LTD company formation, business start, set up a company

Companies Formation Latvia

In addition to the intensive legal counseling required by foreign companies wishing to establish themselves in Latvia for a longer period, such companies often need advice on how to properly organize and strengthen their presence in Latvia particularly during the initial phase. In view of this situation we advise our clients legally and fiscally before, during and after the establishment of companies (Limited Liability Company, Joint Stock Company, branch office, representative office) and partnerships in Latvia.

The SIA (i.e., the Latvian limited liability company) is by the most commonly chosen company form.

A SIA must have at least one board member (i.e. director). Board members may be only individuals (physical persons). There are no restrictions on foreign board members.

There are no restrictions on foreign shareholders (both individuals and companies). A foreign shareholder willing to establish a SIA doesn’t have to come to Latvia which is a very big advantage. The shareholders meetings may take place as well outside Latvia.

The whole procedure of registration including preparation and submission of all necessary documents can be performed by the authorized representative on the basis of the power of attorney issued by shareholders.

A minimum share capital of €2,800 is required, at least half of which must be paid up. A temporary bank account for the contribution of share capital must be opened by the founders before submitting an application for registration. After registration it gets restructured to the constant one. 

It should be noted that certain types of business activities are subject to the receipt of a license or permission from the responsible state or self-regulating institution. For example, a license is required for banks, insurance companies, insurance brokerage companies, customs warehouses, companies dealing with excise goods, and others. Regulated businesses may be subject to special capital requirements, requirements for the qualifications of management, etc. Therefore, in addition to the general requirements below, where applicable, requirements for obtaining licenses must already be explored at the incorporation stage.

Legal address of SIA (i.e. official office address) has to be in Latvia.

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