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Monday 16.07.2018 | Name days: Hermīne, Estere

Kampars: In four years there will be 50 firms per 1000 inhabitants

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The implementation of microenterprise support programs will enable a qualitative leap in business activity indicators in the following four years, and ensure that the amount of enterprises per 1.000 inhabitants in Latvia at least reaches the average ratios of European Union (EU).

The Minister for Economics Artis Kampars

Such announcement was made by the Minister for Economics, Artis Kampars (party JL), according to his press secretary Sandris Sabajevs.

According to the portal Nozare.lv, Kampars points out that in Latvia, at the present moment, there are 31 private enterprises per 1.000 inhabitants, but the average for the EU is 50 companies per 1.000 inhabitants. «The low level of entrepreneurial activity is one of the reasons why the realization of small business support concept is so significant to Latvian economy. Its implementation will facilitate the formation of new enterprises, and, consequently, the employment in the country, particularly, in regions, » explains Kampars.

As reported, today a law on microenterprise tax and its accompanying parcel of measures will come into effect, which foresees the implementation of one fixed microenterprise tax with the rate of 9% of turnover, or economic activity income. Subsequently, all the legislative acts have been adopted and entered into force, which are necessary for the implementation of the microenterprise support program. The purpose of this program is to ease the administrative and accounting work burden on microenterprises, and reduce the establishing costs, in order to promote the formation of new companies and new job positions.

The Minister is certain that starting from today the enforcement of the reduced microenterprise tax rate will contribute to the development of more than 900 new microenterprises until the end of this year.

Moreover, Kampars also points out that the overall effect of the actions taken so far to support microenterprises – one lat limited liability company (ltd.) and patent fee for physical entities – on the economy is much higher than it was previously forecasted.

Since the amendments in Commerce Law have come into force in May, 2010, every month, 400 one lat or small enterprises are established on average, but in August – 462. Nearly half of the new enterprises, registered in the first half of the year, are with reduced equity capital. Compared with the second half of 2009, in the first half of 2010 the amount of registered new firms has increased by 11.1%.

On the other hand, since the beginning of the year, since the patent fee entered into force with one fixed tax payment for certain professionals, a positive dynamics can be seen regarding the number of claimed patent fees. If in the February 2010 only three patents were claimed, then, according to information provided by State Revenue Service (SRS), until the end of July 2010, 201 patents were granted.


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  1. One says:

    The new law is a reasonable solution.

  2. @Rita says:

    Well, if anything, this will improve the unemployment situation.

  3. just words says:

    don’t believe it

  4. Alexander says:

    we can achieve the number this is not a problem. what we really should think of is not quantity, but quality. how many of these 50/1000 are active, how many of them are with positive balance sheets and how many of them are actually paying taxes?

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