Before commencing the actual company registration, investors need to choose between one of the available types of companies in Latvia
. This is a decision based on the available capital, the number of investors and the desire to further expand the company in the future.
Investors may choose to incorporate a corporation or capital company, a partnership or start a business as a self-employed individual. Our team of Latvia company formation agents
can help you understand the particularities of each business structure and choose the business form based on your needs.
Corporations in Latvia
A corporation in Latvia is a business form that has legal capacity and identity, separate from that of its founders. The shareholders are only liable to the extent of their capital investment and they can also be non-Latvian residents.
The types of corporations in Latvia are as follows:
- the joint-stock company (JCS/AS);
- the European Company (SE).
The requirements for the incorporation of these business forms will vary in terms of minimum share capital and the management structure. Both the LLC and the JCS may be formed by one or more investors, natural or legal persons, residents or non-residents.
Our team of company formation agents in Latvia can give you complete details about the incorporation process and about the laws governing legal entities in the country.
Partnerships in Latvia
The partnership is a business structure that may be suitable for two or more investors that share similar business goals and are willing to share the profits and duties for the business. it is not a legal entity in the same manner in which a corporation is considered one, however, it may still own property and assets in its name and not that of its founders.
There are two types of partnerships in Latvia, the general partnership (PS) and the limited partnership (KS). In the general partnership all members are fully liable for the business while in the limited one, at least one member is fully liable while the other(s) are only liable to the extent of their investment.
Self-employed individuals in Latvia
Entrepreneurs can also choose to do business in Latvia as natural persons with liability for their business. These are the individual merchant and the self-employed individual. These business forms benefit from the lightest reporting requirements and do not need to be registered unless their annual turnover exceeds a certain amount.
Foreign companies can establish their presence in Latvia through a representative office or through a branch