Latvian company formation

Company name

The “name” or “firm” refers to the merchant’s registered name in the Commercial Register, which is used in business operations, transactions, and official documentation.

Requirements for choosing a name:

• It must include a reference to the type of merchant—limited liability company—or the abbreviation SIA, placed either at the beginning or end of the name.
  The name must use Latvian or Latin alphabet characters.
• Numbers may be included.
• Common punctuation marks (e.g., periods, commas, colons, quotation marks) are allowed.
• The following symbols are not allowed: &, @, %, +, =, or any other special characters.
• The name must not contain references to state or municipal institutions, nor use the words “State” or “local government”.
• The phrases “Republic of Latvia” or any foreign language equivalents are prohibited.
• The name must not misrepresent the business form (e.g., using AS, etc. if not applicable).
• It must not include inappropriate or ambiguous language, or anything that violates public decency.
• If the name includes a geographic location (like a municipality or town), it must not exactly match that location’s name. Add distinguishing words, letters, or numbers.
• The name cannot match any existing registered trademark or part of one. Check with the Patent Office for registered trademarks.
  It must not duplicate the name of any business already registered or pending registration in the Enterprise Register. Differences in punctuation, spacing, or capitalization are not enough to distinguish names.

Important: Review the name carefully before submission. All submitted documents must display the name exactly as registered.

Legal address

For company formation in Latvia the legal address is required. The registered office of a company is the official address listed in the Commercial Register, used for all formal communication. It is the responsibility of the company’s management board to ensure that all correspondence sent to this address is properly received.

Requirements for registering the official address:

• The registered office must match the address recorded in the State Address Register. This can be verified using the kadastrs.lv Information System.
• The address must refer to a specific building or unit (such as an apartment); it cannot be solely a land property.
• If the property includes multiple units, the exact unit number for the registered office must be specified.
• The application must confirm that the company is accessible at the address and has a legal right to operate there.
• If the building does not have assigned unit numbers, the application must include the cadastre designation of the building.
• If the office is located in a numbered room within the building, the cadastre designation of that specific room must be provided.
• If the building contains both numbered and unnumbered spaces, and the office is in an unnumbered non-residential area, the cadastre designation of that specific room must be stated.

Details about the cadastre designation of a property (such as a building, apartment, or premises) can be found in the Cadastre Information System at www.kadastrs.lv.

Draft required company registration documents

The required docuents for the company in Latvia registration are as follows:

1. Registration Application Form (Form KR4)

• The foundational document to initiate the registration process with the Latvian Enterprise Register (Commercial).

• Must include signatures that are either notarized or electronically signed using a Qualified Electronic Signature (QES/e-signature).

2. Decision on Establishment / Memorandum of Association

• If there is a single founder, a simple “decision on establishment” is sufficient.

• If multiple founders, a formal establishment agreement is needed.

3. Articles of Association (Statutes / Charter)

• The charter outlining company rules and structure.

• Must be signed by the founder(s).

4. Proof of Share Capital Payment

• For cash contributions: a statement from a bank or financial institution confirming that the share capital has been paid into a temporary company bank account.

• For in-kind contributions: a valuation report by a certified appraiser.

5. Shareholders’ Register 

• A document listing all shareholders and their shares.

• Signatures must be notarized or electronically signed.

6. Consents to Hold Office

• Management Board: Each board member must sign a consent to take on the role (unless it’s already included in the KR4 form).

• Council (if applicable): If the company establishes a supervisory council, each of its members must also provide consent.

7. Registered Address Statement

• A statement from the management board confirming the company’s legal address and that the business can be contacted there.

• Should include the cadastral number of the premises.

• If the property is not owned by the company/founders, a consent from the property owner must also be included.

8. Proof of State Fee and Publication Payment

• Registration incurs a state duty fee, and companies must also pay a publication fee for announcing the registration in the official Gazette (Latvijas Vēstnesis).

9. Optional: VAT Registration

• If desired, the company can simultaneously apply to be registered as a VAT payer with the State Revenue Service (SRS).

