1. Before starting commercial activities, private individuals must register at the State Revenue Service as taxpayers – performers of commercial activities – indicating the area of business of intended activities.
EC statistical classification of economic activities in the European Community: NACE2.
Only businesses that have registered with the Register of Enterprises may operate as real estate agents and commercial agents, for transport services, vehicles sales, and businesses involving excise goods.
Private individuals MAY NOT register for the following (NACE 2 codes): 4511; 4519; 4725; 4726; 4910; 4920; 4931; 4932; 4939; 4941; 4942; 5110; 5310; 6419; 7120; 7810; 8010; 8220; 8411; 8412; 9411; 9412; 9420; 9900.
Legal entities – self-employed persons to whom regulations on professional activities apply: education, certificates of qualification, and use of a title must be certified for the profession when registering.
2. Economic activity can be registered in the SRS Electronic Declaration System in the section Documents -> From the form -> Taxpayer registration and data change forms -> Registration of a taxpayer (natural person) or in person at any Client Service Centre, presenting personal identification and completing the Taxpayer Registration Sheet.
Information on natural persons engaged in commercial activities and registered at the SRS Register of Taxpayers is available at the SRS homepage in the section Useful information / Public database of the SRS / Enter the SRS public database / Performers of business activities.
Tax payment regimes:
- Tax on business income
- Reduced patent fee for specific activities
- Micro-enterprise tax
- Notified unregistrable commercial activities
3. When registering a business, you must fill in the Taxpayer Registration and Data Change Form/Taxpayer (Natural Person) Registration Data/ Economic Operator in EDS and additionally fill in the questionnaire by answering Yes or No to make sure that that the planned activity does not resemble an employment contract and inform the applicant of the same.
The purpose of the questionnaire is to inform you about the features of an employment contract and highlight the main differences between employment and company contracts, giving you the opportunity to evaluate the type of business you wish to register.
4. If economic activity takes place somewhere other than the legal or declared address, the location must be registered with SRS as a structural unit and additional information submitted:
- copies of valid documents certifying the right to use the premises if they are not owned by the registrant
- permission by the owner (or legal representative) of the premises if they are not owned by the registrant. If the premises has co-owners, consent of all co-owners (or legal representatives) is required. Consent must indicate the cadastral number of the premises and name, surname and personal identification number (company name and registration number) of the owner/co-owners or legal representative.
5. When registering with SRS, businesses must provide information on bank accounts in Latvia and abroad.