Latvian Subsidiary Entity Set Up

Latvian Entity Set Up

In Latvia, foreign subsidiary entities hold the same company standing as any other conventional company in the country and are treated as equals with domestic businesses. They enjoy independence from their parent company and are subject to all national laws of Latvia.

The registration process comes with some variation (depending on the company type), but it is generally straightforward and can be done with little difficulty. Once that is done, however, setting up a subsidiary in Latvia involves a heavy workload.

How to set up a Latvian Subsidiary

1. Decide on the company type that suits the nature of your business, your business goals and matches your own capabilities to meet establishment requirements. Common company types include: The Limited Liability Company (SIA), The Joint Stock Company (AS), a branch office, or a representative office.
2. Obtain a business address in Latvia and prepare the documents for registration.
3. Check if your business requires any additional permits or documentation.
4. Prepare the appropriate registration documents and have them translated to Latvian or English.
5. Open a local temporary bank account in Latvia and deposit the appropriate share capital.
6. Notarize and legalize the registration documents at a notary’s office.
7. Register your company and apply for a company tax number at the Enterprise Register.
8. Register for a VAT Number at the State Revenue Service (only applicable if certain criteria are met).
9. Register with State Social Insurance Agency (VSAA).
10. Receive a Tax Identification Number, a certificate of registration and a unique registration number.
11. Company registration is publicly announced by the Commercial/Enterprise Register Gazette.
12. You will also need to check requirements for permits and residencies for foreign employees.

Benefits of setting up a Subsidiary in Latvia

Latvia is a compelling destination in Baltics for subsidiary establishment and growing a business’ influence. There are also other significant benefits to establishing an entity in Latvia:

• Subsidiaries in Latvia are taxed the same as any other resident company.
• Subsidiary entities in Latvia also benefit from double tax treaties, in which there are significant reductions in tax payments on dividends, interests or royalties paid to the foreign country.
• Latvia ranks high at 19th place in the Ease of Doing Business report by The World Bank (2020).
• Latvia boasts a strong industrial sector, and offers support to the IT, energy, agricultural, creative, and green industries.
• Latvian entities also benefit from low tax rates and workforce costs.
• Latvia also boasts a highly educated workforce, with many being multilingual and possessing higher education certification.
• Latvia’s infrastructure gives entities high-quality logistics options to access markets easily and affordably in Europe, Russia, and Asia.