BUSINESS ENVIRONMENT AND BUSINESS SUPPORT
HERE YOU CAN FIND ANSWERS TO THE QUESTIONS:
How to start a business?
According to the field of work, experience, goals and aspirations, each artisan can choose which business form is the best to set up a new business. Mainly, in every case there are two options:
- to work as individual person with business license/certificate or
- to work as legal entity by setting up a company.
How to register economic activity in LATVIA:
- Before starting economic activity, a natural person has to register at the State Revenue Service as a taxpayer – a performer of economic activity indicating the area of intended economic activity.
It can be done at www.eds.vid.gov.lv
- A person performing economic activity has to choose the most suitable method of tax payment for the artisan.
On what form of economic activity to choose see here: https://businessnetwork.lv/riki/sdf
|Tax on business income||Patent fee on performance of particular type of economic activity||Reduced patent fee on performance of particular type of economic activity||Micro-enterprise tax|
|Tax amount||20-31.4% from profit or >50 EUR a year
For more information visit: https://www.vid.gov.lv/lv/iedzivotaju-ienakuma-nodokla-likmes
|100 EUR / 50 EUR or 17 EUR a month. For more information visit: https://www.vid.gov.lv/lv/saimnieciskas-darbibas-veiceji||17 EUR / 9 EUR a year
For more information visit: https://www.vid.gov.lv/lv/saimnieciskas-darbibas-veiceji
|The tax rate on micro-enterprises is 15%.
Micro-enterprise tax is applied to the turnover (revenues) of a micro-enterprise.
|Areas to be covered||–
For more information visit: https://www.vid.gov.lv/lv/saimnieciskas-darbibas-veiceji
|· Leather and textile crafts;
· Home care services; Private household services; Beauty services;
· Craft products etc.
For more information visit: https://likumi.lv/ta/id/296734
For more information visit: https://likumi.lv/doc.php?id=215302
All business forms valid in Lithuania, the comparison between the companies, requirements and a lot of useful tips are described in the website: https://www.enterpriselithuania.com/verslauk/ (also available in EN language https://www.enterpriselithuania.com/en/start/).
“Versli Lietuva” (EN Enterprise Lithuania) is an agency created by the Ministry of Economy to promote entrepreneurship, sustainable and modern business development, the ecosystem of start-ups and exports in Lithuania. “Versli Lietuva” is a “one stop” for business throughout its entire development cycle.
How to start exporting crafts products?
In most cases, products produced by craftsmen and artists are sold at fairs. You can find information on the nearest planned fairs in Latvia, Lithuania and Estonia on the websites listed below.
In LITHUANIA, ESTONIA:
INTERNATIONAL EXHIBITIONS and FAIRS:
The available support programmes in Latvia for business development and enhancement of visibility outside Latvia:
- In the Investment and Development Agency of Latvia (LIAA) by participating in the national stalls at international exhibitions both within and outside the European Union. LIAA provides support to Latvian entrepreneurs. For example, entrepreneurs have access to a free-of-charge area at the national stall, support in preparing for the exhibition, as well as support for approaching potential business partners (by organizing meetings and working in the stall). For more information visit: http://eksports.liaa.gov.lv/pakalpojumi/nacionalie-stendi
- State-owned joint-stock company “Development Finance Institution ALTUM”. The organization with the help of financial tools (such as loans, credit guarantees, investing in venture capital funds, etc.) provides funding in areas identified as important and supportable by the state and where there is insufficient access to credit institutions’ funding. When implementing state support programs, ALTUM uses funding from Latvia and EU funds. For more information visit: https://www.altum.lv/lv/
- National planning region grant tenders: For example: https://www.zemgale.lv/ and others
- Local government grant tenders: http://www.dobele.lv/lv/news/dobeles-novada-kulturas-un-sporta-parvalde-izsludina-projektu-konkursu-11
The organization “Versli Lietuva” is one of the biggest business support organizations in Lithuania. One of the supporting direction is encouraging export activities. Link to the website (in the Lithuanian language) https://www.verslilietuva.lt/eksportuok/
This website contains information on exporting possibilities for Lithuanian businesses. Here you can find a publication “10 steps to export” with advices for preparation for exporting, get important tips for exporting activities, use consultations with professional consultants, get information about financial support possibilities. Also, here you can find and join to the database of Lithuanian exporters. Furthermore, use the “Export guidelines” – the tool where you can find all necessary information about exporting for Lithuanian exporters.
