Limited Liability Company (LLC)

Benefits of Latvia LLC Registration


    1 Director, 1 Shareholder Required


    Access to the EU Markets with all Subsequent Benefits


    Enveloped Banking and Financial Sectors


    European Union VAT number


    Incorporation in 2-3 days


    Legal System Based on Civil Law

Latvia LLCs activities

Under the Latvian Companies Act, the Latvian LLC is an independent legal entity and has the same capacity to engage in any business provided that the activity is allowed by its memorandum and articles of association. The Laws of Latvia and EU regulations do not require a license such as bank, insurance, assurance, collective investment schemes etc.

Latvia LLC is optimal for:

  1. International Business
  2. Investment and Trading activity
  3. Commercial Trading
  4. Technology and Web Business
  5. E-commerce
  6. EU-related Commercial Activities
  7. Holdings and Asset Ownership Structures.

Limited Liability Company Incorporation checklist:

If you are considering the incorporation of a Latvia LLC Company, you should take into consideration the following points:

Company’s name

It must not contain sensitive words which are prohibited by legislation. The following words are prohibited: “Empire”, “Chartered”, “Imperial”, “Municipal”, “Windsor”, “Crown” or “Royal” and any other words implying activity prohibited by the Law. The word: “Assurance”, “Bank”, “Insurance”, “European”, “International” and similar words are the subject for the licensing. There is also a prohibition for words implying patronage of the Latvian government or department or the government and its bodies of any other country.

The company’s name must not be very similar to existing names on the registrar and it must not contain improper or objectionable words. It must end with a words or abbreviation signifying a limited liability, especially “Limited”, “LLC”, “Sabiedrība ar ierobežotu atbildību” or “SIA”.

Registered office

Latvian LLC Company is required to have a registered office address in Latvia.


One director is the minimum required. There is no requirement for them to be locals and there is no requirement regarding the place and frequency of board meetings.

Corporate entities can be appointed as directors. The director and shareholder can be the same person. The directors’ details are registered on the public record and can be accessed by the public.


The appointment of a secretary is not mandatory, but optional.


One shareholder is the minimum required. There is no requirement for them to be locals and corporate entities can be appointed as shareholders. There is no requirement regarding the place and frequency of the shareholders meetings.

The director and shareholder can be the same person. The shareholders’ details are registered on the public record and can be accessed by the public.

Beneficial owners

The beneficial owners’ details are not registered on the public record and cannot be accessed by the public; those details are only held by the registered agent of the LLC Company who is bound by the law to keep this information.

Share capital

The owners of an LLC Company are free to determine any amount as the authorized capital at incorporation but it should not be less than 2,800 EUR. The authorized capital is the maximum amount of capital that the company is authorized, by its constitutional documents to draw from its shareholders in exchange of the shares issued.

A Latvia LLC Company may have registered shares, with or without par value, with or without voting rights, preferential or common and may be issued in any currency. Bearer shares are permitted but they must be held by a custodian.   

Paid up capital

The requirement which is imposed on minimum paid up capital at incorporation is 2,800 EUR; this means that the owners of an LLC Company are required to pay this during the incorporation. If the company is registered with less amount of money each year, the company should reserve 25% of the income, until the paid-up capital rises to the required amount.

Incorporation period

An LLC Company in Latvia can be incorporated within 1-3 days, Latvia is considered to have one of the fastest registries worldwide.

Shelf companies

Ready-made but unused LLC Companies are available in Latvia, in case you are in need of a quicker incorporation process.

Economic substance

If the LLC Company is carrying out certain types of business, it must meet specific physical presence requirements and conduct its main activities which generate income, inside Latvia. This means that the management and control of the LLC Company must be in Latvia, thus, the company must have enough premises, amount of expenditures and employees within the jurisdiction, based on its business activity and size. The types of business are given below:

Banking, Insurance, Finance and Leasing, Distribution and Service Centre (purchasing assets from other entities belonging in same group or providing services to entities in the same group), Shipping, Intellectual Property, Headquarters Business and Holding companies.

LLC Companies carrying out the above types of business are also required to file annual returns.

Accounting records and annual returns

The LLC Company must prepare and keep its accounting records. That accounting records and annual return should be filed to the tax authorities. Depending on the LLC Company’s turnover (EUR 800.000), balance (EUR400.000), and number of employees (25) it can become the subject of audit requirements.


There is no exemption in the jurisdiction of Malta from tax on income or profits for LLC Companies. The corporate or income and profits tax rate is 15%. However, Latvia has a well-developed system of tax exemptions. Moreover, Latvia has nearly 60 double tax avoidance treaties and due to being a member state of the EU, a Latvian LLC Company is entitled to benefit from the tax benefits that are established on the EU level. In addition, Latvia imposes no tax on dividends, interest and royalties paid to non-residents.

Disclaimer: Buy Now Companies and its affiliates do not provide tax, legal, or accounting advice. Materials provided by Buy Now Companies and [insert domain name] have been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, or accounting advisor with regard to your own tax, legal, or accounting scenario. Nothing on this webpage shall be construed as a contractual commitment or as a warranty. Services conditions are governed by the applicable terms and conditions.

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