Liaison Office in Latvia

A liaison office in Latvia, also called a representative office, is a manner in which a foreign company can establish a channel of communication or representation between its main offices located in another country and the business parties and/or clients in Latvia. With the help of our company formation agents in Latvia, you can easily set up such an office. Also, you should note that a liaison office cannot engage in commercial or business activities and cannot derive profit from Latvia but it can represent a convenient first step for those who are looking to open a company in Latvia.

Quick Facts
The purpose of a liaison office in Latvia	– for promoting and advertising the activities of a foreign company in Latvia, – for contracting potential local partners and collaborators
How is the liaison office also known in Latvia?	Representative office
How can a representative office be registered in Latvia?	The company’s Articles of Association are solicited as well as other important documents. Information about the company directors and liaison office is needed.
Can a liaison office in Latvia have commercial activities? (YES/NO)	NO
Contracting potential clients and partners (YES/NO)	YES
Local agent required (YES/NO)	YES
Attributes of a liaison officer	– can promote the activities of the foreign company, – can get in contact with potential local partners or clients, – can develop market reseach. Should develop constant communication with the parent company.
Bank account for a liaison office in Latvia	Recommended for the expenses of the representative office in Latvia
Allowed to invoice local customers	Not available
The institution that authorizes the liaison office in Latvia	Latvian Trade Register
Authorized resolution	Issued by the parent company when incorporation of a liaison office in Latvia commences
Travel requirements	Not mandatory, but recommended
Business advertising through a liaison office in Latvia	The products, services, and activities of a foreign company can be advertised in Latvia through a liaison office.
Time frame for opening a liaison office in Latvia	A few days or months, depending on the formalities and local procedures
Why choose our company formation agents in Latvia?	We can offer: – assistance in preparing the documents for opening a liaison office in Latvia, – support and representation with the relevant registration authorities, – and complete services at affordable prices.
Legislation on businesses in Latvia	Latvian Commercial Law
Legal person status (YES/NO)	NO
Decision on foundation	Required at the time of liaison office registration and issued by the foreign company
Sectors in which a liaison office can be registered	– education/social, – tourism, – advertising & communication, – government-related domains, etc.
Notarized signature	Necessary from the manager of the liaison office in Latvia
Cost related to opening a liaison office in Latvia	For: – business formation, – signature certification, – state fee registration
Registration announcement	Mandatory with Latvian Herald and free of charge
Translation and legalization of documents into Latvian	Mandatory. Our Latvian lawyers can guide you in this endeavor.
Notarized copy of the passport of the office representative (YES/NO)	YES
Employment contracts and salary payment	Not available through a liaison office in Latvia
Daily expenses	Covered by the parent company and paid through a Latvian bank account
Administrative costs of a liaison office in Latvia	Lower compared to other business structures
Another mandatory condition for registration	Must be incorporated with the Register of Enterprises in Riga
Can a liaison office transform into a branch in Latvia?	If the parent company decides on developing commercial activities. Other business conditions are imposed.
Tax registration	Only if the representative office becomes a branch

Requirements to open a Latvian liaison office

The formalities for setting up a liaison office in Latvia are simpler as this office will not derive income and thus will not have to engage in any reporting requirements. The company’s Articles of Association, as well as other references, and information about the company directors and the appointed company representatives, will be needed upon formation.

Investors can start a liaison office with the help of our agents who specialize in company formation in Latvia. Aided by a power of attorney, investors who are not available to travel to the country to establish this office can entrust one of our agents to handle the setup formalities. Here are other documents to prepare for opening a representative office in Latvia:

• the standard application form used for the registration of companies in Latvia;
• the Memorandum of Association;
• the Articles of Incorporation of the parent company;
• the registration certificate of the foreign firm;
• an authorized resolution of the foreign company to open a liaison office in Latvia;
• the decision to choose the representative agent of the liaison office in Latvia;
• a document validating the legal address of the Latvian liaison office;
• a notarized copy of the passport of the liaison office representative;
• an authenticated signature sample of the head of the representative office in Latvia.

Below you can discover an infographic about liaison offices in Latvia:

Attributes of a liaison officer in Latvia

As it is known, the opening of a representative office in Latvia also requires the appointment of a liaison officer. He or she is the contact person between this office and the foreign company. Among the attributes and characteristics of such an agent, we list:

• He/she is in charge of promoting the foreign business on the territory of Latvia, with guidelines and plans predetermined by the company in question;
• He/she can test and analyze the market in which it wants to be active, to know what kind of products and services can be introduced;
• The liaison office should develop business relationships with those in the niche or field in which the foreign company operates;
• Business partnerships can be established with various collaborators interested in the services and products offered through a liaison office in Latvia;
• The attention of a liaison officer also includes conflict resolution and negotiations, where appropriate;
• Specific marketing reports also come under the attention of a representative officer in Latvia;
• A good liaison officer in Latvia must know how to communicate, know the business very well, and the promotion methods of the respective company.

