Latvia company registration: forming a SIA

Other forms rarely fit foreign founders. The joint-stock AS allows public share offers and needs EUR 25,000 of capital. A branch leaves the foreign parent liable. Unlike a sole proprietorship, this business structure offers standard or reduced-capital SIA. The reduced form starts below the standard minimum share capital, but only while every shareholder is a natural person, five at most, every board member is a shareholder and each holds shares in only one such company, so a corporate shareholder rules it out. At least 25% of each year's profit goes to a reserve, a condition that lapses means reaching the standard minimum within three months, and on insolvency the shareholders cover the gap to that minimum.

The Register records who stands behind a company, not only that it exists. The application names the beneficial owners, the people who own or control the company, and changes go back to the Register within 14 days; the bank runs an anti-money-laundering and know-your-customer review of non-resident owners. Where a company holds the shares, both questions pass through it to the people behind it, so a corporate shareholder brings a larger file. Signatures decide how the papers travel: the Register's portal accepts only an EU qualified e-signature, so most other founders sign before a notary and a representative files under a power of attorney, and public documents from outside the EU, EEA, UK or Switzerland need an apostille or legalisation.

The legal address gates the filing: the Register will not accept an application without it. What the Register receives is the board's notice of the address, its cadastral designation and a confirmation of a lawful basis such as a lease or the owner's consent, which the company must have but does not file. The address must also stay valid for as long as the company exists, so a fixed-term arrangement needs renewing before it lapses. Two conditions sit outside this list: the share capital has to be in a payment account in the company's name first, and a state fee sent by bank transfer has to be paid at least two working days before the application.

Earning profit does not trigger corporate income tax in Latvia; paying it out, or doing something the law treats as a payout, does. The tax is charged on the payment grossed up by dividing by 0.8, so it costs 25% of the net dividend, and from 2026 a company owned only by individuals may opt for a lower-rate regime with personal income tax withheld on the dividend instead. The return follows the same logic: a month with nothing taxable needs none, except the last month of the financial year, which is always filed. Registration makes the company a taxpayer automatically, but VAT registration is a separate step, mandatory once taxable sales pass EUR 50,000 in a calendar year.