Establishing a Latvia subsidiary is one of the most important steps in your expansion. You need a registered entity before you can hire employees, establish a payroll, and give out benefits and compensation. However, it can take months and substantial resources to set up a Latvia subsidiary.

G-P can help you start working faster. You won’t have to set up your own Latvia subsidiary because you can leverage our EOR solutions. You also won’t have to worry about Latvia’s subsidiary laws because we’ll manage all compliance matters for you.

How to set up a Latvia subsidiary

Before you set up a subsidiary in Latvia, you need to find the best location and the best entity for your company. Different cities or regions can have different Latvia subsidiary laws to follow. If you’re not familiar with Latvia’s regions, we recommend working with a professional consultant who can help you find the places most friendly to incorporation.

Next, you need to look at the different entities you can incorporate as. Latvia will allow you to incorporate as one of several structures, including a limited liability company (LLC), joint-stock company, branch office, or representative office. Every Latvia subsidiary setup has its own laws, times, and restrictions. Choosing the right entity will make a difference in what you can and cannot do as a company in Latvia.

The steps to set up your Latvia subsidiary as an LLC include:

  • Choosing a unique company name that contains only Latin or Latvian letters.
  • Drafting Articles of Association and the Memorandum of Association.
  • Depositing minimum capital into your company’s in-country bank account.
  • Registering the subsidiary with the Commercial Register.
  • Registering for VAT purposes depending on your company’s commercial activities.
  • Obtaining any special permits and licenses that may apply to your industry.

Latvia subsidiary laws

Many companies incorporate as an LLC because its Latvian subsidiary laws are favorable for international companies. However, there are still many laws you’ll have to follow to stay compliant. For example, you’ll need at least 1 shareholder and 1 director who can be of any nationality. Total minimum share capital can be no less than EUR 2,800, and you need to deposit at least 50% when you register your subsidiary.

If you meet 2 out of 3 criteria below, your Latvia subsidiary will need to go through an audit:

  • Over EUR 800,000 in annual turnover
  • Over EUR 400,000 in assets
  • Average of 25 employees during the year

Benefits of setting up a Latvia subsidiary

Although it can take weeks or months to set up your Latvia subsidiary, you’ll get the benefit of working in the country. An LLC will also protect your subsidiary and parent company and allow them to operate somewhat independently. Your parent company won’t have to worry about incurring fines or litigation from the subsidiary, and your subsidiary will get the opportunity to choose its own structure.

However, you won’t realize these benefits until you spend months setting up your Latvia subsidiary. Instead, G-P can provide the same benefits and more. As a global Employer of Record (EOR), we’ll help you start working in as little as a day, and you won’t have to worry about Latvia’s subsidiary laws.

Other important considerations

If you decide to register your own subsidiary instead of working with a global EOR, you’ll need time, money, and an expert to succeed. It usually takes at least 4 weeks to establish an LLC, and you’ll need to travel back and forth to Latvia during that time.

It will take even more time and money to establish a subsidiary if you do not have a Latvia subsidiary law expert. Try finding a lawyer, accountant, or consultant who can help you stay compliant throughout the process.

Enter new markets with G-P EOR — no new entities required

Beat the competition and enter new markets in minutes, not months, with G-P’s agentic Global Employment Platform. G-P acts as the legal employer on your behalf, removing the cost, risk, and complexity of company registration.

Test new markets, hire the right people, and move at the speed of opportunity — without the up-front commitment of building an entity first. Request a proposal.