With all the tax-saving laws, developed infrastructure, and reliable workforce, Latvia creates an excellent environment for people to conduct their international business successfully. This article highlights the main benefits of opening a company in Latvia.
Trade with Both Eastern and European Companies
Latvia is a member of the European Union, due to which it is easier for it to connect with European Union markets. It gives companies a chance to trade in both Eastern and European markets.
Since Russian is the most common foreign language in Latvia, and Latvians also have knowledge about the Russian market, opening a company in Latvia will create many opportunities for you to enter other Eastern countries.
A country’s infrastructure has a great impact on the success of its corporate organization. A well-developed infrastructure opens doors for trading, connects workers to their offices, and helps improve communication.
Latvia has well-built roads, ports, and highways that connect major cities and countries. It has five Special Economic Zones (SEZ), and five free ports. There are 10 business parks, and many business incubators in different cities of Latvia. The fast internet connection is another benefit that allows you to connect with anyone in the world, and expand your business.
Tax Incentives to Support Corporates
According to new corporate tax policies, companies in Latvia are obliged to pay tax only upon the distribution of profits. There is no need to pay dividend tax. Also, Latvians do not have to pay any tax when they receive dividends from foreign companies.
The Straightforward Company Formation Process
Latvian laws support the formation of businesses. They are equally business-friendly for both foreigners and Latvians. You can find a reliable and compatible workforce in Latvia who can help you take your business to the next level.
Its infrastructure is developed according to European standards, which helps save expenses in multiple ways. According to the World Bank’s survey, Latvia is considered the 19th business-friendly country in the world.
Lower Business Administrative Costs
With the availability of multiple business opportunities and tax-saving laws, Latvia makes it easier for businesses to reduce their administrative costs and improve their reach.
Get a Residence Permit
You can get a residence permit in Latvia and conduct business in Latvia as well as the whole European Union.
Which Business Activities to Conduct in Latvia?
Due to the geographical location of Latvia, people establish trading companies here to trade between East and West. Their companies can easily register as VAT payers if they want to supply their goods to different European countries. Their goods are exempt from value-added tax (VAT).
Shared Services Firms
All the favourable tax laws, low business administrative costs, and abundant workflow allow businesses to execute different operational tasks efficiently.
Companies that trade with cryptocurrencies do not pay tax until they divide and distribute their profits. It creates many growth opportunities for crypto trading companies as well.
A holding company regime in Latvia is quite attractive since it has a participation exemption for holdings exceeding three years. In most cases, capital and profit repatriation is free from withholding taxes, except for the payments to the offshore jurisdictions.
For more information on Latvian company formation, check out https://breicis.com/en/latvian-company-formation/.