The Republic of Latvia was proclaimed on November 18, 1918. Next steps that the new state took were creating the financial system and introducing the national currency of Latvia.

On 2 November, the Bank of Latvia issued provisional banknotes of 10-lats denomination — 500-ruble notes with an overprint. The Bank of Latvia comprised both the functions of a central bank (currency issuance, control of currency backing and currency circulation) and a commercial bank (lending to and financing of public and private enterprises, institutions, and individuals).

The Bank's structure was elaborated as follows in 1924: a Head Office (2A K. Valdemara Street, Riga), eight branches conducting all banking operations, and fourteen branches functioning as the State Treasury and accepting deposits. This was the structure of the Bank until 1940.

The law nationalizing banks and large industrial enterprises was adopted on 25 July 1940. The nationalized credit institutions were merged and reorganized into branches of the Bank of Latvia.

On 2 March 1990, the Supreme Council of the Latvian SSR (USSR unit at that time) adopted the Law On Banks and the Resolution On the Bank of Latvia.

Latvia joined the IMF on 19 May 1992. The legal basis for the cooperation between Latvia and the IMF is governed by the law of 15 April 1992 on the Republic of Latvia's accession to the International Monetary Fund (IMF). The International Monetary Fund is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. In 1992, there were 50 active banks, whereby the number of active banks rose to 80 in the following year.

The 2008 Latvian financial crisis, which stemmed from the global financial crisis of 2008–2009, was a major economic and political crisis in Latvia. Interestingly enough, the number of officially registered banks in Latvia climbed up from 28 to 29 despite the crisis. The crisis was generated by an easy-credit market burst, resulting in an unemployment crisis along with the bankruptcy of many companies.

Since 2010, economic activity has recovered and Latvia's economic growth rate was the fastest among the EU member states during the first three quarters of 2012. 29 active banks proceeded with their activities in the territory of Latvia in 2012. On 12 October 2011, the Bank of Latvia hosted its annual conference on economic development. This year it was titled Global Challenges and Local Opportunities: Achievements and Prospects in the Baltic States.

In early July 2013, EU finance ministers approved Latvia as the 18th member of the Eurozone, a formality that put the country on course to begin using the currency on 1 January 2014.

As of 1 January, Latvia is using the euro as its official currency and thus is a part of eurozone.

On 1 July 2010, the amendments to the Immigration Law of the Republic of Latvia came into force expanding the possibilities to obtain a residence permit in Latvia for foreigners who want to stay and move freely within the Schengen area.

The uniqueness of these amendments lies in the fact that a new method for obtaining a residence permit was introduced - investing in real estate. It has attracted a large number of investors, because a foreigner investing in real estate (that can be used for profit) has the possibility to move freely within the Schengen area under the condition that he or she has a passport and sufficient financial means. Citizens of the Russian Federation are especially interested in using this possibility, as Latvia is located in the vicinity and is a tourist destination due to its unique cultural monuments, well-known resorts and international festivals.

A residence permit is a document that gives a foreign citizen the right to temporarily (a temporary residence permit) or permanently (a permanent residence permit) stay in the Republic of Latvia.
A residence permit is needed if you want to stay in the Republic of Latvia or in Schengen area for more than 90 days in a six-month period. Temporary residence permit is issued in form of a separate document similar to national ID card.

A temporary residence permit gives a foreigner the right:
to stay in the Republic of Latvia for a period of time not exceeding five years;
to freely cross borders of EU Member States and non-EU countries;
to move and stay up to 90 days within the territory of other EU countries except for the United Kingdom, Ireland, Cyprus, Bulgaria and Romania;
to obtain a Latvian or EU permanent residence permit after five years;
to obtain temporary residence permits for the spouse and children.
A temporary residence permit may be obtained by:
investing in real estate after 1 July 2014;
investing in Latvian credit institutions;
investing in the equity capital of an enterprise.
Conditions on investing in real estate:
the total amount of transaction (involving one or several real estates) must be at least EUR 250,000 in large cities or at least EUR 125,000 in other places (in which case at least two properties must be bought);
only non-cash funds may be used for purchasing real estate;
a foreigner does not have and has never had any debts of payments of real estate tax in Latvia;
the transaction is concluded after 1 July 2014;
a residence permit is issued after registering the ownership in the Land Register.
Conditions on investing in Latvian credit institutions:
the amount of financial investments must be at least EUR 286,000;
the term of transaction must be at least five years without the right to terminate it prior to the term of repayment of the deposit.
Conditions on investing in the equity capital of an enterprise:
the amount of investment must be at least EUR 36,000;
the amount of taxes payable for the next year must be at least EUR 28,600.
Duration of process
The time for obtaining a residence permit in Latvia includes the period necessary to review the submitted documents which is 5 to 30 days depending on the amount of fee paid. Additional time may be needed for sending documents by mail. If an additional verification by the foreigner is necessary or if a foreigner applies for residence permits for his or her spouse and minor children, the term can be extended for up to 90 days. A foreigner has to come to Latvia to obtain a residence permit no later than three months after being granted the permit.

