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:

  1. Establisher/shareholder is a natural person (max 5).
  2. The same person (s) in board.
  3. The person can own only one such micro company

 

.  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.

 

 

. Legal address


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 14 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:

  1. Data on the board member (s) of the company (representation rights – separately or jointly (if more than 1 member), residence address and passports copies);
  2. Data on the establisher of the company (in case if the establisher is the legal person (company) - extract from the Center of Registers of the respective country on the company (no Apostille shall be added if it is a company located in EU, EEZ or Swiss Confederation);
  3. Legal address of the company in Latvia;
  4. Information on the Bank preferences;
  5. Act of Establishment;
  6. Articles of Association;
  7. Certificate from the bank which proves that the initial share capital has been paid (if a micro company – the establisher approves payment by himself).

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:

  1. a document which certifies the registration of the merchant in the relevant state (certificate of incorporation), if the law of the state of the location of the foreign merchant provides for the recording of the merchant in a register; or other document that confirms legal status of the foreign merchant in that state (legalized or with Apostille-depends on the country where a foreign merchant has its legal address);
  2. a notarized and legalized (or with Apostille) copy of the articles of association, memorandum of association or a document equivalent to such of the merchant;
  3. a decision to open the representative office with authorization for the representative;
  4. legal address of the representative office;
  5. a passport copy and current address of the representative;
  6. legal address, name and basic business activities of the foreign merchant.

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.

 

 

company registration in Latvia  Power of Attorney for company registration in Latvia in English language

 

company registration in Latvia  Power of Attorney for company registration in Latvia in Finnish language

For questions, please, contact Valters Gencs, attorney at law at info@gencs.eu


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The material contained here is not to be construed as legal advice or opinion.

© Gencs Valters Law Firm, 2014