When starting cooperation with a new business partner, it is strongly recommended to verify the company's data in the national registers, such as the registers carried by the Enterprise Register and the register of economic activities.

In order to verify the existence of the company, it is necessary to make sure that the company is registered in one of the public registers carried by the Enterprise Register (UR). This can be done easily and free of charge by using the UR website search by entering the underlying data (name or registration number) of the company concerned. At the same time, the seeker of the UR website makes it possible to verify that the person concerned is an official of the company in question. You can also find out the information regarding the economic activity of the company: check the tax payment debt of the company in the State Revenue Service (SRS), as well as clarify whether the company is a taxpayer in the SRS.

Any person may obtain, free of charge, information recorded in public registers carried by UR and available on the UR website. The current information on registered companies can be obtained without being identified on the website. However, if you want to view the historical or historical data of the company, such as previous officials or former true beneficiaries, you must identify (connect) on the UR website.

In the public registers of ur, it is possible to see whether the company has operating restrictions or whether there is an appropriate means of collateral and whether winding-up proceedings have been initiated.

On the other hand, information on whether an undertaking has undergone insolvency or legal redress can be found in the Insolvency Register or on the UR website.

It is sometimes necessary to ascertain whether the co-operation partner is a performer of economic activity, which can be done in the register of economic activities of the State Revenue Service.

The company needs to register a unit when expanding its business or offering services in the Internet environment. A unit is an economic unit that is territorial. It shall be composed of a group of natural and legal persons or their representatives (other persons) established on the basis of a contract or arrangement and shall carry out economic activities in or outside the Republic of Latvia. It should be remembered that a “website” can also be registered as a unit, such as internetworks.

When you register a business unit - a website, you must specify the address of the website as the name of the business unit, how you want to choose a “website”. Additional information on the registration of the unit is available on the SRS website. The unit can be registered in the “Registers” section of the State Revenue Service Electronic Declaration System (SRS EDS).

The scheme is available here.

After a successful application is submitted, the user returns to the list of departments and displays information about the submitted registration application to the user. The application is examined in the SRS for a maximum of three working days and the unit is added to the list of existing departments.

Regulatory enactments and other binding documents lay down a number of requirements that an economic operator must comply with and ensure that they are fulfilled when carrying out an economic activity. There are several types of taxes in Latvia – it is possible to read about the ways here.

Tax returns must be submitted and payments must be made using the Electronic Declaration System of the State Revenue Service (SRS EDS).

Using the “Online payment of real estate tax” e-service on the Latvija.lv portal makes it easy and easy to pay the estate tax.

Tax relief

A summary of the tax and tax system in Latvia is available on the website of the Ministry of Finance, as well as a report on tax incentives by 2020.

The following tax incentives are available:

1. Annual non-taxable minimum. Starting in 2018, the monthly non-taxable minimum forecast by the State Revenue Service will be applied to a natural person at the place where the salary tax book is submitted.
2. Additional tax relief may be applied to natural persons recognised as persons with disabilities or politically repressed persons or members of the national resistance movement. The SRS website contains methodological materials to help you find out in detail about the application of the Population Income Tax Benefits starting Jan. 1, 2018.
3. For dependants, tax relief shall be applied to a natural person - also to a resident of a European Union Member State or European Economic Area State, if more than 75% of the total income has been obtained in Latvia. Additional information can be found on the SRS website.

On the application and employment of different social taxes, read in the “Work and Taxes” and life situation “Employment for different groups of society”.

Financial support for entrepreneurs is available in the form of different European Union (EU) fund programmes and other financial instruments. The conditions of support shall be administered by several ministries:

1. The Ministry of Agriculture and the Rural Support Service shall be responsible for support to farmers and distribution of final financing.
2. Support for cross-border cooperation is under the responsibility of the Ministry of Environmental Protection and Regional Development.
3. The largest share of EU funds for business is managed by the Ministry of Economy.

More information on EU fund programmes and types of support is also available on the http://www.esfondi.lv website. The focus is on innovation, promoting the competitiveness of small and medium-sized operators and promoting energy efficiency.

In EU fund programmes, project selection shall be announced, projects evaluated and approved, and contracts shall be concluded and project implementation monitored by the Central Financial and Contract Agency (CFLA). The announced project selections can be consulted on the CFLA website. Support from EU funds is also available in intermediate bodies for providing support to economic operators. The CFLA has concluded EU funding agreements with: LIAA, ALTUM, NVA, VIAA, clusters, competence centres, industry associations, etc., which offer operators EU funds support for the implementation of various activities. The CFLA Customer Service Centre provides advice and answers on the possibilities of supporting EU funds.

The public procurement framework applies to persons (including public persons and economic operators) who receive public funding, as well as to suppliers who wish to participate in public procurement as suppliers of goods, service providers or works.

The law governing public procurement is available here.

Suppliers wishing to participate in public procurement may find information on planned procurement and published procurement procedures and procurement in the “e-contests” section of the Electronic Procurement System (EIS). EIS suppliers shall be given the possibility to submit tenders electronically in procurement procedures or procurements announced by EIS. The Public Procurement Law shall specify the dates from which the commissioning party is required to provide for the submission of electronic applications and tenders for procurement.

The EIS also enables the supplier to verify its compliance with the participation in procurement procedures or procurement through the “e-certificates” section of the EIS, which summarises the information available in the various registers regarding the supplier's compliance with the requirements of the exclusion rules. In order to participate in a procurement procedure or procurement, the supplier may not have tax debts, insolvency, as well as other conditions of exclusion in conformity with the regulation of public procurement.

In order to participate in procurement procedures and procurement, as well as in order to verify their eligibility for participation in procurement procedures and procurement, the supplier must make first-time registration in the EIS.

Information on the registration process and forms to be completed for registration can be found in here .

Additional information on EIS, registration process, preparation, submission and other activities related to the procurement process can be found at the http://paligs.eis.gov.lv/piegadatajiem/N_0_1.html website.

Up-to-date information on the use of the e-competition subsystem for customers and suppliers is available in the “Explanatory and instructions” section of the EIS e-competition subsystem.

The most frequently asked vendor questions are available here.

