In Latvia, forming a business is rather simple. After the company is registered, you must submit paperwork to the Latvian Enterprise Register and open a bank account in the firm’s name. You’ll almost certainly need a VAT number as well.
This guide teaches all you need to know about starting a business in Latvia.
Preparation and submission of registration documents
For the preparation and filing of registration paperwork, a company’s choice is critical.
Latvian Enterprise Register is in charge of keeping track of firms in the country. Latvian Enterprise Register, like all other official organizations in Latvia, only accepts documents written in Latvian. As a result, you’ll almost certainly need to use the services of a law firm or a corporation that specializes in company formation and bookkeeping. There are many law offices and specialized company registration firms in Latvia that offer company registration services, but they are merely intermediaries in this process, as you are aware. As a result, if you are not establishing a company in Latvia as part of a complex corporate structure, it will be less expensive to contact a Latvian company directly.
Choices of signing registration documents
A sworn notary should authorize signatures on parts of registration documents. You can either sign documents in person in Latvia or in front of a notary.
Choice of the company’s legal form
There are various legal forms of business registration in the United States, just as there are in other nations. In most circumstances, a limited liability company, or SIA in Latvia, will be the most appropriate legal form for you. In addition, this essay will discuss SIAs or limited liability companies.
The amount and method of payment for the share capital are both up to the investor.
A share capital payment notification is required as part of the company registration document package. In Latvia, a limited liability company’s minimum share capital is EUR 2,800. Share capital can be paid in full before the registration paperwork is submitted, or 50% can be paid before the documents are submitted and the remaining 50% can be paid one year after the business is registered.
You can form a limited liability company with lower share capital as a private individual. It can be as little as EUR 1. There is no need to open a temporary bank account and deposit the share capital into it in this scenario.
You may need to register a corporation with full share capital in specific instances. This is required, for example, if you want to use the company to obtain a Latvian residency visa.
If you want to start a business with a full share capital, you’ll need to open a temporary bank account in Latvia and deposit the share capital amount there. You can either open the temporary account yourself or have our specialist do so on your behalf using a Power of Attorney. A letter verifying payment of share capital must be obtained from the. These letters are sent out as soon as the money is received.
Choice of legal address
Every company in Latvia, like most other countries, must have a registered address that is included in the application for company registration, i.e., a legal address. In Latvia, the legal consent of the property owner is required before the property can be used as a legal address. Legal address rent is provided by the majority of organizations that provide company registration services in Latvia.
A legal address might be either commercial real estate or a residence or apartment. You can utilize it if you have friends or business partners in Riga who are willing to provide you with written permission to register your company at their address.
When selecting a legal address, make certain that you will be able to receive official mail addressed to your company that will be mailed to that location promptly. It is necessary to receive a VAT number. Furthermore, if you fail to get critical correspondence from government agencies, banks, or creditors in the future, your firm may face trouble.
Choosing a name for your business
It can be difficult to come up with a nice name for a business. From a legal standpoint, it is critical to understand that a Latvian company’s name must meet the following criteria:
- The name should be composed of Latvian or Latin letters
- The name should not be the same as or similar to the names of other companies that have already been registered
- No specific words, such as the Latvian Republic, bank, etc., should be used in the name.
Choice of registering as a VAT payer
Together with the company registration documents, an application for VAT payer registration can be submitted.
Choice of a bank
If you want to form a company with normal share capital, you’ll need to open a temporary bank account and pay in share capital before submitting the registration documents. You’ll need to go to the bank after the firm is registered to convert the temporary bank account into a regular current account and acquire codes for remote access to online banking.