Business support services in Latvia, EU

When you register company in start your Business in Latvia, sometimes there can be some difficulties to start it, for example, you need legal address in Latvia or you need virtual office, or you need to get necessary certificates, or open bank account remotely etc. So here you can find some of our Business support services. If you need any help, which is not mentioned here, please feel free to write and we will help you to start Business in Latvia.

 Most used Business support services are:
– Legal address;
– Bank accounts;
– Invitation for business visit to Latvia;
– Assistance in obtaining the necessary certificates;
– Translation services / language solutions;
– Insurance;
– Nominee director;
– Real estate search.

More about Business support services in Latvia you can read in sectioon on our website www.register-company.lv.

Criteria for a micro-enterprise tax registration in Latvia

The entrepreneurship must be implemented in the following forms:
• individual merchant;
• individual enterprise, farm or fish farm;
• natural person registered at the tax office as an performer of economic activities;
• limited liability company

and 
complying with the following criteria:
1) shareholders (if any) are natural persons. Shareholders of a limited liability company are natural persons – also act as members of the board; 
2) the turnover may not exceed 100.000,- eur in a calendar year; 
3) the number of employees may not exceed 5 (five) at any time not including absent or discharged employees.
4) income/ salary of one micro-enterprise tax company employee may not exceed 720,- eur per month
Employees are engaged in a micro-enterprise on the basis of an employment agreement. Both natural persons and legal entities must pay the micro-enterprise tax.

More you can read on our website: www.register-company.lv 

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. 

Introducing euro in Latvia

Government of Latvia on year 2013 plan to make campaign on promoting good will of euro. It is because there are plans that starting from 2014 Latvia plan to introduce euro as main currency in Latvia.
For example - introducing euros instead of Latvian Lats poeple think that there can bes lost Latvian identity. But it does not mean so because there will national folk daugther's symbol, on two euro coin there will be first line of anthem of Latvian. We can also see that other European Union countries which introduced euro such as Germany, France, Italy, Estonia and even smallest Vatikan has not lost their identity by using euro instead of crones and franks etc.
Important thing is that since euro will introduced, there will not be fear of devaluation of Latvian Lats. It is also as safatey guarantee for foreign investors, who sometime are not sure about this risk. But since there will be euro in Latvia also foreign investors will be more sure about investment stability.

Changes in Taxes in 2013 in Latvia

Starting from January 1, several Finance Ministry’s managed legal regulations in relation to tax policy will come into force. More about taxes, comapny formation and accounting you can find in our webpage register your company in Europe.
Latvian residents will be mostly affected by the changes to PIT rate: starting from January 1, 2013, the standard rate will be 24%, instead of the current 25%. Starting for July 1, 2013, on the other hand, benefits for dependents will be increased from the current 70 to 80 LVL, informs Finance Ministry.
2013 will also introduce new tax avoidance prevention regulations in relation to taxation of income that comes to PIT payers from their participation in low tax and no tax or territorial associations, trusts or other judicial formations.
In order to limit tax planning for enterprises that avoid paying the salary tax and mandatory social insurance payments, when issuing cash or non-cash advance payments, from now on, advance payments in cash or not cash will be considered equal to an employee’s income if tax payments are not submitted for them within 90 days of the advance payment.
Next year’s state or EU support payments for agriculture and rural development will not be included in the yearly income. Starting from December 31, 2014, however, there will be an extension of the period of time when income, received as a result of reduction of credit obligations, can be considered non-taxable.
!!! Starting from 2013, CIT will not be applied to non-residents’ paid and received dividends. This regulation will not apply to dividends that are paid to low-tax or non-tax state residents. There will also be a central CIT regime on income and losses from sales of shares, except sales of tax or non-tax state shares.
January 1, 2013 will also introduce amendments to the Taxes and Duties Law in relation to restrictions of using cash – the cap will be reduced from 3000 LVL to 1000 LVL. After reaching this cap, it will be necessary to declare the cash transactions. Also, tax payers that carry out economic activities will be required to declare all cash transactions carried out in the previous year with private persons that are not required to register their economic activity, unless the amount of one cash transaction does not exceed 2000 LVL.

