In short
Americans can register a Latvian limited liability company (SIA) without living in Latvia: the Register of Enterprises decides within 1–3 working days (1 day expedited), and the state fee is €75. The standard minimum share capital is €2,800, or from €1 for a small-capital SIA owned by individuals. Latvia taxes company profit only when it is distributed: 20% of the distributed amount, 0% on retained profit. US owners keep their US tax obligations, including FBAR and US tax on undistributed foreign company profits.
Latvia company formation: key facts
Last verified 27 September 2026| Most common entity | SIA (limited liability company)# Source: Register of Enterprises: registration summary |
|---|---|
| Registration time | 1–3 working days (1 day expedited)# Source: Register of Enterprises: registration summary |
| State registration fee | €75 (small-capital SIA €20); ×3 for 1-day processing# Source: Cabinet Regulation No. 664 on Register state fees, likumi.lv |
| Minimum share capital | €2,800 (or from €1 for a small-capital SIA)# Source: Register of Enterprises: share capital · Register of Enterprises: small-capital SIA |
| Corporate income tax | 20% on distributed profit (= 25% of the net dividend)# Source: Corporate Income Tax Law, likumi.lv · State Revenue Service: corporate income tax |
| Tax on retained profit | 0% until distributed# Source: State Revenue Service: corporate income tax |
| Optional regime from 2026 | 15% CIT + 6% dividend tax, for companies owned only by individuals# Source: State Revenue Service: CIT Law amendments from 2026 |
| VAT registration threshold | €50,000 turnover per calendar year# Source: LV portāls: VAT changes from 2024 (official publisher) |
| Director residency | Not required (non-resident board members accepted)# Source: Register of Enterprises: registration summary |
| Registered address | A Latvian legal address is required# Source: Register of Enterprises: registering an SIA |
| Beneficial owners | Anyone owning or controlling more than 25% must be registered# Source: AML Law (beneficial owner definition), likumi.lv |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Latvia's company registration rules don't depend on nationality. Citizens of any non-EU country register a SIA exactly as described on this page: same steps, share capital, state fees and timeline, and no Latvian residency needed. Only your home country's side is different:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Tax at home | The US taxes its citizens wherever they live, so the FBAR and US company-tax notes on this page apply to Americans only. Most other countries, including Canada, Australia, New Zealand and the UK, tax by residence, but each has its own rules for owning a foreign company. Check with a tax advisor in your country. |
|---|---|
| Tax treaty with Latvia | In force with the US, Canada, the UK, Japan, South Korea, Israel and Singapore; none with Australia or New Zealand.Source: State Revenue Service: tax treaties in force · Ministry of Finance: tax conventions |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
| Residence through the company | The share capital investor permit (€50,000 + €10,000 state fee) is open to all non-EU nationals on the same terms. Permits for sole traders and business owners were abolished on 15 September 2026. See the Share Capital Investor Visa guide. |
Why Latvia
Why Americans Register Companies in Latvia
Latvia offers a combination of advantages that are difficult to replicate elsewhere in the EU: a deferred-taxation corporate model that rewards growth, an efficient online registration infrastructure, low operational costs, and a strategic location at the crossroads of Northern and Eastern Europe. For American entrepreneurs, freelancers, and business owners, a Latvian entity provides a legally solid EU business presence without the complexity or cost of larger Western European markets.
EU membership means your Latvian company can contract, invoice, and operate across 27 EU member states. The country's skilled, multilingual workforce — fluent in Latvian, Russian, and English — and competitive labor costs make it a practical operating base as well as a legal registration address.
Business Structures
Which Entity Type Is Right for You?
Latvia offers several business structures. The vast majority of foreign-owned companies — and almost all American-owned startups and SMEs — register as a SIA (limited liability company). Here is how the main options compare.
Limited Liability Company
SIA — Sabiedrība ar ierobežotu atbildību
The standard choice for small and medium businesses, startups, and foreign entrepreneurs. Liability is limited to share capital. Minimal bureaucracy, no residency requirement for directors. A small-capital SIA can be registered with as little as €1 in share capital if its owners are individuals (up to 5).
- Min. share capital
- €2,800 (or from €1 for a small-capital SIA)
- Directors
- 1+ (non-residents allowed)
- Liability
- Limited to share capital
Joint-Stock Company
AS — Akciju sabiedrība
Suited to larger businesses, companies seeking institutional investment, or those planning a public listing. More governance requirements than a SIA. Generally not chosen for initial foreign registrations due to complexity and capital requirements.
