Articles on enterpreneurship >> Investments in Latvia
Agencies such as Moody’s Standard & Poor’s, Fitch have evaluated Latvia as Stable place for investments. Latvia has signed bilateral agreements for the promotion and mutual protection of investments with 43 countries. The agreements grant safety and protection to investments made in real estate, intellectual property, shares or any other form of investment, prohibiting the application of unreasonable, discriminatory or arbitrary measures to investments by the other contracting State and direct or indirect expropriation or nationalization. Through these investment agreements, Latvia grants national or most favored nation treatment to foreign investment and the expansion, management, maintenance, use, enjoyment and sale or other disposal of investments made by contracting parties.
The Foreign Investors’ Council in Latvia (FICIL) is a non-government organization that unites the largest companies, from diﬀerent countries and sectors, who have invested much in Latvia. Ten national chambers of commerce operating in Latvia have joined FICIL. The companies represented in FICIL account for about 40% (approx. LVL 800 million) of total foreign direct investment stock.
Our promotion of Investments
Assistance in investment location selection and implementation of investment projects:
- provision of all relevant information on business opportunities and investment incentives;
- identification of the best property options for manufacturing facilities, offices and land;
- assistance in establishing and developing contacts with Latvian business partners;
- providing information on potential investment opportunities in Latvia (Investor search for Latvian companies and projects);
- assistance with start-up procedures
Rights of shareholders
The rights of investors in Latvia are protected by the Commercial Law, the Civil Law and the Law on Judicial Power. Shareholders exercise their rights in annual shareholders’ meetings. Shareholders who jointly represent not less than one twentieth of the equity capital of a company can request extraordinary shareholders’ meetings. Any shareholders can bring an action in court to revoke decisions taken by shareholders’ meetings if they were unlawfully prevented from participating in the meeting or from familiarizing themselves with relevant information, or significant violations have occurred in making such decisions. Shareholders (the supervisory council in JSCs) elect a board of directors. The board of directors act as the executive body of the company and the members of the board are jointly liable for losses incurred as a result of their actions. Boards of directors are obliged to inform shareholders about the company’s financial results quarterly and about any circumstances that can affect the company’s activities. Shareholders can request internal audits of activities and the economic condition of companies, as well as elect internal controllers to examine companies at the request of shareholders. Investors can defend their rights and instigate court proceedings against persons who have caused harm to the property or rights of the investor by unlawful actions or wrongful intent, in accordance with the Civil Law.