Challenging public procurement

If a person interested in procurement or a person who applies for entering into a contract has suspected irregularities in public procurement (only in relation to procurement procedures, design contests and procurement of services referred to in Annex 2 to the Public Procurement Law), it may apply to the Procurement Monitoring Bureau (IUB) with an application. An application may be submitted in person or electronically by sending an IUB using the
< a="" href="">” > E-adresi pasts@iub.gov.lv, e-mail < a="" href="">” > if the application was signed with a secure electronic signature.

You can find out more about the procedures for challenging public procurement here.

Administrative irregularities in public procurement

If there is a suspicion of administrative irregularities in the field of public procurement, any person may refer to the application IUB by submitting an application in person or electronically, by sending an IUB, using an e-address, or to an e-mail parkapumi@iub.gov.lv, if the application has been signed with a secure electronic signature.

Read more about administrative irregularities in public procurement here.

Latvia's main export market is the European Union (EU). The Latvian Investment and Development Agency (LIAA) regularly organizes various support measures and offers services to boost exports. By mobilising EU funds, the range of services to support Latvian exporters has expanded. LAA services to boost exports are provided to customers through the conclusion of long-term cooperation agreements. De minimis aid is granted on the basis of an application for the receipt of the aid, the arrangements for granting it and the entered into aid agreement between the LIAA and the beneficiary.

In order to promote cooperation with foreign partners, the LAA regularly hosts trade missions, Latvian national stands in international exhibitions, contact shops, state visits with Latvian officials and free export seminars. The LIAA also offers a market-research service that can include information on market size, structure, participants, prices, product distribution channels, logistics issues, competitors, business culture. It is advisable to follow the calendar of the ALAA export promotion measures and thus to schedule the timing of the measure of interest.

Within the framework of the LAA, it is possible for economic operators to receive support for individual activities.

It is also recommended to use THE EEN, the pan-European Business Support Network platform, which helps entrepreneurs to operate more successfully in other countries. The European Business Support Network offers concrete and effective solutions for entrepreneurs in more than 60 countries, including 28 countries of the European Union, as well as candidate countries (Turkey, the Republic of Macedonia, Albania, Montenegro, Serbia), European Economic Area countries and other third countries. Available services include: Search for partners, Market information, information on access to finance.

Various studies have been carried out on potential export markets in different countries.

More information about business abroad is available here.

The free services of export aid shall also be provided by the Ministry of Agriculture, the Ministry of Transport, the Ministry of Health, the Ministry of Education and Science, which shall develop and implement an export promotion policy to improve the export capacity of the sectors under their responsibility, using the financial resources available within both the State and European Union funds. Export measures are also supported by the Ministry of Foreign Affairs, which uses diplomatic and consular missions to promote cooperation and various public organisations representing entrepreneurs.

For practical searching of cooperation partners and cooperation offers abroad and Latvian businessmen may also use the Export and Import Platform of Latvia EXIM established by the LIAA.

The territories of the Member States of the European Union (with the exception of certain parts of the territory) together form the customs territory of the Union, so that there is free movement of goods within the European Union: when moving goods between the Member States of the European Union, they should not be declared to customs.

On the other hand, goods intended to leave the customs territory of the Union shall be placed under the export procedure by means of a customs declaration and accompanying documents in THE Electronic Customs Data Processing System. For customs formalities, the operator must first obtain the registration and identification number of economic operators (EORI number). EMDAS connect via the SRS Electronic Declaration System (SRS EDS). In order for the company to become a USER OF THE EMDA, it is necessary to provide an “Application for the Determination of the List of Users of the State Revenue Service Information System”.

For more information on the customs procedure, export is available here.

Information on the external trade measures applicable to a given product at European Union and national level with regard to exports may be found in the Integrated Tariff Management System of the State Revenue Service, under TARIC.

The State Development Finance Authority ALTUM shall issue short-term export credit guarantees to cover the risks of foreign buyers.

Information on this is availablehere.

More information on Export Credit Guarantees is also described in Section 18 of this life situation:Credit insurance.

Latvia's most important import partners are also countries of the European Union. When goods are imported into Latvia from another Member State of the European Union, they must not be declared to customs.

If the goods are imported into Latvia from countries not members of the European Union, they shall be subject to a specified customs procedure. For customs formalities, the operator must first obtain the registration and identification number of economic operators (EORI number). In order to be able to apply a specific customs procedure, the declarant or his representative shall submit the customs declaration by electronic means to the customs, together with the accompanying documents, using the Electronic Customs Data Processing System (EMDAS). EMDAS connect via the SRS Electronic Declaration System (SRS EDS). In order for the company to become a USER OF THE EMDA, it is necessary to provide an “Application for the Determination of the List of Users of the State Revenue Service Information System”. THE user guide OF THE EMDA is available on the SRS website.

Information on external trade measures applicable to a given product at European Union and national level, including tax rates and necessary documents, may be found in the Integrated Tariff Management System of the State Revenue Service, under the TARIC for the country concerned.

Goods prohibited from importing into the European Union

According to European Union and national laws, movement of goods across the external borders of the European Union may be limited, for example, by licensing systems or market surveillance measures, or prohibited.

List of types of goods and more information is available on the SRS website.

It is very beneficial for Latvian businessmen to cooperate with foreign partners in the areas of services and trade in goods. The LAA regularly hosts support measures to promote exports and international business, which need to be followed on the LIAA website. In cooperation with foreign entrepreneurs, it is convenient to use the secure electronic signature created in Latvia.

International Business Cooperation

Under the European Union Structural and Investment Funds Objective “European Territorial Cooperation”, the following cross-border cooperation programmes are being implemented with the support of the European Regional Development Fund for 2014-2020:

1. The Latvian-Lithuanian cross-border cooperation programme;
2. Estonia – Latvia's cross-border cooperation programme;
3. Cross-border cooperation programme for the Central Baltic Sea Region INTERREG VA;
4. The Interreg Programme for transnational cooperation in the Baltic Sea Region;
5. The Interreg EUROPE programme for the whole territory of the European Union;
6. Urban Agenda URBACT III;
7. The EUPON 2020 Programme (European Network for Spatial Planning and Territorial Cohesion).

If you or your company are experiencing problems in one of the EU countries because the authorities are acting in breach of EU law, it is necessary to refer to the SOLVIT service by filling in the form of to submit a “Your European Adviser” or a complaint to SOLVIT.

