Updated 13.08.2026
Company registration · Latvia
Company registration in Latvia taxonly when profit is distributed
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.
Launch package
What the base package covers
- 01Name check and preparation of the articles
- 02Capital deposit and filing with the registry
- 03Legal address for the first year
- 04Full set of corporate documents
- 05Tax registration and a Latvian accountant
- 06A calendar of obligations for the year ahead
and 3 more documents
The actual timing, cost and tax treatment depend on the corporate form, the activity and the structure of the company. Government fees are paid separately at the official tariffs.
Quick selection
Find the right structure
Where will the clients be?
What will the company do?
What do you need?
How many owners?
Reply within one business day
Fit
Who Latvia suits
- Trade and logistics between the EU and eastern markets
- IT and services with European clients
- Businesses reinvesting profit in growth
- Companies that want EU banking with a local presence
- Structures needing a fast EU set-up
- 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 types
What company you can open in Latvia
The limited liability company covers nearly every scenario.
A company with limited liability and a modest minimum capital.
- For whom
- Trade, services, IT, logistics.
- Advantage
- Fast registration and a reduced-capital option for small companies.
- Limit
- A local address and a Latvian accountant are required.
A company with substantial share capital and a board structure.
- For whom
- Larger businesses and structures raising capital.
- Advantage
- Higher standing and flexible share classes.
- Limit
- Higher capital requirement and mandatory audit in many cases.
Registration of a foreign company presence.
- For whom
- An existing group entering the EU market.
- Advantage
- No new legal entity is required.
- Limit
- The parent company carries the liability.
A company needs a legal address with the owner’s consent and a Latvian accountant. Filings are made in Latvian.
Comparison
Latvia or Estonia
Two Baltic neighbours with the same tax model.
| 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.
Where to register
What shapes the structure in Latvia
The main questions are about distributions, banking and local presence.
What we check
- How often you plan to distribute profit
- Whether the profit will be reinvested in growth
- Whether a VAT number is required from day one
- Whether staff will be employed and at what salary
- Whether goods will be stored or transited
- Who will act as board member
- Which bank is prepared to work with the profile
- Whether the business has ties to the region
- How the source of capital is evidenced
- The upkeep budget for the next three years
Retained profit is untaxed, but certain payments are treated as deemed distributions. We map them so nothing arrives as a surprise.
Licensing
Activities and licences
Most business needs no licence; finance and transport do.
No licence in most cases; VAT registration is standard.
No licence required.
Authorised by the financial supervision authority.
Requires authorisation as a payment or e-money institution.
Requires operator licences and permits.
Requires authorisation from the customs authority.
What sets the licence
- Whether a licence is required
- Whether a VAT number is needed
- Whether staff will be employed
- Whether goods cross the border
- Planned turnover
- Which bank will serve the company
Prices
Three ways to launch
The scope is built from real scenarios. The amount depends on VAT and on the level of accounting support.
from $1 600
An EU entity for contracts and invoicing
1-2 weeks
Included
- 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
- A calendar of obligations for the year ahead
Government fees, paid separately
- Registry fees
Not included
- EU VAT number
- The bank account — handled as a separate stage
from $3 000
An operating business with EU settlements
3-8 weeks
Included
- 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
Government fees, paid separately
- Bank tariffs
Not included
- A guarantee that the account opens — the bank decides
by project
A company with employees and real operations
from 4 weeks
Included
- 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
- Annual support of the structure
Government fees, paid separately
- Employer contributions
- Rent
- Permit fees
Registry fees, social contributions and rent appear as separate lines in the quote.
Estimate
Preliminary quote
Seven questions about the activity, distributions, staff and banking. A preliminary budget in return.
The range is indicative: projects with payroll are priced individually.
Add-ons
Add-ons for any package
Switched on as the task requires.
Application and periodic returns.
An address with the owner’s consent and mail handling.
A Latvian accountant, monthly filings and annual accounts.
Employer registration and monthly administration.
Calculating the tax due when profit is paid out.
Selection of a bank or a payment institution.
Board, shareholder and capital changes.
Proper closure of the company.
Banking
The bank account after incorporation
Latvian banks are more open to foreign-owned companies than their Baltic neighbours, but the checks are thorough.
The activity, the counterparties, expected turnover, the connection to Latvia and the source of funds.
The corporate set, board identification, contracts and evidence of the source of funds.
With Latvian banks, and with European payment institutions for cross-border flows.
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.
Tax
Taxes in Latvia
Tax is triggered by distribution, not by earning.
