Skip to main content

How to Register
a Company in Latvia
2025 Update: An ultimate
guide for foreigners

Learn how to register a company in Latvia with our step-by-step guide tailored for foreigners. This comprehensive resource covers SIA (LTD) registration, formation costs, business setup, and expected taxes. Whether you’re starting from scratch or just need clarity, we’re here to assist with every stage of the company formation process.

This article is like a consultation worth hundreds of euros, saving you time and clearly explaining how to register a company in Latvia. It’s the most detailed and fully updated guide for 2025.

10 simple steps to be taken:

1. Come up with a company name
2. Find a legal address for the company
3. Prepare the incorporation documents
4. Sign the prepared documents
5. Open a temporary account in a bank
6. Deposit the share capital
7. Submit the incorporation documents
8. Convert account to a permanent one
9. Acquire an accountant for the company
10. Obtain the VAT number and licenses

For a quick overview of starting a business in Latvia, check the FAQ section!

Company Formation Costs

It’s difficult to specify an exact amount for company formation, but you should budget for various expenses, including document preparation, legal address rental, account opening, and other small costs. In total, you should plan for at least 500 euros as a minimum.

State Fee: €20-225

The amount primarily depends on the capital you plan to invest as the company’s share capital. If the investment is between €1 and €2,799, the state fee will be €20. For a larger share capital, the fee is €75. If you want documents processed within 1 working day, it will cost €60-225.

Share Capital: €1-9999…

According to the legal framework of the Republic of Latvia, founding a company requires the investment of share capital. This will be the money that can be used to start the business operations. Accordingly, the amount will depend on your needs and plans. The minimum share capital is €1, while the optimal amount is at least €2,800.

Legal Address: €180-360

Every company founded in the Republic of Latvia must be registered at an local address, obtaining a signed consent from the address owner. Typically, this is associated with the receipt of correspondence, and actual economic activities are not required to be conducted at this specific address. The annual rental cost for such address is €180-360.

Documents: €150-450

To successfully establish a company in the Republic of Latvia, a series of documents must be prepared and submitted to the UR. Entrusting these documents to experienced professionals will cost you around €150-450, depending on the complexity of the situation.

Bank account: €0-700

Opening a temporary bank account in Latvia, mandatory before submitting incorporation documents to the Commercial Register (UR), is usually free or costs a few dozen euros. Converting it into a permanent account after registration can cost several dozen to hundreds of euros for foreigners due to AML compliance checks.

Additional costs: € …

Additional costs may include notary services (starting at €80) if documents are signed by hand instead of electronically. Translations of payment confirmations or identity documents typically cost €25-50 per document. Document submission services may add around €50, and in-depth consultations can further increase the final budget.

For temporary residence permits (TRPs), not directly tied to company formation but [optionally] occurring after registration, budget around €50 for consultations and up to €300 for document preparation and submission to Latvian state authorities. TRP acquisition may also require renting a residential address, adding a few hundred euros to the process.

dokumentu sagatavošana sia dibināšanai

We’ve got you covered
Trust your company’s formation
process to our professionals!

Legal address rental
Preparation of all documents
Document submission to the UR
Professional consultation
Outsourced accounting services

FIND OUT MORE

Company Formation Steps

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.

1. Name of the Company

Your first task is to decide on a name for your company. One of the main requirements is that the company name must include the business structure designation – SIA. It can be placed either before or after the planned name (e.g., SIA Company Name). Additional conditions:

  • The company name may use letters from the Latvian and Latin alphabets
  • The use of numbers and these symbols is permitted: % & + @ = ” –
  • Punctuation marks (period, comma, exclamation mark) can also be used
Would be accepted: SIA Lucky777 Ltd.; Lucky777.com SIA
  • Must not include names of state or municipal institutions
  • Must not include words like state, municipality, Republic of Latvia
  • Cannot include elements of other types of commercial activities (AS, IK, etc.)
  • Use of uncensored words and ambiguities will not be accepted
  • Must not coincide with an already registered name or trademark
Would be rejected: SIA Google; SIA ShittyCars.eu

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.

