In Latvia, registration of Value Added Tax (VAT) payers by the State Revenue Service (SRS) in the Register of VAT Taxable Persons is governed by the following provisions:
Article 3 and paragraphs 1 and 9 of the Article 26 of the Law 'On Value Added Tax'. Cabinet Regulations No. 933 'Procedures for the Application of Provisions of the Law On Value Added Tax adopted on 14 November 2006. Due to the accession to the EU some provisions have been added stipulating that non-taxable persons pursuing economic activities and purchasing goods in the EU area the value of which reaches or exceeds EUR 50 000 (tax not included) in the current calendar year must be registered by the State Revenue Service in the Register of VAT Taxable Persons within 30 days after reaching or exceeding the said amount. After registration this person can voluntarily request removal from the register 2 years after the day of registration at the earliest.
Registration applies to the following persons and entities:
natural persons - registered according to their declared places of residence; legal persons - registered according to their registered addresses; partnerships - registered according to their registered addresses entered in the Commercial Register; if a group of persons conducts joint economic activity on the basis of a contract, the natural person authorised to represent this group must be registered according to the declared place of residence; if a person of another Member State or a person not registered in the EU territory conducts one or more taxable inland transactions. Only undertakings, for example, general partnerships, limited partnerships, individual undertakings, limited liability companies (SIA) and joint stock companies (AS) are obliged to submit VAT applications to the Register of Enterprises of the Republic of Latvia.
Registration as a VAT payer is compulsory if the total value of taxable transactions conducted by a natural or legal person, whose declared place of residence or registered address is situated in the Republic of Latvia, has reached or exceeded LVL 10,000 during the last 12 months. 12 months are not to be regarded as a calendar year, but they can concern any period of 12 months. Registration must take place within 30 days after reaching or exceeding the said amount.
The SRS reviews the registration application and decides on registration of a person in the Register of VAT Taxable Persons within 15 working days after receipt of the application.
If the SRS has decided to refuse the registration, it will send this decision to the respective person by post within five working days stating the reason for refusal. A person who has received a decision on refusal of registration is entitled to adjust the registration application and submit it to the SRS again.
A person is considered registered in the SRS Register of VAT Taxable Persons as of the day when the registration certificate of a VAT taxable person is issued to this person.
To register VAT contact us or perhaps to register a new company in Latvia read more about Company registration in Latvia.
Hong Kong is one of the best places to establish companies in Asia. Companies in Hong Kong pay no taxes on income obtained from outside Hong Kong. Business infrastructure in Hong Kong is highly developed, offering easy access to mainland China, strong banking and subtle incorporation procedures and corporate laws.
Company in Hong Kong Company formation in Hong Kong takes around 1-2 business days At least one Director and one shareholder are required Minimum share capital required is 940 EUR Director of the company doesn't need to be a resident of Hong Kong Local Registered Office and a Company Secretary are required. Company management Return filing, Employer's Return filing and Profits Tax Return filing are required annually. Annual cost of maintaining a company in Hong Kong is 215 EUR. Hong Kong corporate tax Zero corporate tax on income from outside of Hong Kong Corporate tax on profits within Hong Kong is only 17.5% Income tax for individuals on income derived in or from Hong Kong is 16%
Expobank in one of the oldest banks in Latvia – it was founded in 1991; a branch was opened in the Republic of Cyprus in 2010
From 2012 the sole shareholder of the Bank is a citizen of the Russian Federation - Igor Kim.
The Bank's long-term development and growth is based on regular development of risk management processes and compliance control systems, as well as on highly selective customer range.
Official Name: Principality of Monaco Capital: Monaco Total area: 2 km2 GDP per capita: $132,571 Native Language: French Government: Unitary constitutional principality Population: 36,371 Major Religion: Roman Catholicism Monetary Unit: Euro (EUR)
Monaco is a sovereign city-state on the French Riviera in Western Europe. Bounded on three sides by France, one side borders the Mediterranean Sea. It has an area of 2.02 km2 (0.78 sq mi) and a population of 36,371, making Monaco the second smallest after Vatican City and the most densely populated country in the world. Monaco has a land border of only 4.4 km (2.7 mi), a coastline of 4.1 km (2.5 mi), and a width that varies between 1,700 and 349 m (5,600 and 1,145 ft). The country's highest point is a narrow path called the Chemin des Révoires on the slopes of Mont Agel in the Les Révoires district, which is 161 meters (528 feet) above sea level. Monaco's most populated neighborhood is Monte Carlo and the most populated neighborhood is Larvotto/Bas Moulins. Monaco is known for its land reclamation which has increased its size by an estimated 20%.
