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Ease of Doing Business in

Latvia

Latvia Download Profile (1740.9KB, 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:

23

DB 2016 Rank:

20

Change in Rank:

down3

DB 2017 DTF (% points):

78.93

DB 2016 DTF (% points):

78.94

Change in DTF (% points):

down0.01

STANDARDIZED WAREHOUSE
Estimated value of warehouse EUR 614,156
City Riga
Indicator Latvia Europe & Central Asia OECD high income
Procedures (number) info_outline 12 15.1 12.1
Time (days) info_outline 147 160.7 152.1
Cost (% of warehouse value) info_outline 0.3 4.2 1.6
Building quality control index (0-15) info_outline 12 11.3 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain a building permit

    Agency: Municipal Building Board

    From October 1st, 2014 a new Construction Law was enforced. According to the new Law, BuildCo applies for a construction permit by submitting only the Outline of the building that shows the exact location of the building, the architecture of facades , building construction volume and the intended usage of the building. After that the Building Board reviews the outline and if it is in accordance with the local planning and zoning rules, issues the Building permit with architectural planning conditions.

    According to Construction law, Section 12 , the Building permit should be either issued or declined within 30 days. After obtaining the building permit with architectural conditions specified, BuildCo has to start developing the Technical Project which will require obtaining the mandatory technical conditions from the relevant agencies (environment protection agency, water and sewage company).

    30 days EUR 1,409
    2

    Obtain technical requirements from the Latvian Environment Agency

    Agency: Latvian Environment Agency

    As of January 2008, the technical requirements from the Latvian Environment Agency are issued free of charge. After obtaining the building permit, BuildCo can begin obtaining all the technical conditions.

    28 days no charge
    * 3

    Obtain technical requirements from water and sewage company

    Agency: Riga Water Company (Rīgas Ūdens)

    According to the Regulation No 500 of the Cabinet of Ministers the General Construction Regulations from August 19, 2014 (Paragraph 17) the technical requirements should be issued within 20 days. It takes on average 3 weeks in practice.

    21 days no charge
    4

    Obtain design clearance from water and sewage company

    Agency: Riga Water Company (Rīgas Ūdens)

    The applicant must obtain approval of the project design from the water and sewage company after having first obtained the technical requirements.

    7 days no charge
    5

    Obtain a note in the construction permit regarding execution of the design conditions

    Agency: Municipal Building Board

    According to the Construction law Section 12, the building authority shall make a note in the construction permit regarding execution of the design conditions included therein within 15 working days from the day when documents certifying execution of all the relevant conditions were submitted to the building authority. This is done after having obtained all the technical requirements and getting the design clearance.

    21 days no charge
    6

    Obtain a note in the construction permit regarding execution of the conditions for commencing construction work

    Agency: Municipal Building Board

    According to the Construction law Section 12, the Building Authority shall make a note in the explanatory memorandum, certification card or construction permit regarding execution of the conditions for commencing construction work within five working days from the day when documents certifying execution of all the relevant conditions were submitted to the building authority.This can be done after having obtained a note in the construction permit regarding execution of the design conditions.

    7 days no charge
    7

    Receive inspection by Latvian Environment Agency

    Agency: Latvian Environment Agency

    A representative from the Latvian Environmental Agency conducts an on-site inspection.

    1 day no charge
    * 8

    Receive inspection by Fire Safety and Rescue Department

    Agency: Fire Safety and Rescue Department

    A representative from the Fire Safety and Rescue department conducts an on-site inspection.

    1 day no charge
    9

    Obtain measurements from Special State Institution

    Agency: Special State Institution

    Before placing the newly built or renovated building into operation, a Special State Institution takes the measurements of the building and draws the plans of each floor. This is done within 27 days (in cases with very complicated buildings, this could take longer), and the costs are calculated according to the technical parameters of the building.

    27 days EUR 263
    * 10

    Obtain water and sewerage connection

    Agency: Riga Water Company (Rīgas Ūdens)

    According to the Construction Regulations, a written application should be submitted to the relevant water and sewerage company (in Riga, the company is Riga Water Ltd.).

    20 days EUR 37
    11

    Receive on-site inspection by the Acceptance Commission and issuance of final handover certificate

    Agency: State Acceptance Commission

    Use of the building may begin only after the final handover. The Acceptance Commission is formed by representatives of the Municipality Construction Board, the architect of the project, and owner of the project, who inspect the completed project after water and sewerage have been connected.

    5 days no charge
    12

    Register the building in the land book

    Agency: Land Registry

    After the approval of the building by the Acceptance Commission, the building can be registered in the land book. If the owner of the building is the same as the owner of the land, the building is registered in the same file as the land and is deemed an undivided property.

    If the owners are different for the building, a separate and independent file is opened and the building is considered a separate object of ownership only while the lease is in force. After that, the building is either removed or becomes the property of the land owner. The cost to complete the procedure is LVL 15.00 for the registration into the land book and LVL 3.00 for the issuance of the land book certificate.


    20 days EUR 26

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Passing a certification exam. 2.0