Register a Company in Latvia (EU)

Starting from 2018, the effective corporate income tax rate in Latvia is 20% and is paid only when the company pays dividends to its shareholders. If the profit is reinvested (not paid out as dividends), then the corporate income tax is 0%!

A simple example:

€200’000 Revenue
– €150’000 Expenses

/ €50’000 Gross Profit, out of which:

€ 30’000 Reinvested
€ 20’000 Paid to shareholders

– €4’000 Corporate Income Tax (0% * €30’000 – 20% * €20’000)

Net Dividends to Shareholders: €16’000

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.

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.

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.

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.

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.