Learn Why Setting Up a Business in Latvia is a Pleasant Surprise to Many
Latvia – the land of conserved nature and beautiful landscapes as far as the eyes can see. Its people are straightforward and trustworthy by nature. Things around here in Latvia is pretty smooth as long as you adhere to the rules and regulations. But that does not mean Latvia is all cold and ordinary. There are plenty of things you can do in Latvia. Hence, living and set up business in Latvia will have you fully occupied yet enough time to spare for recreation.
The business climate in Latvia is fair and just. Latvians welcome foreign businesses much more now than their predecessors. Modern-day Latvians enjoy modernisation as much as anyone does although they are still rooted in their heritage. This makes them every more robust in facing challenges of modern culture and innovation. The government of Latvia has explicitly passed a national Law on Aid for the Activities of Start-up Companies. This goes to show Latvia’s support for the start-up culture is healthy and encouraging.
The ease of doing business in Latvia ranks high among the European countries as well. Despite their size, the Latvian government continues to offer support for IT, energy, modern food production, creative industries and green industry innovations. Latvia assists with a business incubator for the development of renewable materials and energy efficiency. Latvia offers a western-oriented business climate. Coupled with a multilingual workforce, heavenly tax system and efficient business infrastructure, Latvia is undeniably anticipating your business to flourish.
Heavenly Tax Structure
The tax structure is Latvia is genuinely one of a kind. As a business owner, you would be subjected to corporate income tax (CIT). As of 2018, the CIT 0% rate applies to reinvested profits. This means the CIT is paid when the company pays dividends on actual profit distribution. There is another CIT rate that is 20%, and this also applies at the point of profit distribution not directly related to business development. As for non-resident companies or foreign companies, the CIT standard rate applies. Overall, Latvia ranks 1st among Baltic countries to have low total tax rates. If the Latvian tax structure is not tempting enough, maybe the next point will drive the point better.
Set Up Business in Latvia – For Growth and Beyond
Latvia is a very open economy. Small and medium enterprises are the most commonly registered as a new business in Latvia. SMEs and start-up companies are among the company organisation that has access to supports from the Latvian government. The support provided by the government range from financial assistance to programme grants to business incubators for growth and developments. Businesses also have the option to enquire varied support from the Investment and Development Agency of Latvia, Development Finance Institution ALTUM and Latvian Business Angel Network, among others. The Latvian government also highly encourages social entrepreneurship to implement sustainable social development. Social entrepreneurs can obtain an entrepreneurship programme for promoting employment.
Contact us if you have any queries or you need assistance to set up business in Latvia. We are all ears and hands to help you out.