This country sits between the North and the East of Europe — small on the map, but quick on its feet. It’s a country that learned to mix old-school European order with modern, digital-first thinking.
Here you get open access to the Baltic Sea, strong connections across the EU, and a legal system that actually keeps things clear. It’s not overloaded with red tape — just steady and transparent enough to make business feel predictable.
That’s why Company registration in Latvia is surprisingly easy. The process feels more like checking boxes than jumping hurdles, and it’s built to welcome all kinds of founders — tech enthusiasts, logistics operators, holding owners, even manufacturers.
Taxes in Latvia remain fair and predictable. You can register a company in Latvia and keep full control even as a foreign owner — no local partner required. On top of that, the EU framework gives your business a sense of legal stability and long-term protection that’s hard to find elsewhere.
Advantages of doing business in Latvia
Anyone running a business in Latvia quickly sees how many small but important things work in their favor. The country’s position is ideal — right between Scandinavia, Central Europe, and the CIS — making it a natural link between markets. Profits that stay in the company aren’t taxed at all, and reinvested income keeps its 0% rate, which helps businesses grow faster.
Latvia is part of the EU, the Eurozone, and the Schengen Area, so trade and travel run smoothly across borders. The workforce here stands out too: people speak several languages, understand international business culture, and bring solid technical and managerial skills. On top of that, several Free Economic Zones and ports offer tax cuts of up to 80%, giving real financial breathing room.
The country’s reputation is clean and transparent — Latvia is recognized as fully compliant with international AML standards. And if convenience matters to you, there’s one more perk: you can register a company in Latvia remotely, without ever setting foot in the country.
All of this makes Latvia Company formation a genuinely appealing option for digital founders, logistics and fintech startups, and global consultants who want an easy, reputable EU base.
Legal setup options
When planning the Registration of a business (firm) in Latvia, your choice of legal form will depend on your plans, budget, and how you want to manage things. The main options look like this:
A Limited Liability Company (SIA) is the go-to format for small and medium-sized firms. It needs €2,800 in share capital, making it practical but serious enough for growth.
The micro-capital SIA is the lightweight version — you can start it with anywhere between €1 and €2,799. It’s open only to individual residents, not corporate founders, which keeps it simple for solo entrepreneurs.
A Joint-Stock Company (AS) suits larger businesses. It’s meant for enterprises that plan to expand and attract investors, with €35,000 required as share capital.
There are also partnerships (general or limited), sole proprietorships, and local branches of foreign firms — flexible choices for different business goals.
Foreign founders will find the Registration of a company in Latvia refreshingly straightforward, while the Registration of a company for foreigners in Latvia makes full foreign ownership completely legal and uncomplicated. In short, Latvia treats local and foreign investors equally, keeping the playing field level.
Electronic registration and e-signature
The country has moved most of its business procedures online, and that’s made registering a company in Latvia faster than ever. All new firms go through the Register of Enterprises, and the whole process is handled electronically. You’ll just need an approved e-signature from a recognized certification authority.
With this system, you can Register a company in Latvia online — no travel, no queues, no paper stacks. Everything happens digitally: from uploading the Memorandum and Articles of Association to paying the required fees.
Documents must be filed in Latvian and usually include your founding decision, proof of legal address, confirmation of the share capital payment (at least half before registration), and receipts for the state and publication fees.
This streamlined format has cut the waiting time to just a few days — usually between one and three business days. And if you’re in a hurry, Latvia offers an expedited option for same-day approval. It’s one of the reasons many investors consider register company in Latvia a smart, time-efficient choice for entering the European market.
Share capital rules and restrictions
Latvian law draws a clear line between standard and micro-capital companies. A regular SIA needs at least €2,800 in share capital — half of that amount must be paid before company incorporation in Latvia, and the rest can be added within a year.
