Latvia business expansion new vertical to get into the European market
Foreign entrepreneurs are always looking for ways to make a European market entry. Starting or expanding a business in Latvia is one of the perfect methods to enter into the European market. The Baltic country is located at the heart of the continent. In addition, the economy of this country is also thriving which offers numerous opportunities for businesses of all sizes. Latvia has a business-friendly environment and attracts business owners and investors worldwide to expand their economy. The country’s GDP grew by 5.6 percent in 2022. It indicates that expanding or starting a business in Latia is a profitable decision. If you plan to enter the European market by doing your business in Latvia, invest your valuable time in this blog. The blog will provide an in-depth guide to starting or expanding a business in this country. Moreover, we will guide you to relocate yourself and your company to this country. 
Opportunities for business in Latvia
Latvia provides numerous business opportunities for businesses of all sizes. The nation has a thriving economy with a favourable tax regime for small businesses and startups. Latvian companies also have access to all types of funding opportunities and support from the Government, making it easier to your Latvia expansion in Europe. In addition, the country is well-positioned as a gateway to the significant Eastern market and even the Nordic.
Benefits of Starting a Business in Latvia
There are numerous benefits that you can enjoy by expanding or starting a business in Latvia. The following is the list of accepting the Latvia expansion opportunities in Europe:
1. Affordable corporate income tax
The attractive corporate income tax is among the top reasons for your business expansion in Latvia. The jurisdiction levels a 0% tax rate in Latvia on the re-invested profits. It means you must pay corporate taxes when you intend to distribute profits. For these cases, the government will charge a 20% corporate tax on the distributed profits. Remember, the residents of this country must pay a corporate tax irrespective of their income. For non-residents, the jurisdiction will charge a corporate tax only on the income earned from this country.
2. Immigration
As Latvia is a signatory of the Schengen Agreement, a foreigner who joins the board or council of Latvian business can get a residence permit. The permit will allow them to dwell in the country for a term ranging from one to five years. For the duration of Residence permits, they are eligible to move to the Schengen area as much as they like, a great way to meet people for commercial purposes.
3. Transport and logistical
Latvia is a favorable destination located between EU nations and large eastern markets, emphasizing a well-developed logistic chain and transportation services to boost the trade between East and West. Latvia’s proximity to the EU external border with Russia, Belarus, and other countries under the Schengen membership has significantly contributed to the nation's GDP. 
Requirements for expanding business in Latvia
There are a few requirements that you must fulfil to expand your business to Latvia. Below is the list of top requirements:
➥ Obtain visa
Obtaining a visa is the primary requirement that you must fulfill to expand your business in Latvia. However, there are numerous visas you can apply for the relocation of your business to this country. Keep reading to know more.
➥Capital requirement
The minimum capital required for the incorporation of a business differs from business to business. For limited liability, the minimum requirement is EUR 2820. Similarly, the minimum capital share for joint stock is EUR 35,210. On the other hand, a branch office doesn’t require any business capital. However, businesses must pay a fee of EUR 29 for a representative office.
➥ Directors and company secretaries
The number of directors and secretaries depends on the type of business entity you create. Remember, every business needs one director on the board of directors. Therefore, you should appoint a director for the expansion of your business.
The process for running your business in Latvia
If you want to set up and expand your business to Latvia, you must follow several steps. Remember, following these steps carefully is crucial for New vertical expansion. The following are the steps to expand your business to this country:
- Initially, you should select the business structure for your business expansion. limited liability companies (LLCs), joint stock companies (JSCs), and partnerships are some business structures offered by the Latvian government.
- After choosing a business structure, you must prepare the necessary documents. You must submit all required documents to the Latvian Enterprise Registry. However, you should ensure that all your documents are individually signed.
- You must pay the minimum share to the Latvian Enterprise Registry. While submitting your documents, you can fully submit the share capital. In case of instalment, you should pay 50% before submitting documents and the rest within one year of company formation.
- Next, you must register your business with the Latvian government. This process can be done online. In this process, you must provide some essential information.
- Lastly, you should open a bank account and obtain a Tax Identification Number. This step can be performed by any local bank or Latvian Tax Authority.
How to relocate your business in Latvia
Latvia is a member of the EU. Therefore, EU and EEU citizens may freely live, work, and start a business there. However, non-EU should apply for working and residence permits. If you are interested in expanding your business in Latvia, the government offers a startup visa to help you expand your business. The visa is a temporary residence permit for all non-EU startup founders. The process of getting a startup visa is relatively easy. One startup or small company can have up to five founders with a startup visa. The validity of a startup visa is three years. The application process takes one month to complete. In addition, the visa allows you to bring your family to this country.
How Can Flyingcolour Relocation Help You?
Business expansion to Latvia is an excellent opportunity for European market entry. However, foreigners must apply for a startup, working, or residence visa to expand their business to this country. Flyingcolour Relocation Service can help you to obtain this visa. In addition, we will ensure you get this visa effectively. To learn more about Latvia is an excellent opportunity for European market entry, book a free consultation with one of Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com. This article was published on 19-03-2024. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent updates or changes.