Do you know how to apply for the state aid prescribed in the Law on Aid for the Activities of Start-up Companies? Law Office TGS Baltic, the author of the Business Manager’s Handbook, included the information on the start-up companies and the available state aid in the current supplements to the edition.
The subscription edition contains comments on the requirements specified in the Law on Aid for the Activities of Start-up Companies, which should be observed by start-up companies and their investors to qualify for the state aid programmes.
«Latvia has created its own regulation for start-up or fast-growing companies, which is based on the Law on Aid for the Activities of Start-up Companies, which came into force on 1 January 2017. The section of the Manual is intended both for start-up companies with high growth potential, the principal activity whereof is associated with development and production of new innovative products, who want to enrol in the state aid programmes Law on Aid for the Activities of Start-up Companies, and potential entrepreneurs, who intend to implement their business plans by creating start-up companies and would like to understand the conditions, which a company must meet, to qualify for the aid criteria,» the relevance of the topic is explained by TGS Baltic, the author of the Manual.
A possibility to get the state aid is prescribed for capital companies with high growth potential, the principal activity whereof is associated with development or production of new innovative products. Start-up companies that meet the criteria prescribed in the Law on Aid for the Activities of Start-up Companies and have fulfilled the obligations imposed on them are eligible for participation in two state aid programmes. One prescribes for a fixed (reduced) tax payment for the employees of a start-up company, the other – an aid for attraction of highly skilled employees. During the period, when the company has applied for the aid, a start-up company is eligible to the CIT discount up to 100%.
More detailed information is available in the voluminous Chapter 17 «Start-up Company»:
17.1. «Regulation of a Start-up Company»:
17.1.1. «Purpose for Regulation of a Start-up Company»;
17.1.2. «Concept and Features of a Start-up Company»;
17.2. «Start-up Company Aid Programmes»:
17.2.1. «Types of Aid Programmes»
17.2.2. «Tax Benefits»;
17.2.3. «Applicable Conditions and Amount of State Aid»;
17.2.4. «Sequence of Application of Aid programmes»;
17.2.5. «Period of Aid Programme»;
17.2.6. «Criteria for Granting Aid Programmes»;
17.2.7. «Procedure for Application for Aid Programmes»;
17.2.8. «Restrictions for Use of Aid Programmes and Losing the Use Rights»;
17.2.9. «Obligations of Start-up Company»;
17.2.10. «Withdrawal from Participation in Aid Programmes»;
17.3. «Qualified Venture Capital Investors»:
17.3.1. «Conditions for Qualification of Venture Capital Investors»;
17.3.2. «Inclusion of an Investor in the List of Qualified Venture Capital Investors»;
17.3.3. «Obligations of Qualified Venture Capital Investors»;
17.3.4. «Exclusion from the List of Qualified Venture Capital Investors»;
17.4. «Administration of Aid Programmes and Evaluation Commission»:
17.4.1. «Authority Administrating Aid Programmes and Commission Evaluating Start-up Company Activities»;
17.4.2. «Competence and Rights of Commission»;
17.4.3. «Adoption, Notification and Contestation of Commission Decision».