Micro-capital firms, with less than €2,800, can be founded only by private individuals (not corporate entities). These smaller companies must also set aside 25% of their yearly profits in a reserve fund until the total capital reaches €2,800. It’s a fair system that helps small founders register company in Latvia without heavy upfront costs, while encouraging healthy, transparent growth over time.
After that, open a temporary bank account and put in at least half of your share capital — it’s one of the formal requirements before registration.
When the funds are in place, send your application to the Register of Enterprises. You can do it electronically or let a local agent handle it for you.
Once reviewed, you’ll get your registration certificate — usually within a few working days. The last step is registering your new company for taxes and VAT with the State Revenue Service so you can start trading legally right away.
For investors who prefer ready-made options, Eternity Law provides a selection of ready-made companies for sale, which can significantly accelerate market entry.
Taxation and incentives
Latvia’s tax system is one of the most progressive in Europe. The Company incorporation Latvia process naturally includes fiscal registration, enabling the new entity to operate legally.
Key tax rates include:
- Corporate income tax (CIT): 20% on distributed profits; 0% on retained earnings;
- VAT: 21% standard rate; 12% reduced; mandatory registration once turnover exceeds €50,000 per year;
- Dividend tax: 0% if paid to non-offshore shareholders;
- Micro-company tax: 15% for annual turnover up to €100,000 and up to five employees;
- Social security contributions: approximately 35% combined.
Companies operating in Free Economic Zones (Riga, Ventspils, Liepaja, Rezekne, and Latgale) may enjoy up to 80% deductions on corporate income tax and property tax — a powerful incentive for Latvia Company registration.
Accounting, reporting, and compliance
Regardless of activity level, every entity must maintain bookkeeping and submit annual financial reports in compliance with the Annual Accounts Act. Audits are mandatory if two of these criteria are met: turnover above €800,000, asset value over €400,000, or more than 25 employees.
For ongoing compliance, many firms engage legal experts such as Eternity Law for company registration services and accounting support. These ensure proper reporting, payroll processing, and tax filing according to Latvian regulations.
Foreign ownership and re-registration
There are no restrictions on foreign ownership in Latvia — non-residents may hold 100% of shares and manage the company remotely. For businesses relocating from another jurisdiction, re registering a company in Latvia (or to re register company in Latvia) is possible through redomiciliation, allowing continuity of assets, contracts, and reputation under Latvian law. This mechanism is particularly useful for holding and IT companies seeking EU status.
Accelerated and online incorporation benefits
Entrepreneurs often ask how to register a company in Latvia quickly. Thanks to electronic filing and predictable state procedures, a fully functioning entity can be established in less than three business days. The Latvia Company formation system supports both domestic and international founders, making the process efficient, affordable, and secure. Whether you’re starting from scratch or acquiring an existing structure, you can complete the process remotely with full legal validity. Company formation in Latvia is fully recognized by law, even when done online.
Why Latvia remains competitive
The combination of modern digital tools, low bureaucracy, and an investor-friendly tax regime keeps Latvia high in global rankings for ease of doing business.
Registering in Latvia gives direct access to EU markets, international banking, and stable economic growth. Transparent governance and consistent adherence to OECD standards confirm the jurisdiction’s “white list” reputation.
FAQ
How much does it cost to register a company in Latvia?
Getting registered costs around €150 — or €450 if you’re in a hurry. The smallest SIA kicks off at about €20, the full one at €2,800. With legal and finance support, the whole package is roughly €3,000.
Is Latvia a tax haven country?
No. Latvia runs by clear EU rules and international transparency standards. But it still gives founders a break — no tax on money you reinvest, plus solid perks in its special business zones.
What is the register of enterprises in Latvia?
It’s the state authority that records all companies, branches, and partnerships. It issues registration certificates and keeps everything accessible online through its electronic system.
What is a SIA in Latvia?
SIA is how most people in Latvia set up their companies. You just need one founder and roughly €2,800 in capital, though micro-SIAs can begin with less. Foreigners can own them outright too.
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