- Min. share capital
- €25,000
- Directors
- Management board (supervisory board in some cases)
- Liability
- Limited to share capital
Branch Office
Filiāle
An extension of an existing foreign company rather than a separate legal entity. Liability rests with the parent company. Useful for foreign companies testing the Latvian market or establishing a local presence without incorporating a separate entity.
- Legal status
- Not separate from parent
- Liability
- Parent company
- Best for
- Market entry / testing
Sole Proprietorship
Individuālais komersants (IK)
For individuals operating independently. Simple to set up and maintain, but the owner bears unlimited personal liability. Less commonly chosen by foreign nationals because a SIA offers stronger liability protection — and since 15 September 2026 running a sole trader business no longer qualifies you for a residence permit.
- Min. capital
- None
- Liability
- Unlimited personal liability
- Best for
- Latvian residents / freelancers
Tax Environment
Latvia's Unique Corporate Tax Structure
Latvia's corporate tax system is deliberately designed to incentivize reinvestment. Unlike conventional corporate tax models where profits are taxed as they are earned, Latvia taxes only distributed profits — meaning dividends and other profit distributions (including deemed distributions). Earnings retained and reinvested in the business are not taxed.
Deferred Corporate Tax — Tax Only When You Distribute
Latvia's deferred-tax model is particularly well-suited to growth-focused businesses. Companies in Latvia's free ports (Riga, Ventspils) and Special Economic Zones (Liepāja, Rēzekne, Latgale) may qualify for further tax relief. New from 1 January 2026: companies whose shareholders are exclusively individuals can opt into an alternative regime — 15% CIT on the gross-up of distributed profit (coefficient 0.85, about 17.65% of the net dividend) plus 6% personal income tax withheld on the dividend — which can be more efficient than the standard 20% model for closely-held, founder-owned businesses. All companies are subject to standard Latvian social contribution requirements for employees. US citizens operating Latvian entities retain US tax obligations — see the note below.
US citizens and Green Card holders are taxed by the United States on worldwide income regardless of where they live or where their business is incorporated. Owning a foreign corporation creates significant US tax complexity — including FBAR reporting for foreign accounts above $10,000, potential PFIC classification, Subpart F income rules, and the former GILTI rules (renamed "net CFC tested income" from 2026) that may require you to include undistributed foreign corporate profits in your US taxable income. Before registering a Latvian company, consult a cross-border tax advisor with expertise in both US expat tax law and US-Latvia tax treaty provisions.
Step-by-Step Process
How to Register a Company in Latvia
The Latvian company registration process is streamlined and can be completed online with a secure e-signature. Once your application is complete, the Register of Enterprises decides within 1–3 working days (1 working day for an expedited application). Opening a bank account and preparing documents usually takes longer than the registration itself. Here is the full process.
Choose Your Business Structure Decision
For most American entrepreneurs and foreign investors, the SIA (limited liability company) is the correct choice. Confirm the structure with a Latvian business attorney before proceeding, particularly if your intended business involves regulated sectors such as finance, healthcare, or insurance.
Choose and Check a Company Name ~1 day
The company name must be unique within the Latvian Commercial Register and comply with Latvian naming regulations. You can check whether a name is available against the register before formal registration. The name must include the legal form (e.g., "SIA").
Prepare Foundation Documents Documents
Prepare the Articles of Association (Statūti) — the company's founding document outlining its purpose, share structure, and governance rules. You will also need identification documents (passports or national IDs) for all shareholders and directors, and a registered office address in Latvia. Documents are filed in Latvian.
Open a Company Account & Pay In the Share Capital Banking
Open a payment account in the company's name and pay in the share capital before filing (minimum €2,800 for a standard SIA, or from €1 for a small-capital SIA). For capital up to €50,000 the founders confirm the payment on the application form; above that a bank or payment-provider statement is required. Note: Latvian banks conduct thorough due diligence on new foreign-owned companies — plan for this step to take time.
Submit Application to the Latvian Commercial Register 1–3 working days
Submit the company registration application — along with Articles of Association, ID documents and registered office address — to the Register of Enterprises (Uzņēmumu reģistrs). Applications can be submitted online if everything is signed with a secure e-signature; otherwise signatures must be notarised. Most Americans without an EU-recognised e-ID sign before a notary. The state fee is €75 for a standard SIA (€20 for a small-capital SIA) and three times that for 1-day processing.
