When an entrepreneur is considering setting up a company in Europe, two appealing options stand out: the Latvian SIA and the French SAS. Each offers specific advantages, but which should you choose to maximise profits and simplify management?
Latvian SIA and French SAS: Two Structures, Two Tax Logics
The SIA (Sabiedrība ar Ierobežotu Atbildību) is Latvia's equivalent of an LLC, while the SAS (Société par Actions Simplifiée) is a popular structure in France. Both legal forms offer a degree of flexibility, but differ in taxation, management, and legal requirements. Understanding these differences is crucial to choosing the structure suited to your goals as an entrepreneur.
Comparing the Tax Aspects
Taxation is often a decisive factor in choosing a legal structure. In Latvia, corporate tax is set at 20% (on a grossed-up base, i.e. an effective 25% on the net amount), but only on distributed profits. In France, the corporate tax rate for an SAS in 2026 is 15% up to €42,500 in profit, then 25% above that, whether or not that profit is distributed.
Good to know
For a non-resident entrepreneur, the Latvian SIA offers significant tax advantages, particularly if profits are reinvested in the business.
For example, if an SIA generates €100,000 in profit and decides to reinvest it, it will owe no tax immediately. A French SAS would pay around €20,750 in tax on the same profit (15% × €42,500 + 25% × €57,500), even if it's fully reinvested. For a detailed simulation based on your distribution strategy, see our simulation on €100,000.
Formation and Management Costs
The minimum share capital required to form an SIA is €2,800, compared with €1 for an SAS. However, formation costs in Latvia are often lower than in France, thanks to simplified administrative procedures.
Here's a comparison table of the costs:
- Minimum capital: SIA - €2,800 / SAS - €1
- Formation fees: SIA - Around €200 / SAS - Around €500
- Annual administrative costs: SIA - Around €500 / SAS - Around €1,000
Flexibility and Operational Management
Forming an SIA in Latvia can be completed within a few days, thanks to a largely digitised process. By comparison, forming an SAS in France can take several weeks, due to more complex administrative procedures.
Accounting obligations for an SIA are also simplified, with less complex annual reporting than what's required for an SAS. This lets entrepreneurs focus on growing their business rather than administrative paperwork.
A non-resident entrepreneur can easily manage an SIA from abroad, using outsourced accounting services at a lower cost.
Strategic Advantages for Non-Residents
Choosing a Latvian SIA offers many advantages for entrepreneurs based in France. Beyond favourable taxation, reduced management costs and operational flexibility make it an attractive solution for those looking to optimise their company structure internationally, provided you comply with the substance and tax residency rules that apply to a French resident.
Good to know
For non-residents, it's advisable to use local experts to facilitate the process of forming and managing your SIA.
Which structure should you choose based on your profile?
The Latvian SIA offers many advantages for French non-resident entrepreneurs: favourable taxation on reinvested profits, reduced management costs, and operational flexibility. However, since every project is unique, it's essential to assess your specific needs before making a decision.
For personalised support, our team is ready to guide you through forming your company in Latvia.