Data about banks in Latvia

Latvia is an attractive financial and trading centre to facilitate business operations in this region, due to its location between the CIS and Western countries, and membership in the European Union. The country has highly developed banking system within the EU.

The Association of Latvian Commercial Banks says that the portfolio of issued loans by Latvian banking sector was EUR 14.4 billion as of December 31, 2017. Loan portfolio for retail customers was EUR 5.5 billion, for corporate customers – EUR 8.8 billion of December 31, 2017 (latest data).

Banks are looking for better options for clients. So why in October, 2017 the Nordea Bank AB Latvia branch and DNB banka merged in the Baltic State and started operations as Luminor Bank. It became the second largest bank in Latvia by assets (with a total assets of 4.9 billion, the bank holds 17 % market), capital (526 million euros) and deposit value (with the attracted deposits amounting to 2.9 billion euro, the bank holds 15% market share). The first largest bank is Swedbank.

Not only banks are changing something. on Thursday, April 26 Saeima adopted amendments in the Law on Prevention of Laundering of Proceeds from Crime and on the Financing of Terrorism. Cooperation with shell companies and servicing accounts will be prohibit for banks registered in Latvia.

Data provided by the The Financial and Capital Market Commission shows that in Latvian banks, the profit share of corporate of shell companies in total customer credit turnover was 27.8 percent higher than in the first quarter.

Not so good news for shell companies but it will motivate banks to develop internal control system.

Day of submission of Annual Report is coming (Latvia)

Even then accountants have experience and expertise, they are facing changes, emerging situations every year and learn something new.
According to Annual Report and Annual Consolidated Report Law, all commercial companies must submit an annual report approved by the shareholders not later than one month after the approval of the annual report and not later than 4 months after the end of the reporting year to the State Revenue Service.
An exception is for:

• medium and large companies that meet Annual Report and Annual Consolidated Report Law’s criteria;
• the parent company of the group preparing the consolidated Annual Report;
• companies that should submit the Annual Report and the consolidated Annual Report (if it is being prepared) within 7 months after the end of the reporting year to the State Revenue Service.

On February 13, the Cabinet of Ministers approved amendments in Regulations of the Cabinet of Ministers No. 755 "Regulations on the Application of the Law on Annual Accounts and Consolidated Annual Report" that are made to partially solve the problem of the exclusion of deferred tax assets and deferred tax liabilities from enterprises balance sheet, in a result, the size of own capital of specific company is changing.
From 16th of February, 2018 Act has amendments because, from 1st of January, 2018 goes to action the Law of Corporate Income Tax. It says about a different calculation model of corporate income tax.




Preparing a correct Annual Report is unthinkable without an inventory of all accounts. If accounts are kept and known balances, the preparation of the annual accounts is merely a technical task. Amendments are not applicable for all companies who prepare Annual Reports according to International Accounting Standards.
Sometimes it seems too much for one person and companies use service of outsourcing.

Are you ready to submit Annual Report?

Altum Funds or Plan B for Business in Latvia?

Many countries offer some good platforms for start-ups and new enterprises such as lower tax rates or even tax breaks, funds, loans and investors. Latvia is in a list of this countries thanks to ALTUM.

Why it could be interesting for you?

1. If you are owner of company so you can get loans to facilitate business operations and development. Type of loan depend of type and size of your company.
2. If you are just thinking about new start for yourself you can make a choice between loan to start a business, micro loans, seed and start-up venture capital programme, accelerator funds programme and others.

ALTUM is a state-owned development finance institution, which offers state aid for various target

groups with the help of financial tools (loans, credit guarantees, investing in venture capital funds, etc.).

The most great news that ALTUM supports enterprises at different stages of their development, starting

with developing business ideas to carrying out large projects if financing is not available in the private

finance sector.

If you have plan, idea and you want your big dream to come true in Latvia, it is time to do it because

deadline for term deposit agreements is 31 December 2020.

Newborn businessman or businesswoman can not forget about enterprise registration and other

aspects that could help to get loan. On the other hand, he/she also need to have plan B.

What do you need plan B?

1. If you are not sure about some points and you anyway do not have enough information that you can provide by your own.
2. If your vision of great business is not clear to others.
3. If you have difficulties with paperwork and understanding of rules, regulations, requirements and Laws
4. If for any reasons (something is not matching up) you did not get loan.

Find out more about this great opportunities and necessary steps of company registration with

Baltic Legal

Commercial activity

What is commercial activity?

Commercial activity is an open economic activity, performed by a merchant with the goal to get profit. A merchant - a merchant is a person, registered/recorded in the commercial register - can be an individual, sole trader, partnership and commercial company.
They are both legal and public activities so you can say they are open activities. Only the economic activity of a person who is registered in the commercial register and using the registered name - company name - can be a commercial activity. Merchant is doing business with his name and responsible for results of the commercial activities finances.

To start a commercial activity, you need:

You need to choose one of the available legal forms of business and register it in the commercial register what is called the Register of enterprises.
A merchant can define his main types of commercial activities during the registration commercial activity. He can also define them while registers tax authority or submit an annual return. A merchant can do any type of commercial activity that is not prohibited by law. Merchant must be registered as a taxpayer and must keep records in accordance with the legislation.

What is corporation and how does it work?

What is a corporation?

It is a firm that meets certain legal requirements to be recognized as having legal existence

is a group of people or company that is authorized to act as a single person and recognized

as a person in law. A legal entity that is distinct and separate from its owners.

How does it work?

The most known corporation organizational structure consists of the:

• Boards of the directors
• Officers
• Employees
• Shareholders and owners

There can be much more as company required.

Employees make the business run. Shareholders own the corporation. That ownership may

be 100 percent in the hands of one individual, divided within a family or a few individuals, or

spread among tens of thousands or millions. Though shareholders may not participate in the

day-to-day management or have a direct say in decision-making, major shareholders

nonetheless carry great weight in influencing corporate decisions. This group routinely votes

on the election and removal of directors, amending by-laws, major corporate changes

(mergers, sales, dissolution), disposition of corporate assets, and amendment of the

Articles of Incorporation. Other shareholders may participate in these activities but to a

lesser extent. The level of shareholder influence on the board of directors is one of many

things to consider when forming a new corporation.