Latvia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in latvia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Distribution & Sales Channels
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Latvia has three major ports (Riga, Ventspils, and Liepaja) as well as a major airport in the capital city of Riga, which has become a transportation hub. Latvia is well connected via railway, which runs largely east-west to former countries of the Soviet Union. Rail Baltica, a north-south rail corridor that would link Estonia, Latvia, and Lithuania to the rest of Europe, is under construction with an expected completion date of 2030. Riga is the major goods distribution center for the country.

Latvia has similar distribution and sales channels as other EU countries, and Latvia has very few specific laws that regulate this area. The Latvian Traders Association is the official national representational organization for retailers operating in Latvia.

Using an Agent or Distributor

There are no laws in Latvia that regulate the relationship between a foreign company and its distributors or agents in Latvia. A distributor relationship can be terminated according to the provisions stipulated in each specific distributor agreement. EU legislative acts regarding this subject have been incorporated into local law.

A common practice is to appoint one distributor/agent to cover the entire country, or the entire Baltic region (Estonia, Latvia, and Lithuania). Due to the small size of the Latvian market, one importer may carry products from several industry sectors.

U.S. companies looking for agents or distributors in Latvia should contact the nearest U.S. Department of Commerce local U.S. field office.  

Establishing an Office

It is a simple process to establish an office in Latvia. However, considering the required documentation as well as the advantages of understanding local legislation, using legal counsel to establish an office in Latvia is highly recommended. A list of English-speaking lawyers can be obtained from the U.S. Embassy: https://lv.usembassy.gov/u-s-citizen-services/attorneys/. Additional details on establishing an office in Latvia are available on the website of the Latvian Investment and Development Agency here: https://investinlatvia.org

The European Commission manages the Your Europe website where investors can find useful information on various topics ranging from taxation and customs to employment contracts.

For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of Department of State’s Investment Climate Statements website.

Franchising

Franchising is growing in popularity in Latvia with such brands as Burger King and Domino’s Pizza recently expanding to Latvia. Export opportunities exist in many sectors, especially in public catering. Although Latvia does not have specific franchising legislation, franchise arrangements are regulated under the Law on Competition and the Commercial Law.

More information on specific legislation can be found on the website of the European Franchise Federation. More information on franchising opportunities in Latvia can be also found at https://www.franchising.lv/en/. 

Direct Marketing

Direct marketing is popular in some industries, and it is relatively easy to attract sales consultants for such marketing strategies due to the affordable salary levels on the local job market. 

To find out more about direct marketing in Latvia, visit the website of the Latvian Direct Marketing Association.

There is a wide range of EU legislation that impacts the direct marketing sector. Compliance requirements are stiffest for marketing and sales to private consumers. Companies need to focus, in particular, on the clarity and completeness of the information they provide to consumers prior to purchase and on their approaches to collecting and using customer data. Learn more about the EU legislation covering direct marketing here: https://digital-strategy.ec.europa.eu/en/policies/e-commerce-rules-eu

Joint Ventures/Licensing

A joint venture with a local partner can be a significant help for a U.S. company with little or no experience in the Baltics. A good choice could be a company that is already registered with the Latvian Chamber of Commerce and Industry (LCCI). However, it is advisable to find out as much as possible about potential partners. Basic information on a local company, as well as its credit rating, can be obtained from Latvian business information companies as well as LCCI.  Find more information here: The Latvian Chamber of Commerce and Industry.

The U.S. Commercial Service offers several services for the purpose of due diligence. Please consult the nearest U.S. Export Assistance Center:  Export.gov - Offices in the U.S.  

Express Delivery

Express Delivery is well established in Latvia, and the majority of global express delivery companies service the Latvian market. Express delivery from New York City to Riga, Latvia, for example, takes approximately four days. All imports are subject to VAT. Detailed information is available here: https://vat-one-stop-shop.ec.europa.eu/index_en 

Due Diligence

Appropriate due diligence on business partners and agents is recommended. Many companies offer due diligence services, and the quality of their services has increased in recent years. In addition, the U.S. Commercial Service’s International Company Profile program provides U.S. businesses with background reports on potential agents, distributors, and other companies. Specialists can investigate the financial strength of a company and provide useful information gleaned from local credit sources, press, industry contacts, and other sources. Please contact the nearest U.S. Commercial Service local office for more information.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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