Company registration · Latvia
Company registration in Latvia tax only when profit is distributed
- Support
- from €1 100
- Registration time
- 0%
- On profit kept in the company
- 0%
The same distributed profit model as Estonia, combined with a working local banking sector and fast registration.
A practical EU base for trade and services.
Registration
from €1 100
Turnkey work by BRIDGES. Government fees and duties appear as a separate line in the estimate at actual rates.
See packages0%
On profit kept in the company
3-7 days
Incorporation with the registry
EU
Full access to the single market
Who it suitsLatvia
Who Latvia suits
Working on the company structure- 01Trade and logistics between the EU and eastern markets
- 02IT and services with European clients
- 03Businesses reinvesting profit in growth
- 04Companies that want EU banking with a local presence
- 05Structures needing a fast EU set-up
Does not suit
- You need to distribute profit every quarter
- A fully remote company with no local accountant
- You are counting on anonymity: the registry is public
- There is no willingness to work with Latvian-language filings
Company forms4
Which company to open
The limited liability company covers nearly every scenario.
- 01Sabiedriba ar ierobezotu atbildibu · SIA — limited liability company
Trade, services, IT, logistics.
Fast registration and a reduced-capital option for small companies.
A local address and a Latvian accountant are required.
- 02Akciju sabiedriba · AS — joint stock company
Larger businesses and structures raising capital.
Higher standing and flexible share classes.
Higher capital requirement and mandatory audit in many cases.
- 03Branch · branch of a foreign company
An existing group entering the EU market.
No new legal entity is required.
The parent company carries the liability.
- 04Representative office · representative office
Companies studying the market.
Simple to register.
Commercial activity is not permitted.
Packagesfrom €1 100
Three ways to launch
The scope is built from real scenarios. The amount depends on VAT and on the level of accounting support.
01 · 1-2 weeks
Company
from $1 600
An EU entity for contracts and invoicing
- Name check and preparation of the articles
- Capital deposit and filing with the registry
- Legal address for the first year
- Full set of corporate documents
- Tax registration and a Latvian accountant
02 · 3-8 weeks
Company, VAT and account
from $3 000
An operating business with EU settlements
- Everything in the Company package
- VAT and EU VAT registration
- Bank profile and submission to suitable banks
- Monthly accounting set-up
- Support with correspondence with the revenue service
03 · from 4 weeks
Turnkey with staff
by project
A company with employees and real operations
- Everything in the Company, VAT and account package
- Employer registration and payroll administration
- Office or warehouse search and lease support
- Residence permit support for the founder where applicable
- Monthly bookkeeping, annual accounts and returns
Registry fees, social contributions and rent appear as separate lines in the quote.
TaxesLatvia
Taxes in Latvia
Tax is triggered by distribution, not by earning.
Taxes in Latvia
Latvia
- 0%
- On profit kept in the company
- from $1 600
- BRIDGES fee
- 3-7 days
- Incorporation with the registry
- EU
- Full access to the single market
- Retained profit
- Not taxed while it stays in the company.
- Distributed profit
- Corporate income tax is charged when dividends are paid.
- Deemed distributions
- Certain expenses and payments are treated as distributions and taxed accordingly.
- VAT
- The standard rate applies; registration is compulsory above the turnover threshold.
- Payroll charges
- Employer and employee contributions apply on top of gross salary.
- Obligations at home
- Owning a foreign company creates obligations in the beneficiary country of residence.
Annual upkeep
- Legal address
- Monthly accounting
- Monthly tax returns
- VAT returns
- Annual report
- Distribution tax
- Payroll and contributions
- Bank compliance
Registry fees, social contributions and rent appear as separate lines in the quote.
Bank
The bank account after incorporation
Latvian banks are more open to foreign-owned companies than their Baltic neighbours, but the checks are thorough.
- 01What the bank looks at
The activity, the counterparties, expected turnover, the connection to Latvia and the source of funds.
- 02Which documents are needed
The corporate set, board identification, contracts and evidence of the source of funds.
- 03Where the account is opened
With Latvian banks, and with European payment institutions for cross-border flows.
- 04What we do
We prepare the file, arrange the meeting and run the submission through to the result.
After the reforms of recent years the banks screen shell structures hard. A real business with contracts opens an account; a paper company does not.
Stages1-2 weeks
How the work runs
Timelines are split by who is responsible.
- 01Consultation and structure
Activity, distributions, VAT, banking.
One meeting - 02Quote and contract
We fix the scope of work and the amount.
1 day - 03Documents and translations
Collection of the set, notarisation and translation.
3-7 days - 04Capital deposit and registration
Depositing capital and filing with the registry.
3-7 days - 05VAT registration
Application and issue of the EU number.
1-3 weeks - 06Account and launch
Bank file, the meeting and account opening.
The bank sets the timing
Result: The outcome is an EU company with the distributed profit model: full documents, a VAT number, an account and a Latvian accountant in place.
ComparisonLatvia
Latvia or Estonia
| Latvia | Estonia | |
|---|---|---|
| Tax on retained profit | 0% | 0% |
| Tax on distribution | charged on the distribution | charged on the distribution |
| Local banking for non-residents | more accessible | difficult |
| Remote management | partly digital | e-Residency, fully digital |
| Incorporation time | 3-7 days | 1-3 days |
| Upkeep cost | low | low |
| Who it suits better | trade with local settlements | IT and remote management |
The tax model is identical. Latvia is easier for local banking; Estonia is easier to run entirely remotely.
TeamBRIDGES
Company team
Questions
Registration questions
Is it true that there is no corporate tax?+
Tax is not charged on profit that stays in the company. It arises when the profit is distributed.
What are deemed distributions?+
Certain expenses and payments that the law treats as distributions and taxes accordingly.
How long does incorporation take?+
Three to seven days with the registry once the translated documents are ready.
Do I need a Latvian director?+
No, but a legal address with the owner’s consent and a Latvian accountant are required.
How hard is it to open a bank account?+
Easier than in Estonia for a real business, but shell structures are refused.
Can I get an EU VAT number?+
Yes, usually within one to three weeks of incorporation.
Is an audit mandatory?+
Only above the statutory size thresholds.
Are filings in Latvian?+
Yes, which is why a local accountant is part of the service.
Is the registry public?+
Yes, board members and shareholders are visible.
Can capital be reduced for a small company?+
A reduced-capital option exists for small companies, subject to statutory conditions.
Do I have to declare the company at home?+
As a rule yes: owning a foreign company creates obligations in your country of residence.
What does upkeep cost?+
Address, accounting, VAT and, where relevant, payroll. It is one of the cheaper EU jurisdictions to maintain.
A company for your task
Tell us what the company will do: we will check whether the country fits and show the launch and upkeep budget before the contract.
- Other jurisdictionsA comparison of countries for company registration.
- A company in EstoniaThe same tax model with fully remote management.
- Corporate accountsHow an account is opened and what the bank checks.
- BulgariaRegistration: 3-10 days · from €1 100
- CzechiaRegistration: 5-14 days · from €1 300
- HungaryRegistration: 3-7 days · from €1 400
Company registration
Want a company in Latvia?
Write to us, we will set it up. We will choose the form, calculate the launch and the annual upkeep, register the company and help open the account.
