Company Formation Latvia
Incorporating a company in Latvia provides a range of strategic advantages, making it an attractive jurisdiction for international investors and entrepreneurs seeking an EU base. As a member of the European Union and the Eurozone, a Latvian company benefits from direct access to the European single market of over 450 million consumers, with the free movement of goods, services, capital, and people, as well as eligibility for EU funding and support programs.
Latvia’s competitive tax framework including a 0 % corporate tax on reinvested profits, a 20 % tax only on distributed profits, extensive double taxation treaties, and incentives in Special Economic Zones and free ports promotes tax efficiency, encourages reinvestment, and supports sustainable growth. The country’s strategic location at the crossroads of Northern and Eastern Europe, coupled with modern transport and logistics infrastructure including ports and rail networks, facilitates efficient trade across EU and neighboring markets.
Latvia also offers a streamlined and cost-effective incorporation process, unrestricted foreign ownership, and access to a skilled, multilingual workforce at competitive rates. Additional benefits include business immigration and residence permit opportunities linked to investment, creating a credible, growth-oriented environment for establishing and scaling a company.
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Latvia LLC Overview & Key Requirements
The Company is to be registered by the Latvijas Republikas Uzņēmumu reģistrs.
There are a number of types of companies to register in Latvia, where the most common type of company is Sabiedrība ar ierobežotu atbildību (SIA), or limited liability company (LLC).
The following are the features of Limited Liability Company (LLC) formation in Latvia:| Service | Company registration |
|---|---|
| Type of company | LLC |
| Corporate Tax | 20% |
| Director | Minimum 1 |
| Secretary | No |
| Shareholders | Minimum 1 natural or legal person |
| Share Capital | Minimum €2,800 (of which at least 50% must be paid before registration. The remaining 50% must be paid within one year of the company’s registration) |
| Registered office / Registered address | Yes, in Latvia |
| Bookkeeping | Required |
| Audit of Financial Statements | Required only if 2 of 3 thresholds exceeded (balance €800,000, turnover €1.6 M, 50+ employees). |
| Registration Timeframe | 2-5 weeks |
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