LatviaBest Business Opportunities in Latvia and Types of Business in 2024

December 13, 2023by Tetra Consultants0
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  • For entrepreneurs seeking promising prospects, business opportunities in Latvia beckon with a host of enticing advantages. This Baltic nation, nestled at the crossroads of Eastern and Nordic markets, provides a fertile ground for companies of all sizes to flourish. Boasting a thriving economy and a startup-friendly tax regime, Latvia offers an ideal environment for budding ventures to take root and grow. 
  • The government’s proactive support further sweetens the deal, with startup grants and tax incentives designed to fuel innovation and entrepreneurship. With a robust telecommunications infrastructure and the lure of low corporate income tax rates, Latvia is an attractive destination for businesses looking to thrive in an interconnected world. Moreover, with a skilled, multilingual labour force and cost advantages, Latvia is primed for investment. 
  • Tetra Consultants stands ready to assist to register company in Latvia. Our expert team, well-versed in the intricacies of local business, provides a suite of services, ensuring a seamless and thriving operation in this promising Baltic nation. In this article, we will discuss all the best business opportunities in Latvia along with the various types of business in Latvia. 

Best business opportunities in Latvia 

Franchise business 

  • Franchising offers entrepreneurs a ready-made business model with a track record of success. This reduces the risk associated with starting a new business from scratch. Thus because of less risk associated with the business, it is one of the best business opportunities in Latvia.  

Tour companies 

  • Latvia boasts a diverse range of attractions, including historic towns, picturesque countryside, and vibrant cultural events. This provides ample material for creating engaging and unique tour experiences. 
  • Moreover, the country has been experiencing a steady increase in tourist arrivals over recent years. The country’s popularity as a travel destination continues to rise, presenting a growing market for tour operators. 

Woodworking and metalworking 

  • Latvia is endowed with extensive forests, providing an abundant supply of high-quality timber for woodworking. Additionally, the country has a history of metallurgy and metalworking, ensuring a reliable source of raw materials for metalworking businesses. 
  • Depending on the type of woodworking or metalworking business you want to start, you may need to obtain permits and licenses from the relevant authorities which you can easily obtain by starting engagement with Tetra Consultants. Our business experts are proficient with  

Financial services 

  • Latvia has maintained economic stability and resilience, even in the face of global economic challenges. This provides a solid foundation for financial services businesses to thrive. 
  • Depending on the financial services you operate you will be subjected to get authorization from various authorities. Moreover, Tetra Consultants can also help in providing offshore financial licenses for your financial services business in Latvia. 

Educational centre 

  • Latvia is known for its skilled and multilingual labour force, which provides a solid business environment for companies of different sizes, including educational centres. Moreover, Latvia offers a favourable business environment for companies of all sizes, with a thriving economy and a favourable tax regime for startups. 

Types of business in Latvia 

Limited Liability Company (LLC) 

  • In Latvia, an LLC stands for “Limited Liability Company” and is known as “Sabiedrība ar ierobežotu atbildību” or SIA in Latvian. It is a popular legal form of business organization for both local and foreign entrepreneurs which involves limited liability of shareholders (members) of the company. 
  • Here are some of the statutory requirements of this types of business in Latvia: 
  • Must have an Articles of Association 
  • A minimum of 1 shareholder who can be a natural person or legal entity. 
  • A minimum of 1 director. 
  • There is no residency requirement for directors and shareholders. 
  • Registered office with a registered agent in Latvia. 
  • Tetra Consultants can provide you services regarding registered agent and registered office.  

Joint-Stock Company (JSC) 

  • In Latvia, a Joint Stock Company (JSC) is known as “Akciju sabiedrība” or “AS” in Latvian. These types of business in Latvia are a legal form of business organization that allows for the ownership of shares by multiple individuals or entities. 
  • Here are some of the statutory requirements: 
  • The minimum share capital required for a JSC is €35,000 
  • A minimum of 1 shareholder is required. 
  • A minimum of 1 director is required, but if the company is publically listed then 3 directors will be required. 
  • There is no restriction on residency of directors and shareholders.  
  • If you are worried about how to draft an article of association outlining the administration of the company and other rights of the founders, you can relax as Tetra Consultants business proficient experts can draft the articles of association for your company by complying to all the requirements of draft. 

Branch office 

  • Establishing a branch office in Latvia provides a strategic gateway into the Baltic market and the broader European Union. A branch office serves as an extension of the parent company, enabling it to conduct business activities in Latvia. This model allows for direct representation and operation within the country, utilizing the parent company’s established brand and resources. 

Permanent establishments 

  • A permanent establishment (PE) in Latvia refers to a fixed place of business where an enterprise carries out its business activities, either fully or partially. This concept is crucial in international taxation, as it determines the taxation rights of a country over the profits generated by a foreign enterprise operating within its jurisdiction. 

Partnership 

  • These types of business in Latvia are similar to a Limited Liability Company. This form of business structure provides a legal framework for two or more individuals or entities to collaborate and operate a business together. 
  • There are two types of partnership in Latvia which are: 
  • Limited Partnership (Komanditsabiedriba): A limited partnership is a business entity in which two or more persons (members) have united based on a partnership agreement. In this type of partnership, there are two types of partners: general partners and limited partners. The general partners have unlimited liability, while the limited partners’ liability is limited to their capital contributions. 
  • General Partnership (Pilnsabiedriba): A general partnership is a business entity in which at least two partners have united based on a partnership agreement. In this type of partnership, all partners have unlimited liability, and their assets can be used to pay off creditors.   

Private entrepreneur 

  • It is a form of sole proprietorship. It is a legal structure that allows an individual to conduct business activities in their name. The process of registering as a private entrepreneur involves choosing the mode of paying taxes, providing information on the type of principal activity, and registering with the State Revenue Services (SRS) and the Register of Enterprises of the Republic of Latvia. 
  • Moreover, operating any of the types of business in Latvia you will always need a bank account for your business. Thus, Tetra Consultants can help with corporate bank account opening services through which you can have a bank account for your business in 4 weeks after incorporation.  

Conclusion 

  • Establishing a business in Latvia unveils a world of opportunities within the heart of the European Union. With its stable economy, strategic location, and investor-friendly policies, Latvia provides an ideal platform for business growth and expansion. The ease of doing business, coupled with the presence of ample amount of business opportunities in Latvia makes Latvia an attractive destination for entrepreneurs seeking to thrive in a dynamic and competitive landscape.  
  • Moreover, the expertise and services offered by Tetra Consultants further enhance the journey, providing comprehensive support in areas such as company registration, accounting, legal drafting, and tax obligations. With Tetra Consultants by your side, navigating the intricacies of setting up and managing a business in Latvia becomes a seamless endeavor. Unlock the potential, harness the opportunities, and embark on a prosperous business venture in Latvia with expertise at your side. 
  • Contact us to find out more about the business opportunities in Latvia and various types of business in Latvia, and our dedicated and experienced team will respond within the next 24 hours.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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