How to Register
a Company in Latvia
2024 Update: An ultimate
guide for foreigners

In Latvia, various business structures are available, but in our opinion, the most suitable for foreign founders is the SIA (LTD), or Limited Liability Company. In terms of establishment costs, tax, and operational principles, it is the best option. Alternatives include IK (Individual Merchant), AS (Joint Stock Company), PP (Self-Employed Person), among others. This article will focus specifically on the steps for establishing and registering an SIA.

Additionally, we recommend ensuring that the chosen name has an available domain and is not registered in Latvian or European trademark databases. If you entrust document preparation to us, we will ensure your desired name meets all standards.

When establishing a company in Latvia, remember that it must be registered at an address within the territory of the Republic of Latvia. Additionally, it is necessary to obtain written consent from the owner of this address for the registration.

You can use the address of a property owned by the company’s board or founders. You can also use the address of a property belonging to your family members, friends, or acquaintances.

If none of the above options are feasible, you can rent a legal address. The rental price typically depends on the lease period, location, correspondence processing method and frequency, service provider, and other aspects. The approximate prices you should expect range from €180 per year (in the cheapest case) to up to €500 per year (in more exclusive cases).

We recommend creating an e-address for your business free of charge. In this case, state institutions will send electronic correspondence addressed to your company’s board. However, this option does not eliminate the need to also register the company at a physical address.

It’s important to note that all these documents must be drafted in Latvian. They may contain additional translations in a foreign language, but the use of Latvian is a legal requirement.

All documents required for submission (except for payment orders) must be individually signed with a Qualified Electronic Signature (QES) or physically – with a pen (then signatures must be verified by a notary in Latvia). Each document should be signed separately, and if a document requires signatures from several individuals, they should all sign the same copy.

Electronic Signing

European (EU) citizens can conveniently apply for QES, with several service providers available in each member state to facilitate the signing of documents. Foreign nationals who have obtained a residence permit in any EU country can also easily obtain a QES.

Being a non-EU citizen without an EU residence permit doesn’t automatically preclude you from electronic signing. You can find a reliable service provider recognized under the eIDAS regulation willing to identify you remotely and provide you with a QES option. For instance, the Norwegian company Signicat offers such services.

If you wish to obtain a QES in Latvia, there are several prerequisites. Firstly, you will need to obtain a residence permit, which can be based on various grounds such as investment in Latvia, studies, employment, or business activities. Once you have the permit, you will be registered in the Personal Identification Register, receive a personal code, and an eID card. This will enable you to apply for services like eParaksts or eParaksts Mobile. These services will allow you to sign incorporation documents at the QES level.

Manual Signing

Incorporation documents can also be manually signed. However, this would require every founder (including board members) to travel to Latvia and visit a notary to certify the authenticity of their signatures. This method is more time-consuming, costly, and technically complex, potentially necessitating travel visas.

The next step is to open a temporary account for the company in a bank. It doesn’t have to be a bank operating in Latvia; it can be any bank recognized and regulated within the EU. Some banks may not offer a temporary account option – a standard business account will suffice as long as it’s opened in the company’s name. The bank will likely require a signed contract of incorporation and the company’s statutes, possibly along with other documents.

Who can open a bank account?

Opening an account is easiest for EU citizens. Many banks offer this option remotely, eliminating the need for a physical visit, though this largely depends on the bank’s policies. However, most will request an in-person visit to confirm identity and intentions.

Non-EU citizens residing outside the EU may find it more challenging to open an account. It may be necessary to plan a trip to an EU country, such as Latvia, where the account is intended to be opened. Some banks may refuse due to caution, while others may accept you.

Opening an account is most complicated for citizens of high-risk countries. Every European bank will thoroughly review such account opening requests, and this will always be done in person. EU banks, including those in Latvia, operate within Anti-Money Laundering (AML) frameworks. If a person meets all prerequisites and gains the bank’s trust, an account can be opened. However, the evaluation process might be longer and more complex than for EU citizens.

Remember, the Register of Enterprises of the Republic of Latvia will want to receive a bank-issued confirmation of the opened account along with the incorporation documents. A crucial requirement is the use of the Latvian language or a notarially certified translation. Therefore, we recommend opening the company’s account in a bank operating in Latvia.

Share capital can also be paid with material contributions such as items or properties closely related to the planned business activities. If the material contribution is less than half of the total share capital and does not exceed the value of 5400 EUR, the founders themselves can appraise it by preparing an additional document. If the items’ value exceeds the set limit or they make up most of the share capital, a Commercial Register-approved evaluator must assess them.

We recommend electronic submission. Electronically signed documents, along with the bank’s account opening statement and payment orders for the share capital, can be submitted to the Commercial Register via the Service Portal. Choose the appropriate service, upload documents, and pay the state fee, detailed in the “Company Formation Costs” section, using a bank card. As authentication is required on the Service Portal, it’s advisable to entrust this task to a local specialist who can complete it on your behalf.

Alternatively, documents can be mailed to the Commercial Register. This involves printing all incorporation documents, manually signing them, and having them certified by a Latvian notary. Payment orders for the share capital and the bank’s confirmation of the opened account in the company’s name must be printed as well. All these documents should be sent in a registered letter to the Commercial Register at the following address:

Latvijas Republikas Uzņēmumu reģistrs, Pērses iela 2, Rīga, LV-1011, Latvia

In less than a week, you will receive the State notary’s decision on your company’s entry in the Commercial Register. This effectively concludes the company’s establishment. The next step is the business setup phase, where you’ll prepare the company’s accounts for transactions, hire an accountant, and handle any necessary licenses, obtain a VAT number, and more.