How to Register a SIA in Latvia in 2026 — the Complete Guide

How to Register a SIA in Latvia in 2026 — the Complete Guide

The SIA (limited liability company) remains the most popular business form in Latvia — and it's not hard to see why. It shields your personal assets, lets you open a company bank account, and Latvia's tax system, with a 0% tax on reinvested profit, makes it one of the most attractive business structures in Europe.

But the registration process can look intimidating the first time around — not least because a lot of the information floating around online is outdated or simply wrong. This guide covers everything that's actually current in 2026: from your first decisions to a fully operating company.

Key takeaways

• A SIA protects your personal assets — shareholder liability is limited to the share capital.

• Micro-capital SIA starts at €1, standard SIA at €2,800. In both cases, the share capital must be paid in before you submit the registration application — a rule that's been in force since 2023 and hasn't changed.

• Enterprise Register state fee: €20 (micro-capital SIA, standard) / €75 (standard SIA, standard), or €60 / €225 for expedited, 1-business-day processing (SIAs with several founders). A single-founder SIA pays the same base fee (€20 / €75) for expedited (1 business day) processing; the tripled fee applies to SIAs with several founders (Cabinet Regulation No. 664). The fee is the same regardless of whether you file electronically or on paper.

• The Enterprise Register decision itself takes 1–3 business days, but the full process — documents, bank account, EDS — realistically takes 3–6 weeks.

• Opening the permanent bank account is the real bottleneck. Start it in parallel with registration, not after.

What is a SIA, and when should you choose it

A SIA is a legal entity in which shareholder liability is limited to the capital they've contributed. Your personal assets are protected — if the company runs into debt, that debt belongs to the company, not to you personally.

Choose a SIA if:

• You plan to run the business long-term

• You have, or plan to bring on, partners or investors

• You want to pay yourself dividends

• Your clients or partners prefer working with a legal entity

• You'll want to apply for a bank loan or raise financing

Consider other forms if:

• You're just testing a business idea (look at self-employed status instead)

• You work alone and don't need liability protection (consider a sole proprietorship / IK)

• Your income in year one will likely be below €10,000

Still not sure which form fits? Read our comparison: SIA vs. sole proprietorship vs. self-employed — which fits you?

Step 1: Decide the key questions before registering

Before you head to the Enterprise Register, there are a few decisions to make.

Company name

Pick a unique name. Check it against the Enterprise Register database (ur.gov.lv) and the Patent Office trademark register — it's free and takes a couple of minutes. At the same time, check whether a .lv or .eu domain is available.

The name must:

• Use the Latvian or Latin alphabet

• Not include words like "valsts" (state), "pašvaldība" (municipality), or "Latvijas Republika" (Republic of Latvia)

• Not be misleading about the company's legal form

• Not match an already-registered company or trademark

Share capital: micro-capital SIA or standard SIA

This choice affects your company long-term.

Micro / small-capital SIA (share capital €1–€2,799):

• Minimum contribution to register: €1

• Restrictions: while share capital is below €2,800, at least 25% of each year's profit must stay in the company as a mandatory reserve; the remaining profit can be paid out as dividends (Commercial Law Article 185¹)

• Suited to: founders with limited starting capital

Standard SIA (share capital €2,800+):

• The full amount must be paid in before registration

• Dividends can be paid freely from day one

• A stronger profile with banks and larger clients

• Suited to: companies planning to pay dividends from the outset

Practical tip: if you plan to pay yourself dividends from year-one profit, a standard SIA pays for itself right away — the micro-capital SIA restrictions can make that impossible.

Registered (legal) address

Every SIA needs a Latvian registered address. You have two options:

• Use your own residential address (if you own it, or with the owner's written consent)

• Use a registered-address service (from €10–30/month)

Board

• At least one board member (can be the founder)

• A board member can be a foreign national

• The board must be reachable at the registered address

Step 2: Prepare the documents

Documents you'll need:

• Founding resolution (single founder) or founding agreement (multiple founders)

• Articles of association — the company's internal rules. A standard template is available on the Enterprise Register portal and works for most simple companies. With multiple founders in different roles, a custom set is advisable.

• KR4 application form — completed on the Enterprise Register portal

• Register of shareholders

• Board members' consent to hold office

• Address confirmation (owner's consent to use the premises)

All documents can be signed electronically with an eID card, eParaksts mobile, or Smart-ID — the fastest and cheapest route. If any founder lacks an e-signature, signatures must be notarized.

Step 3: Pay in the share capital

This is one of the most common points of confusion about SIA formation in 2026, so it's worth being precise here.

