Doing Business in Latvia. Latvian entrepreneurs for development in B2BALTIC Nordic community
A summer article devoted to doing business in Latvia, one of the best country for new business in the whole Baltic area. Starting a business, company registration / formation, trade and import export are easy to do (ease to doing business in Latvia is 19th position in the world according to The World Bank – updated in 2018). This year we talk in Riga about internationalization and initiatives involving Germany, Austria, Sweden, Italy, Switzerland, USA, new trends for social start-ups in B2BALTIC StartUp Hub with concrete funding opportunity for childcare and elder-care, innovation & tech, plus restructuring and reconstruction of real estate for commercial purpose (retail, entertainment) in Riga. In this practice guide you´ll find important information you absolutely should know. B2BALTIC Team is anytime ready to meet up personally in Riga.
Invest in Latvia
If you are considering investment in Latvia, here are some steps you may wish to consider as you get started:
– Watch the presentation movie Doing Business in Latvia below;
– Register your company on B2ALTIC™ Hub and start B2B with Nordic/Baltic/Russian companies;
– Join B2BALTIC networking groups for entrepreneurs (see GROUPS for guest entrepreneurs);
– Subscribe to our Twitter page to follow the top business news from the Hub;
– Arrange a skype call with me or one of our Latvian specialist or meet-up with us in Riga, join the next conference.
Current activity of B2BALTIC™ in Latvia
– Supporting Latvian professional to find partners abroad and increase export, providing free facilities as well, thank B2Baltic B2B networking groups (see all our networking groups on b2baltic.org: workgroups are for premium members, leaders, associates; social groups on LinkedIn are open also to free members, however moderated) and blogs, promoting Latvia worldwide;
– Supporting Business for profit as well as Latvian Non-Profit professional industry (see our regional Non-Profit group on b2baltic.org) and helping develop new music & concert events in the Baltic States, connecting to international Music-Industry experts;
– Developing Real Estate targeting renovation of old historical buildings in Riga and a new construction of a luxury retail mall, also in collaboration with Luxury Nordic Hub LNH (new partners/investors are welcome, otherwise you can propose your own building and your development idea);
– Developing social family services especially oriented to elder and children care (new partners/investors can join us, chat with B2BALTIC TELEVISION for references);
Why to invest in Latvia?
Over the last ten years Latvia has experienced an extensive economic growth in all sectors. The highest priority objective of the program is the direct foreign investments (FDI), which is the key to a fast and successful economic recovery. Latvia is NATO member since 2004. The strategic geographical position in the center of the Baltic area provides big accessibility to the large and rich Nordic markets.
Access to knowledge and skills
Latvia has highly educated and multilingual workforce, with a northern European culture and work ethic, historical developed business knowledge and experience with Russia/CIS. Workers here are ready to take on new challenges and, even more in the current circumstances. Employees are highly motivated. Latvia’s workforce is rated in the top five in the world in terms of university students per capita and possesses a northern European culture and work ethic, excellent skills and discipline. Over 85% of Latvians speak Russian; 70% of people under age 40 speak English; German and Scandinavian languages are also widely spoken.
Main attractive merger and acquisition opportunities around Riga
Renewable energy, ICT, Woodworking, Construction materials and industrial real estate offer high business opportunity in Latvia.
Where is Latvia
Invest in Latvia: Business for sale, property for sale
If you don´t want to create a startup, B2BALTIC can provide you with a ready-made company with zero or positive financial records, as well as operational activities for sale including structures, assets, collaborations, contracts, clients in Riga. You can join B2BALTIC INVESTOR CLUB to acquire and develop commercial or residential premises in Latvia, development commercial real estate, get in touch with luxury Latvian traders, support the launch of new startups, or get private/EU funding in Latvia for your next smart project.
In terms of logistics, Latvia is one of the best locations to establish a business in Northern Europe. Riga itself is the largest city in the Baltic States and is ideally located at the centre of the region. It´s European Union boarder with Russia, providing Ice-free ports, a fastest growing airport in Europe RIX which offers direct flights to more than 80 destinations, plus a well developed transport infrastructure in Riga free port. The Trans-Baltic highway (Via Baltica) connects directly to Moscow.
Free Tax Zones, Import Export, Latvia trade
Latvia has four separate Special Economic Zones (three ports and one inland). All are well connected to transport systems. Zones offer corporate tax discounts (as much as 80%) as well as 0% rates for VAT, customs and excise duties to companies setting up there. Special government funding programs are available to assist export-oriented business activities. Ask B2Baltic team the best zone and check out the ability of the logistic structures partners of B2Baltic.