Therefore, a Latvian liaison officer has quite a few attributions in mind, and his/ her appointment can be made by the foreign company that is going to be represented on a foreign territory.

We invite you to watch a video presentation about the features of a liaison office in Latvia:

What are the costs of opening a liaison office in Latvia?

Opening a representative office in Latvia involves costs related to documents and registration with the relevant authorities. These costs are borne by the foreign company that wants to be promoted in Latvia and are quite small. Also, any expense related to advertising and business promotion in Latvia through a liaison office is borne by the parent company. Main costs aspects are:

• Administrative fees: The main costs involve the registration process and other administrative formalities. Since the liaison office in Latvia does not conduct commercial transactions, the associated fees are typically lower compared to setting up a fully operational business in Latvia;
• Operational costs: costs for office space (if applicable), office supplies, salaries for the Latvian liaison officer, and other operational expenses are borne by the parent company;
• Local representation: if the parent company is not present in Latvia, the liaison office must appoint a local representative to act on its behalf, which may involve salary or service fees for the representative.

If you are interested in company incorporation in Latvia, including the liaison office, we advise you to contact our local agents. Our company formation specialists can take care of the formalities involved in the process of setting up a company in Latvia.

The advantages of a liaison office in Latvia

A representative office in Latvia is not a legal entity and cannot engage in commercial activities or derive any form of income. However, its advantages may be of importance, as summarized below:

• market representation: entering the Latvian market can be useful for several reasons and companies can test their presence on the market before actually incorporating a legal entity.
• no needed capital: there is no minimum share capital needed to open a representative office in Latvia.
• control: the foreign company has complete control over the Latvian representative office and can manage its presence and image on the market.
• low administrative costs: because the office is not a legal entity and does not have tax or reporting requirements, the administrative costs for the foreign company are minimal.

The representative office is often chosen by those investors who need to perform certain marketing or liaison activities before they decide to set up a company in Latvia.

Legal framework for liaison offices in Latvia

Liaison offices in Latvia are regulated under the country’s commercial law, which provides clear distinctions between representative offices and fully operational business entities. As liaison offices are not considered separate legal entities, they are treated as extensions of the parent company. This means they cannot engage in profit-making activities, such as entering into contracts, generating sales, or carrying out commercial transactions. This legal framework offers businesses a simple and low-risk entry into the Latvian market while still enabling them to test the waters before making a larger commitment.

The legal environment in Latvia for foreign companies is favorable, as the country is part of the European Union, which ensures stability and access to a wide market. Additionally, Latvia has a robust legal system that guarantees the protection of intellectual property, contracts, and investments, making it an attractive destination for businesses looking to expand into the region. Foreign companies can benefit from clear regulations that offer transparency and fairness in setting up a liaison office, as well as the option to transition into a fully incorporated business structure when the market opportunity becomes clear.

Find support from our specialized company formation agents in Latvia in order to have a better understanding of the process of setting up a company in Latvia.

Why is the liaison office in Latvia a good business option?

A liaison office in Latvia is a convenient manner in which foreign corporations can enter the market for the first time, however, without commercial activities. If you intend to start a company in Latvia such as a representative office, you should appoint an officer in charge of testing the market and promoting the foreign business on this territory. Among the benefits of conducting business in Latvia is the relatively low corporate tax rate that the country offers.

Making investments in Latvia

Latvia is a safe business destination that offers multiple possibilities to those interested. Foreign entrepreneurs have various business options at their disposal and can choose the optimal structure for their plans, including a liaison office in Latvia. The following data shows the economic direction of Latvia, to give you an idea before setting up a business in this country:

• The total FDI for Latvia in 2024 was approximately USD 65.5 million;
• The GDP increased by $949 million compared to 2023;
• Latvia ranked 98thin the global GDP ranking of 196 countries in 2024;

When you want to start a Latvian company, you can opt for the variety of services of our company formation agents in Latvia. Furthermore, you can benefit from personalized services right from the start of your business. These include: support for taxation and reporting, financial assistance and other issues with the help of our specialized accountants in Latvia.

Contact us for complete details about how to open a representative office in Latvia.