Buy / Sell Business, Latvia, Legal Counsel, Legislation, Markets and Companies

Answer: Foreign merchants have the right to open branches and representative offices of the foreign merchants and social and non-profit organizations.

In accordance with the Commercial Law of Latvia, a branch is an organisationally independent part of an undertaking, which is territorially or otherwise separated from the principle undertaking and at the location of which commercial activities are systematically performed in the name of the merchant. Commercial activity is an open economic activity, which is performed by merchants in their name for the purposes of gaining a profit. Economic activities are any systematic, independent activities for remuneration.

A branch may conduct commercial activities in Latvia. A branch shall pay the taxes and conduct maintaining of accounts in accordance with Latvian legislation. The foreign merchant shall be liable for the obligations of the branch.

The main difference from a representative office is that a representative office is not a legal person, and it does not have a right to conduct commercial activities in Latvia. Usually the aim of the representative office is advertising of foreign merchant on the territory of Latvia.

Law office INLAT PLUS

Brivibas 40-15, Riga

+371 67505970,

+371 26403577

[email protected]