Registration of an IT project in Latvia entails some benefits for the company owners. It allows them to enter the European market and attract investors. However, the basic points of establishing such a company must be understood first.
The company is registered in the Registries. A set of documents must be submitted, which depends on the chosen organizational legal form.
The Board manages the company. The Board may consist exclusively of founders if the authorized capital of the company is less than 2,800 Euros. The Board elects the Chairman, who then decides on the appointment of the Director. The company must have at least one director, whose personal details are published in a public registry.
Latvian legislation requires the disclosure of information about the beneficiaries. However, they are only needed for the country's supervisory authorities, and their details are not disclosed to anyone else.
He issue of nominee service is controversial. Many companies provide this service in Latvia. However, it is important to note that the nominee service in Latvia is risky as it can make doing business in the country impossible. Therefore, this issue must be taken into account.
A legal address in the country is required. However, it can be rented: such services are currently provided.
The amount of the authorized capital may vary, according to Latvian legislation. It depends on the type of company (organizational legal form) you decide to establish. LLC is one of the most popular options, and its minimum authorized capital must be 2,800 Euros. If you decide to pay the minimum, you must do it as a lump sum payment.
According to local law, branches of foreign companies are obliged to pay taxes in the country on an equal basis with local companies. The requirements for 2021 are the following:
Microbusiness can also enjoy concessions. In particular, the qualifying companies are exempt from the income tax and employee payroll tax. They pay a flat tax at a rate of 15% to the treasury instead.
The following types of legal entities can be established in this country:
According to the rules of the Latvian banking system, Russian business owners are able to open a corporate account. However, it is provided rather as an exception because not all European banks are ready to open such accounts for Russian businessmen.
The following is required to open an account:
An IT business usually needs a current account. It can be opened after filling up a questionnaire and providing basic personal details (according to the sample). Please note that Euro is the default base currency. If you want to select a different currency, this must be indicated separately. The current account is multicurrency, separate sub-accounts are opened for each currency.
You can open an account in Latvia remotely in 2021. A set of documents that a specific bank requests must be submitted, and a video call with a manager arranged. The standard time for opening an account is about a month.
There is no foreign exchange control in Latvia as is. Control over the activities of foreign IT firms is objectively poorly developed. As a result, opening a company in Latvia becomes attractive for residents of the Russian Federation.
Main advantages of opening an IT company in Latvia can be summarized as follows:
However, there are also downsides to consider:
Establishing an IT company in Latvia is objectively profitable and comes with a number of advantages. However, in order not to end up disappointed, you first need to study all the details and get legal advice.
Registering an IT company in Latvia may first seem like a complicated procedure. However, it becomes much easier if the entire process is delegated. In this case, you get advantages associated with operating in this jurisdiction. Please request details at email@example.com.
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