How to know when it’s time to register a company in Latvia? What about taxes? Please help!
How We Will Help You?
We will register your company in Latvia without the usual hassle and prepare all the required paperwork that you just need to e-sign or certify (Apostille) at a Notary office.
In addition to that we will consult you about:
✅ Types of incorporation in Latvia and which one to choose for your company
✅ VAT number registration
✅ Taxes and how to optimize taxes for your company
✅ Opening a legitimate company bank account in Latvia
✅ Submitting paperwork online using a secure e-ID e-signature
We have saved entrepreneurs from all over the world hundreds of hours of time so that they could do business, not paperwork.
Frequently Asked Questions
What is the corporate income tax rate in Latvia?
Starting from 2018, the corporate income tax rate in Latvia is 0%. Your company will not pay any tax on profit if it does not distribute dividends. Effective dividend tax is 20%.
A simple example:
– €150’000 Expenses
/ €50’000 Gross Profit, out of which:
€ 30’000 Reinvested (Left in the company)
€ 20’000 Paid to shareholders as Dividends
– €4’000 Income Tax (0% * €30’000 – 20% * €20’000)
Net Dividends to Shareholders: €16’000
What is the microenterprise tax regime in Latvia and should I use it?
You can choose to enter the microenterprise tax regime and pay a simple 15% tax on revenue (not profit) until €40’000 revenue a year. After paying the microenterprise tax, you are able to pay up to 5 employees of the company a salary until €720/month/employee without paying any additional taxes. You can pay more than €720/month with dividends, which are taxed separately.
Microenterprise tax regime is suggested if your company is selling services and forecasts an annual revenue of less than €40’000. Live chat with us or fill the Contact form if you have any additional questions about the microenterprise tax regime!
N. B. Microenterprise tax paying companies do not pay additional corporate income tax in Latvia.
What is the minimum amount of equity capital required for registering a company in Latvia?
The minimum amount of equity capital required is just €1 if you’re registering the company as a private person, or €2’800 if there’s a legal entity as the shareholder or you have already registered a company in Latvia with equity capital of less than €2800. Please take into account that the liability of the company is still €2’800 even if you’re registering a company in Latvia with less than €2’800 equity capital.
N. B. A successfully registered company in Latvia does not automatically grant you a working VISA in the Schengen. Conditions apply. Please Contact us to learn more.
How large are the State service fees in Latvia?
State service fees are €34.23 if you’re registering a company with less than €2800 equity capital, or €177.03 if you’re registering a company with €2800 (or more) equity capital.
How long does it take to register a company in Latvia?
If you are the only founder, it takes 1.5 working days to register a company in Latvia (1.5 working days after submitting all the necessary paperwork to the Register of Enterprises of Latvia).
If you are not the only founder, your company is up and running within 3.5 working days. The founders can choose the escalated process of company registration and have the company registered in Latvia within 1.5 working days by paying three times the normal State service fees.
Does my Latvian company need a VAT number from day one?
Not necessarily. You are obliged to register a VAT number in Latvia if your company’s revenue is more than €40’000 in a 12 month period or if you’re selling services to legal entities that have a foreign VAT number.
Didn’t find the question you were looking for?
Davis has registered more than 87 (and counting) new companies in Latvia, and make changes to established companies, and the number is increasing day by day. Previously Davis was the Managing Director of TechHub Riga – the centre of technology startup community in Latvia.
Certified Tax Accountant
Dzeina is a certified tax accountant in Latvia and helps dozens of entrepreneurs comply with EU accounting laws. Previously, Dzeina helped large companies provide financial records and managed internal accounting controls.
Davis helped me register my SIA company, and within 3 days I was up and running. Davis navigated the registration process for me not only because of my limited Latvian but also because he knew of all the tips and tricks to utilize the electronic shortcuts. The whole process took place from the comfort of the sofa, with coffee in hand! I can highly recommend Davis to help you with this process!
Prior to consulting with Davis, we thought that registering a company in Latvia is a very complicated process that required a lot of paperwork and signatures from the lawyers. Davis showed us how to register a SIA via the internet using e-signatures. It was fast, easy and fun! Thanks to him, I have helped several other people in the company registration matters.
An ever-increasing stream of project deadlines often leaves consultants with ridiculously short windows of time to formally register a company. Davis assisted me with a critical project where I had to register a company within a couple of days. It would have been a lost cause if not for Davis’s deep insight into how the system works and his focused and professional work ethic and prompt action plan. I highly recommend Davis for anyone looking to register a business here in Latvia!
We’ve got you covered.
12-month legal address contract: add €300. Not necessary if you already have a legal address permission secured.
VAT number registration: add €150. Required for sales of international services, sales of international goods above €10’000/12 months or above all sales above €40’000/12 months.
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