Business Monaco has the world's highest nominal GDP per capita at $153,177, $132,571 GDP PPP per capita and $183,150 GNI per capita. It also has the lowest unemployment rate of 0%, with over 48,000 workers commuting daily from France and Italy. According to the CIA World Factbook, Monaco has the world's lowest poverty rate and the world's highest number of millionaires and billionaires per capita. For the fourth year in a row, Monaco was the most expensive real estate market in the world in 2012 at $58,300 per square meter.
Obtaining a residence permit based on the purchase of real estate (immovable property) is one of the most popular investment-based methods of obtaining a Latvian residence permit. According to statistics from the Office for Citizenship and Migration Affairs, 2,435 foreigners applied for a residence permit based on buying real estate in Latvia in 2012 alone, and 3,085 foreigners in 2013.
Of the types of investment which qualify for a residence permit, Real estate investment provides possibly the best liquidity and security while also (statistically) being the most effective way to get approval from the Office of Citizenship and Migration Affairs - having the highest approval rate.
United Kingdom of Great Britain and Northern Ireland (UK) is a constitutional monarchy located off the north-western coast of continental Europe. The country includes the island of Great Britain, the north-eastern part of the island of Ireland and many smaller islands of the British Isles. Large portion of the United Kingdom's GDP comes from the service sector. United Kingdom also has a large automotive business, millions of tourists every year and well developed air traffic.
Company formation When you start a business in the UK you must choose a structure for your business. Most businesses in the UK are: sole traders, limited companies, partnerships. When setting up business in the UK you may need to apply for a licence, depending on what your business is.
Please check the expected company name and address with us to learn if such is available. Details about company Director and Secretary Share Capital and Shareholder Details You must register for VAT with HM Revenue and Customs (HMRC) if your business turnover is more than £79,000.
Maintaining a company Returns must be filed annually, failure to do so is considered a criminal offence and may result in a fine depending on the company type and duration of delay. Your Corporation Tax rate depends on how much profit your company makes and may change on 1 April each year.
Official Name: Republic of Azerbaijan Capital: Baku Total area: 86 600 km2 GDP per capita: $10,568 Native Language: Azarbaijani Government: Dominant-party unitary presidential state Population: 9,356,500 Major Religion: Shia Islam Monetary Unit: Manat (AZN)
Azerbaijan, officially the Republic of Azerbaijan, is the largest country in the Caucasus region and lies at the crossroads of Western Asia and Eastern Europe. Known for its rich crude oil and natural gas reserves, Azerbaijan is bordered by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west and Iran to the south. The Nakhichevan exclave is bordered by Armenia to the north and east, Iran to the south and west, and has a brief border with Turkey to the north-west.
Business After gaining independence in 1991, Azerbaijan became a member of the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank and the Asian Development Bank. The banking system of Azerbaijan consists of the Central Bank of Azerbaijan, commercial banks and non-bank credit organizations. The National Bank (now the Central Bank) was established in 1992 on the basis of the Azerbaijan State Savings Bank, a subsidiary of the former State Savings Bank of the USSR. The central bank acts as Azerbaijan's central bank, which has the power to issue the national currency, the Azerbaijani manat, and to oversee all commercial banks. Two major commercial banks are the state-owned International Bank of Azerbaijan, run by Dr. Jahangir Hajiyev, and UniBank.
The inflation rate reached 16.6% in the first quarter of 2007, driven by growth in spending and demand. Nominal income and monthly wages rose 29% and 25% from that number, respectively, but price hikes in the non-oil industry fueled inflation in the country. Azerbaijan is showing some signs of the so-called “Dutch disease” due to the rapidly growing energy sector causing inflation and making non-energy exports more expensive.
In the early years of this century, chronically high inflation was brought under control and this led to the introduction of a new currency, the new Azerbaijani manat, on January 1, 2006 to cement the takeover of economic reforms and eliminate what was left of an unstable economy.
