Latvia is a small, open EU economy with fast online public services, a euro currency and a straightforward company law. This overview walks through the usual steps for founding a business. Rules change, so always confirm details with the Register of Enterprises, the State Revenue Service or the Investment and Development Agency of Latvia (LIAA).
1. Choose a legal form
Most founders choose an SIA (limited liability company). Read our guide to Latvian company types to compare options.
2. Choose a name and address
The name must be distinguishable from existing companies and may need to contain Latvian-language elements. You need a legal address in Latvia; consent of the property owner is usually required.
3. Prepare documents and register
Registration can be done online through the Latvia.gov.lv portal with an eID or e-signature, or in person. You will typically need a founding decision, articles of association, information on board members and beneficial owners, and proof of paid-up share capital.
4. Register for taxes
After registration the company is entered in the taxpayer register. Register for VAT when required or when it benefits your business. Latvia's corporate income tax model taxes distributed profits rather than retained earnings, which can favour reinvestment.
5. Hire staff and stay compliant
Employees must be registered with the State Revenue Service before they start work. Companies file annual reports, which become public through the Register of Enterprises.
Which sectors are growing?
Thousands of new companies are registered every year. In this directory, for example, the IT, software and telecoms sector already counts 5,320 active companies. Explore the economy by industry to see where activity is concentrated.