Corporate Requirements

Corporate Requirements

IBCC will help you

  • Start up your business
  • Run your business effectively
  • Reduce your tax obligations
  • Grow your business

READY TO START!

Broadly, the foreign investor would select between

Limited liability company, or SIA

  • Min. 1 director/ board member required
  • Director may be citizen of any country
  • Standard share capital €2,800
  • It is possible to set-up SIA with €1 share capital
  • Legal address in Latvia (post box not allowed) 
  • Corporate income tax 15%. More about taxes.

Micro-Enterprise

  • It is a regular limited liability company with special taxation regime – 9% on turnover (not on profit). 
  • Max. annual turnover must not be over €100,000
  • Directors and employees receive salaries as net income (no additional salary taxes apply). Max.salary cannot exceed €700 per month. 
  • Micro-Enterprise is beneficial for service companies with low administrative costs.
  • Any Micro-Enterprise can turn into regular company.

Branch of a foreign company

  • Min. 1 director required (may be citizen of any country)
  • There is no share capital
  • Legal address in Latvia (post box not allowed) 
  • Corporate income tax 15%. More about taxes
  • Income is paid out to Head company without taxation on exit

Representative Office of the foreign company

  • Min. 1 director required (may be citizen of any country)
  • There is no share capital
  • Legal address in Latvia (post box not allowed) 
  • The RepOffice does not do trading activities on its own. Thus, it is not a taxable entity. 
  • Not required to file accounts
  • Often chosen by foreigner in order to receive Schengen visas for free access to EU. More about Schengen visas.

Although, a lot more legal forms are accessible for doing business:

Limited Partnership

  • At least 2 members required, which may be legal entities or private persons
  • The Partnership is not a taxable entity. Instead each member is responsible for paying taxes in their own country
  • Can obtain VAT number

Joint Stock company, or AS

  • Min. 1 board member + min. 3 councils required
  • Board members and councils may be citizens of any country
  • Min. share capital €35,500
  • Legal address in Latvia (post box not allowed) 
  • Corporate income tax 15%. More about taxes.

We can set-up any form of business for you. 
In order to make the right choice, contact us for free advice on the most suitable solution for your business. 

We can set-up any form of business for you. 

In order to make the right choice, contact us for free advice on the most suitable solution for your business. 

Contact Us

Latvian SIA – limited liability company

The most popular form of business is Limited Liability Company, or SIA.
Liberal tax incentives make Latvian company highly beneficial for trading and holding. Among them one of the lowest in EU corporate income tax – 15%. Introduced in 2013 Holding regime is considered the best in Europe.
Besides low taxation and participation exemption, we must highlight easy incorporation rules:

  1. The company can be registered remotely (board members and shareholder are only required to post signed and notarized documents)
  2. Standard share capital €2,800. However, it is possible to set-up SIA with €1 share capital.
  3. Company registration takes only 3-5 business days
  4. With IBCC introduction service bank account can be opened remotely (takes 10-14 days) or during your visit to Riga (takes 1 hour)
  5. VAT registration takes only 10-14 days. Moreover, ready-made companies with registered VAT are available.
IBCC have read-made packages available.

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Directors & Shareholders

Open or confidential. Which way to go? 
Who can be a Director?

Any person over 18 (only private person) can be a Director or Board Member of the Latvian company. Latvia does not press any rules on residence or citizenship of the directors of the Latvian establishment. The fact that director may reside outside of Latvia does not influence on the tax residency of the company. Moreover, the board meetings can be held outside of Latvia, contracts can be signed outside of Latvia – yet, the company will receive tax residence status.

Are nominee directors possible? 

We cannot say that Latvian legislation supports the idea of nominee directors’ services. Although on practice, nominee directors are often used. Upon Latvian Law of Commerce, it is the Director or Board Member who has full responsibility on the company he manages – disregard less on the nominee notions of the trust declaration or nominee services agreements, which might be acceptable in other countries. 

Are nominee shareholders possible?

If the client wishes to keep his ownership off public records, the most convenient approach is to use a low-cost EU company as a corporate shareholder of the Latvian SIA. Upon Holding company rule, dividends paid out to legal entities are not taxed. Read more on holding regime.

For any options on use of Directors and Shareholder, we recommend to consult with us first.

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Required documents

As soon as we have information on choice of directors and shareholder, the following documents will be required: 

From each Beneficial Owner From each Director: From each Shareholder – private person:
  • Passport copy
  • Utility 
  • Our Company Form (we will provide)
  • Filled out bank questionnaire (we will provide)
  • Passport copy
  • Utility 
  • Signed and notarized / apostilled corporate documents (we prepare)
  • Passport copy
  • Utility 
  • Signed and notarized / apostilled corporate documents (we prepare)
From each Shareholder – corporate body:
  • Extract from Register / Certificate of Incumbency notarized / apostilled 
  • Passport copy of Director
  • Utility of Director
  • Signed and notarized / apostilled corporate documents (we prepare)

The next bit is easy.

A Latvian company is quick to set up. To purchase a shelf company is even quicker. The results are so efficient that you will want to streamline all your business through the Latvian company! 

Here are your steps:

  1. Take IBCC First Stop Advice. It's free! Consult now.
  2. Your Business Account Manager will help you to choose your structure and instruct on the requirements.

Please consult with us first on the documents preparation.  Some documents will require translation into Latvian language, thus translation charges will apply. 

Please consult with us first on the documents preparation.  Some documents will require translation into Latvian language, thus translation charges will apply. 

Contact Us


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