Statistics
According to the Office of Citizenship and Migration Affairs (PMLP), 2495 temporary residence permits were issued in 2010 indicating a high demand for this service. It is also worth mentioning that the amendments to the Immigration Law of 20 January 2011 simplified the bureaucratic component of services making them even more accessible.

Details
Official Name: Republic of Bulgaria
Capital: Sofia
Total area: 110 994 km2
GDP per capita: $14,312
Native Language: Bulgarian
Government: Unitary parliamentary republic
Population: 7,364,570
Major Religion: Bulgarian Orthodox Church
Monetary Unit: Lev (BGN)
Bulgaria, officially the Republic of Bulgaria, is a country located in Southeastern Europe. It is bordered by Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, and the Black Sea to the east. With a territory of 110,994 square kilometres (42,855 sq mi), Bulgaria is Europe's 14th-largest country. Its location has made it a historical crossroad for various civilisations and as such it is the home of some of the earliest metalworking, religious, and other cultural artifacts in the world.

Located in the heart of the Balkans, Bulgaria offers a highly diverse landscape: the north is dominated by the vast lowlands of the Danube and the south by the highlands and elevated plains. In the east, the Black Sea coast attracts tourists all year round.

Founded in 681, Bulgaria is one of the oldest states in Europe. Its history is marked by its location near Europe’s frontier with Asia. Some 85% of the population are Orthodox Christians and 13% Muslims. Around 10% of the population are of Turkish origin while 3% are Roma. Similarly, its traditional dishes are a mixture of east and west. The most famous Bulgarian food must be yoghurt, with its reputed gift of longevity for those who consume it regularly.

The Bulgarian National Assembly (a single chamber parliament) consists of 240 members who are elected for a four-year period.

Bulgaria’s main exports are light industrial products, foods and wines, which are successfully competing on European markets.

Fans of folk music will be familiar with a number of Bulgarian musicians. A Bulgarian folk song was included on the Voyager Golden Record which was sent into outer space by NASA. Famous Bulgarians include philosopher Julia Kristeva, Elias Canetti, Nobel Prize winner for literature in 1981, and Christo Javachev (“Christo”), the creator of many unorthodox outdoor sculptures.

Economy
Bulgaria has an emerging market economy in the upper middle income range, where the private sector accounts for more than 80 per cent of GDP. From a largely agricultural country with a predominantly rural population in 1948, by the 1980s Bulgaria had transformed into an industrial economy with scientific and technological research at the top of its budgetary expenditure priorities. The loss of COMECON markets in 1990 and the subsequent shock therapy of the planned system caused a steep decline in industrial and agricultural production, ultimately followed by an economic collapse in 1997. The economy largely recovered during a period of rapid growth several years later, but individual mean income remains one of the lowest in the EU at 768 leva (393 euro) per month. More than a fifth of the labour force are employed on a minimum wage of 1 euro per hour. Wages, however, account for only half of the total household income, owing to the substantial informal economy which amounts to almost 32% of GDP. Bulgarian PPS GDP per capita stood at 45 per cent of the EU average in 2011 according to Eurostat data, while the cost of living was 49 per cent of the average. The currency is the lev, which is pegged to the euro at a rate of 1.95583 levа for one euro. Bulgaria is not part of the eurozone and has abandoned its plans to adopt the euro.

