There are roughly 180,000 limited liability companies operating in Latvia, and each one must file an annual report every year. Despite this, thousands of companies miss deadlines, submit incomplete documents, or fail to file at all each year — risking fines of up to €600 and, in extreme cases, forced removal from the Commercial Register. In this guide, we explain step by step everything you need to know about preparing and filing an annual report in 2026.
What is an annual report and who must file one?
An annual report is a structured set of financial documents prepared by every registered legal entity after the end of the reporting year. The minimum content includes: a balance sheet, a profit and loss statement, and notes to the financial statements. Larger companies also require a cash flow statement and a statement of changes in equity. The legal basis is the Law on Annual Financial Statements and Consolidated Financial Statements.
The report is submitted to the State Revenue Service (SRS) electronically via EDS. After submission, the SRS data is automatically forwarded to the Commercial Register, making the report publicly available. Paper format is effectively obsolete for active companies — annual reports have been filed exclusively electronically since 2024.
Who must file: all SIAs, joint-stock companies, cooperative societies, branches of foreign merchants, permanent establishments, as well as sole proprietorships and farms whose turnover exceeds €300,000 per year.
Company categories — why they matter
The scope, level of detail, and filing deadline of an annual report depend directly on the category your SIA falls into. In Latvia, companies are classified into four categories based on three criteria: balance sheet total, net turnover, and average number of employees. A company falls into a given category if it exceeds at least two of the three relevant thresholds.
Category thresholds for 2026
Category | Balance sheet total | Net turnover | Average employees |
|---|---|---|---|
Micro | ≤ €450,000 | ≤ €900,000 | ≤ 10 |
Small | ≤ €5,000,000 | ≤ €10,000,000 | ≤ 50 |
Medium | ≤ €25,000,000 | ≤ €50,000,000 | ≤ 250 |
Large | Above medium | Above medium | Above medium |
Source: TEGOS, 27 February 2026; Article 5 of the Law on Annual Statements and Consolidated Annual Statements. The criteria changed in 2024 — check which category your company falls under using the current thresholds.
Most new SIAs fall into either the micro or small category, which means a simpler report and an earlier filing deadline.
How the category affects report content
Requirement | Micro | Small | Medium/Large |
|---|---|---|---|
Balance sheet | Mandatory | Mandatory | Mandatory |
Profit and loss statement | Mandatory | Mandatory | Mandatory |
Notes to the financial statements | Mandatory | Mandatory | Mandatory |
Management report | Not mandatory | Mandatory | Mandatory (+ sustainability report) |
Cash flow statement | Not mandatory | Not mandatory | Mandatory |
Statement of changes in equity | Not mandatory | Not mandatory | Mandatory |
Statutory audit | No | No (with exceptions) | Yes |
Micro-enterprises do not need to prepare a management report, and very small micro-enterprises need only attach notes to the financial statements. This significantly simplifies the process for small businesses.
Filing deadlines
The annual report filing deadline depends on the company category:
Micro and small companies: by 31 May 2026 (5 months after the end of the reporting year)
Medium, large, and group parent companies: by 31 July 2026 (7 months after the end of the reporting year)
Source: Article 97(1) of the Law on Annual Statements and Consolidated Annual Statements; TEGOS, 27 February 2026; Sorainen, 15 April 2026.
These deadlines apply to companies whose reporting year coincides with the calendar year (1 January to 31 December). If your SIA's reporting year differs, calculate the deadline from your own reporting year end date.
Important: The deadline applies to filing an approved annual report, not just a prepared one. This means you must complete several steps before filing: prepare the report, sign it, convene a shareholder meeting (at least 14 days' notice for an SIA), approve the report, and only then file. Allow time — the process can take 4–6 weeks.
What the annual report must include
The financial statements (mandatory for all categories)
Balance sheet — a snapshot of the company's assets and liabilities at the end of the reporting year. The balance sheet shows what the company owns (assets) and how it is financed (equity and liabilities).
Profit and loss statement (income statement) — a summary of revenues and expenses showing the company's financial performance during the reporting year. This shows whether the company made a profit or a loss.
Notes to the financial statements — detailed explanations of balance sheet and P&L items, a description of accounting policies, information on ultimate beneficial owners, and other legally required disclosures. For micro-enterprises, the notes must include at least: accounting policies, a fixed asset movement schedule, information on debts and provisions, and details of events after the balance sheet date.
Management report (for small, medium and large companies)
The management report is a document prepared by the board containing:
A description of the company's activities and analysis of financial results
Information on risks and future development prospects
A sustainability report (starting from medium-sized companies)
Important: micro-enterprises do not need to prepare a management report unless the articles of association state otherwise. This is one of the main simplifications for small SIAs.
Additional statements (for medium and large companies)
Medium and large companies must additionally file a cash flow statement and a statement of changes in equity. These requirements do not apply to micro and small companies.
How to file the annual report via EDS — step by step
Annual reports are filed electronically through the SRS Electronic Declaration System (EDS). Paper format is no longer accepted. Here is the step-by-step process.
1. Prepare the report in the correct format
The annual report must be prepared in XML format. Most accounting software (including Pats.lv) generates this file automatically. The file must comply with a defined structure and mandatory fields — EDS checks this automatically.
2. Log in to EDS
Go to eds.vid.gov.lv and log in using your e-identity (eID, eParaksts, Smart-ID, or internet banking authentication).
3. Select the appropriate form
Go to "Documents" → "Annual Reports" and specify the reporting year. The system will offer the appropriate form based on your company's category.