International road transport

In the field of international carriage of passengers and goods by road, the Road Transport Directorate shall implement a single national policy and shall issue the necessary documents for the transport in question, ensuring a level playing field and support for international road transport operators.

In order to be able to perform commercial carriage of goods and passengers outside the territory of Latvia, the merchant must first receive the following documents:

1. licence - it shall be issued for a period of 10 years if the carrier complies adequately with the provisions of a certified transport manager, place of establishment, good repute and financial condition requirement;
2. a licence card attesting that the carrier has received a licence for commercial transport as the owner or holder of a road transport vehicle;
3. A European Community permit, which is issued for commercial transport in the territory of the European Union, or a copy of the European Community permit, which the merchant receives for commercial transport by road in the territory of the European Union with a particular vehicle;
4. Where the carrier legally employs a driver who is not a national or resident of an EU Member State, such a driver shall need a attestation for the performance of commercial road transport within the EU;
5. In order for a merchant to be able to carry dangerous goods, he or she must appoint a specially certified safety consultant who cares about the reduction of the risks inherent in the transport of dangerous goods;
6. Certificates are also needed for domestic and international self-transport operators, namely in order to carry passengers or goods for their own non-income purposes.

In addition to the referred to documents, Latvian road hauliers for the performance of international carriage of goods must receive the permits for international road transport, if provided for by the bilateral agreement. Licences may be one- off (for transport between Latvia and the country concerned, in transit through the country or between the country concerned and a third country), or multilateral or ETMK (European Conference of Ministers of Transport) authorisations issued under the quota system for transport undertakings established in a Member State of the ETMC for transport between the Member States and in transit of the ETMK through one or more ETMC Member States with vehicles registered in one of the ETMC Member States. ETMK authorisations can be both annual and short-term (valid for 30 days).

On the other hand, merchants who plan to transport passengers outside the territory of Latvia must obtain route permits for regular international carriage of passengers, or travel forms for occasional international carriage of passengers.

It should be noted that vehicles used in both the carriage of goods and passenger transport (registered for the first time after 01.05.2006) must be equipped with digital tachographs. A merchant who has purchased a vehicle so equipped must insert a business card into the digital tachograph before commencing its operation, thereby identifying the vehicle in question according to the undertaking. The driver must also receive a digital tachograph driver card identifying both the driver in question and his working and resting times. On the other hand, control cards are issued to the authorities responsible for driving and resting time control, but workshop cards are used by suitably accredited workshops to carry out the verification, installation, repair, replacement, calibration and data download of the digital tachograph.

Detailed information on the documents necessary for international road transport, the requirements for their receipt and prices is available on the website of the Road Transport Directorate.

Latvia has a number of organisations representing the interests of companies in negotiations with state institutions and can be divided into a number of levels: State-level players, regional associations (according to your territoriality in the region) and specific industry associations.

National organisations

These organizations act as umbrella-type associations, bringing together smaller regional associations and different companies. They actively negotiate with the state and follow up on improving the business environment in Latvia, promoting competitiveness of companies and improving exports.

• Latvian Chamber of Commerce and Industry, which brings together micro, small, medium and large enterprises from all regions of Latvia and economic sectors, and works towards improving the business environment, competitiveness of enterprises and exports;
• Latvian Employers' Confederation, which is the largest employer representative organisation in Latvia;
• The Council of Foreign Investors in Latvia, which combines different countries and companies representing the sector, which have invested in Latvia in serious investments, as well as chambers of commerce of different countries in Latvia.

Industry associations

Industry associations operate in a specific sector, bringing together similar businesses, thereby defending their interests. Industry associations are often in one of Latvia's national associations, thereby passing on the important information to their industry. Industry associations can also find out the latest in legislation and apply for European funds to co-finance the sector. Each sector of the economy has the corresponding representative association representing the interests of the sector.

The relationship between a merchant and a consumer is primarily governed by the Consumer Rights Protection Act (PTAL) and other regulatory enactments regulating the protection of consumer rights, so the rights and obligations of the parties arising from a mutually concluded legal transaction, such as a purchase agreement, must also comply with consumer protection requirements, not just formal requirements for legal transactions at all.

In addition to the Consumer Rights Protection Centre (PTAC), the Health Inspectorate (VI), the Food and Veterinary Service (PVD), the Public Utilities Commission (SPRK) are also involved in the performance of consumer protection tasks.

Legal relations between merchants shall be governed by legal transactions concluded between the parties, the Commercial Law, the Civil Law and other special regulatory enactments. Information and various guidelines for merchants to respect consumers' rights are available on the PTAC website.

Obligations of a merchant in entering into a distance contract and a contract outside the permanent place of economic or professional activity

If you want to trade on the Internet, you need to enter into a distance contract, such as an agreement on the purchase of a product or the provision of a service entered into by means of distance communication. More information on distance trading is available on the PTAC website. For more information on Internet sales, read the description of the life situation “Internet sales”.

In concluding a distance contract regarding the purchase of goods and services, the legal relations of the parties are governed by the Consumer Rights Protection Law (PTAL), Cabinet Regulation No. 255 of 20 May 2014 and Cabinet Regulation No. 254 of 20 May 2014.

If you want to offer goods or services at your standing point of sale, you must comply with THE requirements of THE PTAL, as well as the requirements of the special regulatory enactments according to specific goods and services.

As a merchant, you must provide consumers with the right to claim that the goods or services do not comply with the terms of the contract within 2 years of the date of purchase of the goods or receipt of the service, by providing answers to consumer claims within 15 working days. You have an obligation to participate in out-of-court redress procedures for consumers.

More information on consumer rights is available in the description of the life situation “Consumer rights”.

Consumer rights when digital content is purchased

As regards the non-compliance of digital content, no specific regulation is currently in place. Corresponding TO PTAL 4. For the seventh paragraph ^of Article 1, the rules on the provision of services shall also apply to contracts for the supply of digital content which are not carried out on a material medium.

Article 27 and Article 29 OF THE PTAL provide that the consumer is entitled to submit a claim for an inappropriate digital content which has not been supplied in the case of a material medium within 2 years from the date of receipt of the service (the supply of digital content). The consumer has the right to require the service provider to rectify the non-conformity of digital content for free. If this is not possible, the service provider must either reduce the price of the service or reimburse the payment made by the consumer for the contract.