According to the World Bank Group, Latvia ranks 22nd out of 189 countries in terms of the ease of doing business. The country ranks in top 20 for acquiring credit for companies; in top 30 starting a business, constructing and registering real estate, ease and efficiency of paying taxes, international trading, and enforcing contracts; and in top 50 for resolving insolvency and protecting minority investors. The weakest point of Latvian business environment is by far the ease of getting electricity for newly-built real property, for which the country ranks 65th.

Overall, it could be said that Latvia is most favourable for businesses that are not planning to engage in building new infrastructure. The ease of company formation, paying taxes and getting credits make a good combination with cheap but skilled and educated workforce and low infrastructure and facilities cost. Thanks to this, Latvia is a very popular country to start a business at, especially for entrepreneurs outside of the EU, because in total, it takes a lot less investments to open a company in Latvia than in most of the other EU-member states, while the end-result (in terms of quality) is the same. The business risks for such entrepreneurs are comparatively low, provided they take note of the possible competition on the local market.

Legal framework
Since Latvia joined the European Union in 2004, it adopted the majority of the Union's laws and policies. One of the examples is the Schengen area agreement, which allows an unhindered international trade with other EU member-states (more about Latvian market access from EU here).

Latvian policies favour free-market and accordance with EU policies. Some analytics classify Latvian legislation as conservative, meaning that new policies take a long time to be accepted by the government, and they are generally treated with caution. The exception in this case are legislative initiatives proposed by the EU. Latvia strives to be an active member of the European economic area, trying to adapt its policies to European standards.

Business geography
Most of the businesses are concentrated in the capital of Latvia, Riga, and the cities surrounding it. Other major cities are often devoted to a particular market sectors, e.g. the port cities of Ventspils and Liepāja provide ice-free ports (read more about the logistics in Latvia), while Daugavpils is an important railroad hub.

Cities of regional importance also play their part in the economic environment of Latvia. The city of Rezekne, for example, is where the Rezekne Free Economic Zone is located. The FEZ contributes to the development of the region, attracting companies with up to 100% real estate tax relief, corporate tax relief of 80% and the return of investment cost by tax incentives of up to 55%. Rezekne is also an important railroad hub.

The most urbanized regions of Latvia are the central, Eastern and Westerns regions. It must be noted, though, that if the central region is thoroughly urban, the East and the West are urban in the sense that the majority of population lives near major cities, with pockets of rural areas in-between. The Southern and the North-Eastern regions are mostly rural.

Market freedom
Latvia is a free market economy, meaning that economic policies are aimed to lessen government intervention and prevent the creation of monopolies. According to the Wall Street Journal and the Heritage Foundation, Latvia is world's 37th most free economy. Latvia's score in this case is upheld by the high levels of fiscal, trade, investment and business freedoms, but is somewhat dragged down by corruption and government spending.

In Europe, Latvia takes up the 17th place in the rank of market freedom. This position becomes stronger and stronger each year, as Latvia takes steps to integrate into the European economic zone and be on par with major member-states.

United Kingdom of Great Britain and Northern Ireland (UK) is a constitutional monarchy located off the north-western coast of continental Europe. The country includes the island of Great Britain, the north-eastern part of the island of Ireland and many smaller islands of the British Isles. Large portion of the United Kingdom's GDP comes from the service sector. United Kingdom also has a large automotive business, millions of tourists every year and well developed air traffic.

Company formation
When you start a business in the UK you must choose a structure for your business. Most businesses in the UK are: sole traders, limited companies, partnerships. When setting up business in the UK you may need to apply for a licence, depending on what your business is.

Please check the expected company name and address with us to learn if such is available.
Details about company Director and Secretary
Share Capital and Shareholder Details
You must register for VAT with HM Revenue and Customs (HMRC) if your business turnover is more than £79,000.

Maintaining a company
Returns must be filed annually, failure to do so is considered a criminal offence and may result in a fine depending on the company type and duration of delay.
Your Corporation Tax rate depends on how much profit your company makes and may change on 1 April each year.
Corporate tax rate
In United Kingdom corporate main tax rate is changed from year to year in 1st April.

Rate From 1 April 2014
Profits £300,000 or less (small profits rate) 20%
Profits above £300,000 (main rate) 21%

The Baltic Sea region is the fastest growing business region in Europe. The trade flow among the states in this region has been steadily increasing year by year. The taxation system of Estonia is considered one of the most liberal taxation systems in the world. In 2000, Estonia implemented a comprehensive tax reform with an aim to create the simplest, most comprehensible and most convenient taxation system possible. The main advantage of Estonia is the low-tax system that can be described as a simple system with no hidden surprises and that was basically established to promote business and increase profits.

