Starting a business in Latvia: foreigner's guide (2026)

Latvian law imposes no foreign-ownership ceiling on SIAs or other commercial entities. A foreigner may hold 100% of shares, and neither the founder nor the board members are required to be Latvian residents or nationals.

A standard SIA requires EUR 2,800 minimum share capital. A mazkapitāla SIA (reduced-capital LLC) can be formed with EUR 1, but is restricted to a maximum of 5 natural-person shareholders, none of whom may simultaneously be a shareholder of another mazkapitāla SIA.

Founders submit application form KR4 electronically via registrs.ur.gov.lv with a secure e-signature (or notarially certified signatures for paper/postal filing), accompanied by the memorandum of association, proof of share capital deposit, and board-member consent. The Enterprise Register reviews and decides within 1–3 working days of submission.

After Commercial Register entry, the company must register with the State Revenue Service (VID) for tax and VAT purposes. All corporate documents and filings must be in Latvian.

Non-EU nationals may own and direct a Latvian company without residing in Latvia; no residence permit is required solely to hold shares or serve remotely as director. To reside and manage operations locally (>90 days per half-year), a temporary residence permit from the Office of Citizenship and Migration Affairs is required. Latvia also offers a Startup Visa (3-year permit) for innovative entrepreneurs.

Foreign companies may alternatively register a branch or representative office in the Commercial Register via the same Enterprise Register portal, subject to the same 1–3 working-day processing time and Latvian-language document requirements.