Company types and legal structures in Latvia: What suits your needs?
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Before founding a company, it is essential to examine and select the legally and economically most suitable form of company. This choice affects not only the amount of equity required, but also the legal form of the company and other company-related issues.
There are several legal forms for doing business in Latvia. Entrepreneurs usually register the following types of companies:
Limited Liability Company (SIA) Public limited company (AS) branch Representative office of the foreign merchant According to Baltic Legal's experience, the most popular company form is a limited liability company (SIA). Baltic Legal assists in establishing a company or opening a branch or representative office in Latvia. Our lawyers support you in the preparation of incorporation documents and represent your interests in dealings with the relevant state authorities.
Limited Liability Company (SIA) Equity – when establishing a limited liability company, the minimum equity is 2820 euros. The equity contribution can take the form of a cash contribution or a contribution in kind.
Founders – Founders of a limited liability company can be one or more individuals, which can be both natural and legal persons. The founder may or may not be a resident of the Republic of Latvia.
Status – a limited liability company is considered a legal entity.
Liability – The company is liable for its obligations to the extent of its entire assets. A founder or partner is not liable for the obligations of the limited liability company, just as the limited company is not liable for the obligations of the founder or partner.
Governing body – the decision-making body of a limited liability company is the board of directors and, if necessary, the council. The Board of Directors consists of one or more natural persons who may or may not be residents of the Republic of Latvia.
The process of company formation and registration is not considered complex. Registration takes only four business days from the moment all incorporation documents are prepared and submitted to the Commercial Register of the Republic of Latvia. The registration time may be shortened by up to two business days in response to such a request.