Where the digital content is supplied in a tangible medium, it shall be considered to be a commodity in accordance with Article 1(6) of THE PTAL. The consumer's rights in the event of a non-conformity of the goods shall be governed by Articles 27 and 28 OF THE PTAL.

Where the digital content purchased does not comply with the terms of the contract, as well as where digital content defects have been detected, the seller or service provider shall be responsible in accordance with Articles 27, 28, 29 of THE PTAL.

More information on consumer rights is available in the description of the life situation “Consumer rights”.

If the consumer has not fulfilled his or her obligations, the creditor (i.e. any merchant who provides services or sells goods to the consumer) or the provider of the debt recovery service has a duty to notify the debtor in writing of the existence of the debt and to invite him to voluntarily discharge the late payment obligations.Article 7 of the Extraordinary Recovery Actdetermines what information should be included in this communication. In order to notify the debtor (a natural person) of the existence of the debt, the creditor has the possibility to use the e-service of the Office of Citizenship and Migration Affairs“Verifying that the person is declared at the address specified”or usecharging servicefor the transmission of a written statement.

Debts may be recovered from consumers by way of out-of-court or judicial proceedings.

Debts may be recovered from consumers in the course of legal proceedings in accordance with the procedures specified by the Civil Procedure Law. Under the Civil Procedure Law, the recovery of debts in the course of legal proceedings from a consumer shall be permitted in the course of legal proceedings, in accordance with the procedures for the warning of enforcing obligations or in the order of forced enforcement of obligations without dispute.

Out-of-court reimbursement of debts from consumers may be recovered by both the creditor and the licensed provider of debt recovery services. A provider of a debt recovery service is entitled to recover the debt from consumers on behalf of the creditor, if he or she has registered as a merchant or performer of professional activity and has received a special permit (licence) for the recovery of the debt. Licences are issued by the Consumer Rights Protection Centre (PTAC) and a list of licensed debt recovery service providers is available on the PTAC website. The maximum amount of debt recovery costs that can be claimed by the consumer is EUR 17,00.

The law on out-of-court recovery of debts shall determine the rights and obligations of the creditor and the provider of the debt recovery service as well as the debtor in the debt recovery process.

A more detailed description of out-of-court debt recovery is available on the PTAC website and in the Extraordinary Recovery Act.

In addition to this, regulatory enactments impose a number of restrictions on contractual penalties and the amount of late interest applicable in contracts with the consumer and to be taken into account in the debt recovery process. In particular, in accordance with the Civil Law, the contractual penalty may not exceed 10% of the outstanding principal amount, and in contracts where the consumer participates, the amount of legal interest may not exceed 6% per year, and contractual interest shall be regarded as illegal, which is disproportionate and inconsistent with fair business practices. Consumer lending also limited interest on late payment: under THE Consumer Rights Protection Act, it cannot exceed 36 percentage points above the annual borrowing rate.

When doing business, it is important to comply with and comply with the regulatory requirements. Fair and successful business is a pride for the entrepreneur and its customers.

Maybe someone raises the question – how is it – to be honest entrepreneurs? The Corruption Prevention and Combating Bureau (CPCB) has developed a number of information materials aimed at promoting fair commercial activity to conquer the market and profit. Corruption raises serious moral and political concerns, threatens state governance and economic development, and distorts conditions of competition.

The Consumer Rights Protection Centre has also developed guidelines for conducting a fair business in the areas of lending, electronic communications, e-commerce and security.

What can be business offenses?

Illegally employed workers. Upon entering into an employment relationship with the employer, the basic document governing the relationship between the employee and the employer shall be a written contract of employment. This document plays an important role in the working relationship, since it lays down the rights and obligations of the parties from which unilateral withdrawals may not be made (only in cases specifically provided for, for example, Section 100 (1) and (5) of the Labour Act, Section 101, Paragraph one).

The Labour Law provides that a contract of employment is to be entered into in writing, so every employee, upon entering into an employment relationship, has the right to request a written contract from the employer and to receive a second copy of the contract.

The contract of employment shall be determined by Section 40 of the Labour Law “Form of the contract of employment”.

The contract of employment may be classified as follows:

• after a pay system, chord salary or time wage contracts;
• by the nature of the work to be performed, employment contracts for the performance of physical work or for the performance of mental work;
• by sector - in the field of education, employment contracts with teachers, university teachers, in the medical field - with doctors, nurses, maritime employment contracts with seafarers, work contracts with professionals;
• after the term of the contract, contracts of employment for an indefinite period or for a specified period;
• after the length of the working time, the normal working time specified in the contract of employment or the parties to the contract of employment have agreed on part-time;
• in terms of joining up positions, an employment contract for side-by-side work, i.e. work outside the main working time with another employer, or additional work, i.e. work on the same employer alongside the hired basic work, receiving a premium for it.

Work is also the subject of a contract in a number of other civil contracts which, in the narrower sense, are not considered to be contracts of employment, namely a contract of employment, transport and undertaking or a royalty contract. Matters related to the company contract are regulated by the Civil Law of the Republic of Latvia, matters of the contract of employment - Labour Law.

Prohibited agreements. Prohibited agreements within the meaning of the Competition Law are co-ordinated activities of two or more market participants whose object or effect is to inhibit, restrict or deform competition. Market participants (including associations, associations, etc.) are prohibited from exchanging commercial information, including individual price and tariff policies, plans to participate in procurement and other tenders, agreement on market allocation, production or marketing, etc. Prohibited agreements with competitors or cartels regarding participation in procurement are one of the most serious and frequent violations of competition law in Latvia. Additional information on prohibited agreements and sanctions, on their implementation, can be found on the Competition Council's website.

Abuse of dominance. The existence of a dominant position in itself is not an infringement: its abuse is prohibited. Dominant undertakings have special responsibility for their counterparts, other market participants and customers. Such undertakings are prohibited from imposing unfair conditions, imposing unequal rules on equivalent transactions with different market participants, refusing to enter into transactions without objective justification, etc.

Additional information on abuse of a dominant position is available on the Competition Council website.

