Latvia at a glance
Latvia is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Latvia
- SIA (Sabiedriba ar ierobezotu atbildibu) The most common private limited company. Standard minimum capital EUR 2,800; a reduced-capital micro SIA can be formed from EUR 1 if it has no more than 5 founders who are all natural persons and directors. 100% foreign ownership allowed.
- AS (Akciju sabiedriba) Joint-stock (public) company for larger businesses or outside investors; shares can be listed. Minimum capital EUR 35,000.
- IK (individual merchant) Sole trader with no capital requirement but unlimited personal liability, for small one-person businesses.
| Corporate tax | Latvia uses an Estonian-style distributed-profit tax: 0% on retained and reinvested profit, with tax due only when profit is distributed. The headline rate is 20%, applied to a grossed-up base (20/80), giving roughly 25% effective on the net distribution. There is generally no separate dividend withholding tax. |
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| VAT rate | Standard VAT is 21%, with reduced rates of 12% and 5%. The domestic VAT registration threshold is EUR 50,000 of taxable turnover per year. |
| Minimum share capital | Standard SIA minimum capital is EUR 2,800, with at least half typically paid before registration. A reduced-capital micro SIA can be formed from EUR 1 (up to EUR 2,799) if it has no more than 5 natural-person founders who all serve as directors. An AS requires EUR 35,000. |
| Setup time | Registration through the Register of Enterprises usually takes about 1 to 3 business days once documents are ready, or 1 working day for a higher fee. Arranging apostilled documents and a bank account can extend this for non-residents. |
| Remote setup | Yes. Incorporation can be completed fully online with a Latvian qualified e-signature (eParaksts), or remotely via a notarised and apostilled power of attorney, so physical presence is not required. |
| Director / residency | No residency requirement. An SIA needs at least one board member who is a natural person; directors and shareholders may be non-residents of any nationality, and 100% foreign ownership is allowed. A registered Latvian address is mandatory. |
| Banking options | Traditional banks (Swedbank, SEB, Citadele, Luminor) have strict checks and may take weeks. The temporary share-capital deposit must sit at a Latvian bank or licensed payment institution; fintechs such as Wise and Revolut Business are used for day-to-day operations. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Latvia has applied a 0% tax on reinvested profit since 2018, so cash flow is not taxed until profit leaves the company. A eurozone and Schengen member with full EU single-market access. From 2026 individually owned companies can elect a 15% corporate tax plus 6% dividend regime. A startup visa is available to non-EU founders.
How to register a company in Latvia
The process is straightforward and, in Latvia, largely digital. In outline:
- Choose your company type and name. Most founders pick the SIA (private limited); we confirm the name is available.
- Verify your identity. Yes. Incorporation can be completed fully online with a Latvian qualified e-signature (eParaksts), or remotely via a notarised and apostilled power of attorney, so physical presence is not required.
- File the incorporation. Once documents are signed, registration usually completes in around 1-3 days.
- Open a business account and register for tax/VAT. Traditional banks (Swedbank, SEB, Citadele, Luminor) have strict checks and may take weeks. The temporary share-capital deposit must sit at a Latvian bank or licensed payment institution; fintechs such as Wise and Revolut Business are used for day-to-day operations.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
Form your Latvian company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Latvia, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Latvia
Founders from outside the EU can own and run a Latvian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Latvia up front, so there are no surprises.
Latvia and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Latvian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Latvia against other countries, see company formation in Europe.