Launch your business in Latvia with our simplified process for establishing a subsidiary company, ensuring compliance and cost-effectiveness.
Launch your business in Latvia with our simplified process for establishing a subsidiary company, ensuring compliance and cost-effectiveness.
Latvia is ideally situated for trade with Europe, Russia, and the Balkans, making it an attractive location for foreign investors seeking to establish a subsidiary company. The country is multilingual and adept at conducting business between Eastern and Western companies. Commercial law governs the establishment of companies in Latvia, and with the increase in foreign investment, regulations have been significantly streamlined. Entry into the Commercial Register automatically registers the subsidiary company with the State Revenue Service for taxation purposes. The Latvian Law on Taxes and Fees outlines the accounting and taxation requirements. Monthly tax and VAT returns must be submitted, along with an annual financial account.
As an EU member state, Latvia provides seamless access to the entire European Union market, making it an ideal destination for companies seeking to expand their operations across borders without encountering trade restrictions.
Latvia is one of the most affordable entry points into the EU, with relatively low operational costs, office space, and salaries compared to Western Europe—ideal for budget-conscious international expansion.
Latvia boasts a highly educated, multilingual workforce fluent in English, Russian, and German, which facilitates the management of international operations and enhances customer support effectiveness.
Latvia presents a competitive corporate tax structure, which includes a 0% tax on retained and reinvested profits, making it an appealing choice for businesses focused on growth and reinvestment.
A Latvian subsidiary is an independent legal entity that protects the parent company from liability and offers the flexibility to manage operations locally while remaining legally separate.
The Latvian government actively promotes foreign investment by offering simplified incorporation procedures, digital services, and grants for innovation and regional development.
We are here to assist you in selecting a subsidiary company in Latvia and to guide you through its strategic benefits.
Latvia offers a strategic location between Western Europe and Eastern markets like Russia and the Balkans. Its EU membership, low operating costs, business-friendly regulations, and 0% tax on retained and reinvested profits make it an ideal hub for international expansion.
The most common legal structure for a subsidiary is the SIA (Sabiedrība ar Ierobežotu Atbildību), which is equivalent to a private limited liability company. It offers limited liability protection and operates as a separate legal entity from the parent company.
Yes. Foreign entities can own 100% of a Latvian subsidiary. There are no restrictions on foreign ownership, and shareholders and directors do not need to be Latvian residents.
Yes. A Latvian corporate bank account is required for depositing share capital and managing business transactions. Many banks may require in-person identification of directors or a local representative, which we can facilitate.
Latvia offers a 0% corporate income tax on retained and reinvested earnings. Profits are only taxed at 20% when distributed, making it very attractive for companies focused on growth and long-term investment.
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