Company formation and accounting in Latvia
Last updated: 2017-12-24
Company formation process is completed and you have registered the company in Latvia. What to do next and what need to take into account?

Bank account

If during company formation process you paid the equity capital (share capital) by money, then you may have opened temporary bank account in some bank in Latvia. In such case you need to change the temporary bank account to permanent.
To change temporary bank account to permanent or to open new bank account, a member of a board of directors) usually need to take a passport and the decision about company registration and go to bank. In a bank need to fill special questionnaire and answer questions about planned amount of transactions, planned business and business partners. A bank may require additional documents (for example, some agreement with a business partner).
Depending on a bank an account can be opened at the same day (for some banks this process takes longer time).

Electronic declaration system

Companies formed in Latvia must submit tax reports. And Latvian companies can submit the tax reports only using the electronic declaration system.
To get access to the electronic declaration system, need to prepare and sign special application. In the application need to write company name, registration number, and information about natural persons that will have rights to access the electronic declaration system. After signing need to submit the application to the State revenue service (tax authority).
Usually during 5 working days in email you will receive id and password to get the access.

Registration as value added tax payer

If during company formation process you have not submitted the VAT application and you want to register the company as VAT payer, then need to submit certain application to the State revenue service. Together with application need to submit a document that gives rights to the company to use certain address as a legal address.
You can submit all documents using the electronic declaration system.


If a company carries out economic activities, the company must employ and pay salary to at least one employee. The only employee may be a member of board of directors. If some other persons do work for the company, then the other persons also are considered to be employees.
Before start to employ employees, at first need to conclude an employment agreement and to report to the State revenue service.
Minimum salary for full (normal) working time (8 hours each working day) for Year, 2018 is 430 euros per month. If to ensure economic activities of a company need less time than 8 hours each working day, then the company can choose to pay salary only for hours worked. Minimum hourly rate is changes each month (from 2.337 euro to 2.6875 euro per hour)
If monthly net turnover exceeds certain limit (for year, 2018, - 2150 euro per month), then for at least one employee must pay minimum monthly salary (430 euro).


Latvian company must do accounting and record transactions in the accounting ledger.
In general all transactions for a month must be recorded in the accounting ledger during 15 days after the end of the month.
Accounting documents must keep in Latvia.

Submission of tax reports and paying taxes

If a company employs employees, then each month need to submit a tax report about employees and related taxes also must pay each month (usually until 15th day of a month).
If a company is registered as value added tax payer, then need to submit the VAT return. Depending on turnover and type of transactions the VAT return must submit either once a month, three months or six months.

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