Register for VAT with the State Revenue Service (VID) if needed Post-registration
If your expected turnover exceeds €50,000 in a calendar year, you must register for VAT with the State Revenue Service (Valsts ieņēmumu dienests — VID); ask your accountant to file it together with the company registration where possible. Failure to register for VAT when required results in penalties.
Report Employees to the State Revenue Service (if applicable) If hiring
If your company will employ staff in Latvia, you must report each employee to the State Revenue Service (VID) before they start work, which covers Latvian social security and health insurance obligations. This step applies to both Latvian and foreign employees working within Latvia.
Obtain Business Licenses (if applicable) Regulated sectors
Certain regulated sectors require additional licenses or permits before commencing operations. Sectors with heightened regulatory requirements include financial services, insurance, healthcare, food production, and alcohol. Verify licensing requirements with a Latvian attorney relevant to your sector before beginning commercial activity.
Costs & Fees
What Does It Cost to Register a Company in Latvia?
Latvia is one of the most cost-effective EU jurisdictions for company formation. The state fees are modest, and the overall process is significantly less expensive than comparable registrations in Western Europe.
| Cost Item | Notes | Amount | |
|---|---|---|---|
| State registration fee (standard SIA) | Official fee to the Register of Enterprises. 1-day processing costs three times as much (€225). Small-capital SIA: €20. | €75 | |
| Minimum share capital (SIA) | Paid into the company's account. Not a fee — remains as company capital. From €1 for a small-capital SIA. | €2 | 800 |
| Registered office address | Every Latvian company requires a local registered address. Virtual office services are available. | €300–€800/yr (estimate) | |
| Legal & notary fees | Articles of Association preparation and document notarization. Complexity varies by structure. | €300–€1 | 500 (estimate) |
| Accounting & annual compliance | Annual financial statements and tax returns required. Mandatory audit thresholds apply for larger companies. | €500–€2 | 000/yr (estimate) |
| Business license (if required) | Sector-dependent. Finance, healthcare, and food sectors typically carry the highest licensing costs. | Varies by sector |
State fee and share capital from official sources; the other amounts are market estimates, not official fees.
Ongoing Obligations
Post-Registration Requirements
Registering your Latvian company is the beginning, not the end, of your compliance obligations. All Latvian companies must maintain accounting records, file annual reports, and meet corporate governance requirements on an ongoing basis.
Annual Financial Statements & Tax Returns
All Latvian companies must submit annual financial statements and corporate tax returns to the State Revenue Service (VID). Micro and small companies file their annual report within about 5 months of the year end; medium and large companies within 7 months. Failure to comply results in penalties and potential suspension of the company's commercial registration.
Corporate Governance — Management Board
A Latvian company must appoint at least one member to its management board (valdē). Board members can be foreign nationals and are not required to reside in Latvia. Larger companies may also require a supervisory board.
Accounting Records
Accounting records must be maintained in accordance with Latvian accounting standards. A statutory audit may be required depending on the company's size — triggered by thresholds on total assets, annual revenue, and headcount.
Beneficial Ownership Register
Latvia maintains a public beneficial ownership register. All companies must register and keep current information about their ultimate beneficial owners (UBOs) — individuals who own or control more than 25% of the company or otherwise exercise effective control.
Expert Notes
What Americans Should Know Before Registering
Banking due diligence is the most common bottleneck — plan for it
Opening a Latvian corporate bank account has become more stringent since the mid-2010s due to EU AML (Anti-Money Laundering) compliance requirements. Latvian banks conduct detailed due diligence on all new accounts, particularly for foreign-owned companies with non-EU shareholders. Prepare comprehensive documentation — corporate structure, source of funds, business plan, and expected transaction flows — before approaching banks. This step frequently takes longer than the registration itself.
The €1 share capital option has conditions — verify your eligibility
A small-capital SIA can be formed with share capital from €1, but only if its shareholders are individuals (no more than 5), each of them is a shareholder in only one such company, and the board members are shareholders. At least 25% of each year's profit must go into reserves until capital reaches €2,800. Most foreign-owned companies formed for operational or investment purposes should plan for the standard €2,800 minimum.
Latvia's tax model defers tax — it doesn't eliminate US obligations
Latvia's retained-profit tax exemption is a genuine structural advantage for reinvesting companies. However, for US owners, the US controlled foreign corporation (CFC) rules — the former GILTI rules, renamed "net CFC tested income" from 2026 — may require you to include a portion of your Latvian company's undistributed income in your US tax return each year, regardless of whether you've distributed profits. The interaction between Latvia's deferred-tax model and US CFC rules is complex. Engage a US-qualified international tax advisor before forming your entity.
