COMPANY REGISTER SERVICES from 10€!

A small-cap SIA does not need a large cash investment, €1.00 is enough. Restriction: one person can own only one such company.

Full capital companies (2800EUR and more) have more credibility in the business environment and the possibility of extraordinary dividend payments.
One person may own several such companies.

State fee for registration of a small capital LLC - 20EUR
State fee for registration of a limited liability company (share capital 2800EUR and more) - 75EUR

Finding the perfect name for your business might not be so difficult. It doesn't have to match the names of your products, services or brands. However, there are some limitations to consider:

• may not include the names of state or local government bodies (institutions) or the word "state" or "local government"
  cannot include the words "Republic of Latvia" and their translation into a foreign language
• cannot contain misleading information about the form of business, such as "AS", "IC", etc.
• the use of names containing obscenities and ambiguous terms (contrary to good manners) is not permitted
• cannot coincide with an already registered trade mark or part thereof. Check the Patent Office's registered trade mark search engine
• cannot be the same as the name of any entity already registered or applied for registration with the Register of Enterprises.
• Punctuation, spaces and the use of capital or small letters are not sufficient to distinguish one name from another.

When planning your business development and digital presence, it is worth looking into whether domain names such as .lv or .eu are freely available. You can check for Latvian (.lv) domain names on the NIC website, and for European and World level domain names on the InstantDomainSearch domain search platform.

Every company is obliged to register an address where the board of directors can be reached.

It's easiest to register a registered office in a property you own, a house or an apartment.

A legal address, perhaps on real estate owned by friends or family. In this case, you will need the property owner's consent to register your company's registered office.

Office or place of business. When renting out premises, landlords usually agree to register a legal address.

A virtual office or address where only correspondence is received.

The share capital of a small-capital limited liability company is payable only by a cash contribution paid by the founders.

When registering a limited liability company with share capital of 2800EUR or more, the share capital can be paid as follows:

• Cash contribution
• A financial contribution. The valuation and opinion of the investment shall be given by a person on the list of valuers of the investment.
• Cash and in-kind contribution (49%). In the case of the establishment of a limited liability company, where the total value of the pecuniary contribution does not exceed EUR 5,700 and the pecuniary contribution in total is less than half of the share capital of the company, the pecuniary contribution may be valued and an opinion given by the founders.

The share capital is payable in full by the time of application. The cash contribution must be paid into a suspense account.

The member or members pay the amount of the share capital into a suspense account. If there are several members, each member must pay in his or her share of the share capital.

Proof of the share capital contribution will have to be submitted to the Company Register together with the LLC registration documents. This can be a payment order or a statement.

A suspense account is a compulsory requirement, except in the case where the share capital is paid up solely by means of a contribution in kind valued by a certified valuer of the Companies Register.

You can open a temporary account with a bank such as Citadele, SEB, Swedbank or a fintech company such as Paysera or Revolut.

It's much more convenient to do it remotely. Fintech companies offer.

Please note that when opening a temporary account, you will need the LLC's incorporation documents, a memorandum of association or an agreement. This means that the LLC registration documents must be in place.

EDS - Electronic Declaration System of the State Revenue Service.

A profile is automatically created for a company in EDS when it is registered in the commercial register.

You can log in to the EDS via internet banking or e-signature tools.

You must register the type or types of business activity of the LLC with the State Revenue Service within one month from the date of registration. The type of activity must be registered in the electronic declaration system of the SRS EDS. The type of activity must comply with the NACE classification.

Check whether the type of business activity you are planning requires a licence or permit. You may need to obtain the appropriate licence or permit before actually starting your business.

UR Online offers the EXPERT Plus service:

• Determining the type of activity
• Declaring the type of activity to the SRS
• Registration of the subject of the NILLFTN Law (if applicable)
• Registration of a structural unit

If you intend to provide services and sell goods in Latvia and the EU, and your income does not exceed €50,000 per year, you do not have to register for VAT.

If you register for VAT, you will have to pay 21% VAT on your services or goods.

Requirements for compulsory registration in the VAT register:

• The total value of supplies of goods and services subject to VAT during the preceding 12 months has reached or exceeded EUR 50 000 (excluding the value of fixed assets and intangible investments supplied if such supplies are made once in a 12-month period).
• The value of purchases of goods in the EU, excluding VAT, in the current calendar year exceeds €10,000.
• in other cases

In order to register for VAT, an application must be submitted to the SRS EDS system or to the Register of Enterprises at the same time as the application for registration of a limited liability company.

The State Revenue Service shall examine the application within 14 days.

The Accounting Act provides that the books may be kept by the director of the company if he is the sole member of the board of directors and the sole shareholder.

In a company with two or more members of the board of directors, the accounts may be kept by a member of the board of directors by written agreement with the company. The person must have appropriate qualifications as an accountant, such as a certificate, diploma, experience or appropriate knowledge in the field of accounting.

Many companies outsource their bookkeeping, but this is an additional cost.

The law on occupational safety and health states that an employer (if you have employees) must organise and ensure the functioning of the occupational safety and health system in your company.

If the company has fewer than 5 employees, the employer may not involve the competent authority and manage everything himself.

More information on the website of the National Labour Inspectorate.

AML/CFT is the law on the prevention of money laundering and the financing of terrorism and proliferation.

The law requires the subject to register with the Financial Intelligence Receiving and Analysis System and to develop an internal control and sanctions monitoring system for AML/CFT.

The subjects of the AML/CFT Law:

Virtual currency exchange services
Outsourced accountants
Sale of precious metals, precious stones and articles thereof
Issue of guarantees and other instruments of obligation
Providers of services for the establishment and operation of a legal entity
Advising clients on financial matters
Lending, including financial leasing, where the provision of services is not subject to licensing
Independent legal service providers
Tax consultants
Persons providing collection services
Intermediaries in real estate transactions
Sale of vehicles

Members of the company's board of directors do not have to have an employment contract and pay themselves a salary if the following conditions are met:

• the company has a sole shareholder and a member of the management board
• the monthly turnover of the company does not exceed 5 minimum monthly salaries of €3,700. From 2026 this threshold will be 3900EUR!

If the sole member of the limited liability company and the member of the board of directors himself provides a service and produces and sells goods in small quantities, he can pay himself dividends once a year or extraordinary dividends every 3 months.

Extraordinary dividends are prohibited in a small-capital LLC.

The corporation tax (CIT) on dividend payments is 20%.

According to For the Commercial Code for a limited liability company, dividends are determined and paid in accordance with a resolution of the members' meeting. The members of the company may decide on the payment of dividends every 3 months after the payment of the previous dividend. It should be mentioned that the LLC must not have tax debts!

The payment of extraordinary dividends could be a significant relief for service providers when they are not required to pay salaries under the law.

The corporation tax (CIT) on dividend payments is 20%.