Friday, November 15, 2019

The form of business to register in Latvia


Before starting a business, you have to decide which form of business would be most suitable for you from a legal and economic point of view. The decision-making process must take into account various factors, such as the size of the start-up capital, how much your company will have customers and employees, the cost of the service offered, or what the monthly turnover, cost and profit will be.

There is a possibility to register different forms of business in Latvia: 
  • a legal person can be a joint stock company (AS),
  • a limited liability company (SIA),
  • a general partnership, a limited partnership, 
  • a cooperative company,
  • an individual (family) enterprise,
  • a farmer or a fisherman's farm. In turn, a natural person can be an individual merchant.
Similarly, a natural person may pursue his economic activity as a self-employed person. 

When starting a business, the most appropriate way to do business could be to become a self-employed, sole proprietor, or start a SIA.

In order for your business to be legal, it must be registered with the Register of Enterprises (UR) and / or the State Revenue Service (SRS) For example, a self-employed person registers his or her economic activities in the SRS, while the individual merchant and the SIA are registered in the UR and SRS.

The type of economic activity you have chosen and the planned turnover will depend on the form of economic activity registration, as well as the types, amount and procedure of administration of taxes to be paid to the state. We draw attention to the fact that all who do business of any kind are bound by the requirements of the Law on Accounting. Businesses must be accountable to the competent person for accounting matters.

You can make a choice by your own or use service of Baltic Legal.

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