COREDO > Company Formation in Latvia

Company Formation in Latvia

Advantages of Company Formation in Latvia

Latvia is an attractive Baltic jurisdiction with access to the EU market and the euro, offering a strategic location between Western and Eastern Europe. The country provides simplified company registration, a flexible tax system, developed infrastructure, and access to a qualified workforce.

The COREDO team has been providing full company registration support in Latvia since 2016, helping foreign investors navigate every stage — from selecting the legal form to opening a bank account and completing tax registration.

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Types of Companies in Latvia

Latvian legislation offers several legal forms suitable for foreign investors:

Abbreviation	Legal Form	Minimum Share Capital	Key Features
SIA	Limited liability company	EUR 2,800	Most popular form for small and medium businesses; founders may be individuals or legal entities
Micro-SIA	LLC with reduced capital	From EUR 1 to EUR 2,799	Natural persons only, no more than 5 founders
AS	Joint-stock company	EUR 35,000	Suitable for large structures; governed by a supervisory board, management board, and shareholders’ meeting
PS	General partnership	Not required	All partners bear unlimited liability
KS	Limited partnership	Not required	Includes partners with both full and limited liability

For most foreign investors, the optimal choice is SIA — the equivalent of a European LLC. Non-residents may hold 100% of the shares, serve as the sole director, and manage the company without restrictions. SIA provides a separation of personal liability from company obligations: founders are liable for the company’s debts only up to the amount of their contribution to the share capital. The management structure of SIA is straightforward — a single director (valdes loceklis) is sufficient, who may also be the sole founder.

Company Registration Steps

The process of registering a legal entity in Latvia includes the following steps:

Selecting the legal form and name

determine the company type (SIA, AS, partnership) and a unique business name.

01

Preparing incorporation documents

articles of association (statūti), founders’ agreement, minutes of the founders’ meeting. All documents must be in Latvian.

02

Notarisation

founders’ signatures are certified by a notary or via electronic signature (eParaksts).

03

Paying in the share capital

at least 50% of the share capital must be paid before submitting the application.

04

Registration with the Register of Enterprises

(Uzņēmumu reģistrs) — online via the portal registrs.ur.gov.lv or in person. Processing time: 1–3 business days.

05

Registration with the State Revenue Service

(VID) — to obtain a tax identification number and register as a CIT payer.

06

VAT registration

mandatory when annual turnover exceeds EUR 50,000, or available voluntarily at lower turnover levels.

07

Required Documents

To register a company in Latvia, the following documents are required:

Articles of association (Statūti) — in Latvian

Minutes of the founding meeting (Dibināšanas protokols)

Identity documents of founders and directors (passport or ID)

Proof of a registered office in Latvia (lease agreement)

Bank certificate confirming payment of the minimum share capital

Registration application (generated automatically for online submissions)

Share Capital Requirements

Legal Form	Minimum Capital	Notes
SIA (standard)	EUR 2,800	At least 50% must be paid before registration
Micro-SIA	From EUR 1 to EUR 2,799	Natural persons only, max. 5 founders
AS (joint-stock company)	EUR 35,000	Full payment required before registration
PS / KS	Not required	—

Tax Overview

Latvia offers one of the most attractive tax systems in the EU. The key feature is that corporate income tax (CIT) applies exclusively to distributed profits, while reinvested profits are not taxed.

Corporate Income Tax (CIT).

The standard rate is 20%, applied only to distributed profits. The effective rate upon dividend distribution is approximately 25% (calculated as 20/80 of the dividend amount). Reinvested profits are taxed at 0%, making Latvia particularly attractive for growth-oriented companies focused on scaling.

Alternative regime (from 2026).

For companies whose shareholders are natural persons, an alternative CIT rate of 15% on dividends has been introduced, with an additional 6% personal income tax on the recipient.

VAT.

The standard rate is 21%. Reduced rates of 12% and 5% apply to selected goods and services. VAT registration is mandatory when annual turnover exceeds EUR 50,000, or may be completed voluntarily at lower turnover levels.

Withholding tax on dividends.

The rate is 0% for EU-resident companies that meet the conditions of the EU Parent-Subsidiary Directive. Latvia has concluded double tax treaties with more than 45 countries, significantly reducing tax risks in international operations and business structuring through the Latvian jurisdiction.

