Guide to Company Incorporation in Latvia

1. What is the minimum share capital for a Limited Liability Company in Latvia?

In order to establish a SIA (Limited Liability Company) in Latvia, a minimum share capital of 2,000 LVL, about 3,000 EUR is required. 

2. What is the minimum share capital for a Joint Stock Corporation in Latvia?

When a Joint Stock Corporation (A/S) is set up in Latvia, it is necessary to have a minimum share capital of 25,000 LVL, which is about 35,000 EUR. This sum has to be fully paid before registration.

3. Are there any special requirements for establishing a Limited Liability Company in Latvia?

In order to open a Latvian Limited Liability Company (SIA), it is necessary to have a legal address in Latvia. Besides, you have to choose the shareholder and the director, who don’t necessarily have to be residents of Latvia. The shareholder can be a legal person or a physical one. The director has to be a physical person. You can also choose to set up a micro limited liability company and, in this way, be subject to lower tax rates.

4. How can I register for VAT in Latvia?

In Latvia, Limited Liability Companies (SIA) and Joint Stock Corporations (AS) are obliged to submit VAT applications to the Register of Enterprises of the Republic of Latvia. The registration application is reviewed and registered within 15 working days after receiving the application, when the VAT registration certificate is issued.

5. How can I open a bank account in Latvia?

Latvian companies can establish corporate bank accounts in Latvian national currency or other main foreign currencies. Documents requested for opening a Latvian bank are usually the following: copies of passports or ID Cards of directors and shareholders, copy of the Latvian company’s Articles of Association, copy of the company’s Certificate of Incorporation issued by the Latvian Trade Register, Trade Register Extract/Certificate of Good Standing, specimen signatures of directors, bank forms.

6. How can I recruit personnel in Latvia?

Latvia has a young workforce in general and low labour costs. In order to hire the best qualified personnel, there are a number of recommended recruitment agencies in the capital, Riga, that can help you with the procedure.

7. What is the average salary in Latvia?

A Latvian employee earns an average salary of about 600 EUR per month.

8. What is the overall economic situation in Latvia?

Latvia is a small, open economy, with exports contributing significantly to its Gross Domestic Product. The majority of companies have been privatized, although the state still holds significant stakes in a few large companies. In order to adopt euro, Latvia’s fiscal deficit has to go below 3%.

BridgeWest offers advice on how to open a company in Latvia, including virtual office and other related services.