Civil Code of the Republic of Lithuania lay dawn the legal norms of foundation, legal status, management bodies and their competence, liquidation and reorganization of different type companies in Lithuania. According to the Civil Code, all companies operating in Lithuania have a status of a legal person. A legal person shall be defined as a company, institution or organization, which may acquire and exercise rights and obligations at its own name. Prior to establishing an enterprise it is essential to assess and choose the type of an undertaking which is the most appropriate for you in legal and economic terms, because this choice will affect not only the amount of necessary equity capital, but also the legal status of the enterprise and other business-related issues.
The most common form of a business presence in Lithuania is a limited liability company (UAB). There are four main kinds of company registration Lithuania for foreign investors, and they are as follows:
public company (AB) is similar to limited liability company (LLC) or joint stock company (JSC) private company (UAB) general partnership (TUB) or limited partnership (KUB) branch or representative Office All business entities must register with the unified Register of Legal Persons (The Registrar), administered by the State Enterprise Centre of Registers.
Baltic Legal will assist you in preparation of incorporation documents and represent your interests in the Register Centre. More on Baltic Legal will help you set up business in Lithuania and do everything related to company formation.
Public limited liability company (AB) Public limited liability company is the most common business vehicle for medium or large companies in Lithuania.
Authorised capital When establishing a public limited liability company, the minimum registered capital is EUR 40,000. The minimum registered capital must be formed in bank account; at least 25% have to be paid up. The capital is divided into shares, which may be traded or offered for sale publicly. Founder One or more persons can be the founder/s (shareholder/s) of a public limited liability company, and they can be both natural persons and legal entities. The founder may be a resident or non-resident of the Republic of Lithuania. Status A public limited liability company is considered a legal entity. Liability The company and its shareholders have limited liability, they are liable for its obligations to the extent of its entire property. A founder or shareholder is not liable for the public limited liability company's obligation, as well as the public limited liability company is not liable for the founder's or shareholder's obligations. Management body The decision-making body of a limited liability company is the board with minimum of three board or supervisory council directors. The management bodies of the company are determined by the general shareholders meeting.
The Latvia's taxation system is affected by both the Latvian legislation and the requirements laid down by the European Union. It can be described as average, because every tax payer contributes to the budget 30 % of his/her income on average. Besides, the Latvia's diverse system of tax rates, tax relief and allowances enables every tax payer to choose the optimum sector for their occupation and management of funds. The Republic of Latvia has the lowest effective (average) tax rate in the European Union. There are several areas of trade business with individual tax privileges – payments that are lower by 80 % to 100 %: for example, Liepāja and Rēzekne have special economic zones, and free ports of Riga and Ventspils can grant tax relief.
The tax principles are laid down by the law On Taxes and Fees. Taxes are administered by the State Revenue Service (SRS), and they are classified as direct and indirect taxes. Indirect taxes are taxes that are not directly deducted from income and that are levied on goods and services. In their turn, the direct taxes are taxes that are levied on all taxable income of natural persons and companies.
Corporate income tax The object upon which the corporate income tax is imposed is the taxable income obtained by a tax payer during a taxation period. The tax base is corporate financial income adjusted according to the law. The adjustments are mainly implemented in order to ensure that the income is greater than expenses on which the tax is not levied (for example, expenses that are not directly related to economic activity) or in order to reduce the income by a specific amount in case if the law envisages tax relief. Corporate income tax payers are the following:
resident or domestic companies performing economic activity, organisations and institutions funded from the state budget or municipal budgets, which obtain income from economic activity; non-resident or foreign companies, business entities, natural and other persons; permanent representative offices of non-resident undertakings the income tax rate of which is 20%. Individual undertakings are payers of the personal income tax, and the tax rate ranges from 20% to 31.4%, depending on the amount of income.
Personal income tax The personal income tax is one of the steadiest sources of income adding funds to municipal budgets. Personal income tax payers are self-employed persons or undertakings that have been registered as tax payers, including agricultural and fishery farms. It is envisaged to repay the personal income tax to tax payers with eligible expenditure for education and medical services.