4. Upload the XML file
Upload the prepared XML file. EDS will automatically validate the file — checking whether all mandatory fields are filled, whether mathematical relationships are correct (e.g. assets = liabilities), and whether the file conforms to the schema. If the validation finds errors, the system will indicate what needs correction.
5. Attach additional documents
If required, attach the management report, auditor's report, or other documents in PDF format.
6. Sign with an e-signature
The document must be signed using an e-signature (eID, eParaksts mobile, or Smart-ID). Only a board member or an authorised person with the appropriate EDS mandate may sign.
7. Pay the state fee and submit
The state fee for electronic filing is EUR 7.11. After payment, the report is submitted to the SRS for review. The system will automatically check basic compliance, and a more substantive review will be conducted by an SRS inspector.
Critically important: EDS allows an annual report for a single reporting year to be filed only once. After filing, the report cannot be corrected, amended, or supplemented. Therefore, check all data carefully before submitting — amounts, years, totals, and interrelationships.
Common mistakes when filing
Mathematical inconsistencies — total assets do not match total liabilities, or the P&L result does not match the profit line in the balance sheet. EDS will not accept such a report.
Incorrect company category — if an inappropriate category is chosen, the SRS may request clarifications or reject the report because insufficient documents were provided.
Missing mandatory attachments — for example, a micro-enterprise failing to attach mandatory notes, or a small company omitting the management report.
Incorrect reporting year — when filing, ensure the correct reporting period is specified. An error here results in rejection.
Missing signature or unauthorised signatory — the report may only be signed by a board member or an EDS-authorised person. If the signatory is not duly authorised, the document is invalid.
Penalties for late or missing annual reports
The SRS may impose an administrative fine for late filing of an annual report. The penalty amount depends on whether it is a first offence, how long the delay is, and the company's overall compliance history.
First offence: warning or a fine of up to €200
Repeat offence: a fine of up to €600
Source: GramatvedisRiga.lv, 4 March 2026.
Forced liquidation — the most serious risk
If an annual report remains unfiled for eight months after the deadline, the Commercial Register initiates forced liquidation proceedings. A notice with a final filing deadline is published in the official gazette "Latvijas Vēstnesis". If the company fails to respond — it is removed from the Commercial Register.
This is not a theoretical scenario: every year, the Register removes hundreds of companies in this way. Restoration after removal requires a court application, legal costs, and considerable time — disproportionately more than filing the report on time.
Practical consequences of a delay
Banks. Latvian banks regularly check their clients' annual reports in the Register. A missing report may trigger an enhanced review, account restrictions, or a demand to file immediately. Some banks include timely filing as a condition of their service agreement.
Public procurement. Companies without filed annual reports are automatically excluded from state and municipal tenders and competitions.
Reputation. Annual reports are publicly available. Potential partners, investors, and industry peers use them as a credibility indicator. A missing report signals significant management problems.
Practical timeline — when to start preparing
To avoid stress and missed deadlines, follow this approximate schedule (assuming the reporting year ends on 31 December):
January–February — finalise accounting balances, complete an inventory count, reconcile debts with clients and suppliers
March — prepare the draft annual report (balance sheet, P&L, notes)
First half of April — complete the report, include all required documents
Second half of April — convene the shareholder meeting, approve the report
May — file the report via EDS (recommended by 15–20 May to avoid last-day technical issues)
If your SIA was inactive during the reporting year (no transactions), you must still prepare and file an annual report — with a balance sheet showing the status of the share capital. Even in this case, the report must be filed by 31 May.
Frequently asked questions
Must an annual report be filed even if the SIA had no transactions?
Yes. Even a completely inactive company (with no revenues or expenses) must prepare and file an annual report. The balance sheet will usually only show the share capital and related assets (cash in the bank account). The deadline in this case is still 31 May.
Does a micro-enterprise really not need a management report?
Yes, micro-enterprises (meeting at least two of the three criteria: balance sheet ≤ €450,000, turnover ≤ €900,000, employees ≤ 10) are exempt from preparing a management report. However, check your articles of association — if they state otherwise, a management report must be prepared regardless of the category.
Can I file the annual report myself, without an accountant?
Technically — yes, the EDS system is accessible to any board member with an e-signature. However, in practice, preparing an annual report requires specific accounting knowledge, including understanding balance sheet item classification, provision creation, and tax reflection. Most businesses use an accountant's services to avoid errors.
How much does annual report preparation cost?
Accountant fees for preparing an annual report in 2026 range from €150 to €500 depending on the company size, transaction volume, and whether the accountant already handles the monthly bookkeeping. The state fee for EDS filing is EUR 7.11.
What if the report contains an error and I have already filed it?
EDS allows an annual report to be filed only once per reporting year. If you discover a material error after filing, you must contact the SRS and explain the situation. In some cases, the SRS may allow a corrected report to be filed, but the procedure is individual, time-consuming, and not guaranteed. It is better to check everything before filing.
Does the report also need to be filed with the Commercial Register?
No, as of 2024, the annual report is filed only with the SRS electronically through the EDS system. The SRS data is automatically forwarded to the Commercial Register, so a separate filing with the Register is no longer necessary.
An annual report is not merely a formality — it is a document that attests to your company's viability and solvency. Timely and correct filing protects you from fines, maintains bank confidence, and enables participation in public procurement. If you need help preparing or filing your annual report, our team is ready to assist — start with a free consultation.
Last updated: April 2026. Information is based on the Law on Annual Statements and Consolidated Annual Statements, official SRS materials, and the GramatvedisRiga.lv market overview.
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