In Latvia it is possible to register two types of limited companies (SIA):
(A) a regular SIA. For this type of SIA a minimum requirement for share capital is 2800 EUR, of which 50% (at least) must be paid before incorporation to the temporary account opened with Latvian bank, in this case the remaining part must be paid within one year from incorporation. The share capital can be paid by cash or property contribution.
(B) a reduced share capital SIA. For this type of SIA a minimum requirement for share capital is 1 EUR. Temporary bank account is not needed in this case.
Founders. Both private persons and companies can act as founders of SIA whereas a reduced capital SIA can be founded by persons only (five persons max). Non-residents can incorporate a Latvian SIA and own shares with no limitations.
Board. Board members handle business operations, represent and manage the company. Founders must appoint one member of the Board (at least).
Governing bodies. The governing bodies of the company are the meeting of shareholders and the board. The meeting of shareholders is the highest body of SIA and decides on most important issues, including the election of the board. The board in its term provides day-to day management of the company.
Firm name. The name of the company cannot match the name of other companies previously incorporated with the Commercial register of Latvia and/or violate any trademarks valid in Latvia.
Articles of Association (AoA). There is a minimum set of provisions that must be specified AoA that is required for company registration in Latvia, including the name of SIA, amount of share capital, number of shares, the nominal value of one share, the right of board members to represent the company collectively or individually. The absolute majority of Latvian SIA choose to have only this minimal set in their AoA. It is possible however to place any additional information founders deem necessary as long as it doesn’t contradict the law.
Legal address. A legal address is required for company registration in Latvia. This address will be used for official correspondence. Your lawyer in Latvia should be able to arrange a legal address for your company.
Ultimate beneficial owner(s) (UBO). UBO are private individuals, who either directly or indirectly own or control more than 25% of SIA capital shares. Sharing information about these persons with the Commercial register is obligatory for company registration in Latvia.
More information
NJORD has extensive experience in registration of all types of Latvian companies. Please contact Dmitry Kolesnikov, partner of the NJORD office in Riga, (t. +371 67 313 315, dk@njordlaw.lv, www.njordlaw.lv). @ company registration in Latvia