The personal income tax rates vary between 20% and 31.4%, depending on your income. It also must be noted that the tax is not levied on all income. Instead, a number of items are deducted from the total income before the tax is calculated:
non-taxable minimum deductions for being a legal guardian of certain persons (e.g. children) deductions for people with disabilities other deductions Social insurance contributions (social tax) Compulsory social insurance contributions is a compulsory payment into a special budgetary account stipulated by the Law which entitles the insured person to receive the social insurance services defined by the Law. The social tax payments increase the state social insurance budget. Therefore an insured person can receive the following services: an old-age pension, disability pension, survivor's pension, sickness benefit, maternity benefit, insurance against unemployment and burial allowance.
The standard social tax rate is 35.09%, divided between the employer (24.09%) and the employee (11%). A number of deductions can be applied as well, mainly various tax cuts for state pension receivers.
Property tax In Latvia, every property owner must pay the standard immovable property tax in the amount of 1.5% of the cadastral value of non-residential property – land and infrastructural buildings. Until January 2010, this tax in the amount of 1 % was a compulsory payment imposed only on the owners of land and commercial space. As for the residential real estate, the tax rate depends on the cadastral value of the immovable property:
EUR 56,915 - 0.2%; EUR 56,915 to EUR 106,715 - 0.4%; more than EUR 106,715 - 0.6% of the cadastral value of the immovable property. The tax is applied to each part of the cadastral value. It means that, for example, if a residential property has a cadastral value of EUR 110,000, the property tax imposed would be calculated as follows:
The part smaller than EUR 56,915 would generate 0.002 * 56,519 EUR worth of tax - EUR 113.04 The part bigger than EUR 56,915 but smaller than EUR 106,715, i.e. EUR 50,196, would generate 0.004 * 50,196 EUR worth of tax - EUR 200.78 The part bigger than EUR 106,715, i.e. 110,000 - 106,715 = 3285, would generate 0.006 * 3285 EUR worth of tax - EUR 19.71 The individual tax sums generated would result in 113.04 + 200.78 + 19.71 = EUR 333.53 worth of tax Please note that the above calculations merely demonstrate the theoretical basis for calculating the tax, and any real situation may differ.
Ras Al Khaimah (RAK) is an Emirate in the United Arab Emirates (UAE). There are only two types of offshore companies available in the UAE, one being Ras Al Khaimah Free Trade Zone (RAK FTZ) and the other being Jebel Ali Free Zone Authority (JAFZA) in Dubai. At first JAFZA company was used as a typical offshore, but since the introduction of the RAK FTZ, RAK has become the main place to establish an offshore company in the UAE.
About companies in UAE All business must be conducted outside the United Arab Emirates Local office in the RAK of the UAE is not required A non-RAK resident may be a director or shareholder The company can hold a bank account anywhere in the world Business related to banking or insurance must acquire a special license Companies in RAK can be set up remotely Tax system RAK has double tax treaty with more than 30 countries No tax regime for: Deposits Capital gain Dividends Interest Corporate Income Double tax treaty United Arab Emirates have double tax treaty with Algeria, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, China, Cyprus, Czech Republic, Egypt, Estonia, Finland, France, Georgia, Germany, India, Indonesia, Ireland, Italy, Kazakhstan, Latvia, Lebanon, Luxembourg, Malaysia, Malta, Mauritius, Morocco, Mozambique, Netherlands, New Zealand, Pakistan, Philippines, Poland, Portugal, Romania, Seychelles, Singapore, South Korea, Spain, Sri Lanka, Sudan, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, Uzbekistan, Venezuela, Vietnam, Yemen.
Company requirements Original Bank Reference C.V. Proof of Residence Notarised Passport Copies of all Shareholders Minimum share capital of AED 2000
Details Official Name: Kingdom of Norway Capital: Oslo Total area: 385 186 km2 GDP per capita: $53,470 Native Language: Norwegian Government: Unitary parliamentary constitutional monarchy Population: 5,063,709 Major Religion: Lutheranism Monetary Unit: Norwegian krone (NOK)
Norway, officially the Kingdom of Norway, is a Scandinavian unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, the Arctic archipelago of Svalbard and the subantarctic Bouvet Island. Norway has a total area of 385,252 square kilometres (148,747 sq mi) and a population of about 5 million. It is the second least densely populated country in Europe. The country shares a long border with Sweden (1,619 km, or 1,006 mi, long), which is the longest uninterrupted border within both Europe and the Schengen Area. Norway is also bordered by Finland and Russia to the north-east, and the Skagerrak Strait across from Denmark to the south. It shares maritime borders with Russia by the Barents Sea; Greenland, the Faroe Islands and Iceland by the Norwegian Sea; and Sweden, Denmark and the United Kingdom by the North Sea. Norway's extensive coastline, facing the North Atlantic Ocean and the Barents Sea, is home to its famous fjords. The capital city and the largest with the highest population at almost 1 million is Oslo.