Since a July 1, 2023 amendment to the Commercial Law, the share capital must be paid in full before the registration application is submitted to the Enterprise Register — and that rule applies equally to every capital company, including micro-capital SIAs. The option to pay in installments after registration, which existed before 2023, is no longer available, and no later change reversing this has been introduced as of 2026.

The mechanics of that payment do differ depending on which type of SIA you're forming:

Micro / small-capital SIA (€1–€2,799): the payment can come from the founder's personal bank account — a separate temporary company account is not required. A declaration on the KR4 form is enough; a bank certificate is only needed if the contribution exceeds €50,000, which in practice never happens for a micro-capital SIA.

Standard SIA (€2,800+): you'll typically need to open a dedicated temporary bank account in the company's name, and the application must include a bank certificate or payment order confirming the deposit. Temporary accounts can be opened with Swedbank, SEB, Citadele, Luminor, or specialized institutions such as BluOr Bank; opening usually takes 1–5 business days.

Important either way: banks have become noticeably stricter. Be ready to show ID, proof of the source of funds, and a description of the company's activity (a short business plan).

The share capital can't be used for the company's day-to-day needs until the company is registered (and, if a temporary account was used, until it's converted into a permanent account).

Step 4: Submit the application to the Enterprise Register

Online (the recommended route):

1. Register on the Enterprise Register's self-service portal (registrs.ur.gov.lv) using your e-identity

2. Fill in the KR4 application form — basic data, registered address, business activities (NACE codes)

3. Upload all documents, including confirmation of the share capital payment

4. Pay the state fee

The fee depends on the type of SIA and how fast you want it processed — and, contrary to what's sometimes claimed online, the fee does not change based on whether you file electronically or on paper:

• Micro / small-capital SIA: €20 (standard, 1–3 business days) or €60 (expedited, 1 business day — multi-founder SIA; single-founder SIA — €20)

• Standard SIA: €75 (standard, 1–3 business days) or €225 (expedited, 1 business day — multi-founder SIA; single-founder SIA — €75)

For SIAs with several founders the expedited fee is exactly triple the standard fee; a single-founder SIA does not pay the tripled fee (Cabinet Regulation No. 664, Annex Part II, note 4).

Source: Regulation on the state fee payable for entries in the Enterprise Register journal and the Commercial Register

Once submitted, a state notary at the Enterprise Register reviews the documents and issues a decision. The SIA is officially formed on the date it's entered into the Commercial Register.

Cost summary

How long does it take?

The Enterprise Register's decision itself is made within 1–3 business days (standard) or 1 business day (expedited). But that's just one step in the middle.

A typical registration — from having all documents ready to receiving confirmation — takes 5–10 business days, including:

• Name check: 5 minutes

• Preparing the articles of association: 1–3 days

• Paying in the share capital / opening a temporary account (for a standard SIA): 1–5 business days

• Submitting the application and Enterprise Register processing: 1–3 business days (standard) / 1 day (expedited)

But that's only part of the story. The full journey "from idea to operating company" realistically takes 3–6 weeks, because opening the permanent bank account (2–4 weeks) is the bottleneck. Start that step early — ideally in parallel with registration.

Worked example

Say Marta registers a micro-capital SIA on her own, planning to provide services from her home address.

Marta's registration takes about a week, because she doesn't need to wait on a temporary bank account — she can pay in the share capital from her existing personal account.

For comparison, Jānis registers a standard SIA with two co-founders, uses a registered-address service, and wants expedited, 1-business-day processing:

Worth remembering: the share capital isn't "spent" money — it stays on the company's balance sheet and remains available for the company's operations.

You can run the numbers for your own situation with our payroll calculator if you plan to pay yourself or employees a salary from month one.

30-day post-registration checklist

Getting entered into the Commercial Register is only the start. Here's what to handle in the first 30 days:

Mandatory (legal requirements)

• Register with the State Revenue Service (VID) — your Enterprise Register data is forwarded automatically, but confirm the process actually completed. If asked, submit additional information within 10 days.

• Open a permanent bank account — a temporary account isn't valid for ongoing operations. Budget 2–4 weeks for bank verification.

• Register as an employer with VID — mandatory if you plan to pay any salary, including to yourself as a board member.

• Start bookkeeping from day one — every transaction needs a source document that meets legal requirements.

Important (but not always mandatory from day one)

• VAT registration — mandatory once turnover exceeds €50,000 in a calendar year (the application is due by the 15th of the following month). You can also register voluntarily earlier if it's advantageous. See our VAT registration guide.

• Cash register — needed if you'll accept cash payments.

