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Open a Company in Latvia

Introduction to setting up a Company in Latvia

Latvia is well situated for trade in Europe, Russia and the Balkans, making it beneficial for foreign investors looking to set up a subsidiary. The country is multi-lingual and proficient in conducting business between Eastern and Western companies. The establishment of companies in Latvia is moderated by Commercial Law, and with an increase in foreign investment regulations have been considerably expedited.

What are the main requirements for a Latvian Company?

– The minimum share capital required is LVL 2,000
– The Memorandum & Articles of Association of the subsidiary
– The resolution of the parent company detailing its decision to form the subsidiary
– Evidence of the parent company’s legal status in its domicile country
– A board of the subsidiary, to have at least one member
– A registered office

The documents shown above must be filed with the Latvian Commercial Register in order to register the subsidiary.

All required documents must be officially notarised and translated into Latvian by a sworn translator.

What are the accounting requirements of a Latvian Company?

Entry into the Commercial Register automatically registers the subsidiary with the State Revenue Service, for taxation purposes. The Latvian Law on Taxes and Fees regulates the accounting and taxation requirements.

Monthly tax and VAT returns should be submitted, with a financial account provided annually.

A Latvian bank account should be set up to deposit the required share capital.

The subsidiary’s annual accounts require an audit if two of these three points are true; the Balance Sheet total exceeds LVL 250 000, the annual turnover exceeds LVL 500 000, there are more than 25 employees.

Please contact us in order to discuss your accounting requirements.

What we do for you?

We will handle every aspect of the Company formation for you. Using our expert knowledge we can offer a company formation package in which we take care of company registration, issue of the certificates of registration, local directors, local representative and place of business in Latvia, tax registration, VAT registration, and translation of documents (if required).

Our unique one stop solution for all European formation requirements also offers formation packages to set up multiple companies. The benefits for establishing multiple companies include further increased exposure and global presence, and we can organise everything for you.

A summary of Latvian Corporate Taxes is available here.