In Latvia, establishing a business is rather simple. You must submit the necessary paperwork to the Latvian Enterprise Register before opening a bank account in the company’s name once it has been registered. You’ll probably also need to obtain a VAT number.

Choice of the company for preparation and submission of registration documents

Latvian Enterprise Register is responsible for maintaining the country’s corporate register. The Latvian Enterprise Register accepts documents only in Latvian, much like all other official entities in the country. Therefore, it is likely that you will need to hire a law firm or business that specializes in company formation and accounting services. There are numerous law firms and specialized company registration businesses in Russia that provide services for company registration in Latvia, but as you are aware, they are merely middlemen. Therefore, it will be less expensive to contact a Latvian company directly if you are not establishing a business there as part of a complex corporate arrangement.

Choice of the way of signing registration documents 

A sworn notary must approve the signatures on any registration paperwork that contains them. You can personally sign documents in Latvia or Russia in front of a notary.

Choice of the company’s legal form

There are numerous legal ways to register a business, just like in other nations. The most appropriate legal structure for you will typically be a limited liability corporation or SIA in Latvia.

Choice of share capital amount and way of its payment

This payment notification must be presented as part of the company registration document package. In Latvia, a limited liability company must have a minimum share capital of EUR 2,800. Either the entire amount must be paid before the registration paperwork is submitted, or 50% can be paid before the documents are submitted and the remaining 50% can be paid within a year of the company’s registration.

You can establish a limited liability corporation as a private individual with low share capital. Its value can be as little as one euro. There is no need to open a temporary bank account and deposit the share capital into it in this instance.

You might occasionally need to file a corporation with a complete share capital. For instance, you must have this to utilize the company to apply for a Latvian residency permit.

If you choose to incorporate with a full share capital, you must open a temporary bank account and deposit the share capital into a Latvian bank.

Choice of legal address

Every company in Latvia, like most other nations, is required to have a registered address, also known as a legal address, which is listed on the application for company registration. Using a property as a legal address in Latvia requires the owner’s permission. Rent for a legal address is offered by the majority of Latvian businesses that offer company registration services.

A home or apartment can be used as a legal address much like commercial property. Therefore, you can utilize it if you have friends or business partners in Riga who would agree to provide you with written permission to register your company at their address.

Selecting a name for your business

It can be challenging to select a catchy name for a business. It’s crucial to understand from a legal perspective that a Latvian company’s name must comply with the following requirements:

• the name should be made up of Latin or Latvian alphabetic characters
• the name shouldn’t be the same as another already-registered company’s name or close to it
• no specific words, such as the Latvian Republic, bank, etc., should be present in the name

The decision to register as a VAT payer

Most likely, enrolling as a VAT payer will be advantageous to you or perhaps required. Along with the paperwork for company registration, a request for registration as a VAT payer may be made.