Register a company in Latvia

Yes. With EU e-signatures or an apostilled power of attorney, incorporation, Register of Enterprises filing and tax registration can all be handled remotely. EMIs usually onboard by video, while Latvian banks additionally assess the company’s real substance.

Turnkey company registration in Latvia starts from €900, including register fees and the registered address for the first year. Packages with an account start from €2,800, while annual renewal with basic accounting starts from €1,400.

Corporate tax applies only when profits leave the company. Retained and reinvested earnings are taxed at 0%, while distributions are taxed at 20% on the 20/80 basis. For most shareholders, that becomes the final Latvian tax.

The tax model is similar, but the rates and operating environments differ. Estonia applies 22/78 and combines it with e-Residency and a highly developed digital state. Latvia keeps 20/80, making each distribution cheaper, although the administration is more traditional.

It is a reduced-capital SIA available to individual founders. Capital can start from €1, with part of the profits reserved until the standard €2,800 capital is reached. Limited liability and the same corporate-tax model still apply.

Until 2018 Riga was a major regional non-resident banking hub. The ABLV collapse and sector cleanup ended that model. Today Swedbank, SEB and Citadele are more conservative and focus on genuine business activity and economic substance.

There are two tracks. EMIs and fintechs can open euro accounts within days and cover most operating needs. Latvian banks come in where the company can demonstrate local clients, staff, an office or other meaningful economic connections.

Skilled salaries remain noticeably below Western European levels, employer contributions are around 23.6%, and personal income tax starts at 25.5% and rises to 33% on higher income. Riga’s talent pool supports IT, logistics and multilingual operations.

Yes, particularly for groups with Baltic operations: 0% applies while profits and qualifying participations remain inside the company, and most shareholders face no second Latvian withholding layer after distribution. Latvia has less branding than Estonia and a smaller treaty network than the Netherlands, but the arithmetic can be straightforward.

The Register usually processes a complete application within 2-5 business days. VAT registration can add several more days where required. An EMI account may be active within a week, while Latvian bank onboarding usually takes 1-3 weeks where sufficient substance exists.