What is Latvian SIA

Latvian SIA (lat.: Sabiedrība ar ierobežotu atbildību) is basically a standard LLC company. SIA is comprised of two corporate bodies: shareholders and board of directors, first being owners of the company, while second is an executive organ.

Liability of all shareholders is strictly limited by the amount of capital they have invested into company’s share capital, meaning they hold no personal responsibility for debts or other obligations of the company.

Generally speaking, Latvian SIA may be a quite convenient legal vehicle for conducting business in Baltic States or European Union, as flexible corporate structure among with several possible taxation regimes provides good grounds for a trading or service providing company.

Shareholders of a Latvian SIA

According to the legal regulation of the Republic of Latvia – any person who have reached 18 years old can be a shareholder of a Latvian SIA, regardless of their citizenship and nationality. Also, no local shareholders are required in order to incorporate or own a company in Latvia. Minimum number of shareholders in Latvia is 1.

The only exceptions to be a shareholder may be a court ruling or decision of tax authority, prohibiting certain person to be a shareholder of company on the territory of Latvia. Usually, such measures are applied as remedies after specific legal violations.

Directors of a Latvian SIA

According to the legal regulation of the Republic of Latvia – any person who have reached 18 years old can be appointed as a director of a Latvian SIA, regardless of their citizenship and nationality. Also, no local directors are required in order to incorporate or run a company in Latvia. Minimum number of directors in Latvia is 1.

The only exception to hold a position of a director may be a court ruling or decision of tax authority, prohibiting certain person to be a director of company on the territory of Latvia. Usually, such measures are applied as remedies after specific legal violations.

Share capital of a Latvian SIA

Commercial Law of Latvia sets minimum share capital of a Latvian SIA as 2800 EUR. At least half of this amount must be deposited during the incorporation process. There are exceptions, when under certain circumstances minimum capital of a company during incorporation can be 1 EUR – in this case there is no need to actually deposit it, but the share capital has to be increased up to 2800 EUR within next few years.

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