Control of the merger of market participants. In order to avoid a significant decrease in competition as a result of mergers, major merger transactions shall be notified to the Competition Council. The Authority may take three types of decisions, whether to authorise the transaction, to authorise it on binding terms or to ban it. If the undertakings implement the merger without the necessary notification to the authority or violate the procedure laid down in the KP decision, the Competition Council may impose a fine of up to 3% of the net turnover of the merger participant in the last financial year. The terms and criteria for the merger of market participants are defined in Section 15 of the Competition Act.

Unfair retail practices are possible in the food and non-food sectors and are governed by the Unfair Retail Practices Prohibition Act. The law aims to limit the use of retailers' procurement power against suppliers to balance the interests of both parties. The Competition Council, as the responsible authority for compliance with the norms of the law, has developed guidelines for the application of the Unfair Retail Practices Law, which provide an explanation for unfair commercial practices. On 1 November 2021, the Unfair Trade Practices Prohibition Act, aimed at banning unfair trading practices throughout the agricultural and food supply chain, as well as prohibiting the use of procurement power of non-food retailers against suppliers, has entered into force. Thus, the existing Unfair Retail Practices Prohibition Act will lose its power.

Violations of the advertising law. The Competition Council shall monitor the conformity of advertising with the requirements of regulatory enactments where misleading or unfair comparative advertising is addressed and affects market participants, and an infringement in the field of advertising causes or may cause significant harm to competition. Additional information is available on the Competition Council's website.

Taxes outstanding in time. The SRS calls on all taxpayers (both natural and legal persons) to be aware of the legal consequences of not making timely and full tax payments. Information can be found on the SRS website to facilitate the refund of the tax debt. If the SRS is suspected of paying “envelope salary”, the entrepreneur receives a warning notice in the SRS Electronic Declaration System (EDS). How to proceed in this case is described on the SRS website. The SRS has developed guidelines and other information materials on the application of penalties and sanctions in cases of infringement.

Business often needs different types of statistics for planning and structuring their activities, which can be found in the Central Statistical Bureau (CSP) database. Individual companies also need to provide statistical data to the CSP, Bank of Latvia, etc. Statistical reports can be submitted to the Ministry of Welfare using the “Reporting and State Statistics Reporting” e-service. More than the submission of statistical reports can be viewed electronically in the life situation “Where the economic operator can submit statistical reports electronically”.

Statistical information useful for doing business

1. The State Revenue Service has established sectoral statistical tables based on reporting and accounting data submitted by taxpayers. These include the following sector-specific indicators: taxpayer statistics; provided general budget revenue administered by the State Revenue Service; payment debts; basic tax burden of taxpayers; results of economic activity; average number of employers and employees; employment income calculated for employees. Statistics on the remuneration of workers from 2015-2021 are also available according to the profession calculator.
2. Population statistics are available in the data of the CSP and are regularly updated with current data on the number and distribution of Latvian population, including in regions, large cities and counties by age, gender, national composition, as well as population numbers in small areas – villages and Riga neighborhoods.
3. Statistics on the unemployment rate in Latvia are available on the NVA's website, in addition to this, information on the current registered unemployment rate in the country and a descriptive summary of employment trends, the number of vacancies, studies on labour market trends performed by the SEA are available. It is also possible to look at the demand of the labour market for professions over different periods of time.
4. The website of the Office of Citizenship and Migration Affairs (PMLP) provides statistical information from the Population Register regarding the number of Latvian residents in municipalities and is continuously updated with current data on the number of Latvian residents and the distribution according to different criteria. The current data shall be compiled and published twice a year.
5. Open data portal where any person can view information published by national authorities or organisations performing national functions. The portal contains a data book, in which topics are divided into categories such as economy and business, public administration, agriculture, food and forestry, etc.
6. Regional Development Indicators Module (RAIM), where socio-economic indicators are available, to measure social and economic development trends in individual national areas, and indicators of instruments for implementing sectoral policies to assess the impact on the development of national territories on the implementation of sectoral policies and how coordinated it is. You can see more information here.

It is increasingly possible to write and receive e-services, i.e. electronically, via the E-adrese communication channel, applications and information from different national authorities.

An e-service “Application to the Authority” allows complaints, proposals, requests or questions, such as infringement of consumer rights, to be able to write a complaint to the PTAC.

If the employer infringes the employee's employment rights, using the e-service “Submit an application to Labour Inspectorate and get a response from Labour Inspectorate', you can notify it electronically to the National Labour Inspection (NSA), as well as get the necessary advice.Instructions for use of e-service.

The following are the e-services that can be used by the employee and the employer if an employee's health or life-threatening accident has occurred at the workplace.

For the worker:

1. If an accident at the workplace has occurred and you want to notify the NSA, it can be done electronically using the e-service “Notice of an Accident at Work”. The instructions are available here.

For employers:

1. If an accident at the workplace has occurred, the NSA must be notified of that fact. It can easily be done electronically by means of an e-service “Notice of an Accident at Work”. The instructions are available here.
2. E-service “Statement of the loss of an employer in connection with an accident at work”. The instructions are available here.

When doing business, it should be taken into account that, from time to time, the supervising authorities may wish to carry out checks on your business, depending on the business sector and the requirements. The best way to prepare for this is to timely complete all the documentation it needs to be in line with the legislation.

What is needed for a visit by the National Labour Inspection (NSA)?

The NSA has developed a roadmap for preparing for the State Labor Inspection visit as a step by step. Before the NSA visit, it is recommended that you get acquainted with the material made.

For construction, the NSA has developed a self-control form with a table that includes links to related laws, regulations and interpretative materials that allow for a better understanding of the measures to be taken in the field of job protection.

For woodworking, the NSA has developed a self-control form designed for companies in this industry with the most important job protection requirements.

What's the Health Inspectorate examining?

The Health Inspectorate (VI) shall check in elective control:

1. Healthcare establishments;
2. Social care institutions;
3. Pharmaceutical companies (including pharmacies);
4. Children's educational establishments and supervisory services providers;
5. Service hotels;
6. Bathing areas (rivers, lakes, seaside);
7. Public use baths and swimming pools;
8. Public drinking water systems;
9. Beauty service providers (hairdressers, nail-grooming and facial and body services, tattooing, micropigmentation and pinking, solarium), including when placed in sports clubs, hotels, etc. for the convenience of customers;
10. Undertakings engaged in trade in chemicals and chemical mixtures, biocidal products, cosmetic products, tobacco products and electronic cigarettes;
11. Manufacturers, distributors, importers of medical devices.

