Company formation in Latvia

At a glance

Entity

Private limited liability company (Sabiedrība ar ierobežotu atbildību, SIA) — the default vehicle for foreign founders; a reduced-capital SIA variant also exists

Corporate tax

No tax on retained/reinvested profit; 20% CIT on distributions, but the base is grossed up by a 0.8 coefficient for an effective ~25% on the net dividend. From 1 Jan 2026 companies wholly owned by individuals may elect an alternative regime: profit divided by 0.85 and taxed at 15% CIT, plus 6% PIT withheld on the amount paid.

Incorporation time

~1-3 business days at the Enterprise Register once a complete file is submitted; add bank and e-signature setup time

Minimum capital

Standard SIA: EUR 2,800, of which at least 50% (EUR 1,400) paid up before registration, balance within the first year. Reduced-capital SIA: EUR 1 to EUR 2,799, restricted to up to five individual founders who hold no other reduced-capital SIA, with a mandatory reserve (25% of annual profit) until capital reaches EUR 2,800.

Resident director

No residency requirement for board members; a non-resident may serve as director. A Latvian registered/legal address is required, and non-EU founders may need a local contact person for correspondence.

Audit

Statutory audit required if the company exceeds two of three thresholds: balance sheet total EUR 800,000, net turnover EUR 1,600,000, average 50 employees. Below that, a lighter limited review can be triggered at balance sheet EUR 400,000 / turnover EUR 800,000 / 25 employees (two of three, two consecutive years); the smallest companies are exempt.

Remote set-up

Yes — fully electronic filing is possible for holders of an EU/eIDAS qualified electronic signature (e.g. Latvian eID/eParaksts). Founders without a qualified e-signature must have signatures notarised; documents in foreign languages need certified translation. A Latvian business bank/EMI account is needed for capital deposit and is the main practical bottleneck for non-residents.

Government fee

State registration fee approx. EUR 75 for a standard SIA (approx. EUR 20 for a reduced-capital SIA); expedited processing costs more. Separate newspaper publication fees were abolished for e-register filings.

Best for

This suits EU-market founders who want a low-cost, euro-based company integrated with EU/eIDAS systems, with tax deferred until profits are distributed.

The process

1. Reserve a company name and prepare the memorandum of incorporation, articles of association and board consents (in Latvian; foreign-language originals require certified translation)
2. Open a temporary bank/EMI account and deposit the required share capital, or document a non-cash contribution
3. Sign the incorporation documents with a qualified e-signature or before a notary, and pay the state fee
4. File with the Enterprise Register (Uzņēmumu reģistrs); after registration, register for VAT and, if applicable, as an employer with the State Revenue Service (VID)