Latvia Company Registration Services by Venture Overseas
Latvia company registration may seem challenging but let us guide you through it with our professional experience.
Latvia is a country in the Baltic Region of Europe and is considered a high-income advanced economy. It has an open economy and has one of the lowest tax rates in Europe. It is also logistically well-developed and has good communication infrastructure with internet speed being consistently ranked as the world’s top 10.
The World Bank’s ‘Doing Business 2020’ report also ranked Latvia at 19th place for ease of doing business in comparison to 190 different countries.
Latvia Company Registration Procedures
Latvia company registration procedures take approximately 5 days and involve a number of pre and post-registration steps.
1. Open a Bank Account and Deposit Money
Applicants need to open a bank account for depositing the initial capital. Sec. 146 of the Commercial Law requires that at least 50% of the equity capital must be signed for fully and paid-up during the Latvia company registration process. If a company has start-up capital below 2,800 EUR, there is no requirement to show proof of capital, and applicants must only certify the payment of share capital.
While most banks do not charge a fee for opening a bank account, there is still a fee (usually 10 euros) to obtain a bank statement on the payment of the share capital.
2. Visit the Register of Enterprises and the Public Notary
Various documents such as the Latvia company registration application form, consent for appointments, and a register of the shareholders must be notarized by either a notary public, by an official at the Register of Enterprises, or signed with secure electronic signature(s).
The fees are as follows:
- Verification of signatures by the official at the Register of Enterprises is EUR 9.00 per signature
- Verification of signatures by the notary public is EUR 18.78 for the first two signatures and EUR 4.70 for each additional signature
Applicants also have the option to use e-signature. Obtaining an e-signature (e.g. eParaksts eID, eParakstsLV, eParaksts card) may take up to 10 days.
The expenses for using a secure electronic signature is according to what service provider you are using:
- eParakstsLV is free of charge
- eID card is free of charge
However, the issue of an eID card will cost the following:
- EUR 14,23 (issued within 10 business days)
- EUR 28,46 (issued within 2 business days)
- For eParaksts card, the monthly subscription fee depends on the number of cards held by the legal entity
3. Register the Company at the Register of Enterprises
The following documents must be submitted for Latvia company registration:
- Company registration application form from the Registry (see step 2)
- Company charter
- Foundation agreement
- Proof of investment
- Consent to the election of the Management Board
- Notice from the Management Board in regards to the legal address of the company
- Power of Attorney in case any of the founders is signing documents via an authorized person
- Information on beneficial owners
4. Additional Procedures
Applicants have to pay a state fee of EUR 150 if their company’s capital is above EUR 2,800, or a fee of EUR 20 for companies with capital below EUR2,800. The publication fee is EUR 27.03 for companies with capital above EUR 2,800 or EUR 14.23 for companies with capital below EUR2,800. Meanwhile, an additional EUR 4.00 fee applies to applicants who submit their Latvia company registration application and accompanying documents to on-site.
You can pay the fees either in advance (while keeping proof of payment) or at the moment of submitting the documents for Latvia company registration. Applicants can also apply for registration as a VAT payer at the same time while registering their companies.
Alternatively, the Latvia company registration procedure is doable online, and documents can be submitted with the e-service. Further, documents can be signed with an e-signature, a smart card e-signature (e-signature, eID), or virtual e-signature (eParakstsLV).
According to the Annual Reports Law in Latvia, the annual report of the company should be reviewed by a sworn auditor and the appointment of an auditor is only necessary if you meet two out of three of the criteria below:
- The sum of the balance sheet amounts to EUR 400 000 – 800 000
- The net turnover amounts to EUR 800 000 – 1 600 000
- The average number of employees during the financial year amounts to 25-50
Any newly registered company in Latvia has to include information on beneficiaries in accordance with the Latvian Law on the Prevention of Money Laundering and Terrorism Financing. Submit this information during the Latvian company registration process and applicants will not be able to register their company without submitting it.
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