Trusted company formation partner in Latvia

Company Formation in Latvia

0% Corporate Tax on reinvested profits

The SIA, Latvia's equivalent of a private limited company, runs on one of the most competitive tax models in Europe: 0% corporate tax on reinvested profits, only 20% when profits are distributed. Latvia means EU, Eurozone, Schengen. Fully remote formation in 3 to 5 days, with no residency or nationality requirement.

Start My Company in Latvia See the Tax Calculator

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Why look at Latvia?

In most countries, a large share of your
distributed profits goes straight to tax.

A Common Situation

Corporate tax due whether profits are distributed or kept in the company
A further layer of tax when profits are paid out as dividends
Cumulative tax and social charges can erode a large share of distributed profits
Little or no incentive to reinvest rather than distribute

In Latvia

0% corporate tax as long as profits stay in the company
20% only when profits are actually distributed
Company formed in 3 to 5 business days, 100% remote
EU, Eurozone, Schengen, OECD member

Latvia's rates are the official ones (0%/20%). Run the numbers with your own figures in the calculator below ↓

Our Services

Everything you need to
form and run your company in Latvia

From registering your SIA to monthly bookkeeping, we handle the entire process from our Riga office.

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Latvian LLC Formation

Official registration with the Latvian Enterprise Register (UR), articles of association drafted, capital from €1. Entirely remote.

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Accounting & Tax Optimisation

Monthly bookkeeping, VID filings, and support making the most of the 0% regime on undistributed profits and the 20% rate on distributions.

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Registered Address in Riga

A registered office in Latvia is mandatory. Official Riga address, with mail handling and scanning included.

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Latvian VAT Number

VAT registration with the VID (Latvian tax authority). Threshold at €40,000, intra-EU VAT enabled to invoice across Europe.

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Business Bank Account

Account opening with no travel required: Wise Business, Paysera, Revolut Business. Euro-zone IBAN. Full KYC support included.

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Premium Turnkey Package

LLC + registered address + VAT + bank account + accounting + local representative. The complete solution to get started hands-free.

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Tax Calculator

How much could you save in Latvia?

Compare a typical high-tax structure with Latvia's tax regime. Results update in real time.

Annual revenue €200,000

Profit margin 30%

Director's pay (net annual) €40,000

🌍 Reference country

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🇱🇻 Latvia

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Annual saving

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* Indicative simulation. The reference country uses a common EU-style structure (corporate tax + dividend tax around 25%/30%) for comparison; Latvia uses its official 0%/20% rates. Actual figures depend on your own country and situation.

Riga, Latvia, old town and digital hub of the Baltics

CIT on
undistributed profits

Form your company in 4 steps

Why Latvia?

Latvia's tax regime: 0% until you distribute

Since 2018, Latvia has applied the Estonian model: profits you reinvest in your company are not taxed. The 20% tax only applies once you actually pay yourself dividends. A powerful, fully legal lever for entrepreneurs looking to grow their business.

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0% corporate tax on reinvested profits

As long as profits stay inside the SIA, you pay no corporate tax at all. The 20% rate only applies at the point of distribution.

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EU, Eurozone, Schengen member

Part of the European Union since 2004, the Eurozone since 2014, and the Schengen area. Latvia also has double-tax treaties with dozens of countries.

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No residency or nationality restriction

You can form and run your SIA from anywhere, as sole shareholder and sole director if you wish. No physical presence required, we handle everything on the ground in Riga.

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Capital from €1, formed in 3–5 days

Micro-SIA from €1 (up to €2,799, individual shareholders only) or a standard SIA at €2,800, which carries more credibility with banks. A fully digital process, registered with the Latvian Register (UR) in 3 to 5 business days.

The SIA isn't the only option: a sole proprietorship (IK) works for low-cost solo activity, a joint-stock company (AS, €35,000 capital) suits fundraising, or a branch fits a foreign company that already exists. In the vast majority of cases, the Latvian SIA remains the best-suited structure for an international entrepreneur, alone or with partners.

Realistic budget: full-service support for a SIA (articles, registration, a 12-month registered address) varies with your situation and needs, ask for a personalised quote. The share capital is separate and remains an asset of your company, not a sunk cost.

An honest heads-up: registration itself takes 3 to 5 days, but opening a business bank account (KYC/AML checks) can take 1 to 4 weeks for a non-resident, that's usually the longest step in the process, not Latvian red tape.

Structuring several activities or looking to consolidate shareholdings? Read our guide on a holding company in Latvia.

How It Works

Your Latvian SIA in 4 Steps

A proven process, 100% remote. You sign, we form the company.

Day 1

Free consultation

We identify the best structure for your project (SIA, micro-SIA, or another option).

Days 2-3

Remote signature

Articles and documents signed via eParaksts or a notarised power of attorney.

Days 3-5

UR registration

Capital paid in, file submitted to the Latvian Enterprise Register.

Day 5

You're up and running

Registration, IBAN, Riga address. You invoice under the 0%/20% regime.

Trusted by Entrepreneurs

800+ companies formed in Latvia with our support

An average client rating of 4.9/5, from consultants, freelancers and e-commerce founders across Europe.

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4.9/5 average rating

Based on client feedback collected across 800+ company formations in Latvia.

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3–5 day formation

A proven, fully remote process, from the first call to your first invoice.

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Local team in Riga

Real people on the ground handling your registration, address and compliance.