Registration and support
of foreign companies
in Latvia

We cover the full range of your needs, from company registration
to obtaining licenses and opening bank accounts.

Request a commercial offer

Who are we?

LFT Advisors provides international business planning and structuring services. A team of lawyers, accountants, auditors and tax consultants helps entrepreneurs effectively manage international projects, providing a high level of service and expert support at every stage.

What do we offer?

We offer all services necessary for business in one place. We work on the principle of a “single window”, which means that you do not need to be distracted by several contractors and bear additional costs. We cover the full spectrum of your needs, from company registration to obtaining licenses and opening bank accounts..

Why come to us?

Every step we take and every action we take is done with respect and concern for your money, reputation and ambitions. We don’t have one-size-fits-all solutions – we create personalized tools focused on the specific tasks and needs of your business.

The process of cooperation

  • Initial Consultation:
    At this stage, we discuss your business goals and needs to determine what services are needed.
  • Strategy development:
    we analyze your current situation and develop an individual action plan aimed at achieving the set goal.
  • Implementation:
    we take care of all aspects of the process – from company registration to opening bank accounts, licensing and taxation.
  • Support and follow-up:
    after a successful launch, we continue to work with you, providing ongoing support, updates and advice as needed.
  • Evaluation of results:
    regularly evaluate the results achieved and adjust the strategy as necessary to maximize efficiency and achieve your business goals.
Request a commercial offer

Opening a business in Latvia opens wide prospects for foreigners who need to integrate into the European area and take advantage of the favorable tax climate, and high living standards. This guide is your go-to resource for registering a business in Latvia. We’ve laid out everything step by step to help you cut costs, dodge potential hurdles, and get your company up and running smoothly.

Setting up a company in Latvia comes with a bunch of perks, making it a top pick for international entrepreneurs and business enthusiasts looking to expand their horizons.

Why is it profitable for businesses to work here?

Being part of the European Union, Latvia opens doors to both its local market and the broader EU market, providing seamless access to the unified customs territory. This makes cross-border trade easier, whether you’re importing or exporting goods and services. On top of that, Latvia’s prime location and modern infrastructure make it a perfect hub for connecting with global markets.

Additionally, special tax regimes for startups and innovative companies help reduce the tax burden during the early stages of business development.

Request a commercial offer
Андрей Сергеевич

Advantages of registering a company in Latvia

Simplicity and speed of registration
Getting your company registered in Latvia is quick and straightforward. Take the SIA format (similar to an LLC) as an example — the entire process can be wrapped up in just five business days.
Competitive tax conditions
Latvia offers a fairly favorable tax system that attracts investors:

  • In Latvia, corporate income tax stands at 20%, but here’s the catch: you only pay it when you distribute profits, like issuing dividends. As long as the company reinvests its earnings back into the business, no tax applies.
  • The value-added tax is twenty-one percent, which is competitive for the European area.
Doing business in Latvia is straightforward, with a business-friendly environment and seamless integration into the European Union’s economic framework
Being part of the European Union, Latvia opens doors to both its local market and the broader EU market, providing seamless access to the unified customs territory. This makes cross-border trade easier, whether you’re importing or exporting goods and services. On top of that, Latvia’s prime location and modern infrastructure make it a perfect hub for connecting with global markets.
Latvia stands out as a budget-friendly choice for entrepreneurs, offering low overhead costs that make Operating a business in Latvia comes with noticeably lower expenses compared to many other EU nations. Office rentals, accounting services, and general administrative costs are budget-friendly. On top of that, salaries in Latvia are more competitive than in Western Europe, making it easier to keep staffing expenses under control.
Access to qualified labor force
Latvia has a highly skilled workforce, especially in technology, finance and engineering. Because Latvians have a high level of education and often speak several foreign languages, this makes Latvia attractive to companies in need of skilled employees.
Broad access to financial services
Latvia stands out as the financial hub of the Baltic region, boasting a modern and efficient banking system. With a variety of local and international banks offering top-notch services, businesses can easily access financial tools and solutions tailored to their needs. This strong financial infrastructure makes managing business operations in Latvia seamless and reliable. Companies registering in Latvia have easy access to financial services such as lending, international payment services and currency exchange. Many international banks have representative offices in Latvia, which gives companies the opportunity to easily integrate into international financial flows.
Favorable legislation for startups and innovators
Latvia actively supports startups and innovative companies, providing them with tax benefits and various support programs. Latvia offers a variety of unique programs designed to boost tech and science-driven startups. These initiatives not only support innovation but also provide opportunities to secure grants and attract investment for bringing fresh ideas to life. It’s a great environment for entrepreneurs looking to grow something new and exciting.

Latvia is a top pick for launching a business, offering a simple registration process, a tax system that’s great for growth, access to a talented workforce, and special benefits designed for startups and international companies. It’s a welcoming place to start and scale your business. Curious about how to officially register your business in Latvia? Let’s break it down step by step!