Regulated sectors require sector-specific legal advice before registration
Finance, insurance, medical devices, food production, and several other sectors are subject to sector-specific licensing from Latvian regulatory bodies. In some cases, licensing processes must be initiated — and in some cases completed — before the company can commence commercial activity. Attempting to operate in a regulated sector without the required license is a serious legal and financial risk. Always obtain sector-specific legal advice before registering in these areas.
Company registration can support a residence permit application — but is not automatically sufficient
Registering a Latvian company does not by itself qualify you for residency, and since 15 September 2026 permits for business owners and sole traders no longer exist. What remains is the share capital investor permit (€50,000 in a Latvian company plus a €10,000 state fee), which has its own conditions. See our Share Capital Investor Visa guide and Latvia investor visa overview for details.
Registering a Latvian Company Is Right for You If…
- You need a legal EU business entity to contract, invoice, and operate across the single market without trade barriers.
- You want to benefit from Latvia's deferred corporate tax model — reinvesting profits without annual tax liability.
- You are looking for fast, low-cost company formation with minimal ongoing bureaucracy compared to Western European markets.
- You want a Northern European business address with strategic access to Baltic, Scandinavian, and Eastern European markets.
- You are considering combining company registration with a Latvian residence permit through the share capital investor route.
We work with trusted Latvian corporate attorneys and accountants who specialize in company formation for non-EU nationals. From choosing the right entity structure and managing banking due diligence to post-registration compliance and US cross-border tax coordination — we guide you through every step of the process. You can also check LocalVouch for attorneys and accountants other American founders have personally vouched for.
FAQ
Frequently asked questions
How long does it take to register a company in Latvia?
Once your application is complete, the Register of Enterprises decides within 1–3 working days, or 1 working day if you pay the expedited fee (three times the standard fee). Opening a bank account and preparing documents usually takes longer. Applications can be submitted online with a secure e-signature.
What is the corporate tax rate in Latvia?
Latvia's corporate tax rate is 20%, but it is applied only to distributed profits (dividends), which works out at 25% of the net dividend paid. Retained earnings reinvested in the business are not taxed annually. Since 2026, companies owned only by individuals can instead choose 15% corporate tax plus 6% tax on dividends.
What is the minimum share capital to register a SIA in Latvia?
The standard minimum share capital for a Latvian SIA (limited liability company) is €2,800. A small-capital SIA owned by individuals can be formed with as little as €1, but it must put at least 25% of each year's profit into reserves until capital reaches €2,800.
Do I need to be a resident of Latvia to register a company there?
No. Latvia does not require directors or shareholders to be Latvian residents. Foreign nationals, including Americans, can own and direct a Latvian company without residing in Latvia. However, every company must have a registered local office address.
Can a Latvian company give me residency in Latvia?
Registering a company alone does not grant residency, and permits for business owners and sole traders were abolished on 15 September 2026. A share capital investment of €50,000 in a Latvian company (€100,000 for larger companies), plus a €10,000 state fee, can support an application for Latvia's investor residence permit.
Can Canadians, Australians or Brits register a company in Latvia?
Yes, on exactly the same terms as Americans — same steps, share capital, fees and timeline, with no Latvian residency needed. What differs is home-country tax and whether your country has a tax treaty with Latvia (Canada and the UK do; Australia and New Zealand don't).
Latvia
Everything about moving to Latvia
Company formation · other countries
Company formation in other countries
- Company formation in Austria
- Company formation in Belgium
- Company formation in Bulgaria
- Company formation in Croatia
- Company formation in Cyprus
- Company formation in Czechia
- Company formation in Denmark
- Company formation in Estonia
- Company formation in Finland
- Company formation in France
- Company formation in Germany
- Company formation in Greece
- Company formation in Hungary
- Company formation in Ireland
- Company formation in Italy
- Company formation in Lithuania
- Company formation in Luxembourg
- Company formation in Malta
- Company formation in the Netherlands
- Company formation in Poland
- Company formation in Portugal
- Company formation in Romania
- Company formation in Slovakia
- Company formation in Slovenia
- Company formation in Spain
- Company formation in Sweden
- Company formation in Switzerland
- Company formation in the UK
- Company formation: 29 countries compared
Ready to Register Your EU Company in Latvia?
We connect you with trusted Latvian corporate attorneys and accountants — from choosing the right structure to opening a bank account, filing for tax registration, and staying compliant. Let's build your EU business base.