VI shall also carry out inspections in the areas mentioned above on the basis of applications, including complaints in the field of epidemiological security (e.g. insect and rodent), as well as noise from economic activities equipment and traffic.

You may be consulted on the following areas by contacting VI – here.

A full list of the laws and regulations of VI are available here.

See the procedure for carrying out the VI checks here, and the model for completing the control documentation is here.

Through e-service, entrepreneurs can obtain information in one place on the possible ways of meeting regulatory requirements in a specific sector, as well as other useful information.

If, during the VI inspection, non-conformities or/and the measures to be taken have been identified by means of the e-service “Notice on discharge of duties imposed during the Health Inspectorate”, it may be possible to notify VI of their performance.

The e-service “Request for the state of play at the Health Inspectorate Monitoring Facility” provides information on the health inspection controls carried out.

Checks by the State Revenue Service in undertakings

The purpose of tax control is to ensure the full, timely and equitable calculation and collection of taxes and duties. A taxpayer is entitled to invite a professional expert or consultant during tax control, to provide explanations and other information, except in cases where tax regulatory enactments do not foresee it. The SRS website describes the tax control process, the types of tax control.

Thematic inspections of the SRS are carried out most frequently on the following topics:

1. Employers' checks (calculation of the wages and salaries of employees, submission of information on workers, registration of working time, entering into employment contracts, calculation of the employment income of employees of the micro-enterprise taxpayer, etc.);
2. Compliance with the regulatory enactments regulating accounting (accounting organisation documents, traceability of economic transactions, records in accounting registers, cash in the company's treasury, etc.);
3. Compliance with the regulatory enactments regulating trade and services (registration of documents, use of cash register, intervention in cash register software, etc.);
4. Compliance with the regulatory enactments governing cash transactions (restrictions on the use of cash);
5. Compliance with other regulatory enactments regulating taxation (activities with excisable goods, car trade, electronic working time accounting system in construction, etc.).

Mergers

Mergers are governed by the rules of the Commercial Law. The merger may take place in two ways: how the addition (a commercial company transfers all of its property to another commercial company) or how to merge (two or more commercial companies transfer all their property to a newly formed commercial company).

If two or more existing commercial companies participate in the merger process, they shall enter into a reorganisation agreement. The contract shall be entered into in writing Not less than a month before entering into a contract, each commercial company involved in the reorganisation process shall submit a notification regarding the reorganisation to the Enterprise Register, attaching the draft contract. In the Official Gazette “Latvijas Vēstnesis”, the date of registration of the draft contract and its amendments and the number of the commercial register case in which the draft contract is located shall be announced.

The next phase of the merger process is the convening of a meeting of members (shareholders). The following documents shall be provided to the participants (shareholders) in the company a month before the meeting of the participants (shareholders): the draft contract, the reorganisation prospectus, the opinion of the auditor, the annual accounts of all commercial companies involved in the reorganisation regarding the last three reporting years and the economic activity report (if the previous annual report has been drawn up more than six months prior to the submission of the notification to the Enterprise Register).

The draft contract shall be examined and a decision regarding reorganisation shall be taken by a meeting of the members (shareholders) of each commercial company involved in the reorganisation process, which shall be held not earlier than a month after the information regarding the draft contract has been announced in the official publication Latvijas Vēstnesis. On the basis of a decision on reorganisation, the company concerned shall enter into a contract.

Within fifteen days from the date of the decision regarding the reorganisation, each commercial company involved in the reorganisation process shall inform in writing all known creditors who had the right of claim against the commercial company prior to the taking of the decision regarding the reorganisation. Each commercial company involved in the reorganisation process has a duty to also publish in the official publication “Latvijas Vēstnesis” a statement that a decision regarding the reorganisation has been taken.

Each commercial company involved in the reorganisation process shall, not earlier than three months after the date of publication of the notification, submit an application to the Enterprise Register in order to make an entry regarding the reorganisation in the Commercial Register.

The merger shall be deemed to have entered into force at the time when records have been made in the Commercial Register for all the companies involved in the reorganisation process, including newly established companies.

There are no different merger rules for companies in different areas or sectors.

Information on the merger stages is also available on the UR website:

• The accession phase 1 of the SIA;
• The 2 nd phase of the accession of the SIA;
• SIA fusion phase 1;
• SIA fusion phase 2.

In addition to this merger of major market participants, these transactions are governed by the adoption of a permit or a forbidding decision by the Competition Council on the merger of undertakings implemented or planned.

Competition Lawa merger of undertakings shall not be limited to mergers of undertakings or the addition of undertakings to the other, but also, in certain circumstances, transactions which result in an impact on another undertaking or even acquiring only the assets of an undertaking or their rights of use.

In order to avoid a significant decrease in competition as a result of mergers, merger members may need authorisation from the Competition Council (KP) in certain cases. Further information on these cases, as well as the circumstances in which KP has the right to request the merger members to submit a report on the planned or existing merger before 12 months from the date of implementation of the merger, is available on the KP website.

The assessment of the merger report shall be subject to the lodging of a fee in the State budget, the amount of which depends on the circumstances of the merger. This shall be done before the submission of the merger report or within ten days of receipt of the KP merger decision if the merger has been evaluated without the merger report submitted.

In the case of a merger of KP companies, three types of decisions may be taken:

1. allow mergers;
2. allow mergers by binding rules;
3. ban mergers.

The time of taking a decision shall be:

1. for short merger reports up to 3 months;
2. for full (extended) merger reports, up to 4 months.

More information on the types of merger report can be obtained by the KP Report on the Marketing Participants Guidelines.

If no merger report is submitted, KP may decide to impose a fine on the new entity or the acquirer of the decisive influence up to 3% of its net turnover for the last financial year.

More information on merger control in Latvia is available on the KP website.

Sales

Members of the company (shareholders) have the right to freely alienate the shares (shares) of the share capital they own, unless otherwise specified in the law or the articles of association. There are no restrictions on whether a company member (shareholder) is or is not a Latvian national.

