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Remuneration for Members of the Board of Latvian company
A Member of the Board of Latvian company can be a capable individual both resident and non-resident.
The legal relationships of Members of the board of the Latvian company are regulated by Commercial Law, Civil Law and Labour Law of Latvia.
The presence or absence of remuneration for Member of the Board of Latvian company depends primarily on company`s activity and functions of Member of the Board he performs.
If in addition to Member of the Board of the company there are employees who work under the labour contract and perform a direct management of the company and conduction of business, then there is no need to conclude a labour contract with Member of the Board. In this case, the relationships between Member of the Board and company may be arranged under the contract of authority determing a kind of remuneration or wtihout remuneration. The amount of remuneration and periodicity of its payment is not regulated by law and depends on the decision of participants (founders) of the company and financial capacity of the company.
If company conducts its activite in the person of the sole Member of the Board, then conclusion of a labour contractis required. The amount of remuneration in this case should not be less than determined minimum salary in Latvia, that currently amounts to 180 LVL (260 euro) per month. This salary is recommended in thetime of substantial turnover and presence of active activity of the company. In the case of lack of active activity the option underemployment is possible - a certain number of hours per month. Then, the minimum recommended remuneration will amount to 25 lats (35 euros) per month for 20 hours employment.
Discharge of taxes on remuneration paid to Member of the Board will amount to about a half of the accrual gross sum.
* It should be noted that if Member of the Board - non-resident of Latvia - will issue a residence permission in Latvian Republic, then the amount of his monthly remuneration should not be less than double average gross salary in the country for the previous year determined by the Central Statistical Office that currently amounts to 920 lats (1,310 euros).
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Joint stock company Latvia, Riga, 20A Ernesta Birznieka-Upisha Street, 6th floor, office 603 Tel: +371 6 722 48 39 Fax: +371 6 722 48 53 E-mail: info@interinvest.lv www.interinvest.lv
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