Latvia’s labour costs are very competitive, especially compared to those in older EU member countries. Corporate income tax rate is among the lowest in Europe at a flat rate of 15% and dividends to EU citizens are not taxed. Personal income tax is also at a low flat rate of 26%.
Temporary residence permits
In July 2010 Latvia adopted a new regulation providing for additional opportunities for a foreign person to obtain a temporary residence permit in Latvia without the need to reside in the country for a specific period of time. According to the newly adopted provisions a foreign natural person may obtain a temporary residence permit on the following basis:
investment not less than EUR 35500 in a small Latvian company and EUR 100.000 for the rest; board member of a Latvian company which by the time of applying exists for not less than 1 year: payment of at least EUR 284600 to the subordinated capital of a Latvian bank; acquisition of real estate in Riga / or one of the larger cities of Latvia worth EUR 142300 or real estate worth EUR 71200 in other areas.
Information and communications technology
Latvia has one of the fastest telecommunications infrastructures in the world, providing companies seamless connection with customers and partners abroad. Indicative rankings include: 5th globally for average measured Internet connection speed (7.8Mbps) and 7th globally for broadband connectivity above 5Mbps.
Latvia offers significant cost advantages to investors, including competitive labor and real estate expenses, as well as competitive tax rates. Coupled with strong productivity in manufacturing and services, Latvia provides investors with a highly cost-effective environment for business, producing compelling returns on investment. In Real estate sector, overhead costs have decreased significantly in recent years, particularly for construction, office space and industrial real estate. You can use B2BALTIC experienced lawyers to manage your real estate transactions.
Translations and localization in Latvia
The official language is Latvian, secondary Russian. However the English language is daily used in business place. When you need language support, B2Baltic team will provide you English Latvian translator in order to translate Latvian to English or other language, as well as editing and printing documents, assistance for corporate localization when you join fair trade in Latvia.
Ease of doing business
According to the World Bank’s, Latvia has one of the best rank in the world, still improving it with 22nd in 2016, 19th in 2018 among the world’s most business-friendly countries. Latvia’s strengths are demonstrated in the fields of registering property, paying tax, and trading across borders.
Starting a business and get funding: B2BALTIC StartUp Hub Riga
Thank B2Baltic Start-Up Hub and the Investor Club Nordic/Baltic, your project might find in Latvia fundraising opportunities and assistance by sales & marketing force on global scale. N.B. Local structures, local accelerators, domestic startup hubs, although able to integrate you inside the local market, sometimes do not provide your future startup with good developed international connections. Instead in B2Baltic StartUp Hub you will work together with European sales & marketing developers, high communications skills, open-minded attitude, high experience in big market-places like Germany, Sweden, Austria, Switzerland, Italy and USA. You can candidate your project now, is free.
Company formation and registration in Latvia
B2Baltic cares about all the tasks from company forming to registration, directory listing, VAT registration, accounting and financial support, as well as investor and fundraising search. Typically the formation costs for a new business LLC/LTD including register and notary fees are about 700-1200 EUR one-time, accounting about 700-1300 EUR a year. The minimal capital requirement in Latvia can also be 1 EUR. Each new startup is registered in B2Baltic Hub, get listed and promoted automatically by B2Baltic marketing team for the first year included.
Currency of Latvia
The currency in Latvia is EUR since 1st January 2014.
Riga Conference, the highlight business & political event in the Baltics
The Rīga Conference has taken pride in itself as the meeting place of local and global elites since its inception in 2006. In the past, it has been honored with the presence of countless heads of state, heads of government, ministers, NATO and EU officials, and ambassadors from all around the world. Over the course of the last years, The Rīga Conference has built its name and reputation. Highlights have included having the Prime Ministers of Latvia, Poland, Estonia, Lithuania, and Finland together in the same room to discuss economic growth and international trading opportunities.
Trade fair meetings in Latvia.
Here you can see the next trade fairs in the main city of Latvia.
Luxury SPA and Corporate Business Hotels in Riga for your stay
Luxury Hotel (since 2016 the hotel is also residence of Austrian Consulate of Riga):
Riga Grand Palace ***** : http://www.grandpalaceriga.com/home/en/
Hotels for Corporate Business Travellers:
Radisson Blu Elizabeth ****: http://www.radissonblu.com/elizabetehotel-riga
Radisson Blu Skyscraper ****: http://www.radissonblu.com/latvijahotel-riga