is the Latvian equivalent of the limited liability company, a business entity that has its share capital divided into shares and in which each shareholder is only liable according to the amount he’s invested in the company.
Foreign investors who wish to create an SIA (LTD) company in Latvia need to follow a few steps for the incorporation of the company and must observe the requirements for a minimum share capital and for the management of the company.
Below are the main steps needed to open an SIA company in Latvia:
Draw up the company documents: the company’s Articles of Association or constitutive documents that state the company name, scope, registered address, members and their details and other information.
Open a bank account: this is needed in order to deposit the share capital for the SIA; it needs to be opened at a local bank of choice.
Notarize the company documents: the founders will need to notarize the company needs; various notary fees will apply during this step.
Register the company: this is the actual registration step where all of the constitutive documents and application form are submitted with the Register of Enterprises.
This is just a brief description of the company formation steps needed to start a limited liability in Latvia. Under normal conditions, it will take approximately 4 weeks to open an SIA company in Latvia. Foreign investors who cannot be present in the country during the entire company registration procedure can appoint an agent through a power of attorney.
Our Latvia company formation agents
describe the main characteristics of the SIA company in Latvia and can assist you during the entire company formation process.
The Limited Company in Latvia
The SIA or the Latvian LLC is the most commonly used business type among local and foreign investors in the company. This business structure is typically suited to small or medium-sized companies and it must have at least one shareholder and one director. If the company has only one shareholder, he can also act as the company director.
An SIA in Latvia can be 100 percent foreign-owned, this is why this business form is preferred by foreign investors. Moreover, as its name suggests, the business structures allows investors to benefit from limited liability, only up to the amount they’ve invested in the share capital.
The SIA is a company that can be incorporated in approximately three days when the founders have duly prepared the needed documentation. Investors or foreigners not accustomed to company formation in Latvia can request special assistance from one of our agents.
Conditions for LLCs in Latvia
The limited liability company in Latvia
needs to be registered with the Register of Enterprises
before it can commence any business activities. The application for registration will include the articles of association, proof that the share capital has been deposited in a Latvian bank account and other documents proving the identity of the founders, as needed. The application is signed by all of the company founders.
The LLC also needs to be registered for VAT purposes, and a special number for VAT will be assigned upon company registration.
Our team who specializes in Latvia company formation
can help you open a limited liability company. Contact us
for more information about the company set-up process and the conditions for opening a company in the country.