How to Choose a Company for Investment in Latvia: What to Look For?
One of the key questions when obtaining a residence permit in Latvia is: where exactly will you invest? Since the program is based not on real estate purchase but on investment in the share capital of a Latvian company, it is important to understand how to choose a reliable partner.
One of the key questions when obtaining a residence permit in Latvia is where exactly you invest. Since the program is based not on real estate purchase but on investment in the share capital of a Latvian company, it is important to understand how to choose a reliable partner.
🧾 1. Company Reputation and Transparency
- First, pay attention to the legality and openness of the business. Check:
- Is the company registered in the Latvian Enterprise Register (Lursoft);
- How many years it has existed;
- Who is on the board (Valde) and who is the ultimate beneficiary (UBO);
- Is the company conducting real activity (not a “paper project”);
- Is the company profitable and does it publish reports;
- The presence of a presentation, investment memorandum, website links, social media, clients — is a good sign of transparency.
💼 2. Business Sector and Scale
- It is important to understand in which sector the company operates:
- Tourism and entertainment,
- HR and personnel outsourcing,
- IT and digital products,
- Logistics, consulting, etc.
- A good practice is to choose companies in sectors that are understandable to the investor and potentially sustainable in the EU.
The larger and more stable the project, the lower the risk that the investment will appear fictitious in the eyes of OCMA or VDD.
🧑💼 3. Investor Role in the Project
- Even if you do not participate in operational management, it is important to understand what form of participation you receive:
- Share in the company’s share capital;
- Participation in the advisory board;
- Access to regular reporting;
- Option to exit after 5 years with partial capital return.
These elements are fixed in the investment agreement, and it is precisely these that distinguish a reliable structure from formal arrangements.
📊 4. Financial Model
- Make sure you understand the mechanism of how invested funds will be used:
- What they will be used for (development, expansion, marketing);
- How and when the company plans to return part of the capital;
- Is there profit, and can it be distributed as dividends;
The availability of this data indicates seriousness and reduces risks — both legal and investment.
Conclusion
Choosing a company for investment-based residence in Latvia is not just a legal formality. It is a matter of trust, transparency, and strategic security. Work only with verified structures, request documents, ask questions — and you will gain not just a residence permit, but a tool for accessing the EU with a reliable foundation.