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Company Formation in Latvia
Latvia offers a 20% corporate tax rate, payable only when profits are distributed, making it highly attractive for reinvestment. As an EU and Eurozone member, it provides access to EU markets and funding programs, while maintaining a business-friendly environment with efficient online registration and government resources available in English.
Expert Company Formation Support
We guide you through setting up your company in Latvia, selecting the right legal structure, preparing all required documents, and ensuring full compliance with Latvian regulations.
Timeframes
With all documentation in order, the registration process typically takes 1 to 4 weeks.
Ready for Business
From the initial consultation through full registration, we handle the key steps so your company is legally established and ready to operate in Latvia.
Quick Incorporation
Our all-inclusive Latvian company formation package provides you with all you need to incorporate and run a company in Latvia, including a bank account and a registered office for twelve months.
- Legal Address in Riga
- Virtual Office and Mail-Forwarding
- Online Bank Arrangement
- VAT Number (optional add-on)
Start a business in Latvia
Latvia is keen to make its mark in Europe. In 2020, it had the 16th fastest internet speeds in the world (faster than Germany, France and even Hong Kong), and free WiFi is extremely common. There are three free WiFi connection spots per square kilometre in Latvia. Its airport is first-class and offers numerous direct flights, including to New York and Dubai.
Latvian Incorporation
Ongoing Obligations
Companies must maintain proper accounting records and file annual financial statements with the Enterprise Register. Corporate tax returns are submitted monthly only when profits are distributed; otherwise, no corporate tax filings are required for retained earnings. VAT returns are typically filed monthly or quarterly. A UBO (Ultimate Beneficial Owner) register must be kept up to date, and companies must comply with EU accounting, tax, and AML regulations.
Business Structure Requirements
The most common legal entity is the SIA (Sabiedrība ar Ierobežotu Atbildību / Limited Liability Company). It requires at least one shareholder and one director, who may be of any nationality and do not need to reside in Latvia. A registered office address in Latvia is required, and foreign ownership is fully permitted. Incorporation can be completed quickly through the Enterprise Register of Latvia.
Taxes
Latvia’s unique corporate tax regime applies 20% tax only on distributed profits, while retained or reinvested earnings remain tax-free. Dividends paid to EU/EEA companies are typically exempt from withholding tax, and Latvia has over 60 double-tax treaties. The VAT rate is 21%, with a reduced rate of 12% for certain goods and services. Incentives are available for R&D, renewable energy, and startup development.
Capital Setup
A standard SIA requires a minimum share capital of €2,800, with at least 50% paid before registration. However, a small-capital SIA can be formed with as little as €1–€2,799 if the company has no more than five founders and one director. Shareholder liability is limited to the amount of unpaid capital, and capital contributions can be in cash or kind.
Company Formation in Latvia
We will help you navigate these treacherous legal waters easily so that your trademarks are protected and secure.
£1,355.00
/ Company Formation
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How it works
See our step by step process once you purchase this item.
- 1
- 2
Answer some questions
We will send you some simple questions for you to fill in so that we can properly set up your new company in Latvia.
- 3
Sit back and relax
Let us do the work to set up your Latvian company. This will include a really quick and easy identity check where you’ll need your ID or passport to hand.
- 4
Reap the benefits!
Once your company has been formed, you can officially start doing business in Latvia!
Questions?
What types of companies can be formed in Latvia?
Limited Liability Company (SIA) Joint-stock company (A/S) Branch office Representative office Latvia used to have many more types but has reduced them to bring their structure into a similar framework as the rest of Europe.
How many directors does a Latvian Private Limited Company (SIA) require?
Only one director. There are no restrictions on foreign shareholders.
How much capital is required to start a Latvian Private Limited company (SIA)?
A Latvian private limited company (SIA) requires a minimum share capital of €2,800, of which at least 50% (€1,400) must be paid before incorporation. The remaining balance can be contributed after registration. For micro or small businesses, Latvia also allows the formation of a “low-capital SIA” with a share capital of less than €2,800, subject to additional conditions such as a limited number of shareholders and managers.
What incentives and tax credits exist in Latvia?
There are five special economic zones (SEZ) in Latvia that can give companies large rebates on corporate taxes and withholding taxes. There are numerous other incentives available for investors.
Do I need to have employees if I register a Latvian SIA?
Yes. Under Latvian law, a private limited company (SIA) must have at least one employee, which can include the company’s managing director. This requirement ensures the company is treated as an active legal entity for tax and social security purposes.