3. Incorporation Documents

Below is a list of all documents that must be submitted to the Commercial Register (UR) of the Republic of Latvia. In complex cases, additional documents may also be required, but for simplicity and clarity, they are not listed in detail here.

In a standard situation, only the following documents will be required:

Contract of Incorporation

The first document in the company formation set is the “Contract of Incorporation” (or “Foundation Decision” if the company is founded by a single person). It must include information about the founders, the planned company name, the amount and distribution of share capital and its payment procedure, the distribution of shares among the founders, details on the company’s founding expenses, and information about the company’s board.

Signed by the founders

Articles of Association

In other words, The Company’s Statutes. This document must specify the company’s name, share capital amount, and its breakdown into individual shares with their nominal values. It also outlines the board’s representation rights. Additionally, if the founders choose, it can detail the company’s operational principles and external interactions.

Signed by the founders

Shareholders’ Register

This document provides detailed information about the company’s shareholders. It lists each shareholder’s name, surname, personal code (or identification details for foreigners, such as document type, number, expiration date, and issuing authority), address, and the number of shares they own. Each share will have its unique identification number.

Signed by the chairman / board

Proof of Share Capital Payment

After successfully opening the company’s temporary bank account, each founder deposits money into it, paying for their assigned share of the share capital. Once the payments are made, it is necessary to keep the documents that confirm these transactions, as they will need to be submitted along with the other incorporation documents.

Signing is not required

Proof of State Fee Payment

If you sign the documents by hand, they must be sent to the Commercial Register by post with proof of state fee payment, which can be made by a founder or any third party. For electronic submissions, this document is not required.

Signing is not required

Translation of Identity Document

If signing the documents by hand, include a copy of each founder’s identity document with a Latvian translation. The translation must be certified by the translator’s signature and notarized by a Latvian notary. For electronic submissions, this document is not required.

Signed by the translator

Application Form (KR4)

This final document will compile information about the planned company name, legal address and its cadastral designation, share capital amount, actual beneficiaries, and board members. In more complex establishment scenarios, it will also include information about the company’s council, parent companies, the duration of the company’s existence, etc.

Signed by the founders & board

It’s important to note that all these documents must be prepared in Latvian. They may include additional translations in a foreign language, but Latvian is a legal requirement.

This is particularly important for Proof of Payment, as payments are often made from foreign bank accounts. In such cases, these documents must be translated and certified by someone proficient in both the specific foreign language and Latvian.

dokumentu sagatavošana sia dibināšanai

We’ve got you covered
Trust your company’s formation
process to our professionals!

Legal address rental
Preparation of all documents
Document submission to the UR
Professional consultation
Outsourced accounting services

FIND OUT MORE

4. Signing the Documents

All documents required for submission (except for proof of payments) 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.

To obtain a QES in Latvia, you must prepare an Application for inclusion in the Physical Persons Register alongside the incorporation documents. This will grant you a Latvian personal code, enabling you to apply for an eID card. With the eID card, you can start using electronic signing tools such as eParaksts or eParaksts Mobile.

A popular option for non-EU citizens to obtain an electronic signature is Estonia’s e-Residency program. It allows you to remotely acquire an Estonian eID card at over 50 locations worldwide, enabling electronic document signing compliant with EU standards.

Manual Signing

If even one founder cannot sign the documents electronically, all founders will need to sign them by hand, with signatures certified by a notary in Latvia. This will make the formation process longer and more expensive. Once all necessary documents are signed and notarized, they must be sent by mail to the Commercial Register (UR) of Latvia.

5. Opening a Bank Account

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?

Anyone can open an account, and it can be done in less than 30 minutes.

For EU citizens, opening a bank account is generally straightforward. Many banks offer remote account opening, though some may still require an in-person visit for identity verification.

For non-EU citizens living outside the EU, the process can be more challenging. A trip to an EU country, like Latvia, may be necessary, as banks typically require a physical visit for account opening. The visit will be brief and simple. Opening a temporary bank account is often free, but converting it to a permanent account after company registration will involve AML procedures. These are typically longer, and more expensive for individuals from high-risk countries.

