Frequently Asked Questions

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).”

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);
€45 – €100 – in-person notarization of signatures (if you don’t have an electronic signature);
€100 – €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.

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.

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.

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.

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 €120 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.

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.

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.

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.

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.

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

• Electronically;
• By mail.

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.