Banking Support

Opening a corporate bank account is a mandatory step when registering a company in Latvia. Latvian banks conduct thorough KYC/AML procedures and may request detailed information on the source of funds, business plan, beneficial ownership structure, and anticipated transaction volumes. For non-residents, the verification process may take longer than for residents, so it is advisable to prepare the full set of documents in advance.

COREDO assists clients with opening bank accounts in Latvia and other EU countries. The cost of this service starts from EUR 1,800 to EUR 2,300 + VAT. COREDO specialists support the client at every stage — from preliminary screening to successful account opening. Details are available on the Bank Account in Latvia page.

Compliance and AML

As an EU member state, Latvia applies all European regulatory requirements in the area of AML/CFT. Companies registered in Latvia are required to:

Maintain a register of beneficial owners and submit data to the Register of Enterprises (ur.gov.lv). Information on ultimate beneficial owners is public and must be updated whenever changes occur in the ownership structure.

Comply with GDPR requirements regarding the processing of personal data of clients and counterparties.

When conducting regulated activities (financial services, payment operations, crypto-assets) — obtain a licence from the financial regulator (FKTK / Latvijas Banka).

Latvia has implemented all current EU directives on anti-money laundering and counter-terrorist financing, establishing a robust legal framework for conducting business in an international environment. For legal protection of your business in Latvia, visit the Legal Protection — Latvia page.

Registration Timelines

Stage	Timeline
Document preparation	3–5 business days
Notarisation	1 business day
Registration with the Register of Enterprises	1–3 business days
Registration with VID	1–3 business days
Opening a bank account	5–14 business days
Total timeline (full cycle)	Approximately 1–2 weeks

COREDO Service Costs

The cost of company registration in Latvia depends on the selected legal form, the complexity of the corporate structure, and the range of accompanying services. To receive a personalised quote, please contact our specialists.

Our Experts

Pavel Kos

Head of Legal. Has been with the COREDO team since June 2017, responsible for the legal support of corporate projects and company registrations.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of business across dozens of jurisdictions.

Case Study: Registration of a Trading Company in Latvia

Challenge:

An entrepreneur from the CIS region was planning to enter the European market by establishing a trading company with a logistics hub in the Baltic region.

Solution:

The COREDO team assisted with registering a SIA in Latvia with a share capital of EUR 2,800, prepared the full set of incorporation documents in Latvian, arranged notarisation, and facilitated the opening of a corporate bank account. Thanks to Latvia’s tax system, which allows reinvested profits to remain untaxed, the client was able to direct all first-year revenue towards business development.

Result:

The company was registered within 8 business days, including the opening of a bank account. Within the first quarter, the client commenced export operations to EU countries through the port of Riga.

Frequently Asked Questions (FAQ)

Can a foreigner register a SIA in Latvia without a local director?

Yes. Latvian legislation does not require a resident director for a SIA. A non-resident may serve as the sole founder and director. However, a registered office in Latvia is mandatory.

Is it possible to register a company in Latvia online?

Yes. The Register of Enterprises of Latvia provides a fully electronic SIA registration procedure via the portal registrs.ur.gov.lv. When using an electronic signature (eParaksts), the entire process can be completed remotely.

What is the advantage of the Latvian tax system for companies?

Latvia applies a unique model under which reinvested profits are not subject to corporate tax (0% rate). A tax of 20% is applied only when profits are distributed as dividends, allowing companies to reinvest funds effectively into business development.

What is the minimum capital required to open a SIA in Latvia?

A standard SIA requires a share capital of EUR 2,800 (at least 50% must be paid before registration). There is also a micro-SIA option with capital ranging from EUR 1 to EUR 2,799; however, in this case only natural persons — no more than five — may serve as founders.

How long does full company registration in Latvia take?

The full cycle — from document preparation to obtaining a VAT number — takes on average one to two weeks. Registration with the Register of Enterprises itself takes 1–3 business days.

Ready to Get Started? Contact Us

COREDO experts will advise you on all aspects of company formation in Latvia, help you select the optimal legal form, prepare the required documents, and open a bank account. Submit your enquiry — we will get back to you within one business day.