A comprehensive guide to company registration procedure in Latvia. Explaining the recent changes in law and assisting with company formation in Latvia.
Guide to Company Registration in Latvia in 2023-24
Are you considering expanding your business into the European Union? Latvia is a prime location for entrepreneurs and businesses looking to establish their presence in this dynamic market. EU LAW FIRM, with over 14 years of experience in business setup services in Latvia, is your trusted partner in making this process seamless and successful.
In 2023 there have been significant changes in the Latvian Commercial Law with regard to company formation.
Since July 2023, it is no longer possible to register a low-capital company without making a share-capital deposit in company’s temporary bank account. Hence, to form a company in Latvia it is now a legal requirement to open a temporary bank account and deposit minimum capital from 1 to 2799 EUR depending on the founder’s necessity.
Furthermore, there have been significant changes to the voting rights in a limited liability company, since July 2023, as per the amendments in Latvian Commercial Law, there is a possibility to implement shares without voting rights, like it was before with joint-stock companies. Shares without voting rights can be used for companies to attract investors, who wouldn’t have any voting rights in the company, in order not to jeopardize companies daily business operations, but to have the available funds for business growth.
When is Company Incorporation in Latvia Necessary?
Company incorporation in Latvia is necessary when you want to operate a legal business entity within its borders. Whether you're starting a new venture, expanding your existing business, or seeking to take advantage of Latvia's strategic location within the EU, we have the expertise to guide you through the process.
Requirements for Company Incorporation in Latvia
Latvia offers a business-friendly environment, but there are certain requirements to meet when incorporating a company. We will assist you in meeting these requirements, including:
- Business Plan: A well-structured business plan is essential for outlining your objectives and strategies.
- Registered Office: Your company must have a registered office within Latvia.
- Share Capital: Determining the appropriate share capital is crucial and may vary depending on your business type.
- Company Name: Choosing a unique and acceptable company name is a crucial step.
Types of Company Incorporation
Latvia offers several types of company incorporation, each with its own advantages and legal implications. We can help you choose the most suitable option for your specific needs, including:
· Standard Limited Liability Company in Latvia so called "SIA" (minimum share capital of EUR 2800, no turnover limitations, fast and simple registration, no limitations on board members or shareholders, temporary bank account for share capital deposit is required);
· Low-capital Limited Liability Company in Latvia (minimum share capital from EUR 1-2799, no turnover limitations, fast registration, board members must be the shareholders of the company, only private persons can be the shareholders).
· Joint Stock Company in Latvia so called "AS" (minimum share capital of EUR 35 000, must have at least 1 board member, and 3 council members (in case the company share's are publicly traded, minimum number of board members are 3 and council members 5), no turnover limitations, temporary bank account deposit is required.
Documents for Company Incorporation in Latvia
The documentation process can be intricate, but with our experienced team by your side, it becomes hassle-free. Typical documents include:
- A registration application provided by the Trade Register, duly signed before a Latvian public notary.
- The company's charter.
- Articles of Association.
- Confirmation of the share capital deposit.
- Evidence of the registered business address.
- Proof of payment for the state duty.
- Evidence of payment for the publication fee.
- Comprehensive information regarding the shareholders and directors of the Latvian company.
Apply for Company Incorporation in Latvia with EU LAW FIRM
With EU LAW FIRM, you're not just getting a service – you're gaining a dedicated partner in your European business journey. Our deep knowledge of the Latvian legal landscape, regulatory framework, and our extensive network of local contacts, will ensure your company incorporation is carried out efficiently and in full compliance with EU standards.
Make the right choice for your business expansion into Latvia. Contact EU LAW FIRM today and let us make your European business dreams a reality.