Business tasks that can be solved by forming a company in Latvia:
It is quite easy to open a company in Latvia. You need to submit documents to Latvian Enterprise Register and, after the company is registered, open a bank account on the company's name. Most likely you will also need to get a VAT number.
This article explains everything you should know in order to open a company in Latvia.
For simplicity purposes this article describes procedure of opening a company in Latvia in one specific case, when the company in Latvia is being open by a private person – resident of Russia. For Latvian residents the procedure is easier. Also, some details of the company opening procedure differ for residents of Lithuania, Estonia and other European countries, since most Lithuanian and Estonian residents have opportunity to sign documents by electronic signature. And it easier for European residents to visit Riga for signing of documents.
The process of opening company in Latvia can be illustrated as follows:
Submit required information
Sign documents at a notary
Get legal address owners consent
Open temporary bank account
Pay in share capital
Pay state duties
Submit documents to the Enterprise Register
Get registration decision
Fill in bank formsGet remote access codes
Submit additional information if required
Receive letter from SRS
Submit required information to SRS
Step can be delegated
You need to do this step yourself
SRS - Latvian State Revenue Service
Register of companies in Latvia is maintained by Latvian Enterprise Register. Like all other state institutions in Latvia, Latvian Enterprise Register accepts documents only in Latvian. Therefore, most likely you will need to use professional services of a law office or a company that specialises on company registration and accounting services. There are many law offices and specialised company registration companies in Russia that offer services on company registration in Latvia, but, as you understand, they are only middlemen in this process. Therefore, if you are not opening a company in Latvia as a part of a complicated corporate setup, it will be cheaper to contact directly a Latvian company. Most companies like ours can communicate in Russian and English.
Signatures on part of registration documents should be approved by a sworn notaty. You can sign documents by personally coming in Latvia, or do it in front of a notary in Russia. In the latter case, we (or another company that you will entrust to assist you in opening a company in Latvia) will receive from you the approved documents by mail and will translate to Latvian the approval text of the Russian notary.
As in other countries, there are different legal forms of business registration. In most cases, the most approprate legal form for you will be a limited liability company, in Latvia – SIA. Further, this article will refer to SIA, i.e., limitel liability companies.
As a part of company registration document packege a share capital payment notification needs to be submitted. Minimal share capitla for a limited liability company in Latvia is EUR 2,800. Share capital can be either paid in fully before submission of the registration documents, or 50% can be paid before the documents submission, and the remaining 50 percent can be paid during one year after the company registration.
As a private person you cand open a limited liability company with diminished share capital. Its amount can be as low as EUR 1. In this case there is no need to open a temporary bank account and pay in to it the share capital.
In some cases you may need to register a company with full share capital. For instance, this is necessary if you want to use the company for obtaining a residence permit in Latvia.
If you decided to open a company with full share capital, it is necessary to open a temporary bank account in a Latvian bank and pay into it the share capital amount. You can open the temporary account personally, or this can be done by our specialist based on Power of Attorney. It is necessary to get from the a letter confirming payment of share capital. Such letter banks issue immediately after the receipt of money.
Like in most countries, in Latvia every company needs to have a registered address that is incuded in application for company registration, i.e., legal address. In Latvia, property owner's legal consent is required for using the property as a legal address. Most of the companies that provide company registration services in Latvia, us included, provide legal address rent.
Both commercial real estate and a house or an appartment can serve as a legal address. So, if you have friends or business partners in Riga, who could agree to provide you with a written consent to register your company ath their address, you can use it.
When choosing a legal address, it is important to make sure that you can promptly receive official mail addressed to your company that will be mailed to that address. It is important for obtaining VAT number. Also, in future, if you miss an important mail from state institutions, banks or creditors, your company may face problems.
Sometimes it is hard to choose a good name for a company. We will not stop at this topic in this article. From legal point of view it is important to know, that the name of a Latvian company should meet the following requirements:
Most likely, it will registration as VAT payer will be for your benefit or even obligatory. Application for the company registration as VAT payer can be submitted together with company registration documents.
After all the documents are prepared and duly signed, the company that will help you with company registration in Latvia will submit the documents to the Latvian Enterprise Register.
Usually, the Enterprise Register takes decision on company registration during 3 working days. In practice this means that if you submit the documents on Monday, the company will be registered on Friday.
There is also an urgent company registration procedure during 1 working day. In this case, a higher state duty needs to be paid. Uder the urgnet registration procedure, if the documents are submitted on Monday, the company will be registered on Wednesday.
If you chose to register a company with normal share capital, before submission of the registration documents you will need to open a temporary bank account and pay in share capital. After the company is registered, you will need to go to the bank in order to transform the temporary bank account into ordinary current account and receive codes for remote access to internet-bank.
In future, we plan to write a littlee overview of Latvian Banks. Meanwhile, we will be glad to consult you on choosing a Latvian bank as a part of our assistance in opening a company in Latvia.
Information required for opening a bank account is provided on page Company Formation Latvia.
According to the standard procedure, company's Member of the Board needs to personally visit the bank in order to identify himself, fill in required documents and recieve remot access codes. We managed to agree with some banks that all these formalities can be made at the same time as when opening a temporary bank account, so that there is no need to visit the bank for the second time. Also, some banks can open the account without your presence in Latvia. You can meet the bank's specialist in Moscow, or other city, where the bank has a branch or an agent.
Based on requirements to those parts of the company registration process where your involvement is absolutely necessary we can offer three ways to register a company in Latvia:
We will be glad to answer your possible questions and help you in opening a company in Latvia. Please, send us a request to e-mail email@example.com and we will try to answer you in two hours during the working hours.
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