Open A Subsidiary In Latvia

Introduction to setting up a Latvian subsidiary

Latvia is well situated for trade in Europe, Russia and the Balkans, making it beneficial for foreign investors looking to set up a subsidiary. The country is multi-lingual and proficient in conducting business between Eastern and Western companies. The establishment of companies in Latvia is moderated by Commercial Law, and with an increase in foreign investment regulations have been considerably expedited.

What are the main formalities of a Latvian subsidiary?

  • The minimum share capital required is LVL 2,000
  • The Memorandum & Articles of Association of the subsidiary
  • The resolution of the parent company detailing its decision to form the subsidiary
  • Evidence of the parent company’s legal status in its domicile country
  • A board of the subsidiary, to have at least one member
  • A registered office

The documents shown above must be filed with the Latvian Commercial Register in order to register the subsidiary.

All required documents must be officially notarised and translated into Latvian by a sworn translator.

 

What are the accounting requirements of a Latvian subsidiary?

Entry into the Commercial Register automatically registers the subsidiary with the State Revenue Service, for taxation purposes. The Latvian Law on Taxes and Fees regulates the accounting and taxation requirements.

Monthly tax and VAT returns should be submitted, with a financial account provided annually.

A Latvian bank account should be set up to deposit the required share capital.

The subsidiary’s annual accounts require an audit if two of these three points are true; the Balance Sheet total exceeds LVL 250 000, the annual turnover exceeds LVL 500 000, there are more than 25 employees.

For further information on accountancy services and tax rates in Latvia, please visit Accountancy In Europe.

 

Subsidiary Formation Packages

We will ensure that your subsidiary formation in Latvia is efficiently managed by our accomplished team. Services such as bank account set up and provision of an office are included in our superior subsidiary formation packages, managing every aspect for you. Our expertise will guide you through the process from start to finish so that you can just relax and enjoy the benefits.

 

For further information on Latvian subsidiaries please contact us using the form below.