The UR requires proof of share capital payment, including the date, founder’s name, purpose (deposit of share capital), and recipient matching your company name. It must be in Latvian or have a certified translation. We can assist with the translation if needed.

6. Deposit of the Share Capital

In the incorporation contract, future shareholders agree on the amount of share capital and its allocation among the members. Each member agrees to pay for their allocated shares prior to submitting the documents to the Commercial Registry. This entails each member making a specified payment into the company’s newly opened account. Remember to save the proof of payments, as they will need to be included with the other documents.

Useful to Know – If a company’s share capital is at least 2800 euros, the company is eligible for various advantages. For instance, the company can be established by more than 5 persons, including legal entities (parent companies). The company’s board can include members who are not shareholders. Shareholders may participate in multiple Latvian companies and are entitled to distribute extraordinary dividends to themselves.

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.

7. Submission of Documents

We recommend electronic submission for a streamlined process. Electronically signed documents, including proof of share capital payments, can be submitted to the Commercial Register (UR) via their Service Portal. Upload the required documents and pay the state fee (outlined in the “Company Formation Costs” section) using a bank card. As authentication is required on the Service Portal, we suggest entrusting this task to a local specialist.

Alternatively, documents can be mailed to the UR. This involves printing all incorporation documents, manually signing them, and having them certified by a Latvian notary.

Proof of payments for the share capital contribution and the state fee must be printed, along with copies of ID documents of the beneficial owners and their certified translations. These documents should be sent in a registered letter to the UR 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 (UR). 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.

Post-Registration Steps

Once the company formation process is complete, you can take a moment to relax. But as soon as you’re ready to start business operations, you’ll need to take further steps.

8. Bank Account Conversion

Once your company is successfully registered, you can convert the temporary bank account into a permanent business account. Once the account is converted, you can start business operations, including receiving and transferring funds.

While Latvian residents can do this quickly and for free via internet banking settings, foreign founders will encounter additional AML (Anti-Money Laundering) procedures and detailed checks. The cost and duration of these checks depend on the bank you choose and may also be influenced by your country of origin. Generally, the process can take anywhere from a few days to several weeks and may cost anywhere between a few dozen to several hundred euros.

9. Accountant Acquisition

Most new companies, especially those with initially small operations, hire outsourced accountants to save financial resources. This could be an individual professional or a firm that handles all necessary reporting, advising on accounting, tax, and labor laws.

grāmatvedības konsultācijas

Choose a Reliable Partner

We are one of the leaders in the
outsourced accounting market in Latvia.

  • Hundreds of Happy Clients
  • Professional Team of Accountants
  • Prices from €70.00 per Month
FIND OUT MORE

An alternative suited for companies expecting large transaction volumes from the start is to hire an in-house accountant. In Latvia, an accountant’s salary ranges from 1000 to 2500 EUR per month, depending on experience and professional level.

10. VAT Number and Licenses

Companies in Latvia may need to obtain operational permits or register in the VAT payer’s registry, depending on their activities. We will confirm whether this applies to your business.

VAT Registration Requirements

Companies in Latvia must register with the State Revenue Service (VID) Value Added Tax (VAT) registry if their annual turnover exceeds 50,000 euros. Registration is also required if your clients are VAT-registered businesses in other EU countries.

How to Apply for a VAT Number

You can apply for a VAT number during company formation by submitting the application with your incorporation documents. For foreign founders, the VID will mail its response to the company’s legal address. Additional documentation may sometimes be requested, such as:

  • Justification for VAT registration;
  • Contracts with accounting service providers;
  • Consent from the legal address owner;
  • Partnership agreements, or other supporting documents.

Your accountant can handle the VAT registration process and manage all communication with the VID on your behalf, ensuring a smooth and efficient application process.

Licensed Industries

The sectors listed below require operational licenses under certain conditions after company registration. For detailed information about these industries and contact details of the authorities issuing licenses, visit the Commercial Register’s website.