Nice quotes on Success

Here is some quotes for inspiring you :)

- "Only put off until tomorrow what you are willing to die having left undone." - Pablo Picasso

- "Try not to become a man of success, but rather try to become a man of value." - Albert Einstein

- Success belongs to those who believe in the power of their ideas." - Michael Irwin

- "If you want to achieve greatness stop asking for permission." - Anonymous

- "Successful entrepreneurs are givers and not takers of positive energy." - Anonymous

- "The starting point of all achievement is desire." - Napolean Hill

- "Courage is resistance to fear, mastery of fear - not absense of fear." - Mark Twain

- "All our dreams can come true if we have the courage to pursue them." - Walt Disney

- "Remember, happiness is a way of travel, not a destination." - Anonymous

- "Your problem isn't the problem. Your reaction is the problem." - Anonymous

More than 75000 eID cards are issued in Latvia

The Office of Citizenship and Migration Affairs in Latvia during this year has issued more than 75000 elcetronic identification cards (ID cards). Latvia started to issue eID cards just on the 1st April, 2012. Interest was big and there were long queues for ID cards, which by the way allows also to travel. More about eID cards you can read in article on eID cards in Latvia.

Every month there are issued approximately 13000 eID cards in Latvia.

EID card must not obligatory used in Latvia and citizens can deside which document to obtain from the age of 15 years. So one can obtain eID card or passport or both documents. 

In the territory of Latvia in all places where it was necessary to use passport, now it is possible to use also eID card which is equal to Latvian passport.

There are also included special tools for signing documents electronically, for example it is possible to sign documents at home for forming and company registration in Latvia. And it is not necessary to go to public notary.

Latvian electronic identification card (eID card) can be used as valid travel document un European Union countries, member states of European Economic Area and Swiss confederation.

Interests of buying Latvenergo bonds exceeded the expectations

To secure an additional source of funding for the Latvenergo Group’s long-term capital investment programme, as well as make a major step towards enhancing the company’s image, recognition and competitive performance, the Group issoued to issue public bonds as part of its borrowing programme at the end of this year. More about business environment in Latvia you can read in section About Latvia.

The funding attracted by issuing bonds will be directed towards the Latvenergo Group’s projects to invest in generation, distribution and transmission network assets. Whereas so far, Latvenergo has attracted supplementary funding for its long-term capital investment programmes, a decision to attract financing by issuing bonds will allow the power company to draw on additional sources of funding on favourable provisions, to diversify its portfolio of borrowers, and increase its recognition among investors, facilitating the attraction of funding in the coming years.

On the 13th of December the placement of investor’s applications for the issue of the first series of Latvenergo notes in the amount of EUR 20m took place. As the investors' interests exceeded the expectations considerably, the first issue of the notes of Latvenergo Concern has been very successful.

Within the framework of the issue of the first series of Latvenergo AS notes on the 13th of December the placement of investors' applications for the issue of notes in the amount of EUR 20m with the maturity terms of the notes of 5 years took place. The total demand for the notes at the end of the placement period was above EUR 90 million, thus exceeding the planned issue amount by 4.6 times. Considering the huge investor interest during the placement period, the yield to maturity range was decreased and the final yield was set at 2.8353% at the end of the placement period. Thus, the issue of the first series of Latvenergo AS notes should be evaluated as very successful.

During the placement period purchase orders were received from more than 50 investors who represented all the three Baltic countries. There are banks, pension funds, asset management funds and insurance companies among the investors.

Latvenergo has demonstrated itself as a reliable investment partner for a broad range of investors also across the borders. It is very good for the image of Latvia. The inclusion of the notes of Latvenergo in the stock exchange means not only the possibility for attracting financing from investment and pension funds, which basically invest in the securities listed in the stock exchange, this is also the attestation of the maturity of the company - it is voluntarily assuming liability to increase the transparency of its operation and finance, to provide more frequent and broader detailed information on the financial results and essential news. This information impacts both the price of the notes on the market and also the future costs of attracting financing for the company. When a company proves its stability to investors over a course of time, it gains the opportunity of using more beneficial borrowing rates in future. This issue confirms that if there is willingness, also other state companies can be transparent and present the interest for investors.

If you consider that Latvia is safe place for your investments and wish to invest in Latvia, you can get more information in section company formation.

Special Economic Zones (SEZ) in Latvia

Special Economic Zones (SEZ) in Latvia

 There are four Special Economic Zones (SEZ) in Latvia - Riga Free Port (www.freeportofriga.lv), Ventspils Free Port (www.portofventspils.lv),  Liepaja Special Economic Zone (www.portofliepaja.lv) and  Rezekne Special Economic Zone (www.rsez.lv) (see map for exact locations). Established in 1997 for 20 years (until 2017) to promote entrepreneurial activities within the regions, all of them offer very favourable business incentives.

