logo of the webpage, click to go homepage

LATVIA INVESTMENT & RESIDENCY

Turhan Corporate and Investment Services

COMPANY FORMATION

Company Types

The main types of companies in Latvia are presented below in a comparative manner.

Limited Liability Company (Standard Capital) Limited Liability Company (Small Capital) Joint Stock Company Sole Proprietorship
Name in Latvian Sabiedrība ar ierobežotu atbildību SIA Mazkapitāla SIA Akciju sabiedrība AS Individuālais komersants IK
Minimum Capital Requirement 2800 Euro 1-2799 Euro 25000 -
Residency Right Yes No Yes No
Number of Founders Multiple 1-5 Multiple 1
Type of Founder(s) Individual and/or Legal Entity Only Individuals Individual and/or Legal Entity Only Individuals
Board of Directors (BD) Members Founders appoint at least one BD member. All founders are also BD members. Founders and BD members may differ. There is no board of directors.
Corporate Tax (20%-25% of annual profit) Pays Pays Pays Does not pay
VAT Pays Pays Pays Pays

Limited Liability Company (Sabiedrība ar ierobežotu atbildību SIA)

leaf icon A Limited Liability Company is popular in Latvia and easy to establish. Limited Liability Companies are divided into two categories: Standard capital (minimum 2800 Euro) and small capital (between 1 and 2799 Euro).

leaf icon Standard-capital Limited companies can be established by one or more individuals or legal entities. Small-capital Limited companies can be established by a maximum of 5 individuals who do not hold shares in another small-capital Limited company. For those wishing to obtain a residence permit in the future, a standard-capital Limited company must be established.

leaf icon Once the Limited Company is established, the founders become shareholders. There is no requirement to be a Latvian citizen or resident to be a founder/shareholder. The chosen name for the Limited Company must not be identical to any other existing company name or trademark in Latvia. The founders appoint at least one member to the company's board of directors. It is not required to be a Latvian citizen or resident to serve as a board member.

leaf icon As soon as the Limited Company is registered in the Commercial Register, it also becomes a taxpayer. A VAT number for the Limited Company can be obtained upon the request of our client.

leaf icon You may visit Latvia to oversee the company formation process and to obtain your electronic signature (which will be very useful later) and to convert the company's temporary bank account into a permanent one.

leaf icon Once the company formation is complete, we present the stamps to our client. If desired, we also help in finding reliable accountants and staff. Additionally, for clients who do not have a clear plan for operations or investment, we can assist with business planning, ideas, and licensing.

We obtain the client’s information and documents. arrow icon Company documents are prepared and signed by the client. arrow icon Company address is registered, and the application folder is prepared.
A temporary bank account is opened. The company capital is transferred by our client. arrow icon The application is submitted to the State Enterprise Register (3 days). arrow icon We deliver the stamps and company documents to our client.
Optional: Client may visit Latvia to apply for an e-signature. arrow icon Optional: Client may visit Latvia to convert the temporary account to a regular one. arrow icon Optional: Application for company VAT number. An additional fee applies.

    Required Documents and Information:

  1. Valid passport details of the founders (a scanned copy of the main passport page)
  2. Founders' residency address information
  3. Information about the founders' representatives (we submit our personal details to the Company Register as your representatives)
  4. Valid passport and residency address information of the board members
  5. The company’s articles of association (prepared by us)
  6. Bank document confirming deposit of the company's share capital (prepared by us)
  7. Company address details (provided by us)
  8. Although not mandatory, criminal record certificate with apostille and translation into Latvian.
  9. If one of the founders is a legal entity (e.g., a company registered in another country)
    - Company establishment document (Trade Registry Gazette)
    - Company address information (Trade Registry Record)
    - Certificate of good standing (Trade Registry Offices)
    - Company establishment contract
    - Signature circular
    - Certificate of activity