Azerbaijan also ranks 57th in the Global Competitiveness Report for 2010-2011, above other CIS countries.
The waterfall market entry strategy is a sequential business expansion into foreign markets. Its main feature is the use of clearly defined entry levels and the sequential use of experience: the knowledge acquired in one level is used to implement the next.In this case, each tier is represented by a single foreign market. First, a company enters a foreign market, establishes itself, promotes the product and builds a customer base. When the company feels comfortable in that market and its position is stable, the business can be expanded to the next market with the insights gained previously. This is reminiscent of a multi-layered waterfall where water goes through each stage before reaching the final destination, hence the name of the market entry strategy.
Implementation The waterfall market entry strategy works best for companies that manufacture products with a long lifecycle or whose products are in the maturity phase. Because waterfall entry means a longer time to build and build a customer base, a long life cycle ensures that the product is not withdrawn from the market before the business prospects are stable. A product in the maturity phase, on the other hand, ensures that the product is ready for sale by the time a company enters a foreign market. If it gains enough popularity, the product's life cycle will be extended across all markets.
Another point to consider in the waterfall market entry strategy is the choice of foreign market. First of all, it is advisable to choose a foreign market that is very similar to a company's home market. This minimizes a number of risks, such as B. The risk of the discrepancy in consumer buying culture and the risk created by different currencies. After a company has established itself in this foreign market, it can take the next step and integrate into another market, which can either be similar to the domestic one or the previous one. Such a phased approach ensures a smooth transition as the business environment of a new market will never be completely unfamiliar. Exotic foreign markets are much more understandable when approached through other markets, gradually transitioning from familiar to unfamiliar.
Advantages The waterfall market entry strategy makes it possible to revitalize products in the maturity phase, extending their life cycle while maintaining a stable position in the market. Since only one market is entered at a time, all business expansion resources are concentrated there, minimizing risk. Because markets are chosen so that each next one resembles the previous one, the transition to more distant, exotic markets occurs more gradually without incurring additional risks associated with unfamiliar business environments.
Disadvantages As the waterfall market strategy implies entering only one foreign market at a time, it leaves little room for failure. If a business is forced to withdraw from a foreign market at the initial entry stages, the losses are comparatively small. If the company, however, has already invested significant resources in establishing itself, the costs of withdrawing increase significantly, and at the same time the company has no alternatives in other foreign markets. This is somewhat compensated, if a new foreign market is not the first, and the company has a solid background in other foreign markets, but this applies only to highly internationalized companies.
Another disadvantage is that a business potentially loses its first-mover advantage on other foreign markets, as it simply does not enter them. Competitors can enter other markets faster than the business in question establishes itself in a certain foreign market and is ready to expand elsewhere. The waterfall market entry strategy is also characterized by accumulating knowledge for business expansion. Business knowledge from the domestic market is used to integrate into the first foreign market. The additional knowledge gained there is used in the market and the process is repeated as often as foreign markets are entered. Such an accumulation of knowledge about business expansion allows to reduce the risks of each entry, which makes the waterfall strategy particularly beneficial in the long run, as it is suitable for companies planning to enter a significant number of markets.
According to the World Bank Group, Latvia ranks 22nd out of 189 countries in terms of ease of doing business. The country ranks among the top 20 for obtaining credit for businesses; in the top 30 starting a business, construction and registration of real estate, easy and efficient tax payment, international trade and enforcement of contracts; and among the top 50 for resolving bankruptcies and protecting minority investors. The weakest point of Latvia's business environment is by far its ease of getting electricity for newly built properties, for which the country ranks 65th.
Overall, Latvia is the most favorable for companies that do not plan to build new infrastructure. Ease of starting a business, paying taxes and getting credit combine well with cheap but skilled and educated labor and low cost of infrastructure and facilities. Because of this, Latvia is a very popular country to start a business, especially for entrepreneurs from outside the EU, as overall it takes a lot less investment to start a business in Latvia than most other EU member states, while the bottom line (in terms of quality) is the same. The entrepreneurial risks for such entrepreneurs are comparatively low as long as they consider the possible competition on the local market.