• Industry licenses — some sectors (food, construction, finance) require additional permits.

Recommended for a new company

• Bring in an accountant from day one — the most common mistake: startups only start bookkeeping once VID is already asking questions. See what we offer under services and pricing.

• Set up EDS access — your accountant can manage it on your behalf, but it helps to understand the basics yourself.

• Prepare your first invoice template — include all mandatory details: registration number, registered address, bank account.

Bank account warning

Latvian banks have grown noticeably stricter about opening accounts for new companies in recent years. A foreign founder, a high-risk industry, or an unclear business plan can slow the process down. Alternatives that sometimes offer faster onboarding and good tools for international payments: Revolut Business, Wise Business.

Note: these alternatives may not qualify as the account used to pay in share capital for a standard SIA, since the application requires a certificate from a Latvian bank at submission time — check the specific requirements before choosing.

Common mistakes and how to avoid them

1. Choosing a micro-capital SIA without understanding the dividend restrictions

If you plan to pay yourself dividends from year-one profit, a micro-capital SIA can get in the way. Clarify this before registering.

2. Leaving the bank account until the last minute

In 2026, permanent-account verification takes 2–4 weeks. Start the bank application alongside registration, not after it.

3. Using a personal account for company transactions after registration

A personal account is fine for paying in a micro-capital SIA's share capital before registration — but after registration, company transactions need a separate business account. Mixing the two creates tax and liability problems.

4. Using a home address without the owner's consent

If you don't own the apartment, the owner must give written consent. Without it, the Enterprise Register can require changes.

5. Putting off bookkeeping

Every transaction that isn't booked on time is a potential future problem with VID. Bring in an accountant before your first invoice, not after your first letter from the tax authority.

6. Listing too narrow a set of business activities

Include the activity codes (NACE) you might plausibly need later, to avoid amending the articles of association down the road.

7. Confusion between salary and dividends

Not understanding the difference between salary and dividends can land you in a tax trap. Talk to an accountant before deciding — our article on salary vs. dividends is a good starting point.

8. Misunderstanding what the share capital is for

Share capital isn't "company cash" for everyday spending. After registration you can use it for company needs, but it shows up on the balance sheet and affects the company's financial position.

Frequently asked questions

Can I register a SIA entirely on my own, with no partners?

Yes. A single person can found a SIA — you can be both the sole shareholder and the sole board member. In that case you'll need a founding resolution rather than a founding agreement.

Can I later convert a micro-capital SIA into a standard SIA?

Yes. You do this by increasing the share capital above €2,800 — the process runs through the Enterprise Register, with an application and payment of the additional capital. After that, the micro-capital dividend restrictions no longer apply.

Can a foreign national be a SIA board member?

Yes, a board member can be a citizen of any country. In practice this can slightly slow down bank account opening, since banks apply extra scrutiny to foreign founders and source-of-funds checks.

What happens if the Enterprise Register application is rejected or needs corrections?

The Enterprise Register can request missing information or corrected documents, with a deadline to respond. The state fee generally isn't refunded if an application is withdrawn, so careful preparation before submitting saves both time and money.

Do I have to bring in an accountant right after registration?

The law doesn't strictly require it, but in practice it's strongly advisable — bookkeeping from day one protects you from mistakes that are expensive to fix later. See what we offer under services.

Can I pay in the share capital as an in-kind contribution instead of cash?

Yes, the law allows it, but the process is more involved — it requires a valuation of the in-kind contribution and additional documentation. For most new founders, a cash contribution is simpler and faster.

How much does it cost to maintain a SIA after registration, aside from the registration itself?

The main ongoing costs are accounting services and, if you use one, the registered-address fee. You can get a precise estimate for your situation on our pricing page or FAQ.

Conclusion

Registering a SIA in Latvia in 2026 is fast and fully digital — but the groundwork laid in the first few weeks determines whether the company starts operating without unnecessary stress. The most important things to remember: pay in the share capital before registration, start the bank account process as early as possible, and keep the books from day one.

Use this guide as a checklist, and if you'd rather have someone else handle the whole process — from the name check to setting up EDS — our team is ready to help. Get in touch.

Legal sources and references

• Commercial Law (Komerclikums)

• Regulation on the state fee payable for entries in the Enterprise Register journal and the Commercial Register

Want someone else to handle company registration and bookkeeping from day one? Get in touch with the Balansis team — we'll help you avoid the expensive mistakes.

Last updated: September 2026. This information reflects current Enterprise Register, VID, and Commercial Law requirements. For specific questions, consult a licensed accountant or lawyer.