Choose the preferred signing method

1. For Latvian Residents

Latvian residents can use local digital signature tools or traditional notarization.

•  Qualified Electronic Signature (QES / e-signature) is provided by Latvian state services (e.g., eParaksts mobile, ID card with a chip). It is fully recognized by the Enterprise Register  and allows documents to be signed and submitted entirely online through the UR portal.
• In-person notarization (less common now). Resident founders can also sign documents before a Latvian notary, who then certifies the signature.

2. For EU/EEA Non-Residents

• EU eIDAS-compliant Qualified Electronic Signature. If the non-resident has a QES issued in another EU/EEA country, it is legally recognized in Latvia.Example: Estonian Smart-ID (QES version), Lithuanian Mobile-ID, or EU-wide QES providers.

• Notarization in home country + Apostille

  • If the non-resident cannot use a recognized QES, documents must be signed before a notary in their country.

  • The notary-certified documents then need an apostille (or consular legalization, if the country is not part of the Hague Apostille Convention).

  • After apostille/legalization, the documents must be translated into Latvian by a certified translator.

3. For Non-EU/EEA Non-Residents

Here the process is stricter, since their e-signatures are usually not recognized automatically.

• Option A: Apostilled / Legalized Notarized Documents

  • Sign documents before a notary in the home country.

  • Have them apostilled (if the country is in the Hague Apostille Convention) or legalized via consulate.

  • Translate into Latvian (sworn translation).

  • Submit to the Enterprise Register (physically or scanned/uploaded).

• Option B: Obtain a Latvian e-Signature

  • Non-residents can apply for a Latvian eID card (if eligible, e.g., through residence permit) or use commercial EU-recognized QES providers.

  • Once issued, this allows them to sign and register fully online.

4. Special Case: Corporate Founders (Foreign Companies)

If a foreign company is a shareholder:

• The company documents (certificate of incorporation, articles, power of attorney, etc.) must be notarized, apostilled/legalized, and translated into Latvian.

• A legal representative of the company (often via power of attorney) signs the KR4 application.

Open a temporary bank account

A temporary bank account is required for depositing the initial share capital of a company (most often for an SIA – limited liability company). Proof of this deposit must be submitted to the Latvian Enterprise Register (UR) to complete incorporation.

1. Choose a Bank.

Temporary accounts can be opened with Latvian commercial banks (e.g., Swedbank, SEB, Luminor, Citadele), some banks require prior compliance checks (KYC – Know Your Customer).

1. Submit Documentation:

   • Draft Articles of Association / Founding Decision (to prove intent to establish the company).

   • Identification documents of the founder(s) (passport/ID card).

   • Proof of address (sometimes requested).

   • If a foreign founder: notarized/apostilled company documents and power of attorney (if representative is opening the account).

2. Deposit Share Capital

   • Minimum share capital for a standard SIA: €2,800 (can be less for a “small capital” SIA).

   • Bank issues a statement/confirmation of deposit. This must be submitted to the Enterprise Register.

3. Use During Incorporation

   • The account is blocked until company registration is finalized (only deposits possible).

   • After the company is officially registered, the account becomes a regular business account, allowing full operations.

4. Timeline

   • Opening a temporary account usually takes 1–3 business days, depending on bank compliance checks.

   • Some banks may take longer for non-resident founders due to AML (anti-money laundering) checks.

Some banks are stricter with non-EU/EEA founders and may require additional due diligence. For faster processing, ensure all documents are properly notarized/apostilled and translated into Latvian (if applicable).

Share capital

Share capital refers to the monetary and non-monetary assets, valued in euros, that are invested into a capital company to initiate and sustain its operations.

Key Requirements:

• The share capital must be denominated in euros.
• The minimum nominal value of a share is one cent.
• The minimum required share capital is EUR 2,800.
• Share capital must be contributed by the founders, either in cash or as a non-cash (in-kind) contribution.
• The full amount of the share capital must be paid before submitting the company registration application.

