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Licensed commercial activity on the territory of the Freeport of Riga

On July 3, 2014, the Saeima adopted amendments to the Law “On the Application of Taxes in Free Ports and Special Economic Zones”, which came into force on July 11, 2014.

Documents that have to be submitted to conclude an agreement on licensed commercial activity and to issue a permit

A capital company, that has been already founded in the Freeport or will be founded in the future (the Applicant is the founder), is entitled to qualify for the agreement conclusion or permit issuance, if:

  1. An operating profile of the capital company and perspective development comply with the Development program approved by the Freeport of Riga Board;
  2. Founders, shareholders, Board members and members of the Council (if a Council is established for a capital company), meet the following requirements:
    1. have a good reputation,
    2. have a stable financial standing,
    3. possess experience in the field of commercial activity (relevant information is not required from the local governments and state, provided they are founders and shareholders).

An applicant shall provide evidence of its compliance with the above conditions.

The agreement on licensed commercial activities at the Freeport shall be concluded for concrete types of activities. The agreement may be concluded on several types of activities.

The documents to be submitted:

  1. An application, including the following information:
    1. specification of commercial activity types related to scheduled licensed commercial activity;
    2. an indication as to whether the Applicant wishes to carry out licensed commercial activities under the free zone regime or without applying it;
  2. A reference, issued by the State Revenue Service, on compliance of the Applicant’s territory with the free-zone regime requirements, provided the Applicant wishes to carry out licensed commercial activities in the free zone regime;
  3. The Applicant’s certified registration certificate copy, issued by the Register of Enterprises;
  4. The Applicant’s certified Statutes’ copy;
  5. A certificate of the Applicant’s founders and shareholders, issued by the Register of Enterprises;
  6. The annual report for the past two years, approved by the Sworn auditors;
  7. An Action program, including an investment program (further on - a Business plan). The recommended Business Plan model structure is published on the Internet site of the Freeport of Riga Authority www.rop.lv;
  8. Provided an applicant wishes to apply direct tax relief, the investment objects, the volume of investment and the investment period not exceeding five years from the date of contract shall be indicated in addition to the Business plan;
  9. The plan of the territory, where the Applicant intends to carry out licensed commercial activities.

Provided an applicant wishes to carry out licensed commercial activities at the Freeport of Riga and get direct tax relief and indirect tax discounts, the documents in compliance with the Annex 8 to the Law “On the Application of Taxes in Free Ports and Special Economic Zones” shall be submitted to the Freeport of Riga Authority (in compliance with the amendments of 11.07.2014 the volume of information to be submitted by the Applicant shall be significantly increased).