When changing the members of the company (shareholders), the acquirer of the parts shall submit a notification to the board of the company for making an entry in the register of participants (shareholders). The Management Board of a limited liability company shall draw up a new division of the register of members, one copy of which shall be submitted to the Enterprise Register within 3 working days of the signature of the division.

The new acquirer of the capital shares of the company shall be indicated in the register of participants and shall be signed not only by the board of directors of the company but also by the divester and the acquirer of parts, or accompanied by a notarially certified or electronically signed document of the shareholder and the acquirer attesting the transition of the parties. The register of shareholders drawn up by a public limited company should not be submitted to the Enterprise Register.

European commercial company

A European commercial company (SE), established under the European Commercial Companies Act, without liquidation or establishing a new company in another Member State of the European Union, may change its registered office to another address in the territory of another State of the European Union or Norway, Iceland and Liechtenstein.

The activities of an SE are governed by the law of the country in which the registered office of the company is situated. Before changing the registered office, a certificate from the competent national authority is required, its issuance means that the necessary operations and formalities have been completed and changes may be made.

A European commercial company registered in Latvia shall submit a proposal for the transfer of an address to the Enterprise Register when transferring its registered office to another Member State. The list of documents to be submitted in this case and the payments to be made can be found on the website of the Enterprise Register. Documents for the transfer of an address may also be submitted electronically.

The Enterprise Register shall make an entry in the Commercial Register regarding the fact of the proposal to change the registered office to another Member State and the new registered office. The official publication “Latvijas Vēstnesis” shall announce the date of registration of the proposal for the transfer of the address, the file number of the European commercial company in which the proposal for the change of address is located, and the new legal address.

Transfer of the address of the capital company

The transfer of the registered office of a capital company (company) established in accordance with the provisions of the Commercial Law from one European Union (EU) Member State to another is understood as a cross-border reorganisation.

The registered office of a company may be transferred from one EU Member State to another, provided that the laws and regulations of the home Member State so permit. If the legislation of the Member State concerned provides for such a process at national level, it may not refuse to register cross-border reorganisation between EU Member States.

The most important criterion for the transfer process is the non-enforceability of rights and obligations and the legal transition, since in the country of origin it is necessary to ensure that the interests of creditors and other entitled persons are respected.

In the absence of a single EU framework on this issue, both national legal provisions are applied in the event of a transfer of registered office from one EU Member State to another.

The company shall initially comply with the requirements laid down in its country of origin for the transfer of the registered office of the company to another EU Member State. On the other hand, in order for the company to comply with the legal framework of the country to which its registered office is transferred, the laws and regulations of the host Member State shall apply. It should be noted that only after the fulfilment of the obligations established in the country of origin can the company be transformed into a legal framework of the receiving country.

Transfer to another EU Member State

If the registered office of the company is transferred from Latvia to another EU Member State (Latvia is the country of origin), all rules of transformation shall be applied, except it is not examined whether the documents of the newly created commercial company (articles of association, composition of the board, etc.) comply with the regulatory enactments of the receiving State.

In order to transfer the company's registered office from Latvia to another EU Member State, documents shall be submitted to the Enterprise Register in the first phase:

• A decision on the transfer of the registered office;
• Notification of the transfer of the registered office of the company;
• Information on the payment of the State fee (EUR 18).

Documents may also be submitted electronically in the Enterprise Register.

The Official Gazette “Latvijas Vēstnesis” shall issue a notice regarding the commencement of the reorganisation, the date of registration thereof and the file number of the Commercial Register in which the notification is located.

In the second phase of the transfer (conversion), i.e. not earlier than three months after the publication of the notice in the official publication “Latvijas Vēstnesis”, the documents to be submitted to the Enterprise Register shall:

• The application;
• An extract of the Protocol and a decision on reorganisation;
• List of members who have voted against the reorganisation;
• In the cases specified in the Law - a permit for reorganisation;
• A prospectus (if the preparation of a prospectus is specified in law);
• The opinion of the auditor (if the statutory audit of the auditor);
• The closing financial statement of the company to be converted;
• Information on the payment of the State fee (EUR 70).

In the event of a transfer, it is examined whether all the rules on the protection of Latvian creditors and minority members have been complied with, including the Enterprise Register, which receives the opinion of the tax administration and other competent authorities (such as the Finance and Capital Market Commission, if it is a member of the financial market, etc.) that the obligations vis-à-vis Latvia have been fulfilled.

When all the necessary documents have been submitted and they comply with the requirements of regulatory enactments, legal barriers to registration do not exist and appropriate State fees have been paid, the Enterprise Register shall issue a relevant attestation (pre-registration certificate) for a company that has undertaken all transformation measures and its registered office is to be transferred to another EU Member State.

The documents to be produced and submitted by the public in the transformation process to the competent registering body of another EU Member State should be clarified in the host Member State concerned. Further action depends on the host country, because (in comparison with Article 386 of the Commercial Law) a statement is expected from the relevant competent authority of the host country that the process has been completed and the company registered in Latvia should be excluded from the Commercial Register. The registration number of the company granted in Latvia is not retained because the Commercial Register Authority of the receiving State grants the company a registration number in accordance with the legislation of the receiving State.

Transfer to Latvia

If the registered office of a company is transferred from another EU Member State to Latvia, all the provisions of the Commercial Law regarding the transformation of commercial companies shall apply.

Initially, the company in its country of origin must carry out the activities provided for by the national regulatory framework.

In addition to the transfer of the registered office (domicile) in Latvia and registration of such transformation, an expert's opinion on the adequacy of the property for the company's core capital will also have to be received.

The institution of the country of origin, responsible for the registration of merchants, after receipt of the application for the transfer of the registered office and the fulfilment of the necessary regulations, shall issue a statement regarding the fulfilment of mandatory conditions - a pre-registration certificate which will be submitted to the Enterprise Register of the Republic of Latvia for registration in the Commercial Register.