For more information on preparations and participation in exhibition, product presentations and markets/fairs, visit:
- https://www.visalietuva.lt/straipsniai/muges-smulkiuju-verslininku-meka (in Lithuanian)
How to participate in trade fairs?
Usually craftsmen, artisans successfully sell their products during trade fairs. There are many opportunities to take part in these events with small expenditure or with subsidies.
These are amongst the most important export support institutions in LATVIA:
- The Investment and Development Agency of Latvia (LIAA) regularly organizes various support activities and offers services for export promotion (participation in exhibitions, trade missions, matchmaking, free seminars, etc.). For more information visit:http://eksports.liaa.gov.lv/
- EEN – Platform for Enterprise Europe Network. The platform offers entrepreneurs the opportunity to collaborate with the entrepreneurs from more than 60 countries, including 28 European Union countries, as well as candidate countries (Turkey, the Republic of Macedonia, Albania, Montenegro, and Serbia), countries of the European Economic Area and other third countries. The available services include: search of partners, market information, EU legislation issues, and information regarding access to financing. For more information visit: http://www.een.lv/
- The Ministry of Agriculture, the Ministry of Transport, the Ministry of Health, the Ministry of Education and Science also provide free export support services, the ministries develop and implement the export promotion policy for increasing the export capacity of the sectors under their responsibility, using the financial resources available within the national and European Union funds.
Information on the specific foreign trade measures applicable to a particular commodity at European and national level in relation to exports can be found in the Integrated Tariff Management System of the State Revenue Service, under section TARIC.
Check all the possibilities and use the financial support for participation in trade fairs in LITHUANIA:
- Submit the application for (when active) presentation of products abroad and / or international exhibitions, fairs and business missions in Lithuania: http://www.esinvesticijos.lt/lt/patvirtintos_priemones/naujos-galimybes-lt (in LT language)
- Some Municipalities in Lithuania have Small and Medium-Sized Promotion Funds. Check if your Municipalities’ Fund supports participation in trade fairs and apply for a support.
Make a plan, read the articles, take advice and prepare for trade fairs:
- https://www.visalietuva.lt/straipsniai/muges-smulkiuju-verslininku-meka (in LT language)
How to start selling my products through the Internet?
Driven by globalization processes, internet sales of products are becoming increasingly popular. Everyone can now turn their hobby into a profitable activity by joining some of the largest online stores or creating their own, individually created design platform. Creating an online store gives you the opportunity to run your business from anywhere in the world, by letting craftsmen or designers develop their skills and abilities outside the usual environment.
Creating a profile in an existing online store, which in most cases is international, (www.etsy.com , etc.) in most cases is made easier so that anyone regardless of age or computer skills could work online.
All entrepreneurs offering their products online admit that a crucial part of selling the product is effective marketing or promoting the product. Thus not only the appearance of the product (quality of the photo, etc.) is essential, but also the description of the product, speed and quality of service, etc.
To provide you with an insight into marketing on the internet, we have compiled information resources worth exploring:
- pic.dobele.lv – offers various types of training on starting a business, online trading, etc.
Employment and Entrepreneurship without Borders
/ BEE, Nr. LLI-138 /
This website has been produced with the financial assistance of the European Union. The contents of this website are the sole responsibility of Dobele Adult Education and Business Support Centre and can under no circumstances be regarded as reflecting the position of the European Union.
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