What documents are needed for a company formation in Latvia

This article guides you through the necessary documents and procedures required for company formation in Latvia, focusing mainly on the most common form of legal entity: the SIA (Sabiedrība ar Ierobežotu Atbildību), which is the Latvian equivalent of a limited liability company.

1. Choosing the right legal form

Before diving into the documents, it’s essential to determine what type of company you want to register. The most common types are:

  • SIA (Limited Liability Company) – Suitable for small to medium enterprises.

  • AS (Joint-Stock Company) – More appropriate for larger businesses.

  • Individual Merchant (IK) – For sole proprietors.

  • Branch or Representative Office – For foreign companies operating in Latvia.

This article will focus primarily on the SIA, which is the most popular choice for both local and foreign entrepreneurs.

2. Required documents for registering SIA in Latvia

To register an SIA, you’ll need to prepare and submit a set of legal documents to the Latvian Register of Enterprises (Latvijas Republikas Uzņēmumu reģistrs). The list includes the following:

a. Application Form (Form KR4)

This is the official application for company registration. It includes:

  • The proposed name of the company.

  • Legal address in Latvia.

  • Information about the founders (shareholders) and board members.

  • Share capital details.

This form must be signed by all founders or their authorized representatives.

b. Articles of Association (Statūti)

This is one of the most critical documents, outlining the internal governance rules of the company. It includes:

  • Company name.

  • Business objectives.

  • Share capital structure.

  • Rights and obligations of shareholders.

  • Procedures for profit distribution, meetings, and decision-making.

The articles must be signed by all founders and can be prepared either in Latvian or in a bilingual format if foreign founders are involved.

c. Founders’ decision or agreement

Depending on whether the company has a single founder or multiple:

  • Decision of the sole founder (for single-founder SIA).

  • Founders’ agreement (for multiple founders).

This document must specify:

  • The decision to establish the company.

  • Appointment of the board.

  • Approval of the Articles of Association.

  • Allocation of shares.

d. Confirmation of the legal address

The company must have a legal address in Latvia. To prove this, you need:

  • A signed consent letter from the property owner.

  • A recent land registry extract or ownership document.

The address must be valid, and the property owner must authorize its use as a company registered address.

e. Proof of payment of the share capital

The minimum share capital for an SIA is EUR 2800. However, there is a micro-company option (with one to five founders who are also board members) where the capital can be as low as EUR 1.

Proof of share capital payment can include:

  • A bank statement showing the deposited capital in a temporary bank account.

  • A cash deposit statement (for companies opting for the simplified process under certain conditions).

f. Board members’ consent and declaration

All appointed board members must submit a declaration stating:

  • Their consent to be appointed as members of the board.

  • Confirmation that they meet the legal requirements and have not been prohibited from occupying such positions in Latvia or other jurisdictions.

g. Proof of payment of the state fee

To register a company, a state fee must be paid to the Enterprise Register. The amount typically ranges from:

  • EUR 20 – EUR 150, depending on the type of service (standard or expedited).

  • Proof of payment (e.g., a bank transfer receipt) must be submitted along with other documents.

  • 3. Additional Documents for Foreign Founders

If the founders or board members are foreign nationals, some additional documents may be necessary:

a. Passport Copies

A certified copy of each foreign founder’s or board member’s passport or ID card must be included.

b. Apostille and Translation

If documents (e.g., power of attorney, identity documents, etc.) are issued outside Latvia, they may need:

  • An apostille (for countries in the Hague Convention).

  • A certified translation into Latvian by a sworn translator.

c. Power of Attorney

If a legal representative or lawyer is submitting the application on behalf of the founders, a notarized power of attorney is required.

4. Submitting the documents

The application and accompanying documents can be submitted to the Latvian Enterprise Register either:

  • In person (at their offices).

  • By mail (registered post).

  • Online (using the e-signature system for Latvian residents or via the eParaksts tool).

Electronic submission is the fastest and often preferred method, especially for those with a Latvian eID.

5. Timeframe for company registration

  • Standard registration: Usually completed within 3–5 business days.

  • Expedited registration: Available for an additional fee and processed within 1 business day.

6. Post-registration steps

After the company is officially registered, the following steps are typically required:

  • Opening a permanent bank account (transferring the share capital from the temporary to the main account).

  • Registering for VAT (if applicable).

  • Hiring employees and registering with the State Revenue Service (VID).

  • Obtaining necessary licenses or permits (depending on your business type).

7. Using a local service provider

Many entrepreneurs, especially foreign investors, prefer using local legal firms or business service providers to handle the process. These firms can:

  • Prepare all required documentation.

  • Provide a legal address.

  • Act as a representative during registration.

  • Offer accounting and tax consultation services.

This approach can save time and ensure compliance with local laws, especially for non-Latvian speakers.

Conclusion

Setting up a company in Latvia is a manageable and cost-effective process, but it hinges on having the right documentation in place. From application forms and legal address proof to capital deposit confirmations and board declarations, each document plays a crucial role in a successful registration.

By understanding the document requirements and working with reliable partners or legal advisors, you can confidently take the first steps toward establishing your business in one of the Baltics’ most promising markets.

If you’re ready to start your business in Latvia, thorough preparation and attention to documentation are the keys to a smooth and successful company formation.