The main benefits for companies operating in the Free Ports and SEZ are as following:

• 80% rebate on real estate tax (RET) which is 1,5% in Latvia (0,3% rate is applied within SEZ territory until compensation of 50% of the amount invested (65% for SME’s));

• 80% rebate on corporate income tax (CIT) which is 15% in Latvia (5,0% rate is applied within SEZ territory as the tax is calculated from the former 25% CIT) on activities carried out within the zone until compensation of 50% of the amount invested (65% for SME’s);

• 0% VAT for most goods and services provided to enterprises in free zones or exported out of them;

• 0% VAT for most goods and services supplied in the  free zones, including construction services.

Relevant sections from the law On the Application of Taxes in Free Ports and Special Economic Zones:

    - Section 7.  Enterprise Income Tax Relief

(3) A zone capital company, when paying dividends, and remuneration for management and consultancy services and payment for intellectual property to a non-resident, shall withhold enterprise income tax from such payments with an 80% rebate of the tax amount calculated.

(4) A zone capital company or a licensed capital company shall reduce income subject to enterprise income tax by the investments in such infrastructure or social sphere sites as belong to the State or local government and are located in the territory of a special economic zone or free port, if such investments have been made in accordance with an agreement which has been concluded with the zone authority or free port authority.



      - Section 8. Restrictions on the Application of Direct Tax Rebates for Large Investment Projects

For large investment projects by a SEZ company within the scope of which the planned costs of the investments to be made exceed 50 million Euros, the following conditions shall be applied:

 1) The percentage of the accumulated amount of investment of 50% shall not be applied, but the Cabinet of Ministers shall decide regarding the maximum allowable percentage which does not exceed:

a) 50% of the accumulated amount of investment in investment projects up to 50 million euro or a total of EUR 25 million,

b) 25% of the accumulated amount of investment in the project part from 50 to 100 million euro or a total of EUR 12.5 million, and

c) 17% of the accumulated amount of investment in the project part, which exceed 100 million euro;

   2) if the planned costs of the investments to be made exceed 100 million Euros and the amount of the direct tax rebate to be applied  for such an investment project exceeds 28 million 125 thousand euro, the European Commission shall be notified separately regarding the planned large investment project and the implementation of the investment project shall commence only after the receipt of a decision by the European Commission regarding the compatibility of the aid with Article 87 of the Treaty establishing the European Community.

Special Laws on Free Port of Riga/Ventspils and on Liepaja SEZ determine the principles of operation and management procedures for the Free Ports and the Special Economic Zone in order to promote the participation of Latvia in international trade, attract investments, develop manufacturing and services, as well as create new jobs.

• Tax relief and special customs control measures determined by the Law apply to companies which have entered into a contract with the Port Authority regarding entrepreneurial activity under a free zone regime, and have obtained permission in accordance with the procedures set out in the Law for the carrying on of such an activity, as well as with the Port Authority.

• State and local government land within the territory of the Free Port may not be sold, gifted or otherwise alienated. The land in the Free Port owned by natural persons and legal persons may be sold, gifted, exchanged or otherwise alienated only for the benefit of the State or local government. Accordingly land in the possession of the Free Port is leased.

• The loading, supply, storage, processing of goods (freight) and other services, and the production of goods under a free zone regime can be carried out by undertakings which are registered in the Republic of Latvia, have entered into a contract regarding entrepreneurial activity under a free zone regime and have obtained a permit from the Port Authority for the carrying out of such activities.

• The profile of activities and the development prospects of the company shall conform to the development program of the Free Port which has been approved by the Board of the Port; and the founders and the shareholders of the undertaking (company) shall have a good reputation, a stable financial position and experience in the field of entrepreneurial activities

• For obtaining the permit an applicant shall submit  a program of operations, including an investment program. A decision regarding the entering into of a contract with an applicant shall be taken by the Board of the Port.

As the Free Port Authority and SEZ are decision takers for leasing out State or local government land in the port territory and granting free zone regime permits, they welcome investments, which conform to development strategy of ports and are related to port activity.

Riga Port is mainly looking for investors, whose activity is related to sea cargo handling or high added value logistics services.

