Unlike Estonia, Latvia doesn't offer a genuine e-Residency programme. What it does offer is eParaksts, an electronic signature system that lets foreign entrepreneurs register and run their SIA remotely. In this article, we explain how this fully online process works and how it can simplify managing your company.
eParaksts: The Electronic Signature That Stands In for e-Residency in Latvia
Latvia has no official e-resident status comparable to Estonia's. What it does have is eParaksts, Latvia's electronic signature system (recognised across the EU via eIDAS), which gives foreign entrepreneurs access to digital services to manage their company remotely: signing documents, registering an SIA with the business register, filing tax returns and communicating with local authorities.
Good to know
eParaksts is not a residence status: it grants neither tax residence nor the right to live in Latvia. It's an electronic signature tool used to register and manage your SIA remotely.
Advantages for Entrepreneurs
- Access to online banking services.
- Simplified management of business operations remotely.
- Legally recognised electronic signature.
How It Differs From Tax Residence
Tax residence involves an obligation to pay tax in Latvia, based on where you live or your economic activities. eParaksts, by contrast, is purely a digital electronic signature tool, with no direct tax impact: it changes nothing about your personal tax residence.
How to Register an SIA Remotely Using eParaksts
The Online Registration Journey, Step by Step
- Choose and check the availability of your SIA's name with the business register (Uzņēmumu reģistrs).
- Prepare the articles of association, the founding decision and supporting documents (registered address, identity of founders and beneficial owners).
- Electronically sign the file via eParaksts (or eID/eIDAS for EU residents) and submit it to the register online.
Documents You'll Need
- The SIA's articles of association and founding decision.
- Proof of a registered address in Latvia.
- Identity documents for founders, directors and beneficial owners.
Timelines and Costs
Registration itself generally takes 1 to 3 working days once the complete file is submitted. Counting document preparation and opening a bank account — often the longest step for a non-resident — you should budget more like 5 to 10 days in the best case, and up to 2 to 4 weeks in practice. State fees are €150 for standard processing (~3 days), or €450 for expedited processing (~24h), plus around €20 in publication fees.
Running Your SIA Day to Day Without Travelling to Latvia
Thanks to eParaksts, entrepreneurs have powerful digital tools to manage their SIA without being physically present in Latvia. Online banking, bookkeeping and tax filings via the EDS portal can all be handled easily from a distance.
The SIA's bookkeeping is a crucial aspect of running the company, and it too is simplified by digital tools like EDS and eParaksts.
Recommended Digital Tools
- Online banking services to manage transactions.
- Online accounting solutions to track finances.
- Government portals for tax filings.
The eParaksts electronic signature lets our English-speaking clients register and manage their SIA without having to travel constantly: the digital tools are designed to make remote management as smooth as possible.
Latvia vs Estonia: Two Different Approaches to Running a Business Remotely
Entrepreneurs often compare Latvia and Estonia for managing a business remotely, but the two countries don't offer the same thing. Estonia created a genuine e-Residency programme, with a digital status and an electronic ID card issued by the state. Latvia has no equivalent: it offers eParaksts, an electronic signature system that allows online registration and management of an SIA, without issuing a digital resident status.
| Criterion | Latvia (eParaksts) | Estonia (e-Residency) |
|---|---|---|
| Cost | €150-450 registration fee (no status to buy) | ~€100-120 for the e-resident card |
| Processing time | 5-10 days (best case) to 2-4 weeks | Several weeks to obtain the status |
| Banking services | Opening a standard business account required | Easier access to online banking/fintech services |
Practical Steps for International Entrepreneurs
Tips for Overcoming Language Barriers
While English is commonly used in business in Latvia, some processes may require a basic knowledge of Latvian. Hiring a translator or a local consultant can make the process easier.
Local Resources and Useful Contacts
- Local chambers of commerce.
- Professional translation services.
- Consultants specialising in company formation.
Good to know
For non-residents looking to set up a company in Latvia, it's crucial to understand the local specifics to avoid costly mistakes.