How to Register an SIA in Latvia in 2026 — The Complete Guide

How to register an SIA in Latvia in 2026 — a complete guide

In 2025, more than 12,000 new companies were registered in Latvia — the vast majority of them were SIAs (limited liability companies). It’s easy to understand why: an SIA provides liability protection, allows you to open a bank account, and Latvia’s tax system — with 0% tax on reinvested profits — makes it one of the most attractive business forms in Europe.

But the registration process can seem complicated if you’re doing it for the first time. In this guide, you’ll learn everything: from the first decisions to a fully functioning company.

What is an SIA and when should you choose it?

An SIA (limited liability company) is a legal entity where the liability of the members is limited to their contributed share capital. Your personal assets are protected — if the company incurs debts, they belong to the company, not to you personally.

Choose an SIA if:

• You plan to engage in business long-term

• You have or plan to attract partners or investors

• You want to pay yourself dividends

• Your clients or business partners want to work with a legal entity

• You want to apply for a bank loan or attract financing

Consider other forms if:

• You are a beginner still testing your business idea (consider self-employed status)

• You work alone and do not need liability protection (consider sole trader)

• Your income in the first year is likely to be below €10,000 per year

Not sure which form is right for you? Read our comparison: SIA vs Sole Trader vs Self-Employed — which suits you best?

Step 1: Decide on the most important questions before registration

Before going to the Enterprise Register, you need to make some key decisions.

Company name

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

The name must meet the following requirements:

• Must be in the Latvian or Latin alphabet

• Must not contain the words "state", "municipality", "Republic of Latvia"

• Must not be misleading about the company’s legal form

• Must not conflict with an already registered company or trademark

Share capital: micro SIA or standard SIA

This choice will affect your company in the long term.

Micro SIA (share capital €1–€2799):

• Minimum contribution for registration: €1

• Restrictions: cannot freely distribute dividends until accumulated equity reaches €2800; at least 25% of each year’s profit must be left in the company as reserve capital

• Suitable for: beginners with limited starting capital

Standard SIA (share capital €2800+):

• Must pay the full amount before registration

• Can freely distribute dividends from day one

• Better image in the eyes of banks and large clients

• Suitable for: companies planning to distribute dividends from the very beginning

Practical tip: if you plan to pay yourself dividends from the first year’s profits, a standard SIA pays off the first time — micro SIA restrictions can make this impossible.

Registered address

Every SIA must have a registered address in Latvia. You have two options:

• Use your home address (if you own the property or have the owner’s written consent)

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

Board of directors

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

• A board member may also be a foreign citizen

• The board must be reachable at the registered address

Step 2: Prepare the documents

Required documents:

• Founding resolution (if single founder) or founding agreement (if 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. If there are multiple founders with different roles, it is advisable to prepare custom articles.

• Application form KR4 — completed on the UR portal

• Register of members section

• Board member’s consent to hold office

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

All documents can be signed electronically using an eID card, eParaksts mobile, or Smart‑ID — this is the fastest and cheapest method. If any of the members do not have an e-signature, signatures must be notarised.

Step 3: Open a temporary bank account and deposit the share capital

Before registration, the share capital must be deposited into a specially opened temporary bank account. This is a mandatory step because the bank statement (or payment order) must be attached to the application.

A temporary account can be opened at Swedbank, SEB, Citadele, Luminor, or specialised financial institutions (e.g., BluOr Bank). The opening usually takes 1–3 working days.

Important: banks have become significantly stricter. Be prepared to show:

• Identification document (passport or ID card)

• Proof of source of funds

• Description of the company’s activities (short business plan)

The share capital cannot be used until the company is registered and the account is converted into a permanent current account.

Step 4: Submit the application to the Enterprise Register

Online (recommended method):

1. Register for the UR customer self-service portal (registrs.ur.gov.lv) with your e-identity

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

3. Upload all documents

4. Pay the state fee:

   • Low-capital SIA: €20 (standard processing 1–3 working days)

   • Standard SIA: €75 (standard processing 1–3 working days) or €225 (expedited — 1 working day)

Once submitted, the UR state notary will review the documents and make a decision. On the day the company is entered in the commercial register, the SIA is officially established.

Cost summary

How long does it take?

Typical registration — from the moment all documents are ready to the receipt of the registration confirmation — takes 5–10 working days, including:

• Name check: 5 minutes

• Preparing articles: 1–3 days

• Opening a temporary bank account: 1–3 working days

• Application submission and UR processing: 1–3 working days (standard) / 1 day (expedited)

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

Post-registration 30-day checklist

The company’s entry in the commercial register is just the beginning. Here’s what you need to do in the first 30 days:

Mandatory (legal requirements)

• Register with VID — UR data is sent automatically, but ensure the process is complete. If necessary, submit additional information within 10 days.

• Open a permanent bank current account — the temporary account is no longer valid for long-term operations. Plan for 2–4 weeks for bank verification.

• Register as an employer with VID — mandatory if you plan to pay salaries (including to yourself as a board member).

• Start bookkeeping from day one — every transaction must be documented with a legally compliant source document.

Important (but not always mandatory from day one)

• VAT registration — mandatory if turnover in 12 months exceeds €50,000. You can also register voluntarily earlier if beneficial.

• Cash register — required if you accept cash payments.

• Industry licences — certain industries (food, construction, finance) require additional permits.

Recommended for a new company

• Hire an accountant from day one — the most common mistake: startups start doing bookkeeping only when VID is already asking questions.

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

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

Most common mistakes and how to avoid them

1. Micro SIA without understanding dividend restrictions

If you plan to pay yourself dividends from the first year’s profits — a micro SIA can cause problems. Clarify this issue before registration.

2. Opening a bank account at the last minute

In 2026, bank verification takes 2–4 weeks. Start applying to the bank at the same time as registration, not after.

3. Using a personal account for company transactions

If you use your personal bank account for company activities, you will run into problems with both taxes and liability. Open a separate account from day one.

4. Using your home address without the owner’s consent

If you do not own the apartment, the owner must give written consent. Without it, the UR may request changes.

5. Delaying bookkeeping

Every document that is not recorded in time is a potential future problem with VID. Hire an accountant before the first invoice, not after the first letter from VID.

6. Too narrow a list of business activities

Include prospective activities (NACE codes) to avoid having to amend the articles of association in the future.

7. Confusion about salary versus dividends

If you don’t understand the difference between salary and dividends, you can fall into tax traps. Consult an accountant before making a decision.

8. Misunderstanding share capital

Share capital is not "company money" for everyday expenses. After registration, it can be used for company needs, but it appears on the balance sheet and affects the company’s financial position.

Registering an SIA in Latvia in 2026 is fast and digital — but the foundations laid in the first weeks determine whether the company starts operating without stress. Use this guide as a checklist, and if you would like someone else to take care of the entire process — from name check to EDS setup — our team is ready to help.

Last updated: April 2026. Information reflects current UR and VID requirements. For specific issues, consult a licensed accountant or lawyer.