Establish a Subsidiary in Latvia

Would you like to set up a subsidiary in Latvia in 2026 and need assistance? You may check our online services and collaborate with our local specialists.

Can a subsidiary be 100% foreign owned in Latvia, or do I need a local partner?

There is no need for a local partner to set up a subsidiary in Latvia. 100% foreign ownership is permitted.

What are the key characteristics of subsidiaries in Latvia?

• can operate under a different name,
• can develop other activities too,
• it has an independent status compared to a branch,
• debts & liability do not fall on the foreign company, etc.

What is the proper business structure for a subsidiary in Latvia?

The limited liability company – SIA in Latvia.

NOTE: The joint stock company can be an alternative structure.

This infographic might help when registering a subsidiary in Latvia:

What is the minimum share capital for a subsidiary in Latvia in 2026?

EUR 2,800.

What is the management required for a subsidiary in Latvia?

A single board member who can be the founder/shareholder.

Where do I register a subsidiary in Latvia in 2026?

At the Register of Enterprises/Trade Register in Latvia.

What are the main conditions for opening a subsidiary in Latvia?

• choose and reserve the business name,
• ensure a physical business address in Latvia,
• appoint at least one director,
• prepare the corporate documents (Articles & Memorandum of Association),
• register the Ultimate Beneficial Owner (UBO),
• open a corporate bank account,
• register with the State Revenue Service for tax purposes in Latvia (VAT included),
• pay the administrative fee, etc.

NOTE: There is no need for a local representative to open a subsidiary in Latvia. Thus, you can appoint one of our Latvian agents to handle all the paperwork and formalities for this type of business structure.

You can also watch this video with details on this topic:

Is a decision to open a subsidiary made by the parent company required?

Yes.

Are there any precautions/recommendations to consider when opening a subsidiary in Latvia in 2026?

• sectors like finance, insurance, food production, healthcare, transportation, and energy are regulated and need sector-specific authorizations before operations can begin,
• Latvian subsidiary offering financial advisory services will need a licence from the Bank of Latvia (Latvijas Banka), which absorbed the former FCMC (FKTK) in 2023.

What is the taxation of subsidiaries in Latvia in 2026?

• 20% CIT rate on profit distribution to parent company,
• 0% CIT on reinvested profits,
• 0% WHT on dividends, interest and royalties.

NOTE: Since the beginning of 2026, companies with only individual shareholders are subject to a new voluntary tax of 15% CIT on distributed profits. 6% PIT applies to dividends of such types of companies in Latvia.

What are the advantages of a subsidiary in Latvia?

• EU market access with free movement of goods and services;
• special economic zones (SEZs) with tax advantages;
• innovation grants for tech-based subsidiaries;
• low operating costs compared to Western Europe.

What is the time frame to open a subsidiary in Latvia?

About 4 weeks.

What are the costs for opening a company in Latvia?

Starting from EUR 2,000 for:

• documents preparation,
• translation,
• company registration,
• government fees.

For more information about the requirements for a subsidiary in Latvia in 2026, please do not hesitate to contact us. We assist in company incorporation in Latvia. You can also solicit accounting services for your subsidiary in Latvia.