Legal framework Since Latvia joined the European Union in 2004, it has adopted most of the Union's laws and policies. One of the examples is the Schengen agreement, which allows free international trade with other EU member states (more about Latvian market access from the EU here).
Latvian politics favors the free market and consistency with EU policies. Some analyzes classify Latvian legislation as conservative, meaning that new policies take a long time to be accepted by the government and are generally treated with caution. Legislative initiatives proposed by the EU are excluded from this. Latvia aspires to be an active member of the European Economic Area and tries to align its policies with European standards.
Economic geography Most companies are concentrated in the Latvian capital Riga and the surrounding cities. Other major cities often devote themselves to specific market sectors, e.g. The port cities of Ventspils and Liepāja offer ice-free ports (read more about logistics in Latvia), while Daugavpils is a major rail hub.
Cities of regional importance also play their role in Latvia's economic environment. For example, the Rezekne Free Economic Zone is located in the city of Rezekne. The EPZ contributes to the development of the region and attracts companies with up to 100% real estate tax breaks, corporate tax breaks of 80% and return of investment costs through tax incentives of up to 55%. Rezekne is also an important railway junction.
The most urbanized regions of Latvia are the central, eastern and western regions. However, it must be noted that if the central region is thoroughly urban, the east and west are urban in the sense that the majority of the population lives near large cities, with small rural areas in between. The southern and north-eastern regions are predominantly rural.
Market freedom Latvia is a free market economy, which means that economic policies are aimed at reducing state intervention and preventing the emergence of monopolies. According to the Wall Street Journal and the Heritage Foundation, Latvia is the 37th freest economy in the world. Latvia's score in this case is supported by high levels of tax, trade, investment and business freedoms, but is dragged down somewhat by corruption and government spending.
In Europe, Latvia ranks 17th in terms of market freedom. This position is getting stronger and stronger every year as Latvia takes steps to integrate into the European Economic Zone and catch up with the main member states.
Logistics in Latvia has always been a priority area due to the country's geographical advantages as a gateway between Scandinavia, Central Europe and Eastern Europe. Ensuring good logistics and transport infrastructure is crucial for Latvia, as the country's roads are full of commercial vehicles from neighboring countries. This is also the reason why delivering goods to Latvia as part of market entry processes is an easy task.
Since 2004, when Latvia became a member state of the European Union, the country's borders with other member states are open and do not require mandatory customs controls for the transport of goods. An average of 30-35 million tons of cargo transits the country each year, including roads, railways, planes and waterways.
Streets There are more than a thousand roads in Latvia's road network, including state main, state regional and state local roads. Total road length in Latvia is 13181.616 km. Of these, 10 570.151 km are hard surface roads - all major roads and the largest roads belong to this category. 2611.465 km of roads are gravel roads - these are mostly local and some regional roads.
The State Main Roads are the largest roads connecting major cities, e.g. the road Riga - Ventspils. There are 15 national highways in Latvia, all of which connect the country's main commercial centers. The main cities connected by the state main road network are Riga (port/airport), Daugavpils (railway junction), Ventspils (port/airport) and Liepāja (port). The roads also connect larger cities of regional importance - Rezekne, Jelgava, Jēkabpils and others. 9 of the main state roads lead to the borders with other countries: Russia (1 road), Lithuania (4 roads), Estonia (3 roads) and Belarus (1 road).
There are a number of state highways with ring roads designed for larger cities to allow transit vehicles to move faster without having to navigate cities. These streets are:
Daugavpils ring road connecting Kalkūni and Tilti Rezekne ring road Ring road of Riga connecting Baltezers and Saulkalne Riga ring road connecting Salaspils and Babīte The state regional roads are major roads that usually connect larger cities and/or cities of regional importance, but may also connect cities with important nearby facilities such as: B. the P133 road that connects Riga and Riga Airport. Many of them also lead to the borders with neighboring countries, but the roads themselves are narrower than the state main roads, so large commercial vehicles do not usually use them.
The State Local Roads are all other roads not included in the other two categories. These are the smallest, often gravel roads, connecting smaller towns and villages to larger ones, smaller towns to other smaller towns, or providing an alternative route to state main and regional roads.
