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Company formation in Latvia
Comprehensive assistance in company formation, including banking services
How to form a company in Latvia
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Latvia and opening a bank account in Latvia
2
Payment of services
Payment of our services for company formation in Latvia and/or bank account assistance in Latvia
3
Company formation
We register a new company in Latvia for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to incorporating a company in Latvia
Interest and royalties withholding tax rate is 0%.
1. Founders that would like to register a company in Latvia can either be resident or non-resident in Latvia. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a company director in Latvia. It is not required to register a company in Latvia with a resident individual as one of its shareholders or directors.
3. One individual can register a company in Latvia and simultaneously be a shareholder and a director in this company if such company is registered as a SIA (a limited liability company).
4. There is no requirement for creating substance in Latvia - no need to hire local employees or rent an office in order to establish a company in Latvia or to conduct business in Latvia.
5. Minimum share capital that is required to register a company in Latvia as a SIA (a limited liability company) is EUR 2,800.
6. Information about company founders, shareholders and directors after company registration in Latvia is complete is publicly available in the state corporate register.
7. We can help you register a company in Latvia remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Riga for 1 day in order to open a corporate bank account.
2. A resident or a non-resident individual can be a company director in Latvia. It is not required to register a company in Latvia with a resident individual as one of its shareholders or directors.
3. One individual can register a company in Latvia and simultaneously be a shareholder and a director in this company if such company is registered as a SIA (a limited liability company).
4. There is no requirement for creating substance in Latvia - no need to hire local employees or rent an office in order to establish a company in Latvia or to conduct business in Latvia.
5. Minimum share capital that is required to register a company in Latvia as a SIA (a limited liability company) is EUR 2,800.
6. Information about company founders, shareholders and directors after company registration in Latvia is complete is publicly available in the state corporate register.
7. We can help you register a company in Latvia remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Riga for 1 day in order to open a corporate bank account.
Cost of services
Formation of a SIA
Timeframe - 14 business days
Timeframe - 14 business days
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Advantages of forming a company in Latvia
Attractive business-environment
- Close to major European markets
- Highly-developed infrastructure
- Open economy, no trading restrictions
- Low inflation rate
Stability and security
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
Tax benefits
- Corporate income tax rate is 0%, if profits are not distributed as dividends
- Interest and royalties withholding tax rate is 0%
- Multiple double tax treaties
No foreign exchange controls
- Latvia joined the Euro area, which allows it to secure free capital transfer in any currency. Individuals and business-entities, either resident or non-resident in Latvia may open bank accounts in Latvian banks in any currency
Ease of establishing and doing business
- 100% foreign ownership of a company is available
- Remote company formation in Latvia is available
More about Latvia
Latvia is located in Eastern Europe, its territory amounts to 64,589 square kilometers. Latvia borders Russia, Belarus, Lithuania and Estonia and has access to the Baltic Sea, which allows it to establish maritime trade with Russia, Baltic states and Scandinavian states, as well as with Poland, Germany and a few other Western Europe states.
Population of Latvia currently amounts to around 1,9 million people.
Population of Latvia currently amounts to around 1,9 million people.
Official currency of Latvia is euro (EUR).
Latvia's GDP in 2017-2018 grew by 6,4% and amounted to USD 34.85 billion.
Latvian economy is based on service sector, including logistics, IT and financial services, as well as construction and wood-processing industry. Travel industry is also developing in the state.
Latvia's GDP in 2017-2018 grew by 6,4% and amounted to USD 34.85 billion.
Latvian economy is based on service sector, including logistics, IT and financial services, as well as construction and wood-processing industry. Travel industry is also developing in the state.
Foreign investors establish business in this jurisdiction for trading in the EU or neighboring regions and for logistics centers in the EU for import of goods from EU Eastern neighboring states.
Restricted for foreign entrepreneurs are the following sectors:
Restricted for foreign entrepreneurs are the following sectors:
- defense industry
- telecommunications
- television, radio
- postal services
- air transport.
- Corporate income tax - 0% if profits are not distributed as dividends, otherwise the standard tax rate - 20%. Tax returns are filed on a montly basis. Advance income tax payments are made on a monthly basis
- Dividend withholding tax - 20%
- Interest withholding tax - 0%
- Royalties withholding tax - 0%
- Capital gains tax - 3%
- VAT - Standard tax rate 21% or reduced rates from 0% up to 12%, or tax exempt. Tax returns are filed on a monthly or a quarterly basis
- Personal income tax - from 20% up to 31%.
Apart from such traditional business entity types as a limited liability company (Sabiedrība ar ierobežotu atbildību - SIA) and a public limited company (Akciju sabiedrība - AS), Latvian corporate law offers to establish a business as:
1. General partnership (Pilnsabiedrība - PS)
2. Limited partnership (Komandītsabiedrība - KS)
3. Sole proprietor (Individuālais komersants - IK)
4. European company (Societas Europaea - SE)
5. Branch office (Filiāle)
To receive a detailed description of the company formation procedure in Latvia and information about documents necessary for company formation in Latvia please contact our experts.
1. General partnership (Pilnsabiedrība - PS)
2. Limited partnership (Komandītsabiedrība - KS)
3. Sole proprietor (Individuālais komersants - IK)
4. European company (Societas Europaea - SE)
5. Branch office (Filiāle)
To receive a detailed description of the company formation procedure in Latvia and information about documents necessary for company formation in Latvia please contact our experts.
Send a request for company formation in Latvia
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Phone: +44 20 8157 4037
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128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