Choosing the Right Business Setup

1. Choosing business objectives

The first step is deciding on the right legal structure that aligns with your business objectives. Here are the top picks:

Sabiedrība ar ierobezotu atbildibu
This setup is ideal for small to mid-sized businesses and foreign entrepreneurs eyeing a Latvian company. With its limited liability structure, it shields owners from personal responsibility for the company’s debts—perfect for managing risks.
Best for: startups, SMEs, international investors, consulting firms, and trading businesses.
AS (Akciju saibedria) is an analogue of the Ukrainian JSC
Perfect for big companies with lots of shareholders or those looking to hit the stock market. This setup lets you raise funds by issuing shares, opening the door for investment.
Best for: large corporations, investment-seeking companies, financial institutions, or businesses aiming for international expansion.
KS (Komandītasibedria) is a limited partnership
Great for partnership businesses where some partners have limited liability and others take on full responsibility. This one’s perfect for smaller businesses with a clear split of roles among partners.
Best for: family-run businesses or partnerships with a mix of investors and hands-on partners involved in day-to-day operations.
PS (Pilnasibedria) is a general partnership
This setup is ideal for businesses with multiple partners who all have equal rights and share full responsibility for the company’s debts. It’s the simplest setup, but every partner needs to be fully committed.
Ideal for: small companies where everyone shares responsibility equally and is hands-on in managing the business.

Every business structure comes with its own benefits and rules, so it’s important to choose the one that aligns best with your business goals.

2. Creation of constituent documents

For an SIA, you need to prepare a statute (statūti) and a resolution of the founders (röstötāju lēmūs).
For other forms, partnership agreements or shareholder agreements.

3. Formation of authorized capital

Minimum capital for SIA:

  • 1 euro for “micro-SIA” (under certain conditions);
  • €2,800 for standard SIA.

You can deposit the contribution into a temporary bank account even before the registration process begins.

4. Submitting an application to the Enterprise Register (Uznēmumu reģistrs)

To establish a business in Latvia, you’ll need to submit these key documents:

  • The company registration form – this is the paperwork you’ll need to officially get your business on the books in the Commercial Register.
  • The Articles of Association – this is the document that lays out what your company is all about, including the rights and duties of the shareholders.
  • Passport or another identity document of the founders – these could be personal passports or official documents for legal entities.
  • Proof of business location – this could be a lease contract or ownership papers showing the official address of your company.
  • Proof of capital deposit – a bank statement that shows you’ve made the required minimum capital deposit.
  • Taxpayer Identification Number (for the company) – necessary for registering with Latvia’s tax authorities.
  • Appointment decision for the director – if your company has a director, you’ll need to submit the official appointment decision.

5. Registering with the tax authorities – you’ll need to obtain a tax identification number (nodokļu maksātāja kods).

If your business plans to reach the mandatory turnover threshold, or if you simply want to register for VAT voluntarily, you’ll need to sign up for VAT registration.

6. Possible risks and how to avoid them when starting a business in Latvia:

Bureaucratic delays – Sometimes, company registration can take longer than expected due to document filing or registration delays. To speed things up, consider hiring local consultants or legal pros who know the ropes and can navigate the system efficiently.

Tax audits – The Latvian tax authorities aren’t shy about conducting audits, so keeping your books tight and following all tax rules is a must. Hiring an accountant or auditor to handle the paperwork can help prevent errors and keep you in the clear with the tax guys.

Language barrier – Latvian is the official language, which can make things tricky. To smooth the process, it’s smart to have a translator or legal consultant on hand to help with communication, whether it’s with local authorities or business partners.

Having the right professionals involved throughout your company’s registration and operations in Latvia will seriously minimize risks and give you a smoother, quicker path to success.

Taxes

Latvia’s tax system is simple and user-friendly. Let’s go over the key taxes that businesses need to be aware of:

  • CIT
    In Latvia, companies are subject to a 20% corporate income tax. However, there’s a catch: the tax is only applied when profits are distributed as dividends. This means that if the profits stay within the company, they remain untaxed.
  • VAT
    The regular VAT rate in Latvia is 21%, but there are some exceptions to keep in mind. For certain items, like pharmaceuticals, books, and a few other essential goods, the rate is reduced to 12%.
  • PIT
    In Latvia, if you’re an individual earning over 20,004 euros annually, you’ll be taxed at a personal income rate of 23%. On top of that, both employers and employees chip in for social security. Employers pay a social security contribution of 24.09% of their employees’ wages.

To sum it up, Latvia’s tax system is pretty straightforward. With just a few important rates to remember, businesses can easily stay on track.

Reporting

In Latvia, businesses are required to maintain accurate financial records in line with local accounting standards. For bigger companies, there’s an additional layer – they must also comply with international standards such as International Financial Reporting Standards. This helps maintain transparency and ensures that everything aligns with global business practices.

Annual Financial Report
Every company must submit an annual financial report to the Latvian tax authorities and ensure it’s accessible to the public through the Commercial Register.

VAT Reporting
If your company is registered for VAT, you’ll need to submit quarterly VAT returns to keep your tax matters in check.

Payroll and Social Security Reporting
Companies must submit monthly reports outlining employee wages and social security contributions. This ensures they stay compliant with local labor and tax regulations.

Bringing in the right experts at every step can really help minimize risks and get your business off the ground smoothly and quickly.