Railways Latvian Railways are under the supervision of Latvian Railways; (in Latvian: Latvijas dzelzceļš) - the state-owned company whose aim is to manage and control railway logistics in Latvia. The company has 6 subsidiaries:
AS 'LatRailNet' SIA "LDZ Apsardze" (Security) LDz infrastruktūra (Infrastructure) LDz freight (transport) LDz Ritošā sastāva serviss (maintenance) Latvian railways are the main commercial transport infrastructure, especially for domestic traffic. Of all modes of transportation, railroads carry the largest amount of freight - about 50 million tons of it every year. The railway connects Latvia with neighboring countries and also offers connections to the rest of Europe and East Asia as far as Japan and China. Latvian railways also connect all major cities and commercial centers such as Riga, Ventspils, Liepāja and Daugavpils.
Seaports Latvia has three major ports, all of which are ice-free (available for operation all year round) - the ports of Riga, Liepāja and Ventspils. There are also three smaller ports in Salacgriva, Lielupe, Engure, Mērsrags, Roja, Kolka and Pāvilosta.
Latvian ports are specially designed to attract business. All major ports are Special Economic Zones, which means they offer tax breaks on the most common taxes such as VAT or the excise duty on alcohol, tobacco, gas and oil, as well as other benefits and tax incentives.
The Schengen visa has made traveling between the 26 member countries of the Schengen area (22 European Union states and 4 non-EU members) much simpler and easier. Traveling on a Schengen visa means that the visa holder can travel to all (or all) member countries on a single visa, avoiding the hassle and expense of obtaining individual visas for each country. This is particularly advantageous for people who want to visit several European countries during the same trip. The Schengen visa is a visitor visa. It is issued to citizens of countries that require a visa before entering Europe.
Purpose The purpose of the visit must be leisure, tourism or business. Once the visa is issued, the visa holder is allowed to enter all member countries and travel freely throughout the Schengen area for the duration indicated on the visa, up to a maximum of 90 days in any 180-day period. It is highly recommended to plan your trip within the stated validity period of your Schengen visa as it can be very difficult to obtain extensions, forcing you to comply with Schengen rules and regulations in order to stay. A Schengen visa allows the holder to travel freely within the Schengen countries for a maximum stay of up to 90 days in any 6 month period, but shorter visas may be granted.
Schengen visa countries All Schengen countries are in Europe. However, it should not be confused with the EU (European Union). The European Union and the Schengen Area originate from two different agreements between European countries. A total of 26 countries, including all European Union countries (except Ireland and the United Kingdom) and four non-EU members (Iceland, Norway, Liechtenstein and Switzerland), have signed the Schengen Agreement.
ATTENTION! Schengen visa holders are not allowed to live or work permanently in Europe. Schengen visa holders only have the right to travel to member countries for business or pleasure as a temporary visitor. For information on the possibility of living in Europe, see our Residence Permits page.
Schengen visa countries The Schengen visa is valid in:
Austria Belgium Czech Republic Denmark Estonia Finland France Greece Hungary Iceland Italy Latvia Liechtenstein Lithuania Luxembourg Malta Netherlands Norway Poland Portugal Slovakia Slovenia Spain Sweden Switzerland
BALTIC LEGAL offers a full range of legal services in Latvia and general legal support from the Baltic States - Latvia, Lithuania and Estonia.
Company formation Preparation of incorporation and incorporation documents of the company Preparation of documents aimed at registering changes to the constitutional documents Assistance before the tax authority in applying for VAT payer status Assistance before government authorities to obtain the necessary permits and licenses Assistance at the bank to open a bank account
Administrative cases Analysis of administrative decisions of public and self-governing bodies, consultations on appeal against administrative decisions. Preparation of applications and other documents for appeal against administrative decisions. Representation and protection of clients' interests before the Latvian Administrative Court and other authorities mentioned above. Consultations and assistance in obtaining compensation for material and non-material damage caused by public and self-governing authorities, assistance in determining the amount of damage.
