Registering a company in Latvia
In order to register a company in Latvia, firstly you will need to choose the organisational and legal form. The most well-known and frequently used are limited companies (or SIA, which stands for Sabiedrība ar ierobežotu atbildību)
An existing company or an individual can act as the founder of an SIA. When an SIA company is formed, the share capital must be paid up, which is divided into shares. Shareholders of a limited liability company are not liable for its commitments and take the risk of losses associated with the work of the company only within the value of their shares.
Stages of company registration in Latvia:
1) A name for the company shall be selected. The name of an entity shall contain the name of the company and the words ‘Sabiedrība ar ierobežotu atbildību’. The SIA name shall not be indistinguishable from the name of any entity that is already incorporated or has applied for incorporation in the Commercial Register and will not encroach any brand names rights that are in power in Latvia.
2) A place for the legal address shall be picked. Typically the address is registered in one of the following ways:
- At non-residential premises (leased or owned);
- By concluding an agreement for the provision of a legal address;
- By registering a company at the home address of the founders
3) The list of activities in accordance with the NACE classification shall be selected
4) A temporary account in a Latvian bank shall be opened and the statutory capital (2,800 EUR in the case of an ordinary LLC and 1 euro in the case of an LLC with reduced capital) shall be deposited into this account;
5) The state fee shall be paid;
6) The true beneficiary shall be indicated. Beneficiaries are private persons, individuals directly or indirectly owning or controlling more than 25% of the shares in the company. The beneficiaries, their details and how they control the SIA shall be unveiled and filed.
A company shall be regarded as a registered taxpayer from the instant of its incorporation in the Commercial Register of Latvia. If registration as a VAT payer is required a relevant application shall be submitted along with the filing of an application for registration of an SIA.
If you need more information regarding company registration in Latvia, please contact partner of NJORD Riga office, attorney-at-law Dmitri Kolesnikov (email@example.com), tel. +37167313315, @ company registration in Latvia