Individuālais komersants (IK), individual merchant (sole proprietorship) IKLatvia
What it takes to form, own and run a sole trader in Latvia, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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A sole proprietorship shall be liable for his or her commitments with the whole of his or her property.
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A sole proprietorship is a natural person who is entered as a merchant in the Commercial Register.
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Performers of business activities must choose one of the following methods to pay personal income tax (PIT): Tax on income from business activities
Form it
Who registers it
- Registry
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Not stated
The registry’s and the law’s own pages do not mention it.
What it takes to form
Not in our records A notary, A resident director, Paying up the capital: none of these is in our records for the IK.
Own it
Who may own and run it
- Directors
- Does not apply
- Shareholders
- Does not apply
- Members
- At least 1 · at most 1 · one person may form it alone
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A sole proprietorship is a natural person who is entered as a merchant in the Commercial Register.
- A local company secretary
- Does not apply
- A local registered agent
- Not stated
The registry’s and the law’s own pages do not mention it.
Each year, at the registry
Not in our records Annual registry fee, Accounts on the public record, Audit for a small company, Audit: none of these is in our records for the IK.
Important dates
When each obligation falls due, as the authority states it.
- Annual statement to the State Revenue Service, required of individual undertakings above t
- Not in our records
With State Revenue Service
Not stated on likumi.lv/ta/en/en/id/277779-law-on-the-annual-financial-statements-and-consolidated-financial-statements when checked
What is public
Not in our records What the register shows the public is not in our records for the IK.
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Through owners
Not subject to corporate income tax; the owner is subject to personal income tax and mandatory state social insurance contributions. The owner may choose the micro-enterprise tax where it applies.
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Performers of business activities must choose one of the following methods to pay personal income tax (PIT): Tax on income from business activities
- CFC rules in Latvia
- Yes
Close it
Closing it
The other end, which most guides leave out.
- Route
- Deleted from the Commercial Register on the individual's own application.
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A merchant shall be deleted from the Commercial Register on the basis of: 1) an application of a sole proprietorship;
- Statutory fee
- EUR 20
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5.2. individuālā komersanta izslēgšana no komercreģistra 4 , komersanta filiāles izslēgšana no komercreģistra 1 gab. 20,00
Every business in Latvia
VAT
- Standard rate
- 21%Official European Commission, Taxes in Europe Database situation on 2026/07/01
Payment and banking services
5 services name Latvia on their own list: Paysera, Airwallex, Stripe, Revolut, N26. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Sole traderDerived our grouping, the same words in every country
- Name in law
- Individuālais komersants (IK), individual merchant (sole proprietorship) (IK)
- ISO 20275 code
- BS22Secondary GLEIF, Entity Legal Forms code list