  • Post and Electronic Communications
  • Forestry and Agriculture
  • Entertainment, Arts, and Recreation
  • Quarrying/Mining Industry
  • Support Service Activities
  • Electricity and Fisheries
  • Gas, Heating, and Water Supply
  • Waste and Wastewater Management
  • Communications and Info Services
  • Storage and Logistics
  • Library, Archives, Education
  • Construction and Manufacturing
  • Social and Health Services
  • Finance and Insurance
  • Scientific and Professional Services
  • Wholesale and Retail Trade
dokumentu sagatavošana sia dibināšanai

We’ve got you covered
Trust your company’s formation
process to our professionals!

Legal address rental
Preparation of all documents
Document submission to the UR
Professional consultation
Outsourced accounting services

FIND OUT MORE

Frequently Asked Questions

Here are 10 topics that clients frequently ask about.

Residence permits

It is possible to obtain a residence permit in Latvia by:

  • Founding an innovative start-up company;
  • Investing €50,000+ in an existing company (and contributing €10,000 to the state budget);
  • Working in a company you have founded (for example, as a board member);
  • Being the owner of a company that has shown good performance in the past year.

To learn more about obtaining a residence permit in Latvia, book a consultation or read the article “How to Obtain a Residence Permit in Latvia (European Union).”

Total setup costs

Our services:

€150 – base fee for preparing company formation documents;
€180 – minimum fee for renting a legal address for one year.

You will see the exact prices for our services when you fill out the document order form.

Additional services:

€0 – €700 – estimated cost for opening a bank account (paid directly to the bank);
€20 – €75 – state fee, depending on the amount of share capital (paid to the State Treasury);
€75 – €100 – in-person notarization of signatures (if you don’t have an electronic signature);
€50 – €350 consultation and documents for a residence permit (post-registration).

A reliable amount to budget for starting a company in Latvia: ~€500.

Costs may be lower if you are a resident of an EEA country, Switzerland, or the UK and have an electronic signature. Costs may be higher if you choose any of our additional services or book a paid consultation [by filling out the nearby form], or plan to apply for a residence permit in Latvia (after your company has been registered) etc.

Opening a bank account

In Latvia, anybody can open a bank account for themselves or their future business. However, it’s important to note that different banks in Latvia have different requirements, fees, and procedures for evaluating individuals.

Latvian citizens and residents with valid residence permits will find it easiest and cheapest to open an account. Residents of EEA countries, Switzerland, and the UK will also have relatively quick processes and reasonable costs. For residents of other countries, expect a longer evaluation process for documents and the source of funds – AML procedures.

Some Latvian banks allow business accounts to be opened remotely, with identity verification done via video call. However, in most cases, especially if you are not a resident of an EEA country, Switzerland, or the UK, the process will need to be done in person.

You can also open a temporary business account in any other European country, as long as it is with a financial institution that has official bank status.

For specific details about bank requirements and pricing, visit the websites of the banks you are interested in or call their customer service. If you’d like us to gather the information for you, indicate that you need help with opening a bank account when ordering documents, or simply book a consultation by filling out the nearby form.

Necessity to visit Latvia

Latvia enforces the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing (AML), which applies to both banks and accountants. As a result, personal identification is required, and in the vast majority of cases, bank staff and accountants prefer to do this in person.

This means there is a high likelihood that you will need to visit Latvia to open a bank account and finalize a contract with an accounting service provider. The need to visit may also arise if you don’t have an EU-compliant electronic signature, in which case all documents must be signed by hand, and a notary in Latvia will verify your signatures in person.

Authorization of a Representative

In theory, it is possible to establish a company in Latvia without physically coming here, even if you don’t have an electronic signature (QES). This would require you to appoint a representative based on a power of attorney (a legal document), who would sign documents, open a bank account, and perform other necessary tasks locally.

However, it’s important to note that this process would be much more complicated. The power of attorney (and one of the incorporation documents) would need to be notarized by a notary in your country, then sent to Latvia, where a local notary would certify the translation of these documents.

Additionally, it might be difficult to find someone willing to represent a foreign individual, and banks may be reluctant due to Anti-Money Laundering (AML) requirements.

