How to Start a Business in Latvia from the UK

Latvia has a service-led economy, a digital public sector and several sectors that attract international founders.⁷ If you’re thinking of starting a business there, the main decisions are your legal structure, registration route, and how you'll handle tax, payroll and payments once trading begins.

This guide covers the practical steps, the cost of starting a business in Latvia, and the points to check with a specialist before you register. We’ll also touch on how Wise Business can be one option for managing GBP and EUR, even before your company is up and running - helping you keep FX costs low.

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The contents of this article is for informational purposes only and does not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation and verification from a qualified financial and legal advisor.

Doing business in Latvia

Latvia's economy is largely built around services, especially transportation, information technology and financial services.Wood products, food processing, metalworking and textiles also remain important.^1,⁷

Invest in Latvia also highlights digital technologies, smart energy, biomedicine, bioeconomy, and manufacturing and engineering as key sectors. And, most public services for businesses are digital.²

For a UK founder, that can mean access to an EU base with online admin tools, but it doesn't remove the need to follow local requirements. Core filing documents normally need to be in Latvian.⁸

Can a UK citizen start a business in Latvia?

Yes. A UK citizen can generally be a founder or shareholder of a Latvian company, and some businesses are registered from abroad.^5,6

If you don't have a Latvian personal identity number, the Register of Enterprises may ask for extra information so your details can be added to the Register of Natural Persons.⁸

If you plan to live in Latvia and run the company there yourself, setting up the company is only one part of the process. You may also need immigration, residence or work advice before you relocate.

Company structures in Latvia

Latvia has several business structures to choose from. The right option depends on factors such as liability, business size, ownership and funding plans.

Structure summary

Limited Liability Company/SIA

An SIA is a common choice for smaller companies because the company's liability is generally separate from that of its shareholders. Commonly cited requirements include one director, one shareholder and €2,800 in share capital, with half deposited at registration.³

Joint Stock Company/AS

An AS may be more suitable for larger businesses or companies seeking outside investment. The minimum share capital is €25,000. Re-check the current requirements, including any additional rules that may apply to publicly traded companies, before you apply.¹⁰

Branch

A branch allows a UK company to operate in Latvia without creating a separate Latvian legal entity. The foreign parent company normally remains responsible for the branch's obligations.⁵

Sole Proprietorship

A sole proprietorship can be simpler to run, but the owner is personally liable for the business's obligations. Registration in the Commercial Register is mandatory if annual turnover exceeds €284,600, or if the business meets certain other criteria, including annual turnover above €28,500 combined with more than five employees. A person can also register voluntarily.⁴

Partnership

A partnership can suit two or more founders who want to share profits and responsibilities. The key question is whether all partners accept full liability, or whether a limited partnership fits better.⁵

How to register a company in Latvia – step by step

The company registration process in Latvia is easier if you prepare the paperwork first and choose the right filing route.

1. Choose your legal form, company name and legal address
2. Prepare the documents in Latvian. That usually means the application form, founding decision or memorandum, articles of association, board consents, a legal address statement, and share capital evidence where relevant⁸
3. Choose how to file. Latvia allows company registration through the Enterprise Register's e-service. All signatories submitting documents electronically need a secure electronic signature, such as eParaksts or eID⁸
4. Pay the state fee and deposit share capital if your structure requires it
5. Submit the application and wait for review. The Enterprise Register says that simple applications can be processed within 1–3 working days, although the exact timeframe depends on the type of registration and documents submitted⁵^,⁸
6. Register for tax, VAT and payroll as needed. VAT can be requested at the same time as company registration or later through the State Revenue Service⁹

Documents commonly required:

• Completed application form
• Founding decision or memorandum and articles of association
• Board consents, if separate
• Legal address statement
• Share capital proof, if applicable
• Founder and director ID details, plus any foreign national questionnaire

How much does it cost to start a business in Latvia?

The cost of starting a business in Latvia depends on your legal structure and whether you need additional services such as translation, notarisation or a registered address. The figures below are indicative and should be re-checked before filing.

Another often hidden cost to consider is converting setup funds from GBP to EUR. Always use the mid-market exchange rate as your reference point when assessing costs, which is a guarantee with Wise Business.

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Hiring staff in Latvia

If you hire locally, registering your employees is an early compliance step. The Latvian State Revenue Service (SRS) requires employers to register employees electronically through its Electronic Declaration System (EDS)⁹ no later than one hour before they start work.

