Company registration in Latvia
Companies that can be registered in Latvia
1. Limited Liability Company (LLC) (can be divided into private and public)
3. Branch and Representative Office
4. Joint Stock Company
5. European Commercial Company
Requirements for the formation of a company in Latvia
Documents required for company formation in Latvia
- Registration application in the prescribed form, certified by a public notary in Latvia;
- Charter of the legal entity;
- Confirmation of payment of the authorized capital;
- Confirmation of the registered address;
- Confirmation of payment of the stamp duty;
- Confirmation of payment of the publication fee;
- Information about the founders;
- Information about members of the management board;
- Confirmation of the right of members of the management board to represent the company;
- Data on the ultimate beneficial owners.
Benefits of registering a company in Latvia
The main advantages of doing business in this country include:
- access to the European Union market on the same terms as companies in the old European countries;
- ease of registration and doing business;
- relatively low tax burden.
Our assistance in registering a company in Latvia
How to start a company in Latvia
Step 1. Choose the best business structure for company registration in Latvia
Step 2: Choose a company name
Step 3: Payment of the company's authorized capital and official fees
Step 4: Certifying and submitting documents to the Latvian Companies Register
- Application for registration in the prescribed form (including information on the members of the Board of Directors and the company’s share capital).
- Company’s Charter.
- Memorandum of association (decision on incorporation in case of a single founder).
- Register of shareholders.
- Confirmation of the contribution of the authorized capital (in case of property investment, documents confirming the value of such an investment).
- Consent from each member to be elected to the Board of Directors.
- Signature samples of the members of the Board of Directors.
- Notification of the company’s legal address.
- Document confirming payment of the stamp duty.
- Consent of the immovable property owner to register the legal address of the incorporated company (a lease agreement may be required).
- Document confirming the payment of the fee for publishing information in the official print media of Latvia.
- The decision of the state notary on registration;
- Registration certificate (for an additional fee);
Opening a holding company in Latvia is a relatively simple process. There are no requirements for the number of founders or the amount of authorized capital.
The director of the company can be a non-resident, which makes this structure suitable for foreign investors interested in incorporating their holding company in the country due to tax advantages.
Another advantage is that a company can be registered in about a week.
Most holding companies are organized as corporations.
Such entities enjoy 0% tax on dividends from non-resident companies and do not pay capital gains tax on the sale of shares.
The registration process takes from 1 to 3 business days after the local authorities receive the necessary documents. The amount of the stamp duty paid will depend on the time required to open the company in Latvia.
Payment of the national fee is made on the service portal after the application is completed by the calculated service fee. In cases where it is not possible to submit documents via the service portal, the stamp duty must be paid before submitting the registration application.
The company registration in Latvia is carried out only after the Company Register can verify that the stamp duty has been credited to the Treasury account.
The stamp duty may be paid by transfer to any bank 2 days before the submission of documents electronically or by mail.
Registration within 1-3 business days
Stamp duty for registration – 75,00 Euros
Registration within 1 business day
Stamp duty for registration – 225,00 Euros
Stamp duty does not include notary fees, which can range from 26 to 100 Euros.
There is no stamp duty for registering VAT payers in Latvia.
Companies are classified into 4 categories for accounting purposes, and if 2 of the 3 existing criteria are met for 2 consecutive years, the company may be reclassified accordingly.
Classification criteria include net income, total balance sheet, and average number of employees for a given financial year.
The company must submit its annual report to the Company Register and the Tax Service by April 31 of each year.
The annual report is subject to certification by a licensed auditor if the company meets 2 out of 3 criteria:
- The balance sheet amount is more than 36,600 Euros;
- The annual turnover is over 711,500
- The average number of employees per year is more than 25
For Latvia company registration in the Commercial Register, you must submit the following documents:
- Application for registration
- Notarized signatures of the co-founders
- Certified charter of the company
- Founders’ agreement
- Document authorizing the election of board members
- Confirmation of convocation of founders to the legal address of the company
- Receipt of payment of stamp duty
- Confirmation of payment for publication in a state newspaper