After the company is established, it is possible to appoint an external person to the board, who can represent the company—sign documents, handle bank account transactions, hire employees, and manage day-to-day business operations. However, you would need to enter into a contract with this person and compensate them for their work.

We do not take on the risk of client representation and strongly recommend that company founders visit Latvia themselves. It will definitely be cheaper, easier, and Latvia is a beautiful country to visit in almost any season.

Company’s legal address

Companies must be registered at a specific address in Latvia, known as the legal address.

The primary purpose of this address is for the company’s board to receive official correspondence. In the company’s founding documents, the board must confirm that it can be reached at the specified address and has legal grounds to be there – this usually involves obtaining written consent from the property owner or signing a rental agreement.

We offer various options for legal addresses:

The most affordable options (starting from €160 per year) are for formal registration only, without the ability to receive correspondence.

Optimal options (€180 per year) include formal registration with the possibility of receiving important mail (e.g., a letter from the SRS regarding VAT registration).

The more expensive options (€360 per year) not only cover registration but also include regular forwarding of incoming correspondence electronically.

Accounting requirements

As soon as your newly established company starts conducting business and making its first transactions, you will need to hire an accountant. This person (or company) will handle all necessary reports and submit them to the State Revenue Service (SRS).

The most common choice for newly formed companies is to outsource accounting services to a company that employs a team of professional and experienced accountants who ensure your business complies with all legal requirements. Check out our offer!

The second option is to hire an in-house accountant as a full-time employee. This option is more expensive but is common for businesses with a large volume of transactions (1,000+), requiring regular bookkeeping from the very beginning.

Tax obligations

There are 14 different taxes in Latvia.

To know exactly which taxes you will need to pay and in what amounts, we recommend scheduling a consultation with a professional tax advisor by filling out the application form.

Here are the key taxes you should be aware of:

Value Added Tax (VAT / PVN) – set at a rate of 21%. It applies to goods sold and services provided by the company. However, you are not required to pay this tax or register with the State Revenue Service (SRS) as a VAT payer if your company’s annual turnover does not exceed €50,000 and you operate in the local Latvian market.

Corporate Income Tax (UIN) – set at a rate of 20%. It is paid when the company owners distribute dividends or make purchases unrelated to the company’s business operations. You can avoid paying this tax if the calculated profits are kept in the company’s account or reinvested in the business’s growth.

Labor Taxes – include Personal Income Tax (IIN) (set at 25.5%) and Mandatory State Social Insurance Contributions (VSAOI) (set at 33.09%). To accurately calculate an employee’s salary, we recommend using an online salary calculator, which will include the latest tax rates.

Required documents

To establish a company in Latvia, these are the main documents that need to be submitted to the Latvian Register of Enterprises (UR):

  • Decision on founding / Contract of incorporation;
  • KR4 Application for entering a capital company in the commercial register;
  • Articles of association (statutes);
  • Division of the register of shareholders.

Additional documents may be required during or shortly after the registration process:

  • Document certifying the payment of the share capital;
  • Application for inclusion in the Register of Natural Persons;
  • Application for company registration within 1 working day;
  • Application for registration in the VAT payer register of the State Revenue Service (SRS);
  • Consent of the legal address owner / lease agreement;
  • A copy of an identity document and its translation.

In more complex incorporation cases, other documents may also be required. We will prepare and complete most of the above-mentioned documents on your behalf, as well as assist with their signing and submission to the Register of Enterprises.

Signing and submitting documents

Documents for the Latvian Register of Enterprises (UR) can be submitted in two ways:

To submit documents electronically, each one must be signed with a Qualified Electronic Signature (QES). You can read more about electronic signing options in this article!

To send documents by mail, they must be printed and signed by hand. Additionally, you need to visit a notary in Latvia, who will certify the signatures on the documents.

If needed, we can advise you on how to obtain and use an electronic signature, or help arrange a visit to a notary in Latvia if you can only sign the documents by hand. If you sign the documents electronically, we can submit them to the UR on your behalf.

Are you ready to start a business?
Fill out the application form now!