The taxation system of Estonia includes state taxes stipulated by the tax legislation and local taxes imposed by local governments or city councils in the respective territories according to laws and regulations.

The state taxes are the following:

excise duty;
income taxes;
gambling tax;
value added tax;
land tax;
social tax;
customs tariffs;
heavy goods vehicle tax.
Corporate income tax
As a result of reforms, the main benefit of entrepreneurs was the exemption from the corporate income tax in the event of reinvesting the profits. Thus, Estonian enterprises must pay the income tax only on their distributed profits, namely, dividends. The corporate income tax (tax on distributed profits) is 21 % of gross dividends.

This taxation system is conceptually different from the classic income tax system, because the tax is levied on distributed profits (also hidden distributed profits) instead of company profits.

Value added tax (VAT)
The value added tax payers are enterprises the taxable supply (except for import) of which does not exceed EUR 16,000 during a calendar year. The tax is levied on transactions with goods and services in Estonia and on the import of goods. The tax rate is 20 % of the taxable value.

The taxable period is one calendar month, and the value added tax must be paid into the state budget by the twentieth day of each month. The tax is fully paid into the state budget.

The registration of enterprises is carried out by the Tax and Customs Board also administering the VAT levied on domestic goods and services.

Personal income tax
In 2010, the tax rate is 21 % of taxable income, and residents must pay the tax on their income received both inside and outside Estonia. The taxable income includes the income from employment (salary, wage, bonus and other remunerations), business income, interest, royalties, rent, capital gains, maintenance support, pensions, scholarships (except for scholarships paid from the state budget or pursuant to law).

Social tax
This tax is imposed to ensure state pensions and health insurance. It is paid by legal persons, natural persons and non-residents with regular income. The tax rate is 33 % of the taxable amount. The tax must be calculated monthly, and a corresponding amount of money must be transferred no later than by the tenth day of each month.

Since 1 January 1999 the social tax payments have been personalised, and they form pension funds which will be considered in each specific case. The tax is accumulated in a special account of health and pension insurance funds within the state budget.

Excise duty
In Estonia, the excise duty is levied on tobacco, alcohol, fuel, packaging and vehicles.

The excise duty helps to control the amount of a specific product or provision of a specific service seeking to adjust the consumption of domestically sold goods.

Like value added tax revenues, also excise duty revenues are affected by changes in domestic demand, increase in imports of excise goods, as well as changes in excise duty rates.

Gambling tax
The gambling tax is levied on income from games of skill, totalisators, betting and lotteries, as well as gambling tables and machines used for organising games of chance in licensed places. The tax is based on payments out of which the winnings are paid. The taxable period for organising lotteries, games of chance and skill is one calendar month. The taxable period for totalisators is the period during which the betting is organised (it must be within the same financial year).

Tax rates are the following:

EUR 447 per one gambling machine;
EUR 1278 per one gambling table.
The tax rate on betting is 5 %, on totalisators - 5 %, on games of skill - 18 %, and on lotteries - 18 %.

Land tax
The tax rate is 0.1-2.5 % of the taxable value. The tax on land where the economic activity is restricted has been determined by the decision of Estonian government in the amount of 25 %, 50 % or 75 % of the tax rate. The land tax is paid three times a year - by 15 April, 15 July and 15 October.

The national land tax is paid on all land except:

land where economic activity is prohibited;
land adjacent to buildings or parts thereof of diplomatic missions and consular representations of foreign states;
cemeteries and land under churches and temples of congregations;
land in the use of a foreign state or international organisation. In addition, the municipal land tax is not paid on land in municipal ownership or land in public use based on the decision of the local government.
The value of land is stipulated by the Land Valuation Act. There are exemptions which are the following: the rate of land tax for areas under cultivation and for natural grasslands and forest land is 0.1 % to 2.0 % of the assessed value of the land annually.

Recipients of pensions may be exempted from the obligation to pay land tax on up to 0.1 hectares in cities and 1.0 hectare in rural municipalities on the condition that the applicant for the tax exemption uses the land for living and does not receive rent on the basis of the right of use of land.

