Latvia Country Profile business trade issues

Latvia

DOING BUSINESS

Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Foreign companies, willing to set up in Latvia can contact the Trade Register in order to get informed on the different procedures or contact the Register of Foreign Companies for the constitution of agencies. They can also check the Latvian Development Agency site.

Legal forms of companies

Form	Number of partners/shareholders	Minimum and/or maximum capital	Liability	Registration fee	Release of financial documents
The sabiedriba ierobezotu atbildibu is a Private Limited Company.	The number of shareholders varies from 1 to 50.	Minimum LVL 2,000. 50% of the capital must be released at the corporation and the remainder within the year.	Liability is limited to the amount contributed.	LVL 15 for the publication in the Latvijas vestnesis Journal. LVL 100 for the Register of companies.	Yes
The akciju sabiedriba is a Public Limited Company.	Minimum 3 shareholders. Possibility of having only one shareholder if he is a foreign investor or represents a public authority.	Minimum LVL 5,000. 50% of the capital must be released at the constitution and the remainder within the year.	Liability is limited to the amount contributed.	LVL 15 for the publication in the Latvijas vestnesis Journal. LVL 100 for the Register of companies.	Yes

Registration and licensing procedures
The registration procedure with the Register of companies must be made within 30 days, or 60 days if a license is required.
As for foreign companies' agencies, they can be set up in Latvia provided that they register with the Latvian Ministry of Justice. The constitution expenses vary from 800 to 1,000 dollars.

Foreign exchange control
There is no currency exchange control in Latvia. Free repatriation of capital and profits is carried out.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal.

Foreign Direct Investment inflows in Latvia

FDI inflows	2003	2004	2005	World rank (*) 2005
FDI inflows (USD million)	292	699	632	48/141

Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

Last modified in 2006 - ongoing update