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Ease of Doing Business in

Latvia

Latvia Download Profile (1740.3KB, pdf)
Region Europe & Central Asia
Income Category High income
Population 1,978,440
GNI Per Capita (US$) 14,900
City covered Riga

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 14 17 up
3
80.61 79.14 down
1.47
Starting a Business 22 20 down
2
94.15 94.15
-
Dealing with Construction Permits 23 20 down
3
78.93 78.94 down
0.01
Getting Electricity 42 57 up
15
82.14 78.99 up
3.15
Registering Property 23 23
-
81.87 81.87
-
Getting Credit 7 19 up
12
85.00 75.00 up
10.00
Protecting Minority Investors 42 40 down
2
63.33 63.33
-
Paying Taxes 15 16 up
1
89.79 88.84 up
0.95
Trading across Borders 25 25
-
95.26 95.26
-
Enforcing Contracts 23 23
-
71.66 71.66
-
Resolving Insolvency 44 43 down
1
63.95 63.39 up
0.56

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 22

DB 2016 Rank: 20

Change in Rank: down2

DB 2017 DTF (% points): 94.15

DB 2016 DTF (% points): 94.15

Change in DTF (% points): 0.00

Standardized Company
Legal form: Sabiedriba ar ierobezotu atbildibu (SIA)
Paid-in minimum capital requirement: EUR 1
City: Riga
Indicator Latvia Europe & Central Asia OECD high income
Procedure – Men (number) info_outline 4.0 4.9 4.8
Time – Men (days) info_outline 5.5 10.2 8.3
Cost – Men (% of income per capita) info_outline 1.5 4.7 3.1
Procedure – Women (number) info_outline 4.0 4.9 4.8
Time – Women (days) info_outline 5.5 10.2 8.3
Cost – Women (% of income per capita) info_outline 1.5 4.7 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 4.0 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Complete signatories’ cards and companies deeds, certify cards by a notary

    Agency: Public Notary, Register of Enterprises

    The application to the Commercial Register, the consents for appointment to the Management Board and the register of the shareholders must be notarized by a notary public, by an official of the Commercial Register or signed by secure electronic signature. The fee for the verification of one signature by the notary public is EUR 26.06, by the official of the Commercial Register - EUR 7.11. Costs for using a secure electronic signature depends on the service provider, generally less than 0.40 EUR per one signature.

    Registration procedure can be done online by signing all establishment documents with a secure electronic signature and sending all of the signed documents to info@ur.gov.lv.

    Alternatively, registration procedure can be done online via https://www.latvija.lv/Epakalpojumi/EP119/Apraksts. However, in this case the registration application can only be signed using the eID card due to technical limitations. In order to obtain an eID card, the person has to be a citizen of the Republic of Latvia or have a residence permit.
    1 day EUR 26
    2

    Open a bank account and get a receipt of reference from the bank

    Agency: Bank

    Most banks do not levy a fee for opening a bank account, but a fee needs to be paid to obtain a bank statement on the payment of the share capital. Generally it is about EUR 10, depending on the bank. Most banks increase the fee for issuance of the statement within one business day.
    1 day EUR 10
    3

    Register at the Commercial Registry and register with State Revenue Service (tax authority) for VAT

    Agency: Commercial Registry and State Revenue Service

    The following company incorporation documents must be submitted to the Company Register:
    • Registration application, on a special form provided by the Registry (includes information on Board members and company share capital) signed in front of a notary public
    • Company charter
    • Foundation agreement (Resolution on foundation in case of one founder)
    • Proof of investment
    • Consent to the election to the Supervisory Board (if existence of Supervisory Board is provided in company charter)
    • Consent to the election to the Management Board
    • Notice of the Management Board on legal address of the Company
    • Power of Attorney in case any of the founders is signing the Registration application via authorized person
    • Document certifying payment of state duty
    • Document certifying payment of the publication fee

    Registration application can also be filed electronically if signed by secure electronic signature. Consent to election to the position of the Management Board member needs to be signed by secure electronic signature or the signature needs to be approved by the notary public or the official of the Commercial Registry. Alternatively the consent can be inserted in the registration application, however the signature of the Management Board member needs to be approved as described above. Consent of the owner of the real estate regarding registering the registered address of the company to be established also needs to be submitted to the Commercial Registry.

    Notarized Section of Shareholders Register must also be submitted.

    According to amendments of the Annual Reports Law, the annual report of the company should be reviewed by the sworn auditor and the appointment of auditor is needed only if two of the following three criteria are exceeded:
    1) the sum of the balance sheet amounts to EUR 400 000;
    2) the net turnover amounts to EUR 800 000;
    3) average number of the employees during the financial year amounts to 25.
    3 days The 3 working days registration costs EUR 142.29 and within 1 working day EUR 426.87
    4

    Register employees for mandatory state social insurance contribution with the State Revenue Service

    Agency: State Revenue Service

    Regulation No 827 On Registration of Persons Performing Mandatory State Social Insurance Contributions and Personal Income Tax of the Cabinet of Ministers of Republic of Latvia (dated 7 September 2010) has been adopted and states that the following persons must register with the territorial agency of the State Revenue Service: employers, self-employed person, domestic employees working for foreign employers, and foreign employees working for foreign employers.

    There have been amendments made to the Regulation No 827 dated 09.10.2012 and 19.02.2013 providing that the employer registers the employee with the State Revenue Service no later than one day before the person starts the work if the application has been filed in paper format or not later than one hour before the person starts work if the application has been filed via electronic declaring system. Furthermore, the person can be registered at any customer service center of the State Revenue Service instead of the respective territorial department of the State Revenue Service. Also, as of 01.07.2013 the employee's profession (position in the company, specialty) in accordance with the Profession classification needs to be notified to the State Revenue Service at the registration process. 

    The Electronic Declaration System (https://eds.vid.gov.lv) of the State Revenue Service is available only for persons who are either citizens or non-citizens of the Republic of Latvia or have a residence permit in Latvia.
    Less than one day (online procedure) no charge