Source-cited draft: company formation & entity choice for Latvia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Common entity types
SIA (private limited liability company), AS (public stock company), individual merchant (IK), partnerships, and branches of foreign companiesCommercial Law (Komerclikums) — https://www.ur.gov.lv/en/register/company-or-merchant/limited-liability-company-sia/
SIA minimum share capital (standard)
EUR 2,800Commercial Law (Komerclikums) — https://www.commenda.io/llc-registration/latvia/
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) — https://www.commenda.io/llc-registration/latvia/
Registration authority
Enterprise Register of the Republic of Latvia (Uzņēmumu reģistrs)Commercial Law (Komerclikums) — https://www.ur.gov.lv/en/
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) — https://www.ur.gov.lv/en/register/company-or-merchant/limited-liability-company-sia/founding/
Typical incorporation timeline
Around 1–3 working days for the Enterprise Register registration once documents are complete ((approx — confirm))
Other Latvia computations in the OpenAccountants Tax Library.
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) — https://www.ur.gov.lv/en/register/company-or-merchant/limited-liability-company-sia/founding/
VAT registration on or after formation
Required once taxable turnover exceeds EUR 50,000 in a calendar year; voluntary registration available earlierValue Added Tax Law (Pievienotās vērtības nodokļa likums) — https://www.ur.gov.lv/en/register/company-or-merchant/limited-liability-company-sia/founding/registration-with-the-srs/
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 reportsLaw On the Annual Financial Statements and Consolidated Financial Statements (Gada pārskatu un konsolidēto gada pārskatu likums) — https://gramatvedisriga.lv/en/blog/annual-report-guide
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) — https://assets.kpmg.com/content/dam/kpmg/lv/pdf/Taxcard/Tax_card_Latvia_2025_.pdf
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