Drafting and analysis of agreements Elaboration and analysis of all types of agreements used in commercial activity. Sales contracts, pledge contracts, rental contracts, loan contracts, remuneration contracts, contractor contracts, transport contracts, commission contracts, employment contracts. Non-commercial agreements: amicable agreements, marriage contracts, inheritance contracts, etc. Elaboration and analysis of all types of appendices to the contracts: declarations of acceptance, payment schedules, plans, specifications, technical tasks, agreements, etc. Elaboration and analysis of all other documents used in business activity: commercial offers, writs, appeals, reminders, notices, declarations and agreements on termination, modification and addition, as well as any other documents. Consultations on any modification, breach, termination, validity, legality or interpretation of the above documents. Development of concepts and schemes to safeguard customer interests with regard to contract fulfillment and contract termination. Representing the client and safeguarding his interests in the conclusion, fulfillment and termination of the contract, participation in negotiations. Registration of agreements with the relevant Latvian authorities (business register, land register, patent office, etc.). Invalidation of Agreement by Legal Proceedings. Trademark Advice on national and international registration of trademarks, use of exclusive rights to the trademark, sale of the trademark, transfer to other persons. Assistance in searching for identical or similar images prior to trademark registration, advice on the results of the search. Preparation and filing of the application and other documents required for trademark registration. Tracking of all stages of trademark registration and informing the customer about the registration process. Representation of the client's interests in the patent office in relation to the registration of the trademark. Analysis and drafting of licenses and license agreements for the transfer of rights to use brands. Preparing pre-trial claims for those who have violated trademark law. Representation and protection of the client before the Court of Appeals and the District Court in relation to the cancellation of the registration of the trademark and the prohibition of the use of the trademark. Prepare the application and other documents to be filed with the Appeals Council and District Court.
Legal address / Mail forwarding If your business is not fully operational yet or you simply do not require physical presence locally we will provide a virtual address for your company for a fixed and reasonable fee. Mail and call forwarding services are possible. If your company needs legal address for registration purposes which is obligatory requirement by law, we can provide it for a set monthly fee.
Nominee Directors While your newly established or acquired company is not fully functional, it is possible to provide the services of nominee director for a set monthly fee. Nominee directors will help you to operate your company distantly and start economical activities as fast as possible.
Bank accounts Baltic Legal offers consultations to its clients in respect to requirements imposed by local Banks and State institutions in relation with opening bank accounts.
Assistance in obtaining the necessary certificates We can help you finding the appropriate institution to contact and also assist in submitting applications for certificates and permits. We also provide intellectual property protection services (registration of trademarks, patents, dealing with intellectual property protection organisations).
Translation services / language solutions We provide different type of translation services for our clients, necessary to conduct business or concerning immigration matters and investments. We will offer most efficient, cost and time - saving solutions for translation of your documents. When it comes to translation of legal/business documents to our clients we recommend our trusted partner – Translation Agency BALTTEXT.
Representation during negotiations We can help you to avoid the language barrier at meetings by representing client interests during negotiations with business partners or state authorities. Our clients can pursue their interest distantly, conclude different business transactions through Power of Attorney and receive necessary information in understandable language.
Partner reliability check Before establishing a business partnership, it is important to check whether you can trust your business partner. We can pursue evaluation of basic economic information of a company (date of registration, ownership, activities, major contractors, tax matters etc), provide information regarding possible criminal component in activities of a company, as well as individual personality traits of certain persons. BALTIC LEGAL has numerous connections about doing business in Latvia, Lithuania or Estonia and that makes our business support service the best available.
Insurance You know that every business faces a variety of risks. For example, there may be injury to employees in job related accidents, goods may be lost in transit; there may be fire in the office, and so on. In all these situations the entire loss is to be borne by the businessman or the owner. But, now-a-days, the risk of loss or damage is not entirely borne by the owner. The insurance provides protection against losses form such risk of the business for a nominal charge called premium. In other words, it helps the business in recovering losses which may arise due to various happening in the course of business, partly or fully from the insurance company. We can help you to choose the best type of insurance, as well as insurance provider in Latvia, Estonia or Lithuania.
Real estate search Real estate purchase usually is valuable investment therefore it needs accurate analysis and knowledge of local real estate market. We offer real estate search service for clients, interested in investing in real estate in Latvia, Lithuania and Estonia.
Invitation/business visit to Latvia If our client wants to meet us personally and analyse business opportunities on the place, we can request invitation to our main office in Riga in Office of Citizenship and Migration Affairs of Latvia. We will provide the list of necessary documents and information for the invitation request, as well as the place where the client could receive short term visa for the visit.
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