Types of Companies That Can Be Registered in Latvia

When considering establishing a business in Latvia, there are several types of companies you can register, each with distinct features and requirements:

1. Limited Liability Company (SIA)

• Description: This is the most common type of business entity in Latvia, ideal for small and medium-sized enterprises.
• Shareholders: Can be founded by one or more shareholders.
• Liability: Shareholders' liability is limited to their investment in the company.
• Minimum Share Capital: €2,800.

2. Joint-Stock Company (AS)

• Description: Suitable for larger businesses and those planning to raise capital through the public issuance of shares.
• Shareholders: Can have an unlimited number of shareholders.
• Liability: Shareholders' liability is limited to their share capital contribution.
• Minimum Share Capital: €35,000.

3. Sole Proprietorship (Individual Merchant)

• Description: A business owned and operated by a single individual.
• Liability: The owner has unlimited personal liability for business debts.
• Minimum Share Capital: No minimum capital requirement.

4. General Partnership (PS)

• Description: A business structure involving two or more partners who share management responsibilities and profits.
• Liability: Partners have unlimited personal liability.
• Minimum Share Capital: No minimum capital requirement.

5. Limited Partnership (KS)

• Description: Consists of general partners with unlimited liability and limited partners whose liability is restricted to their investment.
• Liability: General partners have unlimited liability, while limited partners have liability limited to their capital contribution.
• Minimum Share Capital: No minimum capital requirement.

6. Branch Office

• Description: An extension of a foreign company operating in Latvia.
• Liability: The foreign parent company is fully liable for the branch’s obligations.
• Minimum Share Capital: No separate capital requirement.

7. Representative Office

• Description: Established by a foreign company to conduct marketing and promotional activities. It cannot engage in commercial transactions.
• Liability: Activities are limited, with no direct commercial liability.
• Minimum Share Capital: No capital requirement, as it does not engage in business activities.

Each business structure has its advantages and regulatory requirements. It's crucial to choose the one that aligns best with your business goals and operational needs.

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