A limited liability company (SIA) is the most typical structure for a business presence in Latvia.
A limited liability company must have a minimum share capital of 2800 euros, or if it is a micro company, less than 2800 euros, which must be paid when the bank account is created and before the business is registered with the Commercial Register. SIA Limited Liability Companies may be established by either a natural or a legal person (company).
A micro corporation must fulfill each of the following conditions to be registered:
- The shareholder and establishment are natural persons (max 5)
- The same person or people on the board
- An individual may only own one of these tiny businesses
Expenses related to company establishment, including bank account and VAT registration
If SIA (limited liability company) is founded by two or more people, the state charge for registration is 142.29 EUR; if documents are reviewed in one day, the fee is 426.87 EUR, and the publication fee in the official journal is 27.03 EUR. State fees for micro companies are 21.34 EUR or 64.02 EUR to review documents of the company within 1 day, and publication in the Official Journal is 14.23 EUR. For a company that is established by 1 establisher, registration in 1-3 days is -142.29 EUR; the publication fee in the official Journal is 27.03 EUR. Notary fees, which can range from 26 to 100 EUR, are not included in the state fee. For registering as VAT payers, there is no state cost in Latvia. Depending on the specific bank, the cost to open a company’s bank account varies slightly. There may be additional fees for translation services (around 14 EUR/page) if a corporation is incorporated by a legal person (company).
The registration process takes one to three business days after the local authorities receive the necessary paperwork, and the total state charge ranges from 220 to 490 euros.
Please take note that the company’s legal address must be stated. As a result, the first step requires registration at specific locations throughout Latvia.
Procedure of incorporation
The first action after registering an address is to complete the company’s incorporation.
A temporary bank account is formed, and the subscribed shares’ initial contribution is paid. Initial contributions must equal at least 50% of the share capital or the total amount in the case of a micro business.
The relevant management bodies inside the company are appointed, and the company’s articles of organization are created.
When a firm is registered with the Register of Enterprises, it is considered to have been established.
The Register of Enterprises must receive all documentation in Latvian. The approximate cost of translating one page is 20–25 euros per page; the cost of translating the company setup documentation is 290 euros.
Information and documents necessary
The following is a list of the essential paperwork and information needed to form a company in Latvia:
Information about the company’s board member(s), including copies of their passports, their address of residence, and their right to vote individually or collectively (if there is more than one member)
Information about the founder(s)
Information on the firm’s founder (if the founder is a legal person (company)); – an extract of the company’s information from the center of registers of the relevant country (no apostille is required if the company is based in the EU, EEZ, or Swiss Confederation)
Share capital payment proof
A certificate from the bank attesting to the payment of the first share capital (if a micro company, the establisher approves payment by himself).
- The company’s legal address is in Latvia
- Information on preferred banks
- Establishment Act
- The articles of incorporation
Please note that before registering, the name of the legal entity must be verified as being available.