Latvia is one of the stable economies in the Baltic region, with an exceptional GDP growth rate. With an open economy, the nation encourages foreign trade and investment. The jurisdiction is also a member of numerous international organizations, including the North Atlantic Treaty Organization (NATO), the European Union (EU), the World Trade Organization (WTO), and the Organization for Economic Co-operation and Development (OECD).
Latvia company formation is a gateway to the enormous European market and numerous other flourishing economies. The government has a supportive framework that fosters international investment and a business-friendly environment. If you are looking to register a company in Latvia, BSW’s assistance helps you meet all the compliance requirements effectively.
Benefits of Latvia Company Registration
Latvia is one of the top and most dynamic economies in the Baltic region, fostering a stable environment for businesses to prosper. You can reap the following advantages through company registration in Latvia:
Access to the EU Market
Latvia joined the EU in 2004 and has strong trade relations with numerous countries in the region, including Germany, Estonia, and Lithuania. Through Latvia company formation, you can tap these markets and grow your business efficiently.
Ease of Business Incorporation
Company registration in Latvia is relatively easier than in other jurisdictions. The country boasts a straightforward, easy-to-follow process. Moreover, if you have a Latvian e-signature (eParaksts) or a recognized EU eID, the entire process is 100% online.
Access to Special Economic Zones (SEZ)
The SEZs in Latvia are among the most powerful tax planning tools. The nation boasts five SEZs, with each specializing in a particular industry and offering attractive benefits for Latvia company formation by foreign nationals. For example, RIGA is suitable for logistics and high-tech manufacturing, whereas Latgale is known for infrastructure that supports small and medium enterprises (SMEs).
Tax Incentives
A non-resident going for Latvia company formation enjoys numerous tax incentives. The top incentive includes the exemption from payment of the corporate income tax. A firm need not pay corporate tax if it reinvests the profits in activities such as marketing, research, and development.
Affordable Business Setup Cost
Compared to other EU countries, company formation in Latvia is cost-effective. BSW’s Latvia company registration cost is nominal, starting with $1,950. It covers all the key formalities, including filling out the application form, meeting documentation requirements, and other compliance requirements.
Dynamic Banking Infrastructure
Latvia company formation enables the business owner to access the jurisdiction’s strong banking infrastructure. With a credit rating from S&P Global, Latvia has moderate public debt levels and is a member of the Eurozone, which enables currency stability. Moreover, through Latvia company formation, firms can open a multi-currency bank account with global banks and trade in any convertible currencies.
Types of Latvia Company Structures
You can choose from the following business structures to register a company in Latvia:
Limited Liability Company (Sabiedrība ar Ierobežotu Atbildību (SIA))
A limited liability company in Latvia is a commercial organization established to conduct business. The members of an LLC have limited liability and are liable only up to the amount they contributed. Moreover, the minimum share capital required to set up an LLC in Latvia is 2800 EUR, and members can be both natural and legal persons.
Joint Stock Company (Akciju sabiedrība)
A joint stock company is owned by shareholders, with capital divided into transferable shares. A Latvian joint stock company can issue shares publicly and must hold a shareholders’ meeting. The minimum capital requirement to register a company in Latvia is 25000 EUR.
General Partnership (Pilnsabiedrība)
A general partnership is a legal arrangement between two or more individuals, companies, or partnerships to carry out commercial activities. In Latvia, it can be established for an indefinite period, for a specific period, or until a specific goal is achieved.
In a Latvian general partnership, every partner has unlimited liability and is personally liable to repay the debts of the firm.
Limited Partnership (Komandītsabiedrība)
A limited partnership in Latvia is a legal arrangement between two or more natural or legal persons. In this structure, at least one partner's liability must be limited in relation to the creditors, and they must be liable up to the amount invested by them. On the other hand, the rest of the partners have unlimited liability and are personally liable for debt repayment.
