits

 Tax system in Latvia is one of best and gentle between countries in EU. For example, if you form a company in Latvia, from profit you pay just 15% Corporate Income tax. See tax comparison.

 Value added tax (VAT) 0% is applied to purchase and sale deals between Latvian companies and other EU countries companies. VAT 0% rate is also applied to the various of services provided by Latvian companies to EU companies and from third countries. 

 Dividends you get from activity of Latvian company is non-taxable in case of company's founder is the legal person which is a resident of EU country or European Economic Area.

  Short time registration of a new company

 If there is just one founder of company, registration is just one day from the day when application form is submitted and equity capital is formed. Minimum share capital is 3090 Eur and at least half must be paid up before registration. If there is more than one founder registration is up to 5 days.

  Any foreign person can be a fonder of Latvian company

 There is no restrictions to establish, own or manage Latvian company for non - residents. Owners and managers can be individual persons as well as legal persons.

  Your attendance is not necessary !

 You can form a Latvian company without visiting Latvia. To incorporate and manage your company can person or company authorized by you with Power of attorney. 

  Easier order of entering and residence in EU !

 Latvia is a member of Schengen Agreement. It means that Latvian residence permit allows you to enter and leave the country unlimited number of times during the period residence permit is valid, as well as travel free over the countries of Schengen Agreement (with rights of residence up to 3 months in 6 months period, without working permit in those countries).

 The position of board member or council in Latvian company, status of individual merchant or sole founder of company enables to get the residence permit in Latvia for 1 up to 5 years.  

 More on www.register-company.lv

Bank of Latvia issues “Parity Coin” – last of the special 1-lat coins

The new coin will be legal tender in Latvia. The coins will be put into circulation like any other circulation money, reaching commercial and other enterprises as well as population through banks.

 The coin has been designed by Ilmars Blumbergs and the model made by Janis Strupulis. The new one-lat coins are struck at Munze Osterreich (Austria).

 The Bank of Latvia commenced minting special one-lat circulation coins twelve years ago, and the “Parity Coin” concludes the cycle. As of January 1 next year, Latvia will introduce the euro and become a full-fledged member of the Economic and Monetary Union; nevertheless, the tradition to issue special circulation coins will continue.

 A coin with an image of a stork opened the series, and since 2004 a new coin to mark a special occasion has been put into circulation twice a year. The “Parity Coin” is the 23rd special one-lat circulation coin.

 The central motif of the “Parity Coin” resembles a tree trunk keeping roots and branches, the earth and the sky together. It symbolizes a road leading to new challenges, dreams and opportunities.

 The reverse of the new coin shows a symmetrical mirror image of numeral “1″, a component of the inscription “1 LATS” and “1,42 EIRO”. The obverse displays the number 2013, the year of minting, below the coat of arms of the Republic of Latvia. In terms of edge, size, metal or weight, there are no other distinctive features between the new coin and its other one-lat circulation counterparts.

 The total circulation of the coin is 500,000, and, like all other special one-lat circulation coins, it will not be supplemented.

Latvia is recognized as the best country for business in The Baltic states

Latvia is recognized as the best country for business in The Baltic states

Bloomberg has put Latvia in 36th place in the list of the best countries where to make business and it is 8 places lower than year before. And it is still better than to neighbours - Lithuania and Estonia.

All countries are evaluated by 6 factors:
- integration level of economics;
- business start-up expenses;
- expenses of labour and materials;
- transportation expenses of goods;
- less touchable expenses;
- readiness of consumers.
For each factor there there is evaluating for 0 to 100%.

Total result of Latvia is 63,5%. The best evaluating to Latvia is for factor - business start-up expenses - 74,7%, but the smallest one is for less touchable expenses - 53,9%. Integration level of economics evaluating is 60,6%, expenses of labour and materials - 61,5% and readiness of consumers -61,7% and transportation expenses of goods - 66,3%.

Lithuania is put in place 37 with total result - 63,1%, and Estonia is put in place 43, with totalresult 62,2%. Previous year Lithuania was in place 40 and Estonia in place 34.
There are collected data of 50 countries in the world in Bloomberg reiting and the highest result was given to Hong Kong - 79,6%.

The top ten countries are - USA, Japan, The Netherlands, Germany, Australia, Canada, Singapore, Denmark and United Kingdom.

So if you are interested to start business in Latvia, read more on company formation.

IMF: Latvia rebounds vigorously despite problems in EU

Latvia continues to rebound vigorously from the deep downturn in 2008–2009, despite recession in the euro area, states a Public Information Notice released by the International Monetary Fund (IMF), informed BC the Latvian Institute.

The Public Information Notice goes on to add that Latvia’s banking system returned to profitability in 2011 and is well capitalized.
 The country is well-positioned to meet all the Maastricht criteria in 2013. Joining the euro would remove residual currency risk, adding stability to the Latvian economy.
IMF believes the economy continues to recover strongly, inflation has fallen sharply, and the current account deficit is modest. While the medium-term economic outlook is favourable, risks are tilted to the downside because of the uncertain external environment. Directors emphasized the need for continued strong policies to safeguard financial stability, tackle persistently high structural unemployment, and strengthen potential growth.
 Directors commended the authorities’ remarkable fiscal adjustment and welcomed that the 2013 budget appropriately consolidates the fiscal gains, holding the budget deficit well below the Maastricht criterion. Directors agreed that structural fiscal reforms, including timely passage and effective implementation of the Fiscal Discipline Law, will be crucial to strengthening fiscal sustainability.
 The Directors also agreed that the case of Latvia shows the importance of adequately accounting for real-financial linkages in estimating the impact of financial stress on real activity and in program design.
In its latest report, the International Monetary Fund lauds Latvia's strong economic recovery and early repayment of the entire loan. Latvia’s early repayment of all outstanding obligations to the IMF following the successful international bond issuance reflects renewed confidence in the economy and the authorities’ policies, points out the IMF.

The Fund urges the authorities to keep the lowering of the Guaranteed Minimum Benefit and the decentralization of its financing under close review to ensure that the system continues to provide adequate support to the most vulnerable and avoids deepening regional disparities. While some IMF directors see merit in the planned cuts to the personal income tax in order to improve work incentives, others urge caution given concerns about equity and fiscal space, and highlight the need for compensatory measures.
 The Fund welcomes the authorities’ strong commitment to euro adoption and commends the progress towards meeting the Maastricht criteria. It notes, however, that continued strong implementation of structural reforms will be necessary to address high structural unemployment and enhance competitiveness.

According to the report, priorities for action are reforms to the judicial system, the governance structure and transparency of state-owned enterprises, and the quality of higher and vocational education

Increased minimum parenting benefit in Latvia from 01.01.2013. - 100,00 Lats

Since 01.01.2013. minium parenting benefit is increased from 63.00 up to 100.00 Lats - it s according to changes in Law on Maternity and Sickness insurance.
Increasing of parenting benefit is just a part from wider complex of improving actions of demographical situtation and starting from January this year minimum parenting benefit to all parents who takes a care of child up to 1,5 years is 100.00 Lats (150.00eur).
According to calculations of ministry - this year there will be necessaary 260 thousands lats for 900 persons this year.
There are also new regulation in civil law for persons who plan to marry. There wil not be necessity to mke publication one month before about wedding - it is because wedding is private and it is not necessary to distribute this information to others.
Starting from this year it is possible to get maried in any place(before ot was possible only in church or civilregistry office), so now young people will be able to married in nature or in museum or at their home.
These and other important changes are necessary because Civil law is made in 1937 and they are too old and can't satisfy necessity of new generations.