Establishing a Business in Latvia: Company Formation

From a regulatory perspective, it’s important to note that commercial activities in Latvia are governed by the Commercial Law, the Civil Law, other relevant laws, and international law norms binding on the Republic of Latvia.

Which Company Form to Choose?

There are several company forms in Latvia to choose from based on your business needs, such as:

  • Limited Liability Company (SIA) – similar to Osakeyhtiö (Oy)
  • Individual Merchant (IK) – similar to Toiminimi (tmi)
  • Joint Stock Company (AS) – similar to Julkinen osakeyhtiö (Oyj)

The most popular business form is the LLC (SIA), so we will explore the registration process for an SIA in more detail.

Authority Responsible for Registration

The authority responsible for registration is the Commercial Register – Latvijas Republikas Uzņēmumu reģistrs:

The registration process is fast and straightforward.

  • Minimum Equity: 2800 EUR (cash or property contributions)
  • Founders: Both natural and legal persons can be founders.
  • Submission: Documents can be submitted electronically.
  • Registration Time: 1-3 days
  • Fee: 75-225 EUR
  • Members of the Board: One or more members, appointed for an indefinite period, unless otherwise stated in the Articles of Association.
  • Council: A supervisory body for the management board, not mandatory.

Checklist for Registration

  1. Check Company Name: Ensure the name meets all requirements and there are no obstacles to its registration in the Commercial Register.
  2. Permits and Licences: Verify if you need to obtain any permits or licences.
  3. Memorandum of Association: Ensure it includes all mandatory information and is signed by all founders.
  4. Articles of Association: These should contain all necessary rules and principles for the company’s operation and be signed by all founders.
  5. Equity Capital: Ensure it is fully paid before filing the registration documents to the Commercial Register.
  6. Shareholder Register: This must be signed by the Chairman of the Board.
  7. Notification of Beneficial Owners: Ensure this is completed.
  8. Registered Address: Verify that the address complies with all requirements.
  9. Registration Form KR4: This form must be signed by all founders.
  10. Certified Signatures: If submitting documents in paper form, signatures must be certified.
  11. Registration Fee: Ensure the fee is paid before submitting the documents.
  12. Language of Documents: All documents must be in Latvian.

Liene Krumina
LKOS Law Office