Ventspils and Liepaja Ports, besides companies that are engaged in sea cargo handling and logistics, also welcome export oriented manufacturing investment projects

Latvia to accept law on euro introducing on 2014

Latvia plans to to be ready to introduce the eur(euro)  in January 2014

Latvia plans to be ready to introduce the European common currency, the euro, in 2014. Should it really be done? The turbulence in the euro area caused by the debt crisis has given rise to a number of questions and doubt. Overall, the euro area is healthy, yet it reflects the developments in the debt crisis of several its member states which Latvia should carefully follow thinking about the planned euro changeover. The euro area still has more pluses. Why? Because it will continue to mean greater security, confidence and financial advantages: it will provide good preconditions for growth. The small EU member states that already use the euro – Slovenia, Slovakia, Cyprus, Malta, and Estonia have successfully used the euro shield in the global crisis: the drop in their economies has been smaller.
It is intended in law project that 3 month before and 6 month after the official date of introducing eur there will be allowed using Latvian Lats and euro, but after from July 2014 there will be allowed only eur as official currency in Latvia.
A wider discussion on the opportunities provided by the euro no doubt needed in Latvia and, as far as we know, the Government is planning to hold such a discussion (the Euro Changeover Steering Committee is planning several conferences) and it is also on the agenda of the Bank of Latvia and IMF Conference at the beginning of the summer.

What is lacking in the public discussion on the euro is awareness of the real possibilities offered by the common currency: that with euro Latvia will repay its debt cheaper, saving huge sums on the interest difference; that we will not have to pay to convert currencies; that for responsible small countries the euro has provided protection both in terms on interest rates and ECB loan facility and finally that we are an EU country for whom the euro is one of the cornerstones in capital movement, common trade and functioning of the financial system.

The euro also means much lower interest rates – and for exactly that reason, in the absence of euro, Latvia will overpay about a billion lats for its external debt in the next ten years! In the next few years, the state will have to repay the debt of 2.3 billion lats it accumulated during the crisis years. It will have to be refinanced in 2014 and 2015. It is very important at what interest rate this can be done: 2-2.5% or 5.5-6%. The difference in ten years time is the aforementioned one billion lats or an equivalent to an annual health care or education budget payed out in interest every year.

Glass made in Latvia is used in Louvra musuem

Glass made in Latvia is used in Louvra musuem

Innovative company in Latvia

If you are visiting Louvre museum, then you must know, that glass made by Latvian company GrosGlass, LLC is used in Louvre to protect artworks. This company is made just 4 years ago but already now it is one of the worlds leading company in its business type. Company produces glass coverage for artworks, TV, showcases, vitrines, windows etc. 

More about Latvia (Lettonie, Lettonia, Lettland) you can read in section on Latvia.

Now GrosGlass is exporting its production to more than 25 countries and not only EU, but also USA, Canada, Brazil, Chile, UAE, Turkey, Soth Africa etc…
Company production volume every year is growing for more than 100% and now it is reached already 10 million margin. 

It just shows, that it is possible very profitable producing also in Latvia, because Latvia has one of the smallest tax weight in whole European Union, and even in the world.

If you are also interested in company formation and registration in Latvia, you can get more information in section on company formation.

Branch in Latvia of foreign company

Latvian branch of foreign merchant/ foreign company

Branch in Latvia of a foreign merchant or foreign company is an independent entity, which is territorially separate from the main company (mother company) and is running business in the name of the main company. The main company/ mother company bears full responsibility for the liabilities of the branch.

To register branch in Latvia of a foreign company, registration documents of foreign company must be submitted in The Register of Enterprises of The Republic of Latvia in Commercial Register, as well as the decision to establish a branch in the territory of Latvia and the power of attorney authorizing a particular person to perform the branch registration process in Latvia.

Necessary information for the formation and registration branch in Latvia of foreign company:
- Name and registration number of the foreign merchant/ foreign company
- Legal address of the foreign company
- Type of the foreign company (LLC, JSC)
- Name of Latvian branch of foreign company
- Legal address of the Latvian branch
- Amount of share capital of the foreign company
- Information about the person authorized to represent the foreign company while performing activities related to the Latvian branch
- Amount of authorization - full authority, for particular actions only (must be specified)

Expenses for formation and registration of Latvian branch of foreign company:
- State tax for registering a branch in Latvia of foreign company - LVL 20,-
- Payment for publication of registering a branch in Latvia of foreign company in the newspaper „Latvijas vēstnesis” - LVL 16,-
- Payment for notary attestation of signature – starting from LVL 10,- depending on the notary prices
- Payment for bank services – commercial bank pricelist

More information you can get in section company formation.