Expand into the EU with a Latvian subsidiary
Your foreign company can own 100% of the Latvian SIA directly. Balt Partners coordinates the corporate file, signatures and registration, then helps prepare the banking, VAT and operational launch in Latvia.
What a Latvian subsidiary changes
The SIA is a separate Latvian legal entity. The foreign parent holds the shares and defines its mandate.
Direct ownership
If the intended parent is already known, forming the SIA directly under that company normally avoids a later share transfer and a second ownership review.
Separate liability and records
The subsidiary keeps its own Latvian accounts, contracts and filings. Parent and subsidiary transactions must be documented as transactions between related parties.
Defined EU function
Sales, procurement, import, support or another real function should be assigned to the SIA. A registration alone does not prove where value is created.
Documents follow the parent company's chain
The exact form depends on the parent's jurisdiction and how its records can be authenticated.
Existence and authority
Current registry evidence, constitutional documents and the parent decision approving the investment. The signatory's authority must be visible from the records or a specific authorisation.
Ownership and UBOs
The full chain from the parent to the natural persons who ultimately control it. A holding layer changes the direct shareholder, not the duty to identify the UBO.
People
Identification and address evidence for authorised signatories, proposed SIA board members and UBOs, plus any explanations needed to connect names and roles.
Authentication and Latvian
Foreign extracts may require legalisation or apostille and Latvian translation. We confirm the required form and validity before documents are ordered.
The parent owns the shares; the SIA board manages the company
The documents should show which decisions stay with the shareholder and which powers the local entity can exercise.
Shareholder decisions
The parent appoints the board and takes reserved shareholder decisions through authorised corporate representatives.
Board powers
One or more board members represent the SIA within the signing rules entered in the Latvian register. Residence and tax consequences are assessed separately.
Decision evidence
Minutes, contracts, approvals and operational records should match where decisions and work actually occur, especially when parent staff manage the subsidiary.
From parent approval to a registered SIA
Preparation usually drives the calendar. The register can only review a complete, compliant file.
Design the role
Ownership, board, real function, contracts, management location and required VAT or licences.
Build the parent file
Corporate records, parent resolution, signatory authority, ownership chain, UBOs, authentication and translations.
Sign and fund
Agree the accepted signature route and make the EUR 2,800 capital payment traceable to the subscribing founder.
Register, then activate
Simple files are normally reviewed in 1–3 business days. VAT, account, EMI, PSP, customs and licences follow separately.
Set the flows between the parent, the SIA and your customers
Before launch, we define who contracts, invoices, receives payments, imports goods and distributes profits.
| Flow | What we set up |
|---|---|
| The parent supplies the SIA | The intercompany agreement, the service or goods supplied and the invoicing method. |
| The SIA invoices EU customers | The right contracting entity and the VAT treatment for the customer, supply and country. |
| Goods enter or are stored in the EU | The importer, customs country, EORI, VAT registrations and product obligations. |
| Profit moves to the parent | Latvian distribution tax, possible withholding, treaty position and treatment at parent level. |
Prepare the account and payments from the start
The banking file should tell the same story as the group structure, the subsidiary's activity and its expected flows.
Secure the capital route
We check the payer, subscribing founder and supporting documents before funds are sent.
Prepare the account application
We prepare the KYC file and target suitable banks or EMIs based on the group, directors, markets and flows. Approval remains the provider's decision.
Sequence the operational launch
VAT, EORI, importer status, PSP onboarding and product compliance are placed in the right order for the business.
Questions foreign parent companies ask
Yes. A foreign legal entity can be the sole founder and shareholder of a standard SIA. The parent, its authority to invest and the full UBO chain must be documented.
If the intended parent is already known, direct formation normally avoids a later transfer, a second ownership review and extra corporate acts. A temporary personal structure should have a specific reason.
Usually current registry and constitutional records, a corporate approval, signatory authority, ownership-chain evidence and identification for UBOs, signatories and proposed board members. The final list depends on the parent jurisdiction.
Not in one universal form. Authentication depends on where and how a document was issued and on any applicable convention or electronic source. Documents submitted to the Latvian register must meet its Latvian-language requirements.
Many corporate-founder files can use an accepted electronic-signature or authorisation route. We confirm the route against the signatory and source documents before they are executed.
Parent documents, authentication and translation usually drive preparation time. Once a complete simple file is submitted, the Latvian register normally reviews it in 1–3 business days. VAT and financial access have separate calendars.
No. Registration and account approval are separate. Each bank or EMI applies its own KYC review to the parent, subsidiary, UBOs, board, business model, countries and funds.
Not necessarily. Latvia taxes the SIA under Latvian rules, but another country may examine effective management, a permanent establishment, controlled-company rules, transfer pricing or the parent's own receipt of income.