A foreign company wishing to do business in Latvia may do it through Latvian company or a branch office. Individual also may establish company in Latvia and perform commercial activities. There are no any restrictions for foreign owners to open company in Latvia.

main types of company in Latvia

• limited liability company (SIA)
• joint stock company (A/S)
• branch office
• representative office

main features of limited liability company (SIA)

• the most common business vehicle in Latvia
• minimum share capital is 2000 LVL (about 2800 EUR), at least half to be paid up before registration with the Commercial register and another half in the period of half in the period of half a year from registration of company. Share capital can be paid up also with property contribution. Property contribution in order of its value can be evaluate by founders themselves or there is necessary evaluation of property expert approved by Register of Enterprises of Republic of Latvia.
• minimum number of Members of the Board is one. The member of administrative institution can be any person without reference to his domicile
• state duty is 100 LVL (about 142 EUR)
• 24 LVL (about 34 EUR) for publication of record in Commercial Register in official newspaper.

main features of an joint stock company A/S

• popular form for larger companies that wish to raise public capital
• minimum share capital is AS is 25 000 LVL (about 35 572 EUR), and minimal share capital must be paid up fully in currency till submitting of registration application. Share capital can be paid up with a property contribution only after registration of the company and in order prescribed by founding agreement. In Latvia for particular stock companies depending of their type of activities there exist different requirements to minimal amount of equity capital which is necessary to be paid up before founding, for example for stock exchange stock companies it is 142 288 EUR.
• founders have to appoint the Board and Council. The member of the Board and Council can be any person without reference to his domicile. Minimal number of the Board is one and for Council- three members.
• state duty is 250 LVL (about 355 EUR)
• 24 LVL (about 34 EUR) for publication of record in Commercial Register in official newspaper.

the main features of a branch office

• the share capital is not necessary
• the owner has to appoint person who acts on behalf of the branch
• foreign-owned branch taxed at same rate as Latvian company
• reporting and audit requirements are same as for Latvian companies
• state duty is 20 LVL (about 28 EUR)
• 16 LVL (about 22 EUR) for publication of record in Commercial Register in official newspaper.

What are the main features of a representative office?

• the share capital is not necessary
• representative offices are not allowed to perform commercial activity
• the owner has to appoint person who acts on behalf of the branch
• state duty is 20 LVL (about 28 EUR).

Source: Law offices of Valters Gencs

More:

"Doing Business Guide in Latvia" by the Law Offices of Valters Gencs: http://www.gencs.lv/uploads/DBG%20021105.pdf