Branch of a Foreign Merchant (Ārvalstu komersanta filiāle)
A branch office is an independent unit of an existing enterprise in another jurisdiction. A branch office carries out commercial activities in Latvia on behalf of the parent company and is not deemed a separate legal entity. Thus, the parent company is liable to repay the debts of the branch office (if any) and is sued on its behalf.
Sole Proprietorship (Individuālais komersants)
A sole proprietorship in Latvia is a business structure in which a single person owns and manages the business. The owner has unlimited liability and is personally liable to repay the debts. In Latvia, a sole trader has to enter themselves in the commercial register as an individual merchant if their economic activities meet the following two criteria:
The annual turnover from their economic activity exceeds EUR 284,600, or
The annual turnover exceeds EUR 28,500, and they simultaneously employ more than five employees.
Key Requirements for Limited Liability Company Formation in Latvia
The following are the mandatory requirements for setting up a limited liability company in Latvia:
Particulars
Limited Liability Company (SIA)
Requirement of a registered address
Yes, virtual offices are also permitted.
Requirement of a local director
No, 100% foreign ownership is allowed.
Requirement of annual meeting
Yes
Requirement of filing accounts
Yes, it must be filed with the State Revenue Service and the Register of Enterprises.
Minimum Shareholders
1 shareholder (can be a natural or legal person of any nationality)
Foreign ownership allowed
Yes
Minimum Share Capital
€2,800. However, a Small-Capital SIA can be formed with as little as €1.
Popular Industries in Latvia
The following are the popular and booming sectors in Latvia:
Construction
Information technology
Financial Management Services
Consulting firm
Trading
Tourism
E-Commerce
Steps for Latvia Company Formation
Business Setup Worldwide will assist you with company formation in Latvia. Just follow the steps below to register a company in Latvia.
The following are the additional documents you may require for your Latvia company registration:
Notarized copies of passports
Proof of Residential Address
Source of Wealth Evidence
Application form
Detailed Business Plan
Curriculum Vitae
Need Help With Business Setup in Latvia?
Get in touch with us. We typically respond within 1 hour.
Why Choose BSW
With over 8 years of experience in the consulting field, BSW offers a range of services at affordable prices. Our commitment to transparency in pricing and company setup distinguishes us from others. If you are considering Latvia company formation, feel free to contact us. We will handle the incorporation process and help you open your company within a few days.
We are grateful to our clients for generously sharing their experiences. Their insights are invaluable and help us reach the next level:
Choosing the right jurisdiction is essential for a business’s success. Business Setup Worldwide (BSW) helped me establish a company in Latvia with minimal documentation requirements. The designated consultant was prompt while answering all the queries.
- Thomas
Aside from company formation in Latvia, Business Setup Worldwide (BSW) also helped me open a bank account in Latvia. The process was seamless, and the experience was rewarding. I highly recommend their services.
- James
Frequently Asked Questions
1. Can a foreigner open a company in Latvia without visiting the country?
Yes, in many cases, the process can be completed remotely through a local representative or service provider. However, banks or compliance providers may still request video verification or notarized documents.
2. Do I need a local Latvian director or shareholder for my company?
No, Latvia generally does not require a local shareholder or director. A foreign individual or foreign company can fully own and manage the business.
3. How difficult is it to open a business bank account for a Latvian company?
It can be time-consuming, depending on the bank account and other business requirements. Moreover, banks may request proof of business activity, client contracts, sources of funds, and details of the company’s operations.
4. Is Latvia company formation a good option for ecommerce or IT businesses targeting the EU market?
Yes, many founders use Latvia for ecommerce, SaaS, consulting, and IT services because it provides access to the EU market and relatively straightforward company management.
5. What are the ongoing compliance requirements after registering a company in Latvia?
A Latvian company must maintain accounting records, submit annual reports, and comply with tax filing obligations even if the company has little or no activity.
*The duration for company registration is subject to the jurisdiction's due diligence procedures.
**This refers to the corporate tax of the company, where the operation of the company would take place outside the country of incorporation.
***You must provide necessary documentation for every individual associated with the company.
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