Legal entity types in Latvia

Ready to launch your business in Latvia? Our expert insights can help you choose the ideal company structure that fits your commercial needs. To start, review the overview of available legal entities below. Each option offers unique benefits and requirements—detailed descriptions follow.

Summary of legal entities

Below is a quick overview of the legal forms you can choose from:

Company registration

Legal entities and state fees​ in Latvia

Latvia’s legal framework supports a range of entity types, each tailored to specific business structures and goals. Our team will advise you on the most suitable option and manage the registration process seamlessly. The costs below represent state fees payable to the Register of Enterprises for registration. Additional expenses, such as notarization, may apply.
Comparison of Latvian Legal Entities
Legal Entity Description Minimum Equity Capital State Fee (Standard–Expedited) Processing Time Key Advantages Management Liability Profit Distribution
Individual Merchant (IK) Sole proprietorship where a natural person registers to conduct business under their own name. None €30 – €90 1–3 days Easy and low-cost setup; full control by owner; eligible for micro-tax regime. Managed solely by the owner. Unlimited personal liability. All profit goes directly to the owner and is taxed as personal income.
General Partnership (PS) A partnership formed by two or more persons operating under a common name. None €75 – €225 1–3 days No minimum capital; combines resources; flexible profit-sharing. Managed jointly by all partners per the partnership agreement. Unlimited joint and several liability for all partners. Profits are shared as specified in the agreement and taxed at each partner’s level.
Limited Partnership (KS) A partnership with at least one general partner (unlimited liability) and one limited partner (liability capped to investment). None €75 – €225 1–3 days Allows passive investment with limited risk for limited partners. Managed by the general partner(s); limited partners are passive. General partners: unlimited liability; Limited partners: liability limited to their contribution. Distributed as per the partnership agreement; each partner’s share is taxed individually.
Limited Liability Company (SIA) A private company with a separate legal personality where shareholders’ liability is limited. €2,800 €75 – €225 1–3 days Widely used; limited liability protects owners; flexible management. Managed by a board (director(s)) and supervised by the shareholders’ meeting. Liability limited to the share capital invested. Profits retained or distributed as dividends after corporate taxation.
Low‑Capital LLC (Mazkapitāla SIA) A SIA with reduced equity requirements for very small businesses, subject to capital buildup. €1 – €2,799 €20 – €60 1–3 days Ultra-low entry cost; ideal for startups; offers limited liability. Operated similarly to a standard SIA with a director and shareholders’ meeting. Limited liability as with a standard SIA. Dividends distributed based on shareholding; 25% of annual profit allocated to mandatory reserve until reaching €2,800.
Joint Stock Company (AS) A public company suitable for larger enterprises and for raising capital publicly. €25,000 €85 – €255 1–3 days Access to public markets; robust corporate governance; credibility with investors. Managed by a supervisory board and a management board, with decisions made at shareholders’ meetings. Limited liability – shareholders risk only their investment. Profits may be retained or distributed as dividends proportional to shareholding.
Micro Enterprise (Mikrouzņēmums) A special tax status for very small businesses (applied to an underlying legal form such as IK or a micro‑SIA). None beyond the underlying legal form N/A (no additional fee for the tax status) 1–3 days (if registered simultaneously with entity) Simplified tax and accounting; lower administrative burden. Follows the management of the underlying legal form (e.g. sole managed for IK or standard for SIA). Liability as defined by the underlying legal form (e.g., unlimited for IK, limited for SIA). Profits are subject to a simplified “micro tax” regime instead of standard corporate or personal tax.
Branch of a Foreign Company An extension of a foreign company operating in Latvia without forming a separate legal entity. None (capital provided by the parent company) €30 – €90 1–3 days Quick market entry; no need for a new legal entity; full control remains with the parent. Managed locally by an appointed representative or branch manager. The foreign parent company bears full liability for the branch’s operations. Profits are integrated into the parent company’s finances.
Representative Office (Rep Office) A non-commercial office serving as a local liaison for a foreign company. None €28.46 – €34.14 1–5 days Minimal setup; ideal for market research and promotion; no trading allowed. Run by a local representative appointed by the parent company. The foreign parent company is responsible for all liabilities. No profit distribution – it cannot engage in revenue‑generating activities.
European Company (SE) An EU-wide public limited company that can operate across borders within the EU. €120,000 €85 – €255 1–3 days Facilitates cross‑border operations; can relocate its registered office across EU/EEA; prestigious status. Managed under a flexible one‑tier or two‑tier system (shareholders’ meeting, board(s)). Limited liability – shareholders are liable only to the extent of their investment. Profits are retained or distributed as dividends, subject to corporate and dividend taxation.
European Cooperative Society (SCE) An EU-level cooperative form designed for member‑driven cross‑border ventures. €30,000 €150 – €450 Approximately 3 days (expedited ~1 day) Democratic governance; flexibility in member contributions; international cooperative structure. Governed democratically via a general meeting with a management board (and optionally a supervisory board). Limited liability – members risk only their contribution. Surpluses are shared among members according to cooperative principles.
Farm & Fishing Enterprises Specialized forms for individuals in agriculture or fishing, operated as sole proprietorships. None (based on the owner’s personal assets) €40 – €90 1–3 days Simple structure for agricultural or fishing activities; low-cost registration. Managed directly by the owner (or a designated family member). Unlimited personal liability – the owner’s personal assets are at risk. All profits are received by the owner and taxed as personal income.
European Economic Interest Grouping (EEIG) A collaborative arrangement enabling businesses from different EU countries to work together on joint projects. None €11.38 – €34.14 1–3 days Ideal for cross‑border collaborations without forming a new company; cost‑effective joint venture vehicle. Managed collectively by members, typically on a one‑member, one‑vote basis. Members share unlimited joint liability for the EEIG’s obligations. Any surplus is allocated to members according to the EEIG agreement and taxed as part of their income.
Note: The State Fee ranges above reflect the standard registration fee vs. expedited service fee. The higher amount (expedited) applies when opting for 1-working-day processing, typically set at triple the standard fee. For example, a standard SIA registration costs €75, while 1-day expedited service costs €225. Certain entity types (e.g. representative offices and micro-enterprise status) do not offer expedited registration, hence only a single fee is shown. All registration times are counted in working days and exclude the submission day.

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