Can a Non-Resident Form a Company in Latvia?

The SIA: the ideal legal form for non-residents

The SIA (Sabiedrība ar ierobežotu atbildību) is Latvia's equivalent of a limited liability company. It's the most common legal form in Latvia, and the one we systematically recommend to entrepreneurs looking to set up in this Baltic country. Its popularity is largely down to its flexibility: no residency requirement applies to shareholders or the director.

Contrary to some assumptions, Latvia, as an EU member since 2004, fully respects the principle of freedom of establishment guaranteed by EU treaties. Any EU national enjoys the same rights as a Latvian citizen to form and run a business on Latvian soil. Even non-EU nationals can form a SIA, subject to standard identity checks.

"In Latvia, the founder's nationality or place of residence isn't an eligibility criterion for forming a SIA. What matters is the validity of your identity and the legitimacy of your funds."

For a deeper look at this structure, see our complete guide on the Latvian SIA.

A minimum capital of just €1

One of the Latvian SIA's biggest advantages is its minimum share capital, set at a symbolic €1. This rule, introduced to encourage entrepreneurship, means you don't need to tie up thousands of euros in a bank account just to get started.

There's an important nuance, though: when capital is below €2,800 (the micro-SIA regime), the company is required to build up a legal reserve. In practice, 25% of annual profits must go into this reserve until it reaches €2,800, the threshold for a standard SIA's capital. Most entrepreneurs who contact us opt for €1 to €100 in starting capital, which is perfectly sufficient for a services or consulting business.

Documents needed to form the company

The list of documents required to form a SIA as a non-resident is deliberately short. The Latvian companies register (Uzņēmumu reģistrs, or UR) requires:

• A copy of your valid passport (or ID card for EU nationals)
• The company's articles of association, drafted in Latvian
• The formation decision signed by the founder(s)
• Proof that share capital has been paid into a temporary bank account
• A registered address in Latvia (mandatory)
• Beneficial owner (UBO) information, in line with EU anti-money-laundering directives

All these documents can be prepared and sent electronically, or via a notarised power of attorney, with no need to travel to Latvia.

The process, step by step

Step 1: Drafting the articles of association

The articles must be drafted in Latvian and filed with the companies register. They set out the company's purpose, capital, governance rules and share allocation. Société Lettonie handles this step entirely and sends you a bilingual version for approval.

Step 2: Signing via notarised power of attorney

Since you won't be travelling, you sign a power of attorney with a notary at home. This authorises our Latvian firm to act on your behalf when filing with the register. The power of attorney must carry an apostille under the 1961 Hague Convention. This step typically takes 3 to 5 business days.

Step 3: Filing with the companies register (UR)

The complete file is submitted to the Uzņēmumu reģistrs, Latvia's official register. Since the launch of the online filing portal (ur.gov.lv), registration is possible in 1 to 3 business days for straightforward files. The standard timeframe is 3 to 5 business days.

Step 4: Getting your registration number

Once the SIA is registered, you receive a unique 11-digit registration number. This number is your reference for all administrative, tax and banking matters in Latvia.

Doing it all remotely: how it works

One of the things our clients appreciate most is being able to do everything without leaving home. Here's the process we use:

• An initial video consultation to define your project
• We send a power-of-attorney template for you to have notarised locally
• Scanned documents sent via secure email
• Originals sent by registered post if needed
• Real-time tracking of your file through our client portal
• Registration documents delivered by email and post

Many of our clients have never set foot in Latvia and run their SIA from home. This is entirely legal, provided you respect the effective management criterion: your home country's tax authority can potentially reclassify a company run entirely from home with no real substance in Riga (office, staff, decisions made on the ground). It's not an obstacle in practice, but it's worth planning for from the outset.

Why Latvia over another jurisdiction?

Latvia combines several rare advantages for an EU country: Eurozone member since 2014, one of Europe's most competitive tax systems, with a unique tax advantage (0% on reinvested profits), a fully digital administration, and a solid reputation within the EU unlike some offshore jurisdictions.

For an entrepreneur looking to optimise their structure without leaving the European framework and without resorting to exotic arrangements, Latvia is today one of the best options available, with full legal and tax legitimacy.

"Latvia is sometimes called 'the non-tech Estonia': a fully digital EU country with a very competitive tax framework, open to any European or international entrepreneur with no residency requirement."

How Société Lettonie supports you

Société Lettonie is a firm specialised in forming and running Latvian companies for international entrepreneurs. Our team knows both Latvian law and the specific concerns of foreign founders (taxation, treaties, compliance).

We handle the entire process: drafting the articles, coordinating with the notary, filing with the register, obtaining a VAT number, opening a bank account, and ongoing bookkeeping. You get a single point of contact for every step.