Latvia

FITA helps you find
service providers for:

Operating a Business in Latvia

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
The sabiedriba ierobezotu atbildibu is a Private Limited Company. Minimum LVL 2,000. 50% of the capital must be released at the incorporation and the remainder within the year.	The number of shareholders varies from 1 to 50. Liability is limited to the amount contributed.	Complete signatories’ cards and companies deeds, certify cards by a notary at the Ministry of Justice: LVL 10. Open a bank account and get a receipt of reference from the bank: LVL 3. Register at the Ministry of Justice, Register of Enterprises: LVL 124.
The akciju sabiedriba is a Public Limited Company. Minimum LVL 5,000. 50% of the capital must be released at the constitution and the remainder within the year.	Minimum 3 shareholders. Possibility of having only one shareholder if he is a foreign investor or represents a public authority. Liability is limited to the amount contributed.	Complete signatories’ cards and companies deeds, certify cards by a notary at the Ministry of Justice: LVL 10. Open a bank account and get a receipt of reference from the bank: LVL 3. Register at the Ministry of Justice, Register of Enterprises: LVL 124.

Business setup procedures: The registration procedure with the Register of companies must be carried out 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 incorporation expenses vary from 800 to 1,000 dollars.
The competent organization: Here is the link to the Register of Commerce in Latvia (website in Latvian).

Legal weekly duration: 40 hours
Retirement age: 55 for women and 60 for men.
Working contracts: Employment contracts are regulated by law and to a lesser degree by collective agreements.
The terms of employment contracts are very rigid.

Minimum wage: 90 lats (USD156)
Average wage: The average net salary in 2008 was LVL 477 (EUR 680 ), which is an increase of 45% compared to 2006. In the public sector, the gross average salary has reached LVL 568 (808 EUR), while in the private sector it is LVL 434 (EUR 620).
Social contributions: Social security contributions paid by employers: 26.09 %.
Social security contributions paid by employees: 9 %.

Social dialogue and involvement of social partners: N/A.
Unions: LBAS - Latvian Free Trade Union Federation.
LMDA - Medical Workers Trade Union. It is one of the biggest unions in Latvia. It brings together employees in the health systems. LMDA is a member of the Trade Unions of Public Services International PSI.
LGrAS - Book industry Trade Union. It brings together the employees of the book and small volume industries, publications in the press and publishing houses. LGrAS is a member of the International Graphics Federation IGF and the European Graphics Federation EGF.
LINA - Latvian Industrial Workers Trade Union. It brings together employees from the chemicals and light textiles industries. The Latvian Industrial Workers Trade Union. is a member of the International Federation of Chemical, Energy, Mine and General Workers' Unions and the International Textile, Garment and Leather Workers Federation ITGLWT.
LTAP - Trade Union of Commerce. Brings together public and private sector employees engaged in commerce as well as those in other commercial organizations. LTAP is a member of the International Federation of Commercial, Clerical, Professional and Technical Employees FIET.
LAKRS - Trade Union of Public Service Employees. It mainly brings together employees engaged in municipal enterprises. LAKRS is a member of the Trade Unions of Public Services International PSI.
Labor regulation bodies: The Latvian Ministry of Labor and Employment

Any comments about this content? Report it to us.