Cash Contributions:

• Founders must open a bank account in the name of the company being established.
• They must deposit the capital into this account and obtain a statement from the bank addressed to the Commercial Register Authority, or another official document from the bank confirming the paid-up capital.
• If the contribution is made through a payment service provider, the same steps apply—opening an account in the company’s name, making the deposit, and receiving confirmation from the provider.

Non-Cash (In-Kind) Contributions:

• If any part of the equity capital is provided as a non-cash contribution, its value must be assessed in accordance with Section 154 of the Commercial Law.
• The contribution must be evaluated by a certified evaluator listed in the official register. The evaluator must not be a relative of the property owner up to the third degree, a spouse, or an in-law up to the second degree, nor have any vested interest in the property.

Simplified Valuation for Small Contributions:

• If, when forming a limited liability company, the total value of non-cash contributions does not exceed EUR 5,700 and these contributions make up less than half of the company’s share capital, the founders themselves may assess the value.
• In such cases, all founders must sign the valuation opinion.

How to submit the documents to the Enterprise Register

Documents for company registration in Latvia may be submitted to the Enterprise Register in several ways.

The most efficient method is electronic submission through the Enterprise Register’s e-service portal or by email. In this case, all documents must be signed with a Qualified Electronic Signature (QES). Latvian residents typically use the national eParaksts mobile or ID card, while EU residents can use any eIDAS-recognized electronic signature, such as Estonian Smart-ID QES or Lithuanian Mobile-ID. This method is the fastest and most cost-effective, as it avoids notarization and courier costs, with processing usually completed within one to three business days.

Documents may also be submitted by post or courier to the Enterprise Register office. When using this method, documents must contain notarized signatures if they are not electronically signed. Foreign documents require an apostille or legalization, as well as a certified translation into Latvian. Postal submissions naturally take longer due to delivery times, although courier services are recommended for international submissions to ensure safety and speed.

Another option is in-person submission. Paper documents can be delivered directly to the Enterprise Register’s central office in Riga. This requires original signed documents, with notarization if applicable, and the applicant or an authorized representative must present identification. The advantage of this method is immediate confirmation of receipt, but it requires physical presence in Latvia.

For non-residents who cannot use Latvian electronic signature tools, a practical solution is submission through a Latvian notary The notary can prepare and electronically submit documents directly to the Enterprise Register, ensuring that all formalities such as translation, apostille, and certification are properly completed. This option is reliable but comes with additional costs.

Finally, it is possible to submit documents via an authorized representative, such as a lawyer, notary, or business service provider. In this case, the founders grant a power of attorney, which must be notarized and apostilled or legalized if issued abroad. The representative may then choose the most suitable method of submission—electronically, by post, or in person. This solution is particularly convenient for foreign founders who wish to avoid traveling to Latvia, especially when the shareholder is a foreign company.

In short, Latvian residents usually opt for electronic submission with eParaksts, EU and EEA residents can use their own qualified electronic signature under eIDAS, and non-EU residents most often proceed with notarized and apostilled documents by post, courier, or via a local authorized representative.

Transform the termporary account into permanent one

The process is as follows:

1. Obtain the Registration Certificate
   After the Enterprise Register approves the incorporation, the company receives an official registration certificate and is entered into the Commercial Register.

2. Provide Documents to the Bank
   The founder or company representative must present the following to the bank:

   • The Enterprise Register certificate (confirmation of incorporation).

   • A copy of the Articles of Association or Memorandum of Association.

   • Identification documents of the company’s legal representatives (board members).

   • In some cases, proof of address or additional KYC/AML documentation (especially if non-resident shareholders are involved).

3. Bank Compliance Review
   The bank performs a standard compliance check on the new company. This may involve questions about the intended business activity, source of funds, and expected transactions. For non-resident founders or businesses in higher-risk industries, the review may be more detailed.

4. Activation of the Account
   After approval, the temporary account is converted into a fully operational business current account. The company can then make and receive payments, set up internet banking, order debit cards, and use additional banking services.

5. Timeframe
   The conversion usually takes a few business days, though it may be longer if the bank requires additional due diligence, especially for non-resident founders.