Company incorporation in Latvia
The most common form of a business presence in Latvia is a limited liability company [SIA].
The minimum share capital required to establish a limited liability company is 2800 EUR or, if a micro company, less than 2800 EUR, namely, from 1 - 2800 EUR which shall be paid before a company registration with the Commercial register when the company bank account is opened. Limited Liability Company [SIA] may be founded by a natural person, as well as by a legal person (company).
In order to register a micro company, all of the following requirements have to be met:
Company formation cost including bank account and VAT registration
State fee for registering SIA (limited liability company) if established by 2 or more persons – 142.29 EUR; or 426.87 EUR to review documents within 1 day and publication fee in official Journal is 27.03 EUR. For company that is established by 1 establisher –registration in 1-3 days is –142.29 EUR; publication fee in official Journal is 27.03 EUR .State fee for micro company is 21.34 EUR or 64.02 EUR to review documents of company within 1 day, publication in official Journal is 14.23 EUR. State fee does not include notary fees that may vary from 26 to 100 EUR. There is no state fee for registering as VAT payers in Latvia. In order to open company's bank account the cost slightly varies on the particular bank. In case if company is incorporated by legal person (company) there might be additional costs for translation services (approx 14 EUR/page).
The registration takes 1 to 3 business days from the submission of documents at local authorities and the all-included state fee range is from 220 EUR to 490 EUR.
Please do note that it is necessary to indicate the legal address of the company. Therefore, the registration at particular premises in Latvia is necessary as the initial step. For your convenience we may offer to use our firm’s legal address in Riga.
Procedure of incorporation
The initial step is to conclude the act of establishment of the company;
Temporary bank account is opened and an initial contribution for the subscribed shares is paid. The amount of the initial contributions must be at least 50% of the share capital, but if a micro company – all the sum;
The articles of association of the company are drawn up and the necessary management bodies in the company are appointed;
The company is deemed to have been established upon registration thereof with the Register of Enterprises.
All the documents must be submitted to the Register of Enterprises in Latvian language. Approximate cost for one page translation is 20-25 EUR/page; approximate cost for the translation of Company setup documents is 290EUR.
Required Documents and Information
The list of the main documents and information for company incorporation in Latvia are:
Also please be informed that the availability of the name of the legal entity must be checked prior to registration.
Taxation in Latvia
Registration of a representative office in Latvia
A foreign merchant has the right to open a representative office in Latvia. A representative office is not a legal person, and it does not have a right to conduct commercial activities in Latvia.
Required documents/ information for establishment:
State fee -28.46 EUR (registration in 3 business days), 85,38 EUR (in 1 business day) and fee of publication in official Journal 18.50 EUR.
For questions, please, contact Valters Gencs, attorney at law at email@example.com
The material contained here is not to be construed as legal advice or opinion.