Company formation in Latvia

Company formation Latvia

Latvian Limited Liability Company – Sabiedriba ar ierobezotu atbildibu (SIA)

One of the main advantages of setting up companies in Latvia is the tax system which guarantees tax rates much lower than in most European Union countries and a transparent legal and tax system, thanks to which doing business here is simple and enjoyable. Companies in Latvia are registered quickly and communication with public authorities is efficient.

SIA is not an offshore company, thanks to which the companies are favourably regarded by counterparties and clients, and using them is not associated with attempts to „escape” taxation.

SIA have a simple structure, to form them you only need one person who may perform the function of the director and a shareholder. A shareholder may be also a legal person, including foreign legal person. In Latvia, information on shareholders and directors appears in the business register, so we recommend those companies to people focused on reducing taxation and not on protecting privacy, especially taking into account the fact that the country’s legal system does not regulate trust activities.

In Latvia, in contrast to offshore jurisdictions, you pay only a one-time fee for company registration, there is no obligation to pay fixed annual fees.

Latvia has double taxation agreements with over 50 countries.

Advantages of having a Latvian Limited Liability Company – Sabiedriba ar ierobezotu atbildibu (SIA):

• Low tax rates, income tax is only 15%
• Fast company registration – 3 days, approx. 10 days for VAT registration
• Simple structure – one person needed to set up a company
• One-time registration fee, no need to renew it every year
• Transparent legal and tax sytem
• Latvia has double taxation agreements with over 50 countries
• Latvia is a country with stable political and economic situation
• The official currency of Latvia is EUR

Nominee

Nominee services for Latvia are available. Nominee shareholders may be physical or legal persons. The authority of both nominee directors and nominee shareholders are stipulated in specific agreements and may be broad or limited to a representative role.

Time saving

Establishing a company in Latvia takes approximately 3 days and VAT registration approximately 10 days. It is a very short time in comparison with European standards.

One stop shop

Shelfcompanies24 provides comprehensive business services, we will offer you company address, assist you in opening a bank account and take care of accounting, which is mandatory in Latvia.

Speed and superb customer service

Our advisors are available to you 24/7. You may contact them via email, phone, Skype, WhatsApp, Viber.

Remote procedure available

Companies in Latvia may be set up remotely, by appointing a plenipotentiary. In this way, the process is a little bit longer, approximately 3 days, but this option allows to save on substantial travel costs.

Burden is ours

Send us the needed documents and we will take care of the rest – establishing companies is our job and we are trying not to engage clients in the process.

Do you wish to start the procedure?

Just drop us an email or give us a call and we will send you short list of information that we need. After you provide it to us you can come anytime to proceed with the formalities.

Company Formation Process in Latvia

Establishing a new company in Latvia is a structured process that typically takes 3-5 business days. ShelfCompanies24 handles the entire formation process on your behalf, from preparing the articles of association to registering with all relevant authorities.

Available Company Types in Latvia

The following legal structures are available for company formation in Latvia:

Company Type	Description
SIA (LLC), AS (JSC), Individual Enterprise

The minimum share capital requirement is 2,800 EUR for SIA.

Step-by-Step Formation Process

1. Choose your company structure — Select the appropriate legal form based on your business needs, number of shareholders, and capital requirements.
2. Prepare documentation — Our team prepares the articles of association, shareholder agreements, and all necessary corporate documents.
3. Company name verification — We verify the availability of your chosen company name with the Latvian commercial registry.
4. Capital deposit — Deposit the required share capital (2,800 EUR for SIA) in a designated bank account.
5. Notarization and registration — Documents are notarized (where required) and submitted to the commercial registry.
6. Tax registration — Register the company for corporate tax (at a rate of 0% on retained earnings (20% on distributed profits)) and VAT (21%).
7. Bank account opening — Open corporate bank accounts with Latvian banks for business operations.

Required Documents

• Valid passport copies of all shareholders and directors
• Proof of residential address (utility bill or bank statement, not older than 3 months)
• Description of planned business activities
• Proof of source of funds (where applicable)
• References from existing banks or professional advisors

Tax Environment in Latvia

Companies formed in Latvia are subject to a corporate tax rate of 0% on retained earnings (20% on distributed profits). The standard VAT rate is 21%. The currency is EUR (Euro).

Timeline and Costs

Standard company formation in Latvia takes approximately 3-5 business days. For exact pricing tailored to your specific requirements, please contact our consultants.

Related Services in Latvia

• Overview of Latvia — Shelf Companies & Company Formation
• Ready-Made Shelf Companies in Latvia
• Bank Accounts for Latvian Companies

Frequently Asked Questions

How long does it take to register a company in Latvia?

Company registration in Latvia typically takes 3-5 business days. ShelfCompanies24 handles the entire process on your behalf.

What documents do I need to form a company in Latvia?

You will need valid passport copies, proof of address, description of business activities, and proof of source of funds. Our team guides you through all documentation requirements.

Can a foreigner set up a company in Latvia?

Yes, foreign nationals can establish companies in Latvia. There are generally no restrictions on foreign ownership of Latvian companies.

What is the minimum capital to start a company in Latvia?

The minimum capital requirement in Latvia is 2,800 EUR for SIA. Our consultants can advise on the optimal capital structure for your business.

Your Professional Company Formation Agent in Latvia

ShelfCompanies24 acts as your dedicated company formation agent in Latvia. Our experienced team handles the entire registration process on your behalf — from preparing incorporation documents and liaising with local authorities to obtaining your company registration number, tax identification, and all required certificates. As a company formation agent with over 30 years of experience across 50+ jurisdictions, we ensure a smooth, compliant, and fast incorporation process. Whether you need a brand-new company or prefer a ready-made shelf company in Latvia, our agents guide you through every step — including corporate bank account opening, registered address setup, and ongoing compliance support.

Contact our company formation agents today for a free consultation and competitive quote for company formation in Latvia.