Saeima has adopted and the President has proclaimed the Law on Aid for Start-up Companies.
The aim of this Law is to promote the formation of start-up companies in Latvia thereby stimulating research, as well as use of innovative ideas, products and processes in the economic activity (commercialisation of research products).
According to Law start-up company is a capital company possessing a high growth potential and its main economic activity is related to design, production of development of scalable business models and innovative products.
This Law provides for aid programmes, eligibility criteria, as well as procedure for administration of aid granted to a start-up company; venture capital investor qualification conditions; procedure for establishment and competence of the commission for start-up company activity assessment.
The Law includes aid programmes — a set of state aid measures promoting development and research of innovative products and implemented as:
Fixed payment aid programme, personal income tax and enterprise income tax relief applied in accordance with the procedure prescribed by this Law;
Aid programme for attracting highly qualified employees, personal income tax and enterprise income tax relief applied in accordance with the procedure prescribed by this Law.
The aid programme administrating body is the Investment and Development Agency of Latvia.
This Law entered into force on 1 January 2017.
This Law has been adopted by the Saeima on 23 November 2016.
Public Relations Division
Ministry of Economics