Limited Liability Company (LLC) is the most used business form in Latvia.
Important about company in Latvia
Share or equity capital
Minimum share capital of LLC in Latvia is 2800,00 EUR. Capital can be paid in cash or contributed in kind (property).
LLC shares can’t be sold in stock market.
Before applying for registration in the Register of Enterprises at least a half of the share capital has to be paid, the remaining part must be paid within one year’s time from the date the company has been registered in Register of Enterprises.
There is possible to register company with smaller capital – Reduced capital company or Micro-capital company. Minimum capital of such company can be just 1 eur. You can read more about it on section Micro-capital company.
Legal address of Limited Liability Company must be located only in the Republic of Latvia.
Founders and Owners of Latvian Limited Liability Company
– To register Limited Liability Company in Latvia minimum number of founders is one founder and maximum number is not set.
– Founders can be natural persons as well as legal persons.
– Founders can be residents as well as non-residents of Latvia.
The management body of Latvian company are:
– board of company – Board of directors can consist of one or more natural persons and they can be residents or non-residents of Latvia.;
– council of company (it that is made) and
– shareholders meeting
Company is represented by board members of company.
Legal status of Limited Liability Company is legal person.
The company is liable to its obligations not more than its own property. Shareholders of Latvian LLC don’t take responsibility for company obligations and reversely – company don’t take any responsibility for shareholders obligations.
Company registration in Latvia process
All company formation and registration process consists of following:
– collection of necessary information for company registration;
– preparing foundation documents for company registration;
– signing of foundation documents, also at notary;
– if necessary – opening temporary bank account, where to deposit share capital;
– payment of state fees for company formation and for publication official newspaper;
– foundation document submitting to the Register of Enterprises of the Republic of Latvia;
– company registration in the Register of Enterprises of the Republic of Latvia and receiving documents.
Documents to submit in the Register of Enterprises of the Republic of Latvia for company formation in Latvia
To register company in Latvia one must submit following documents to register of enterprises:
– Application Form for company registration;
– Agreement for establish company or Decision to form a company as sole shareholder;
– Articles of association of company;
– Bank’s reference on payment of share capital or for investment in kind – if necessary;
– Founder registry schedule of company;
– Confirmation to be a council of company (in case if the council is established);
– Confirmation to be board member of company;
– Resolution signed by board member about legal address of company;
– The real estate owner’s resolution of allowance to register the company in his address;
– Proof of payment (receipt) of state taxes for company formation;
– Proof of payment (receipt) for publication in official newspaper “Latvijas Vestnesis”
Necessary information for company registration in Latvia
To do company formation in Latvia and to prepare company registration documents we need following information:
– Name for company in Latvia;
– Legal address of company (Legal address for company in Latvia can be only in Latvia. We can provide you with legal address for company. Check section: Business support services);
– Information about founders of company;
– Information about board members of company;
– Information about share capital of company;
– business type of company;
– any other important information you wish to show.
Reports to tax office
VAT registration – If Latvian company plan to export goods, services or turnover of Latvian company during previous 12 month exceeds 50.000,00 EUR, then company is obliged to register as VAT payer in VAT register.
VAT report – there are various situations about VAT report submitting periods – every month, once in a 3 months, once in 6 month. Write to us about your situation and we will shortly explain it.
Report on salary – if there are employees in company then report of employee salaries must be submitted every month.
Annual report – company is obliged to submit annual report one time in a year.
Bank account for Latvian company
According to Latvian legislation company registered in Latvia can open bank account in any commercial bank in Latvia or in any other country. If bank account of Latvian company is opened in bank in other country then it must be reported to tax office.
So for your Latvian company you can open bank account in any Latvian commercial bank and manage it via online banking (internet-bank) and use Visa or EC/MC debit or credit card.
In some commercial banks in Latvia – it is possible to open bank account remotely on basis of Power of Attorney (POA).