Health & Welfare Norway has one the worlds most advanced health care systems including old-age, disability, rehabilitation, widow, widower, one-year paid maternity leave, and universal child support. Health insurance is mandatory for all Norwegian citizens. The average pension equals approximately 66% of the citizens earnings during his or her highest paying years and begins at age 67. All employees are given 4 weeks paid vacation per annum. Education is free. Norway is ranked as the #1 country to live in on UN's Human Development Index, 2005. This is the fifth year in row Norway achieves this ranking as #1 by the UN.
Economy & Jobs Agriculture, forestry, fishing, mining, service sector, manufacturing, tourism, and foreign trade.
Main Attractions Oslo, Northern light, Vigelandsparken, Hardanger Fjord, Munch Museum, Akershus Castle and Fortress, Jotunheimen National Park, Norwegian Folk Museum, Urnes Stave Church.
Economy Norwegians enjoy the second highest GDP per-capita (after Luxembourg) and fourth highest GDP (PPP) per-capita in the world. Today, Norway ranks as the second wealthiest country in the world in monetary value, with the largest capital reserve per capita of any nation. According to the CIA World Factbook, Norway is a net external creditor of debt. Norway maintained first place in the world in the UNDP Human Development Index (HDI) for six consecutive years (2001–2006), and then reclaimed this position in 2009 and 2010. The standard of living in Norway is among the highest in the world. Foreign Policy Magazine ranks Norway last in its Failed States Index for 2009, judging Norway to be the world's most well-functioning and stable country. Continued oil and gas exports coupled with a healthy economy and substantial accumulated wealth lead to a conclusion that Norway will remain among the richest countries in the world in the foreseeable future.
Business competition in Latvia is regulated by the Competition Council (Konkurences padome). The agency is responsible for controlling the competition in Latvian business, enforcing law against those who violate the principles of fair competition, as well as for providing information regarding the topic.
In total, there are 249 745 active companies registered in the Latvian Register of Enterprises (November 2016, source: government-sanctioned Lursoft Business Database), of which the biggest number (76 918) is registered in the capital city of Riga. Other cities with a big number of registered enterprises are Daugavpils (3 492), Liepāja (3 434), Jurmala (3 351) and Jelgava (3 322).
High-competition sectors Out of all the industries present in Latvia, the top 10 are the most competition-intensive:
Real estate renting and management (>4500 companies) Accounting, audit and tax consultations (>2300 companies) Business management and consultations (>2000 companies) Road transportation and logistics (>1400 companies) Purchasing and selling real estate (>1380 companies) Construction works and building (>1380 companies) Real estate management services (>1200 companies) Computer programming (>1200 companies) Advertisement (>1200 companies) Legal services (>1200 companies) It is worth noting that the data is provided for the whole country, and regional situation may be different. Besides that, not all the companies operate throughout the country, some specialize in a certain region or a city. If you need a detailed competition research for your business for the purposes of market entry in Latvia, please do not hesitate to contact us.
Advantageous industries According to the Investment and Development Agency of Latvia (Latvijas investīciju un attīstības aģentūra), competition-wise, the most advantageous industries in Latvia are:
Woodworking Metalworking and mechanical engineering Transport and storage Information technology Green technology Health care Life sciences Food processing These industries are distinguished by a high level of development thanks to the maximum utilization of resources available in Latvia, whether it is an advantageous geographical placement (transport and storage), skilled and intellectual workforce (information technology) or something else. The majority of these industries is also actively supported by the government, which means that any business is very likely to find funding and potential workforce in the sectors.
It does mean however, that each of these industries is free of competition. Each of the sectors can be divided into smaller business areas, which means that some of them are less crowded with companies, but some are more challenging to enter into. For example, the transport and storage sector is especially competitive in terms of road vehicle transportation.
