Latvia Company Formation & Entity Choice

Entity types and incorporation

The most common business vehicle in Latvia is the SIA (sabiedrība ar ierobežotu atbildību), a private limited liability company. Companies are registered with the Enterprise Register (Uzņēmumu reģistrs).

• Common entity types — SIA (private limited liability company), AS (public stock company), individual merchant (IK), partnerships, and branches of foreign companies (Commercial Law (Komerclikums))
• SIA minimum share capital (standard) — EUR 2,800 EUR (Commercial Law (Komerclikums))
• Reduced-capital (micro) SIA minimum capital — From EUR 1 (small SIA with capital below EUR 2,800, subject to founder/shareholder conditions and a reserve requirement) EUR ((approx — confirm conditions)) (Commercial Law (Komerclikums))
• Registration authority — Enterprise Register of the Republic of Latvia (Uzņēmumu reģistrs) (Commercial Law (Komerclikums))
• Core incorporation steps — Reserve company name; prepare founding documents and articles of association; deposit share capital; submit the application to the Enterprise Register; register with VID (and for VAT/employees as needed) (Commercial Law (Komerclikums))
• Typical incorporation timeline — Around 1–3 working days for the Enterprise Register registration once documents are complete ((approx — confirm)) (Commercial Law (Komerclikums))
• State registration fee — Standard state fee plus official publication fee (a few tens of euros); expedited registration available for a higher fee ((approx — confirm current amounts)) (Commercial Law (Komerclikums))
• VAT registration on or after formation — Required once taxable turnover exceeds EUR 50,000 in a calendar year; voluntary registration available earlier (Value Added Tax Law (Pievienotās vērtības nodokļa likums))
• Core annual compliance — File annual financial statements with the Enterprise Register/VID; maintain accounting records; file monthly CIT and VAT returns where applicable; file employer payroll/NSIC reports (Law On the Annual Financial Statements and Consolidated Financial Statements (Gada pārskatu un konsolidēto gada pārskatu likums))
• Micro-enterprise tax regime — Optional micro-enterprise tax of 25% on turnover for qualifying small businesses % ((approx — confirm eligibility and turnover cap)) (Micro-enterprise Tax Law (Mikrouzņēmumu nodokļa likums))