Amendments to the law on aid for the activities of start-up companies have been adopted
On 12 April, the Saeima (the Latvian Parliament) reviewed and adopted, in the final reading, amendments to the Law on Aid for the Activities of Start-up Companies, which are effective as from 2017.
In accordance with the amendments, upon certain conditions, the existing period of receipt of aid for a company’s activities (currently 12 months) shall be extended up to 24 months. The amendments also significantly broaden the criteria for receiving aid. This provides an opportunity to use investments and funds invested not only for the alternative investment fund registered in Latvia or abroad (whose share of contribution to the share capital of the company has been increased from 20 to 30 percent), but also for the other legal or natural person complying with certain criteria. The amount of contribution for such investors has been reduced to EUR 15,000.
The law introduces several supporting programmes for start-up companies: an opportunity to make a fixed monthly payment to each employee for two minimum monthly salaries applying the mandatory contributions rate and the right to apply for an aid programme for attracting highly-qualified employees. The law also prescribes the opportunity for an employee of a start-up company to be exempted from the payment of personal income tax under specific conditions. However, the amendments limit the previous support measures and remove the opportunity to use tax allowance with respect to enterprise income tax.
During the first half of every year, all companies are working hard to submit their annual reports. Annual reports must be submitted within six months after the fiscal year has ended. The submission deadline is usually June 30. Since the management board of a company must assemble all shareholders or stockholders at least once a year to approve the annual report, the following topics should be considered under the Estonian law.
For a long time, the legal position for combined carriage of goods by road has been more or less unclear. The Danish Transport, Building and Housing Authority has however recently issued an executive order implementing the rules of the so-called 'Combi Directive' (EU Directive 92/106). The executive order will come into force on July 1, 2018. In addition to implementing the directive, the executive order contains some 'new' rules that will clarify to what extent it is possible for foreign carriers to perform combined transport to and from Denmark.
Travelling in Nordic countries during summer time might trigger your Estonian entrepreneurial mind to start thinking about how to reach these neighbouring markets with your products and services. Great! But, before you start, make sure to do your homework and do not expect anything to happen during the period starting from Midsummer until mid-August, as summer is long and lazy for our dear neighbours.