Latvia
Latvia is a developed country, with a high-income advanced economy; ranking very high in the Human Development Index. It performs favorably in measurements of civil liberties, press freedom, internet freedom, democratic governance, living standards, and peacefulness. Latvia is a member of the European Union, Eurozone, NATO, the Council of Europe, the United Nations, the Council of the Baltic Sea States, the International Monetary Fund, the Nordic-Baltic Eight, the Nordic Investment Bank, the Organisation for Economic Co-operation and Development, the Organization for Security and Co-operation in Europe, and the World Trade Organization.
Four cornerstones of the Latvian economy are agriculture, chemicals, logistics and woodworking. Other prominent sectors include textiles, food processing, machinery production and green technologies.
Agriculture enjoys the fertile soil and temperate climate of Latvia. It is the traditional trade of Latvians and is still relevant today. Grain makes up a third of the sector. Quality dairy products and honey lead the niche of high added value exports.
Banking in Latvia is regulated under The Credit Institutions Act, in force as of 24 October 1995. The central bank of the Republic of Latvia is the Bank of Latvia, which is one of the key public institutions that carries out the economic functions as prescribed by law.
The supervision of the Latvian banks, insurance companies, participants in the financial instruments market, as well as private pension funds, is carried out by the Financial and Capital Market Commission, which is regulated by the Financial and Capital Market Commission law.
The system of taxes and duties in Latvia consists of:
-State taxes, the object and rate of which are set by the Saeima;
-State duties, which are applicable under the Taxes and Duties law and other laws and regulations of the Cabinet of Ministers;
-Local duties, applicable under the Taxes and Duties law and binding regulations issued by the local authorities concerned;
-Directly applicable taxes and other obligatory payments set by the European Union’s regulatory enactments.
Latvia has signed bilateral agreements for the promotion and mutual protection of investments with 53 countries. The agreements grant safety and protection to investments made in real estate, intellectual property, shares, or any other form of investment, prohibiting the application of unreasonable, discriminatory, or arbitrary measures to investments by the other contracting state and direct or indirect expropriation or nationalization.
Investors, whether Latvian or foreign, benefit from equal legal treatment and have the same right to establish business operations in Latvia by incorporating a separate legal entity.
The procedure requires the fulfilment of certain legal formalities, such as registration with the Latvian Commercial Register and the State Revenue Service (abbreviated here as SRS).
The common form of carrying on business in Latvia is through a company, mainly a limited liability or a joint stock company.
Companies have their own name, share capital (the minimum amount of which is established by law), management, registered office, and bank account. Companies established in Latvia are subject to Latvian law, but agreements concluded by a Latvian company can be governed by any law agreed upon between the parties. No permit is required by foreigners wishing to subscribe for the shares of a company or to be appointed a member of the board of a Latvian company. The legal address has to be local to ensure the delivery of official correspondences.
The activity of Latvian businesses is governed mostly by the Latvian Commercial Code, enacted in 2000 and further amended.
The Latvian constitution guarantees the right to private ownership.
Both domestic and foreign private entities have the right to establish and own business enterprises and engage in all forms of commercial activity, except those prohibited by law. Private enterprises have competitive equality with public enterprises with respect to access to markets and business operations.
The government extends national treatment to foreign investors. Therefore, most investment incentives and requirements apply equally to local and foreign businesses. The Latvian government has a series of incentive schemes for investment, both foreign and domestic, in several free ports, special economic zones, and in special assisted regions. Two other incentive packages apply to companies producing hi-tech products and to projects that have received the status of a “state-supported investment”. In addition, all investors are exempt from VAT and customs duties on fixed assets imported as long-term investments.
Legal framework for the protection of IPR in Latvia is determined by national and the European Union law as well as international agreements. Intellectual property in Latvia is protected pursuant to the civil and administrative, as well as the criminal procedure.