The tax is fully paid into the municipal budget of the local government at the primary level. The tax is administered by the Tax and Customs Board.

The Denmark embassy in Riga is located in the city center. The Embassy's working hours are from 09:00 to 17:00 (Monday - Thursday) 09:00 to 16:00 (Friday) by local time. National Day is the 5th June.

Address of the embassy
Location of embassyThe Denmark embassy in Latvia is located at Pils street 11 in Riga. The Embassy's postal code is LV 1863.

The Republic of Latvia was proclaimed on November 18, 1918. The next steps that the new state took were the creation of the financial system and the introduction of the national currency of Latvia.

On November 2, the Bank of Latvia issued temporary banknotes in the denomination of 10 lats – 500 ruble notes with overprint. The Bank of Latvia included both the functions of a central bank (issuing currency, controlling currency hedging and cash circulation) and a commercial bank (lending to and financing public and private companies, institutions and individuals).

The structure of the bank was worked out in 1924 as follows: a head office (2A K. Valdemara Street, Riga), eight branches, which handle all banking business, and fourteen branches, which act as treasury and accept deposits. This was the structure of the bank until 1940.

The law nationalizing banks and large industrial companies was passed on July 25, 1940. The nationalized credit institutions were merged and reorganized into branches of the Bank of Latvia.

On March 2, 1990, the Supreme Council of the Latvian SSR (then entity of the USSR) passed the Law on Banks and the Resolution on the Bank of Latvia.

Latvia joined the IMF on May 19, 1992. The legal basis for cooperation between Latvia and the IMF is the Law of April 15, 1992 on the Accession of the Republic of Latvia to the International Monetary Fund (IMF). The International Monetary Fund is an organization of 188 countries working to promote global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and sustained economic growth, and reduce poverty around the world. In 1992 there were 50 active banks, with the number of active banks increasing to 80 the following year.

The 2008 Latvian financial crisis, which emerged from the 2008–2009 global financial crisis, was a major economic and political crisis in Latvia. Interestingly, despite the crisis, the number of officially registered banks in Latvia has increased from 28 to 29. The crisis was triggered by a bursting of the easy credit market, which led to an unemployment crisis and the bankruptcy of many companies.

Economic activity has recovered since 2010 and Latvia's rate of economic growth in the first three quarters of 2012 was the fastest among EU Member States. 29 active banks resumed their activities on Latvian territory in 2012. On October 12, 2011 the Bank of Latvia opened its annual conference on economic development. This year it was entitled Global Challenges and Local Opportunities: Achievements and Prospects in the Baltic States.

In early July 2013, EU finance ministers approved Latvia as the 18th member of the eurozone, a formality that put the country on track to use the currency on January 1, 2014.

The business register offers the following services:
The business register has a power to register businesses or companies (names of companies are subject to special regulations. For example, it is necessary to draw up a name that does not contain misleading information about important conditions of entrepreneurship, in particular, the legal form of a company (an enterprise) or business volume. It should also be noted that the name is not translatable.), mass media, commercial liens, significant influence, marital property, representative offices and missions abroad companies and organisations, European companies, European cooperatives and public and private partnership agreements;
The business register is authorized to ensure the maintenance of the following registers of entities: the register of public organizations, the trade register, the trade union register, the register of associations and foundations, the register of European economic interest groups, the register of arbitral tribunals, the register of political parties, the insolvency register and registers of religious organizations and their institutions;
The Business Register has the authority to receive and examine the documents to be submitted for registration from legal persons and facts referred to in laws and regulations, and stores these documents;
The business register has the authority to certify signatures (signatures are certified only by natural persons registered in Latvia and representatives of legal entities whose rights of representation are registered in the Latvian Public Register.
When confirming an individual's signature, a business registry officer verifies the identity and legal capacity of the signer. The business registry officer who certifies a person's signature is not responsible for the content of the documents.);
The business register has the power to verify the names (companies) entered in the registers maintained by the business register and the relevance of this information;
The business register has the authority to examine and prepare responses to the submissions and requests for information received, prepare derivations of registration files and official business register documents and provide interested parties with the opportunity to access the registration files;
The business register has sanctioning powers defined by international organizations and deals with cross-border mergers of corporations.