# Latvia Company Formation & Entity Choice

## Entity types and incorporation

- **Common entity types** — SIA (private limited liability company), AS (public stock company), individual merchant (IK), partnerships, and branches of foreign companies  _(Commercial Law (Komerclikums) — https://www.ur.gov.lv/en/register/company-or-merchant/limited-liability-company-sia/)_
- **SIA minimum share capital (standard)** — EUR 2,800 EUR  _(Commercial 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)) 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)) (approx — confirm)  _(Commercial Law (Komerclikums) — https://www.commenda.io/llc-registration/latvia/)_
- **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)) (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 earlier EUR  _(Value 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 reports  _(Law 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)) % (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)_