In 2022 there were 8 826 new businesses registered in Latvia, which is 4.3% fewer when compared with 2021. This is also the smallest number of new businesses founded in the country since 2004, according to information published by Lursoft.
Lursoft notes that the Covid-19 pandemic in Latvia caused a drop in registration of new businesses in Latvia. In 2020 there were 8 939 new businesses registered in the country, which is 14.4% fewer businesses when compared with the year prior. In 2021 the number of registered businesses increased by 3.2%, reaching 9 227.
At the same time, last year there was a drop in the number of liquidated businesses in the country. In 2022 a total of 10 959 businesses were liquidated, which is 22.6% fewer when compared with 2021, when 14 157 businesses were liquidated. Numerically the biggest number of liquidated businesses was in Riga (5 710), Ogre (280) and Daugavpils (275). Businesses were liquidated and registered across all Latvian municipalities, Lursoft representatives say.
Looking data across months, it becomes clear than the smallest number of businesses was registered in April – 650 and December – 682. The largest number of businesses was registered in September – 830. This was also the only month of 2022 when more than 800 businesses were registered in a single month. At the same time, in March 2021 more than 1 000 new businesses were registered in the country.
Lursoft representatives also say that the base capital of new businesses has a tendency to go down. While the total base capital of businesses registered in 2021 was EUR 243.49 million, last year the total value was EUR 63.92 million. The base capital amount of the biggest business registered in 2021 – JT Offices LLC – was EUR 130.24 million. The capital of the biggest business registered last year was EUR 5 million and was for RR Baltic Holding LLC from South Kurzeme.
The second biggest business registered in Latvia in 2022 was Puto JSC in Ropaži, whose base capital was EUR 4.49 million. The business has 20 active structural units, of which 18 are car washes across Latvia. Information from Lursoft indicates that one and a half months after registration Puto registered a commercial pledge worth EUR 120 000.
Of all LLCs registered last year 62.7% were of small capital, which means their capital is below EUR 2 800. There were also four businesses whose base capital does not reach even EUR 1. The smallest base capital – EUR 0.01 – was for Saldus-based MS Markets LLC. According to information from them, the business is engaged in online retail trade.
The base capital of one-third of all low-capital LLCs registered last year was around EUR 1.
At the same time, of all low-capital LLCs registered in 2022 in 426 cases their base capital has increased. Base capital growth was observed for 541 LLCs in the registration year. In multiple cases base capital of newly-registered businesses was increased considerably.
Lursoft representatives also say that 2022 was not successful for all businesses newly-registered that year. 51 businesses are already liquidated and two – reorganised.
Also read: Croatia joins the Eurozone and the Schengen area