Not taxed while it stays in the company.
Corporate income tax is charged when dividends are paid.
Certain expenses and payments are treated as distributions and taxed accordingly.
The standard rate applies; registration is compulsory above the turnover threshold.
Employer and employee contributions apply on top of gross salary.
Owning a foreign company creates obligations in the beneficiary country of residence.
Verified on 13 August 2026. This is not tax advice: the treatment of distributions and deemed distributions is assessed case by case.
Documents
What we need from you
The set is collected remotely; documents are translated into Latvian.
- 01Passport with a certified copy
- 02Proof of residential address
- 03Specimen signature
- 04Description of the planned activity
- 05Evidence of the source of funds
Any genuine link to Latvia — a client, a warehouse, an employee — materially improves the banking outcome.
Annual administration
What we handle every year
Upkeep is low, and the reporting is monthly.
Renewed annually.
Maintained by a Latvian accountant.
Filed where there are salaries or distributions.
Filed monthly where the company is registered.
Prepared and filed after the financial year ends.
Calculated and paid when dividends are declared.
Filed and paid monthly where staff are employed.
Periodic requests from the bank.
Cost of ownership
The cost of the company over three years
A company is not a one-off payment for incorporation: the annual items below repeat every year. We count ownership, not entry.
- Registration and corporate documents
- Legal address
- Monthly accounting
- Monthly tax returns
- VAT returns
- Annual report
- Distribution tax
- Payroll and contributions
- Bank compliance
- Legal address
- Monthly accounting
- Monthly tax returns
- VAT returns
- Annual report
- Distribution tax
- Payroll and contributions
- Bank compliance
- Legal address
- Monthly accounting
- Monthly tax returns
- VAT returns
- Annual report
- Distribution tax
- Payroll and contributions
- Bank compliance
What falls into each year depends on the corporate form, the activity and the requirements of the bank and the regulator. The three-year calculation comes together with the incorporation quote — before the engagement.
Process
How the work runs
Timelines are split by who is responsible.
Activity, distributions, VAT, banking.
One meetingWe fix the scope of work and the amount.
1 dayCollection of the set, notarisation and translation.
3-7 daysDepositing capital and filing with the registry.
3-7 daysApplication and issue of the EU number.
1-3 weeksBank file, the meeting and account opening.
The bank sets the timingThe outcome is an EU company with the distributed profit model: full documents, a VAT number, an account and a Latvian accountant in place.
Scenarios
A company for a specific task
The structure follows the client task and the banking model, not the name of the jurisdiction.
BusinessThe customers are EU companies; an EU counterparty and VAT are required.
DirectionAn operating company in the EU with a VAT number and reporting.
BankingAn EU bank looks at contracts, turnover and presence.
BusinessDevelopment, consulting and digital work for European clients.
DirectionA company with the relevant activity and local accounting.
BankingCustomer contracts and payment providers are required.
BusinessSupplies of goods between EU countries.
DirectionA company with VAT and VIES registration.
BankingThe bank checks the supply chain and the counterparties.
BusinessHolding shares in EU companies and distributing profit.
DirectionA holding structure set up with the directives and tax treaties in mind.
BankingAn account for dividends and intra-group settlements.
A scenario does not assign a corporate form automatically: the actual form, licence and bank are checked against the current requirements for your activity.
Why BRIDGES
Who runs the incorporation and what we answer for
The difference shows in how the work is run, not in the promises.
Zero applies to retained profit. Distributions and deemed distributions are taxed.
Certain expenses trigger tax. We identify them before they appear in the return.
Filings are in Latvian and monthly; the accountant is part of the package.
We know what the banks look for after the sector reforms.
Address, accounting, VAT and payroll — three years ahead.
Accounts, returns and changes stay with us.
FAQ
Questions and answers
Tax is not charged on profit that stays in the company. It arises when the profit is distributed.
Certain expenses and payments that the law treats as distributions and taxes accordingly.
Three to seven days with the registry once the translated documents are ready.
No, but a legal address with the owner’s consent and a Latvian accountant are required.
Easier than in Estonia for a real business, but shell structures are refused.
Yes, usually within one to three weeks of incorporation.
Only above the statutory size thresholds.
Yes, which is why a local accountant is part of the service.
Calculation
Get the structure and a full quote before incorporation
Tell us what the company will do and how often you plan to take profit out. We will model the tax, assess the banking odds and prepare the launch and upkeep budget.
The structure, budget and scope are fixed after the business and the owners are reviewed. Account opening and registration decisions are taken by banks and state authorities.