Latvian law is a part of a legal system of Latvia. It is largely civil, as opposed to a common, law system, based on epitomes in the German and French systems. The Latvian legal system is grounded on the principles laid out in the Constitution of the Republic of Latvia and safeguarded by the Constitutional Court of the Republic of Latvia.
Our law firm VLO provides legal services for corporate and private clients in Latvia. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Four cornerstones of the Latvian economy are agriculture, chemicals, logistics and woodworking. Other prominent sectors include textiles, food processing, machinery production and green technologies.
Agriculture enjoys the fertile soil and temperate climate of Latvia. It is the traditional trade of Latvians and is still relevant today. Grain makes up a third of the sector. Quality dairy products and honey lead the niche of high added value exports.
Banking in Latvia is regulated under The Credit Institutions Act, in force as of 24 October 1995. The central bank of the Republic of Latvia is the Bank of Latvia, which is one of the key public institutions that carries out the economic functions as prescribed by law.
The supervision of the Latvian banks, insurance companies, participants in the financial instruments market, as well as private pension funds, is carried out by the Financial and Capital Market Commission, which is regulated by the Financial and Capital Market Commission law.
The system of taxes and duties in Latvia consists of:
-State taxes, the object and rate of which are set by the Saeima;
-State duties, which are applicable under the Taxes and Duties law and other laws and regulations of the Cabinet of Ministers;
-Local duties, applicable under the Taxes and Duties law and binding regulations issued by the local authorities concerned;
-Directly applicable taxes and other obligatory payments set by the European Union’s regulatory enactments.
Latvia has signed bilateral agreements for the promotion and mutual protection of investments with 53 countries. The agreements grant safety and protection to investments made in real estate, intellectual property, shares, or any other form of investment, prohibiting the application of unreasonable, discriminatory, or arbitrary measures to investments by the other contracting state and direct or indirect expropriation or nationalization.
Investors, whether Latvian or foreign, benefit from equal legal treatment and have the same right to establish business operations in Latvia by incorporating a separate legal entity.
The procedure requires the fulfilment of certain legal formalities, such as registration with the Latvian Commercial Register and the State Revenue Service (abbreviated here as SRS).
The common form of carrying on business in Latvia is through a company, mainly a limited liability or a joint stock company.
Companies have their own name, share capital (the minimum amount of which is established by law), management, registered office, and bank account. Companies established in Latvia are subject to Latvian law, but agreements concluded by a Latvian company can be governed by any law agreed upon between the parties. No permit is required by foreigners wishing to subscribe for the shares of a company or to be appointed a member of the board of a Latvian company. The legal address has to be local to ensure the delivery of official correspondences.
The activity of Latvian businesses is governed mostly by the Latvian Commercial Code, enacted in 2000 and further amended.
The Latvian constitution guarantees the right to private ownership.
Both domestic and foreign private entities have the right to establish and own business enterprises and engage in all forms of commercial activity, except those prohibited by law. Private enterprises have competitive equality with public enterprises with respect to access to markets and business operations.
The government extends national treatment to foreign investors. Therefore, most investment incentives and requirements apply equally to local and foreign businesses. The Latvian government has a series of incentive schemes for investment, both foreign and domestic, in several free ports, special economic zones, and in special assisted regions. Two other incentive packages apply to companies producing hi-tech products and to projects that have received the status of a “state-supported investment”. In addition, all investors are exempt from VAT and customs duties on fixed assets imported as long-term investments.
Legal framework for the protection of IPR in Latvia is determined by national and the European Union law as well as international agreements. Intellectual property in Latvia is protected pursuant to the civil and administrative, as well as the criminal procedure.
Latvian law is a part of a legal system of Latvia. It is largely civil, as opposed to a common, law system, based on epitomes in the German and French systems. The Latvian legal system is grounded on the principles laid out in the Constitution of the Republic of Latvia and safeguarded by the Constitutional Court of the Republic of Latvia.
Our law firm VLO provides legal services for corporate and private clients in Latvia. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
