Buying and Selling a Company (SIA) in Latvia: Procedure, Documents, Cost

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Looking to buy a company in Latvia or sell an existing business? Purchasing an operating enterprise is often more advantageous than starting from scratch: registration, bank accounts, history, and reputation already exist. But a transaction involving a SIA (Latvian limited liability company) contains legal nuances that not everyone knows in advance. A mistake in document verification can result in hidden debts, tax claims, or loss of licenses. In this guide, we will walk through the complete procedure for buying and selling a company in Latvia: from enterprise evaluation to registering the new owner in the Commercial Register. Information is current as of 2026 and based on the Commercial Law of Latvia and the practice of the Enterprise Register (Uzņēmumu reģistrs).

Two Ways to Buy a Business in Latvia: Shares or Assets

Before diving into details, it is essential to understand the fundamental choice: buying a company in Latvia can be done in two distinctly different ways. The first way is purchasing SIA shares (capital). The buyer acquires 100% (or a portion) of shares from the current owner. The company remains the same; only the owner changes. All contracts, licenses, bank accounts, and tax history are preserved. This is the most common option, taking 2 to 4 weeks.

The second way is purchasing the enterprise's assets. The buyer acquires not the company itself but its property, client base, equipment, brand, and other assets. The old company stays with the previous owner along with all obligations and debts. This option is more complex to process but safer for the buyer since they do not inherit hidden problems.

Pre-Purchase Company Verification (Due Diligence)

Due diligence is a mandatory stage before purchasing any SIA in Latvia. Skipping it is categorically inadvisable. Here is what must be checked:

Legal Verification

• Extract from the Commercial Register (Uzņēmumu reģistrs): registration confirmation, data on owners, board members, share capital
• Company articles of association (statūti): share transfer restrictions, pre-emptive purchase rights
• Court cases: verification through the portal manas.tiesas.lv
• Encumbrances and pledges: verification in the Security Register (Nodrošinājumu reģistrs)

Financial Verification

• Annual reports (gada pārskati) for the past 3 years: available in the Commercial Register
• Tax debts: verification through the VID portal (vid.gov.lv) public database
• Loans, leases, and other financial obligations
• Accounts receivable: who owes the company and how realistic collection is

Step by Step Procedure for Purchasing SIA Shares

Step 1: Agreeing on Transaction Terms

The buyer and seller agree on key parameters: price, payment conditions, transfer date, and seller guarantees. Terms are documented in a letter of intent.

Step 2: Preparing the Share Purchase Agreement

The share transfer agreement (daļu pārdošanas līgums) must be notarized. This is a requirement of the Commercial Law. Notarization costs 50 to 200 euros depending on the transaction amount.

Step 3: Notarization

Both parties (or their authorized representatives) appear before a notary. The notary certifies signatures and records the entry in the company's share register. If either party is abroad, a notarized power of attorney can be issued to a representative in Latvia.

Step 4: Registering Changes in the Commercial Register

After notarization, an application must be submitted to the Enterprise Register for the ownership change. The state fee is 18 euros for standard processing (3 business days) or 36 euros for expedited (1 business day). Publication in Latvijas Vēstnesis costs an additional 28 euros.

Step 5: Changing the Board (if necessary)

If the company's management changes along with ownership, the new board member must be registered separately. The fee for registering board changes is 18 euros (standard) or 36 euros (expedited).

Step 6: Notifying the Bank, VID, and Counterparties

After Commercial Register registration, the new owner notifies the bank and presents the updated register extract. Data in the VID EDS system must also be updated.

How Much Does It Cost to Buy or Sell a SIA in Latvia

• Notarization: 50 to 200 euros
• Commercial Register state fee: 18 to 36 euros
• Publication in Latvijas Vēstnesis: 28 euros
• Board change (if needed): additional 18 to 36 euros
• Due diligence: 500 to 2,000 euros
• Legal support: 300 to 1,500 euros

Total: administrative costs for purchasing a SIA range from 900 to 3,800 euros excluding the company price itself. An empty SIA without activity may cost 500 to 2,000 euros. An operating business with revenue and profit is valued individually, often using a formula of 3 to 5 times annual profit.

Selling a SIA: What the Seller Needs to Know

• Ensure accounting records are in order: all reports filed, taxes paid, annual report current
• Close or settle all court cases
• Pay off or disclose all debts
• Update information in the Commercial Register
• Prepare a complete document package for the buyer's due diligence

The seller bears responsibility for the accuracy of provided information. The purchase agreement typically includes seller guarantees: absence of hidden debts, lawsuits, and tax claims.

Tax Consequences of Selling a Company in Latvia

When selling SIA shares, the seller receives income subject to capital gains tax at a rate of 20%. The taxable base is calculated as the difference between the sale price and the original share acquisition cost. The capital gains declaration (form DK) is filed quarterly, by the 15th of the month following the quarter of the transaction.

Buying a Company in Latvia as a Foreigner

• Foreign nationals may purchase a SIA in Latvia without restrictions. No residence permit or citizenship is required
• Notarization requires personal presence or a notarized power of attorney with apostille and translation
• Opening or transferring a bank account may require additional KYC verification from the bank
• If the new owner plans to work in Latvia, a work visa or residence permit will be needed
• Purchasing an active SIA can serve as grounds for obtaining a business based residence permit if the enterprise conducts genuine economic activity

Conclusion

Buying and selling a SIA in Latvia is a structured process that takes 2 to 4 weeks with a competent approach. Key stages include company verification (due diligence), agreement preparation and notarization, Commercial Register registration, and notification of the bank and VID. Administrative costs range from 900 to 3,800 euros. The cardinal rule: never skip due diligence. Hidden debts and problems cost far more than the verification itself. For foreigners, purchasing a SIA can serve as grounds for a business based residence permit, making Latvia an attractive jurisdiction for entrepreneurs.

Frequently Asked Questions

How long does it take to buy a SIA in Latvia?

Two to 4 weeks with the standard procedure. Due diligence takes 1 to 2 weeks, notarization 1 to 2 days, Commercial Register registration 1 to 3 business days.

Can a foreigner buy a company in Latvia?

Yes, without restrictions. No residence permit or citizenship is required. Transaction processing requires personal notary presence or a notarized power of attorney with apostille and translation.

How much does the SIA purchase transaction cost to process?

Administrative costs range from 900 to 3,800 euros: notary (50 to 200 euros), Commercial Register (18 to 36 euros), publication (28 euros), due diligence (500 to 2,000 euros), legal support (300 to 1,500 euros).

What taxes must be paid when selling a company?

The seller pays capital gains tax at 20%. The taxable base is the difference between the sale price and acquisition cost. The declaration is filed quarterly by the 15th of the following month.

Can a SIA be purchased remotely without traveling to Latvia?

Yes. The buyer can issue a notarized power of attorney to a representative in Latvia. A power of attorney issued abroad must have an apostille and a notarized Latvian translation.

How Lex&Finance Specialists Can Help With Buying and Selling a Company

Lex&Finance provides complete legal and accounting support for SIA purchase and sale transactions in Latvia. Our lawyers will conduct company due diligence, prepare the share purchase agreement, arrange notarization, and register all changes in the Commercial Register. For foreign clients, we organize the entire process remotely. Our licensed accountants will review the enterprise's financial statements, assess tax risks, and ensure a smooth accounting transition after the transaction is completed. Contact us for a free initial consultation through our website lexfinance.lv or by phone.

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