Some Reasons Why Set Up Business in Latvia is a Good Step
The Latvians are historically rooted in their heritage. But surprisingly, they welcome modernisation that benefits them and their country. This includes foreign investments as well as new business ventures. As long as international business owners adapt to the Latvian way of doing things, doing anything is a breeze. If you are an avid entrepreneur and a nature lover, Latvia is the place to call home. Among all the business benefits of Latvia, the start-up culture tops the list. Read on to find out more about why you should set up business in Latvia.
Start-up Culture
If you own a start-up company and planning to venture into the European market, starting a business in Latvia is a good option. The most common businesses registering in Latvia are small and medium enterprises (SMEs). These group of companies receives the most support from the Latvian government; from financial assistance to programme grants to business incubators – for venture developments. Businesses could also source for a variety of support from the Investment and Development Agency of Latvia, Development Finance Institution ALTUM, and the Latvian Business Angel Network. If you are socially conscious before starting a business, you are more likely to get encouragement and support from the government. Social entrepreneurs would generally implement a business model that is viable and sustainable for local communities. Thus, it creates sustainable employment in the long run.
Heavenly Tax Structure
Making profits and ensuring revenues are at the top of the list for business owners. So is tax. In most countries, the business tax is called a corporate income tax (CIT). The Latvian tax regime for businesses is slightly different. From 2018 onwards, businesses will only have to pay 0% CIT when the company pays dividends on actual profit distribution. There is another CIT rate, which is 20%. Companies will need to pay 20% from profit distribution not directly related to business development. Foreign companies will need to pay the standard rate CIT at 20% or as assessed. Above all, Latvia has the lowest total tax rates among the Baltic countries. With a tax structure like the one in Latvia, business owners should be jumping for joy.
Pro-business Mindset
Latvians are rooted in their heritage. But the younger generation enjoys modernisation as well. Hence, they have become robust in facing modern challenges. The government of Latvia has explicitly passed a national Law on Aid for the Activities of Start-up Companies. Hence, the start-up culture in Latvia is very encouraging. Latvia ranks high among other European countries in terms of ease of doing business. It may be modest in size, but the Latvian government consistently offers support for green innovations, creative industries, energy, ICT, and modern food production.
Latvia also offers business incubators for the development of renewable materials and energy efficiency. As Latvia is an open economy, it follows a western-oriented business environment. Add in a multilingual workforce to the sum, Latvia is undeniably anticipating your business to flourish.
Contact us if you’re interested in starting your own venture.