In order to transfer the registered office of a company from another EU Member State to Latvia, documents shall be submitted to the Enterprise Register:

• Application form (KR4);
• Confirmation by the commercial register authority of the home Member State of the condition of the country of origin for the transfer of the registered office to another EU Member State (“pre-clearance certificate”);
• A decision on the transfer of the registered office of the company;
• The opinion of the expert on property adequacy;
• The statutes of the company;
• The partition of the register of participants;
• The taking of the position of written consent of the members of the Management Board (including the Council, if such is established);
• Statement of the registered office of the Management Board;
• The consent of the owner of the immovable property to register the registered office (if the owner of the immovable property is not the person who signs the application);
• Information on the payment of the national fee (EUR 150).

Documents may also be submitted electronically in the Enterprise Register.

After verifying the submitted documents, the Enterprise Register shall make an entry in the Commercial Register regarding a new commercial company, while at the same time making a note regarding “the forerunner of rights”, i.e. information regarding the legal entity registered in the country of origin of the company.

After registration of the company in the Commercial Register, all the regulatory enactments in force in the Republic of Latvia will be binding on the company.

ALTUM Export Credit Guarantees

“What is it?”

The Export Credit Guarantee is a financial instrument designed to provide the exporter against risks related to foreign transactions with deferred payments — counterparty insolvency and non-payment risks, as well as the political risks of the debtor country, as well as the guarantee of export credits, serve as collateral for bank financing for trading finance products — factoring, credit lines, etc.

What is it dealing with?

When exporting goods and services, the company faces a variety of risks, both related to the solvency of the buyer and the political situation of the buyer country, as well as liquidity problems that may arise in the transaction execution process. In particular, these risks are present for entrepreneurs in transactions with longer maturities of deferred payments and with third countries.

In order to limit these risks to trading transactions, an entity may insure export transactions (to private insurers) or raise a guarantee of Altum export credits, thereby reducing the risks associated with counterparties abroad as well as the political situation of the debtor's country, as well as providing security for bank financing for marketing finance products such as factoring, credit lines, etc.

By attaching an export credit guarantee to trade transactions with deferred payment, the exporter shall reduce its risks related to:

1. with counterparties abroad, risks of insolvency and non-payment;
2. with the political situation of the debtor country

Who can get?

Economic operators registered in Latvia for export transactions:

1. with a deferred payment of up to 2 years (for agricultural products up to 547 days);
2. up to 2 million EUR per transaction per customer.

Who's in charge of that?

Export Credit Guarantees shall be issued by the Development Finance Institution under the State Aid Programme for Altum.

For more information and login options, see:

Several information and supportive tools are available for the start and pursuit of business, such as the Latvian Investment and Development Agency (LAA) has a number of support programmes for entrepreneurs, financial support and counselling are available. You can apply for advice remotely or in person by contacting the LIAA.

Consultations on the performance of business or self-employment are also provided within the framework of the State Employment Agency for the commencement of commercial or self-employment activities.

If there are unclear issues regarding the payment of taxes or other issues related to the National Revenue Service (SRS) Electronic Declaration System (EDS), it is desirable to refer to the SRS. In order to receive an official reply letter, it is recommended that you send your question in the form of an application signed with a secure electronic signature to the SRS:

• using the EDS section “Conversations with the SRS”;
• using an e-address;
• when sending to an e-mail address vid@vid.gov.lv.

The undertaking may apply for consultations at the State Labour Inspectorate:

• labour law issues;
• in matters of labour protection.

Project No 7.3.1.0/16/I/001 of the European Social Fund (ESF) of the National Labour Inspectorate, entitled “Development of practical implementation and monitoring of labour security legislation”, offers free support for the introduction of labour protection requirements in the company:

• advice to employers;
• the provision of laboratory measurement services;
• training of labour protection professionals and trusted persons.

The Consumer Rights Protection Centre may apply for advice on:

• consumer rights;
• requirements for goods and services;
• · non-bank lending;
• the provision of debt recovery services;
• provision of tourism services, etc.

All classical channels can be contacted by PTAC.

Information on the protection of personal data — National Data Inspectorate (DVI) is the leading supervisory authority in the field of the processing and protection of personal data. The processing of personal data is governed by Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, repealing Directive 95/46/EC (General Data Protection Regulation) and the Law on the Processing of Natural Persons Data, as well as other binding laws and regulations.

In order to receive consultations on matters related to the requirements of regulatory enactments for the processing of personal data, it is necessary to contact the DVI.

The DVI website contains information materials on the processing of personal data, as well as presentations from the DVI conference for small and medium-sized enterprises “Data is value – protect them!”.

Information regarding data recorded in the State Real Estate Cadastre Information System (Cadastre) can be requested electronically by using the e-service “My Data in the Cadastre” on the portal Latvija.lv or one of the e - services available in the sadaļā section of the State Land Service and the e-services portal Kadastrs.lv.

In the Kadastrs.lv portal, it is possible to familiarise yourself with the Cadastre data regarding any real estate, construction, land unit, group of premises in Latvia. The portal can also look at the thematic cards created by the National Land Service (VZD). If you need help, you can contact the VZD.

A representative of a legal person may, if it does not have a subscription agreement for the portal Kadastrs.lv, submit a request for the establishment of a legal person's account on the portal Kadastrs.lv:

• using the e-service “Login for the Establishment of a Legal Person kadastrs.lv Account” available in the “Electronic Services” section of the portal Kadastrs.lv and signing the application created by the system with a secure electronic signature;
• by submitting the form available in the portal Latvija.lv service description “Login for Creating a Legal Person kadastrs.lv Account” in one of the following ways:

In this account, it will be possible to receive documents prepared by the VZD from the Kadastrs.lv portal as a result of order execution.

Information on EU Funds Support Capacities - The Customer Service Centre of the Central Financial and Contract Agency (CFLA) provides information and advice. The CFLA website provides information on all current project selections of EU funds for the 2014-2020 programming period.

The CFLA also provides for the performance of the functions of the Public Private Partnership (PPP) Competency Centre and provides information and advice to potential public and private partners, as well as to any interested PPPs.

Information on the patent, trade mark, design and registration process, as well as other binding information, can be read in the description of the life situation “Home production” and the life situation described in “Workers' Rights and Obligations” under the heading “Protection of Intellectual Property Rights” as well as in binding legislation for patents, designs and trademarks.

On the other hand, information regarding the registration of trade marks and designs in the territory of the European Union can be read on the website of the European Union Intellectual Property Office and on the website of the Patent Office of the Republic of Latvia.