Fair competition violations The main and the most severe form of fair competition violation in Latvia is the distortion, restriction or hindrance of the competition. This includes both intentional and unintentional actions, including, but not limited to:
entering an unequal agreement with a third party with the aim of creating disadvantage to the third party acting (including the absence of action) in a way that forces a third party to act against its will and withdraw from a particular market and/or troubles a third party to enter a market (not develop or outcompete other companies, but perform an initial entry, the possibility of which is not directly affected by the market's business environment) abuse of one's dominant position on a market, such as refusal to enter agreements without proper justification, including a refusal to enter agreements for supplying products and/or services (knowing that this will result in hindering a third party because of one's dominant position) Agreements that violate the fair competition rules have no legal power from the moment they are concluded. Same as with the intentions of companies, there is no difference between contracts designed to specifically alter the competition in an unfair way and contracts that do that by accident, chance and/or negligence - both are null and void from the very beginning.
Prevention of competition violations To prevent such violations, the Competition Council monitors the business activity of companies registered in Latvia, carries out investigations and decides upon punishments for the violators. Another way of preventing the fraud is the so-called leniency programmes (iecietības programmas). These guarantee, that if a company that has entered an agreement that violates fair competition with an equal company (i.e. on the same level of production or distribution, e.g. a manufacturer and another manufacturer) voluntarily submits evidence of the violation, it is fully exempt of any fines or prohibitions regarding this matter.
A survey shows that companies based in Germany are willing to invest more in the Baltic States and create new jobs.
German companies operating in the Baltic States are more optimistic than a year ago, according to a 2013 survey of members of the German-Baltic Chamber of Commerce in Estonia, Latvia and Lithuania (-Baltic States), in which 104 companies took part.
In view of the improving economic situation in the Baltic States and the positive prospects for their own companies, German companies are also planning to increase their investments and create new jobs in 2013. In Estonia, about a third of the participating companies plan to hire new employees this year. In Lithuania it is even 40 percent and in Latvia 25 percent. Compared to the last two years, even more companies in all three Baltic States are now planning to increase their investments.
At the beginning of 2013, the German companies that took part in this survey assessed the economic situation in the Baltic States as slightly more favorable than in the previous surveys of 2011 and 2012. In all three countries, the expectations of the participants for the current year are evenly more optimistic than still early 2012.
The majority of German companies that are active in Estonia, Latvia and Lithuania assess the current economic situation in all three countries as good or at least as satisfactory as they would like it to be.
In Estonia, 43 percent of respondents and in Latvia 53 percent expect their business to develop in the next 12 months. A year earlier, the proportion was 50 percent. While more than 67 percent of German companies in Lithuania expect their business situation to improve further, only 40 percent did so last year.
The current confidence and optimism of these Western investors shows that the Baltic States appear to have emerged from the crisis and are a good place to initiate and conduct business.
Official Name: Netherlands Capital: Amsterdam Total area: 41 543 km2 GDP per capita: $42,193 Native Language: Dutch Government: Unitary parliamentary representative democracy under constitutional monarchy Population: 16,788,973 Major Religion: Roman Catholicism Monetary Unit: Euro (EUR)
The Netherlands, as the name suggests, is a low-lying area with a quarter of the country lying at or below sea level. Many areas are protected from flooding by dikes and dikes. Much land has been reclaimed from the sea, the Flevoland polder being the most recent example.
The Dutch Parliament (or Staten Generaal) consists of two chambers. The first, with 75 members, is indirectly elected and has limited powers. The second chamber or lower house is directly elected. Members of both houses serve four-year terms. Given the country's multi-party system, all governments are coalitions.
Industrial activity in the Netherlands consists mainly of food processing, chemicals, petroleum refining, and electrical and electronic machinery. It has a dynamic agricultural sector and is known for its plants and cut flowers. The port of Rotterdam is the busiest in Europe and serves a vast hinterland that stretches into Germany and Central Europe.
The Netherlands has a history of great painters. The 17th century was the era of Dutch masters such as Rembrandt van Rijn, Johannes Vermeer and Jan Steen. The 19th and 20th centuries were no less notable for their high profile artists such as Vincent van Gogh and Piet Mondriaan.
Well-known Dutch specialties include raw herring, smoked eel and pea soup, as well as a wide range of cheeses such as Edam and Gouda.
Not much research has been done on the well-being of immigrants in receiving countries, however the few studies that have been conducted indicate some notable trends.
