Good news for anyone planning to start or grow a business in Latvia – starting from 16 July 2025, amendments to the Commercial Law will come into force, significantly simplifying the registration of capital companies (SIA and AS) and the procedure for increasing share capital.
These changes will make document submission to the Register of Enterprises (UR) easier and reduce administrative burdens for both new and existing entrepreneurs.
Key changes you should know about:
1. No more payment confirmation required for capital under €50,000
If share capital is paid in cash and does not exceed €50,000, no payment confirmation from a payment service provider will be required. It will be enough to confirm in the application that a bank account has been opened and the capital has been paid in.
🔹 Important: This applies only to monetary contributions. If there is also a non-monetary contribution, additional thresholds may apply.
2. Small in-kind contributions can be assessed by the founders themselves
If an SIA is being established and the in-kind contribution:
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does not exceed €25,000, and
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represents no more than 50% of the total share capital,
then the founders may assess the contribution themselves. No sworn auditor or expert opinion is required.
3. The Management Board may assess in-kind contributions when increasing capital
The Management Board will be allowed to issue an assessment statement for:
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Debt capitalisation (i.e., converting a loan into share capital);
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In-kind contributions up to €50,000.
This change will simplify procedures and reduce costs.
4. No need to submit applications to acquire new shares
When increasing share capital, it will no longer be necessary to submit separate applications to acquire new shares. It will be enough to provide the updated Shareholder Register, reflecting the current shareholding structure.
5. No bank confirmation needed for capital increases up to €50,000
Similar to the registration of new companies, a bank confirmation will no longer be required for capital increases in cash that do not exceed €50,000.
6. From 2026 – no more final financial statement in liquidation
Starting 1 January 2026, companies in liquidation will no longer be required to submit a final financial statement or an auditor’s opinion. Instead, only the asset distribution plan must be submitted to the Register.
What does this mean for entrepreneurs?
These updates will significantly reduce the red tape for company formation and capital restructuring. The process becomes faster, simpler, and less expensive, especially for small and medium-sized businesses.
There will be fewer documents, less need for bank confirmations, and fewer requirements for external audits in the case of small contributions.
Planning to register a company or increase share capital? Now is the time!
If you need legal assistance with company registration, capital increases, or valuation of in-kind contributions — contact us.
We’ll ensure that your process is smooth, compliant, and efficient.
© INNOVATOR 21.07.2025
