A branch is an extension of the parent company abroad that performs the same business activities and functions under the same name. It is a common manner of expanding a business to another market because of the lower costs compared to opening a new legal entity in a country. Our team of experts in company formation in Latvia can give you complete information about the registration of a branch office.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) |
Home country’s legislation is applicable for opening a branch in Latvia. |
|
Best used for |
Expanding businesses in other countries. |
|
Minimum share capital (yes/no) |
Yes, 2,800 EUR |
| Time frame for the incorporation (approx.) |
4 weeks |
| Documents to be filed by the parent company |
– Memorandum of Association; – Articles of Association, – bank statement confirming that share capital is paid up; – shareholders' register |
| Management (local/foreign) |
Foreign for the branch in Latvia |
| Legal representative required (yes/no) |
No |
| Local bank required (yes/no) |
No, branch offices in Latvia are not required to have local bank accounts. |
| Independence from the parent company |
No |
| Liability of the parent company | Limited liability |
| Corporate tax rate | 15% |
| Annual accounts filing requirements |
Yes |
| Possibility of hiring local staff (yes/no) |
Yes |
| Travel requirements for incorporating branch/subsidiary (yes/no) |
No |
| Double tax treaty access (yes/no ) | Yes |
Table of Contents
Steps for opening a branch in Latvia in 2025
A Latvian branch is incorporated once the parent company has adopted a special Decision for this purpose. The branch will act as the Latvian counterpart of the foreign company. It will be an independent unit in terms of location but it will depend on the parent company in case of liabilities. All of its activities will be conducted on behalf of the main company and according to the existing business and management plans.
We invite you to discover an infographic about branches in Latvia:
Conditions for operating a branch in Latvia
A few formalities need to be observed when registering a branch of a foreign company in Latvia in 2025. Here are some of the requirements:
- The corporation opens the branch through a special decision that should be submitted together with the rest of the incorporation documents.
- The company incorporation in Latvia also implies the reservation of a trading name. In the case of a branch office, the name will usually be the same as the parent company’s, however, the reservation still needs to be completed.
- The next step is to draw up the articles of association and to sign the documents in front of a notary public. Once it is registered with the Latvian Commercial Registry, the branch can begin its business activities.
- One of the main particularities of creating a branch office in Latvia is that this entity is not required to have a local bank account, as it can also use the parent company’s account.
- The branch needs to have a registered address in Latvia and it will be registered for tax and VAT purposes. Such registration with the State Revenue Service is required for VAT purposes, and VAT returns must be filed every month.
On the other hand, a foreign enterprise seeking to set up a branch office in Latvia in 2025 must submit various documents to the local office of the Trade Register to obtain the Certificate of Registration. These are:
- the details of the parent company (name, address, registration number);
- the parent company’s Certificate of Registration (a notarized copy);
- the resolution through which the opening of the branch office was decided and approved;
- the document attesting to the appointment of a Latvian representative for the branch;
- information about the person appointed to represent the branch;
- details about the branch (Latvian legal address, trading name).
Our company formation agents in Latvia can also represent foreign companies interested in opening branches in this country. For this purpose, we offer multiple services, among which are document preparation, legal address provision (under the form of a virtual office), paperwork filing, and tax and VAT registration.
Here is a video presentation with details about branch registration in Latvia:
Opening a bank account for a branch in Latvia
Most foreign companies operating in Latvia decide to set up bank accounts with banks here, as they can use the services of local or foreign financial institutions if the latter also have offices in their home countries. Apart from this, Latvia has one of the most advanced and modern banking systems in Europe.
Licensing requirements upon branch registration in Latvia in 2025
Using a branch office to complete activities in Latvia comes with a few particularities, among which:
- the branch is not allowed to complete other activities than the parent company;
- the licenses to be obtained, however, must be issued by the Latvian authority in charge of representing the industry to operate;
- in most cases, the parent company is required to submit information about itself;
- the representative of the branch office in Latvia is not required to be a resident.
For certain activities, specific share capital requirements are imposed. This is usually the case for financial companies and insurance and reinsurance enterprises.
Business updates for Latvia in 2025
Setting up a company in Latvia is a rather advantageous decision considering that the country has an attractive business climate and a stable economy. Every year, the authorities bring to the attention of local and foreign entrepreneurs some business updates that should be implemented as soon as the legislation requires. Here is what to keep in mind if you want to establish a branch in Latvia and want to stay up to date with new changes in the business field:
- Lower interest rates have been introduced in European countries, and Latvia makes no exception. As such, the government expects consumption to improve, alongside sectors like the construction and real estate market.
- The upsurge in EU fund investments will have important impacts on the Latvian economy. Plus, the reforms adopted can reinforce competitiveness in Latvia and lead to lower labor taxes.
- A surplus tax is expected to be introduced for banks operating in Latvia. This will also be known as the solidarity levy.
- In terms of personal income tax for 2025, a rate of 25.5% will be imposed for incomes up to EUR 8,775 per month and 33% for revenues exceeding this sum.
So, if you are seeking any incorporation help to form a company in Latvia in 2025, the services of our company formation consultants are at your disposal. They can guide you about the type of company that can help you flourish your business in this country. Contact our team of agents who specialize in company incorporation in Latvia for complete details on how we can assist you in opening a branch.