In the beginning it is quite difficult to settle for an immigrant. Aside from potential culture shock, there are many other things a person must overcome. Language barriers and a lack of locally recognized skills and qualifications can lead to temporary unemployment. According to statistics from the European Observatory on Racism and Xenophobia, 28% of foreigners aged between 25 and 49 in Europe do not find work in the first year, but according to the same data, the percentage of unemployed foreigners drops dramatically after a year of residence. However, there are several things that aim to improve the quality of life and well-being of immigrants and limit the impact of such difficulties upon first arrival. One of these provisions is that most countries provide social guarantees and financial support if you live in a state as a legal immigrant.
Indeed, welfare research has shown an inverse correlation between increases in ethnic diversity and government funding of welfare. However, this often does not have a large impact on the overall welfare level of immigrants, as very often social groups and community centers (based on nationality or religion) are established to support the immigrant population. They typically provide services to their members, such as financial aid, and provide a hub to preserve a person's culture, traditions, and religion.
The residence permit of Latvia is a document that allows it holder to legally reside in Latvia. Depending on its type and the reason, upon which it has been issued, it may also allow or prohibit other activities, such as conducting business.The image of the front side of the residence permit of LatviaThe image of the back side of the residence permit of Latvia
Residence permit types The Latvia's government issues the following types of residence permits:
Residence permit, locally also known as: Uzturēšanās atļauja Residence permit for a member of the family of a Union citizen, locally also known as: Savienības pilsoņa ģimenes locekļa uzturēšanās atļauja Permanent residence permit for a member of the family of a Union citizen, locally also known as: Savienības pilsoņa ģimenes locekļa pastāvīgās uzturēšanās atļauja
In Latvia, the registration of VAT payers by the State Tax Service (SRS) in the register of VAT payers is subject to the following provisions:
Article 3 and paragraphs 1 and 9 of Article 26 of the Value Added Tax Act. Cabinet Order No. 933 “Procedures for Applying the Provisions of the Value Added Tax Act”, adopted November 14, 2006. Due to the accession to the EU, some provisions have been added according to which non-taxable persons who carry out an economic activity in the EU area and purchase goods whose value reaches or exceeds EUR 50,000 (excluding VAT) in the current calendar year must be obliged by the state tax authority within entered in the register of persons subject to VAT within 30 days of reaching or exceeding the said amount. After registration, this person can voluntarily apply for deregistration no earlier than 2 years after the date of registration.
Registration applies to the following persons and organizations:
natural persons - registered according to their declared places of residence; legal entities - registered according to their registered addresses; partnerships - registered according to their registered addresses; If a group of people carries out a joint economic activity on the basis of a contract, the natural person authorized to represent this group of people must be registered according to the registered place of residence; if a person from another member state or a person who is not registered in the EU territory carries out one or more taxable domestic transactions. Only companies, such as general partnerships, limited partnerships, sole proprietorships, limited liability companies (SIA) and joint-stock companies (AS), are obliged to submit VAT returns to the Business Register of the Republic of Latvia.
Registration as a VAT payer is mandatory if the total value of taxable transactions performed by a natural or legal person whose declared residence or registered address is in the Republic of Latvia has reached or exceeded LVL 10,000 in the last 12 months. 12 months are not to be considered a calendar year, but can refer to any period of 12 months. Registration must be made within 30 days of reaching or exceeding the stated amount.
The SRS examines the application for registration and decides whether to register a person in the register of persons subject to VAT within 15 working days of receipt of the application.
If the SRS has decided to reject the registration, it will mail this decision to the person concerned, stating the reason for the rejection, within five working days. A person who has received a decision to refuse registration has the right to amend and resubmit the application for registration to the SRS.
A person is deemed to be registered in the SRS register of persons liable for VAT from the date on which the certificate of registration of a person liable for VAT is issued to that person.
Estonia is still the country with the lowest public debt in the euro area. In the first quarter of 2012, Estonia's public debt grew in line with the eurozone average, but despite this fact it is still the lowest public debt compared to other eurozone countries.
The eurozone's average debt burden was 88.2% of GDP in the first quarter, the highest since the euro was launched. At the same time, Estonia's public debt accounted for only 6.6% of GDP, an increase of 0.1 percentage points compared to the first quarter of 2011 and 0.6 percentage points compared to the fourth quarter of 2011.
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