Operating a Business

flag Latvia Latvia: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

The sabiedriba ierobezotu atbildibu (SIA) is a Private Limited Company.
Number of partners: No minimum
Capital (max/min): Minimum EUR 2,800. 50% of the capital must be released at the incorporation and the remainder within the year.
EUR 1 for micro-companies.
Shareholders and liability: Liability is limited to the amount contributed.
The akciju sabiedriba (AS) is a Public Limited Company.
Number of partners: No minimum
Capital (max/min): Minimum EUR 35,000. 50% of the capital must be released at the constitution and the remainder within the year.
Shareholders and liability: Liability is limited to the amount contributed.
Pilnsabiedrība (PS) is a General Partnership
Number of partners: Minimum of 2 partners
Capital (max/min): No minimum capital required.
Shareholders and liability: Unlimited and joint for all partners
Komanditsabiedriba (KS) is a Limited Partnership
Number of partners: Minimum of 2 partners, at least one active and one "sleeping" partner
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited for active partners and limited for sleeping partners
The Competent Organisation
Here is the link to the Register of Commerce in Latvia.
 
Setting Up a Company Latvia Eastern Europe & Central Asia
Procedures (number) 4.0 5.3
Time (days) 5.5 11.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Latvia.
Lursoft, Data bases for enterprises.

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The Active Population in Figures

201820192020
Labour Force 1,000,161983,777982,531

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 77.27%78.11%77.74%
Men activity rate 80.14%80.92%80.23%
Women activity rate 74.55%75.44%75.36%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
55 for women and 60 for men.
Working Contracts
Employment contracts are regulated by law and to a lesser degree by collective agreements.
The terms of employment contracts are very rigid.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
According to Eurostat data, the minimum wage amounts to EUR 500 per month in 2021.
Average Wage
According to data from the Central Statistical Bureau of Latvia, the average gross salary was EUR 1,143 per month in 2020.
Social Contributions
Social Security Contributions Paid By Employers: 23.59 %
Social Security Contributions Paid By Employees: 10.5 %

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Social Partners

Social Dialogue and Involvement of Social Partners
N/A.
Unions
LBAS - Latvian Free Trade Union Federation.
LMDA - Medical Workers Trade Union. It is one of the biggest unions in Latvia. It brings together employees in the health systems. LMDA is a member of the Trade Unions of Public Services International PSI.
LINA - Latvian Industrial Workers Trade Union. It brings together employees from the chemicals and light textiles industries. The Latvian Industrial Workers Trade Union is a member of the International Federation of Chemical, Energy, Mine and General Workers' Unions and the International Textile, Garment and Leather Workers Federation ITGLWT.
LAKRS - Trade Union of Public Service Employees. It mainly brings together employees engaged in municipal enterprises. LAKRS is a member of the Trade Unions of Public Services International PSI.
Labour Regulation Bodies
The Latvian Ministry of Labor and Employment

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Latest Update: November 2022