Employer social insurance contributions also apply. For employees covered by all types of social insurance, the current rate is 34.09% in total, with 23.59% paid by the employer and 10.50% by the employee. Rates and reporting requirements can change, so check the current rules or get local payroll advice before hiring.¹²

If you pay local and international staff, you'll need to consider both payroll compliance and how you manage cross-border payments. A local Latvian account can handle domestic expenses, while a multi-currency solution such as Wise Business can help you hold, convert and send money in different currencies when paying overseas employees or suppliers.

Tax considerations for businesses in Latvia

Latvia's corporate income tax system generally taxes profits when they are distributed rather than when they are earned. Undistributed corporate profits are exempt from CIT, while distributed or deemed distributed profits are taxed. The statutory CIT rate is 20%, applied to a tax base increased by a coefficient of 0.8, resulting in an effective rate of 25% on the distributed amount.⁷

Latvia also has a micro-enterprise tax regime for certain eligible businesses. The single rate is currently 25% of turnover, regardless of the micro-business's turnover. Eligibility depends on the type of business and other conditions, so check whether the regime applies to your business before choosing it.⁷

VAT and other taxes have separate registration, reporting and payment rules. Your obligations can depend on your business activities, transactions and structure, so check the current requirements before you start trading.⁷

Top tips for starting a business in Latvia

These tips can help you save time and avoid common mistakes when starting a business in Latvia.

• Prepare documents in Latvian, or budget for certified translation
• Use the official online registration route and a qualified electronic signature where available
• Budget for notary, translation and registered address costs, not just the state fee
• If you're running a small business, check whether the micro-enterprise tax regime is suitable for your circumstances
• Get local tax or accountancy support before your first invoice or payroll run

Go global in Latvia with Wise Business

Once your Latvian company is set up, you'll need a way to receive money, pay bills and manage your business finances. A local Latvian business account can cover domestic needs, while Wise Business can help if you also work with international clients, employees or suppliers.

Wise Business lets you hold and convert multiple currencies and send international payments using the mid-market exchange rate. This can be useful if your business needs to move money between Latvia, the UK and other markets in Europe and beyond. Whether you're paying a salary, reimbursing expenses or managing cross-border business payments, keeping clear records and understanding the costs involved can help your business stay organised as it grows.

Wise Business offers a free Essential plan for basic spending and transferring. If you need to receive money, set up direct debits, or generate invoices, you'll pay a one-time £50 setup fee to unlock the Advanced features.

With Wise Business, you can:

• 🌍 Send money to 70+ countries and pay overseas invoices at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation. See full cashback terms and conditions
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn variable returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Rates vary by country and currency. Rates are variable. Visit Wise Interest to find out more)
• 🔗 Create payment links and QR codes to get paid easily (Card payment acceptance for new Wise Business customers is currently unavailable. Payment methods subject to eligibility and availability.)
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for your domestic and global needs.

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In the UK, Interest and Stocks are provided by Wise Assets, the trading name of Wise Assets UK Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA number 839689).

We do not provide investment advice, and taxes may apply. If unsure, seek qualified financial advice. Full fund information is available on our website.

Company registration in Latvia – FAQs

Is Latvia a business-friendly country?

Many founders see Latvia as business-friendly because of its digital public services, sector mix and access to EU and Nordic markets. The real test is whether the language, tax and admin requirements work for your business model.²

Is it easy to start a business in Latvia?

It can be relatively straightforward if your documents are complete and you use the digital route. Some secondary sources say registration can take about a week, but timings vary and should be re-checked before you rely on them.⁵

What are the top 3 industries in Latvia?

Transportation, information technology and financial services are often named first. Wood products, food processing, metalworking and textiles are also important parts of the Latvian economy.¹

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Sources:

1. Global Edge – Latvia: Economy
2. Invest in Latvia – Key Sectors
3. Healy Consultants – Business entities in Latvia
4. Multiplier – Sole Proprietorship in Latvia
5. Company Formation Latvia – Company Registration in Latvia
6. Company Registration in Latvia
7. Latvia Corporate - Income determination
8. Register of Enterprises of Latvia
9. State Revenue Service of Latvia
10. https://apraksti.ur.gov.lv/en/register/company-or-merchant/joint-stock-company
11. https://apraksti.ur.gov.lv/en/taxonomy/term/32
12. https://www.vid.gov.lv/lv/solidaritates-nodokla-likmes

Sources last checked: 01/09/2026