Opening a Business Bank Account in Latvia as a Foreign Founder

For a Latvian company with a foreign owner, the bank account is the step most likely to stall. Latvian banks do open accounts for companies like that. They ask detailed questions, they charge for the extra checks, and SEB states plainly that its main condition is that your company has a connection with Latvia.

Foreign ownership is common here, not exotic: 97 of the 553 companies on this map with an owner on record have a non-Latvian one, which is 17.5%. What follows is what Swedbank, SEB, and Citadele publish about taking those companies on, why applications are refused, what an e-money account does and does not solve, and the order to do it in.

Every fee and condition below is a bank's own published term, and banks change them and decide each application individually. We could not read Luminor's current conditions, because its website blocks automated access, so it is not in the comparisons. This is not financial or legal advice.

How Do You Open a Business Bank Account in Latvia?

A new Latvian company opens two accounts: a temporary account to pay in the share capital before registration, then a current account once it is registered. Banks run anti-money-laundering checks on both, and a company with a foreign owner should expect detailed questions and, at SEB, a document check costing EUR 700.

The capital account. The share capital is paid before the company is registered, and the Commercial Law asks the founders to certify that it went into a payment account opened in the company's name. For cash capital up to EUR 50,000, that certification in the application is enough, with no bank letter. Banks call this a temporary account.

• SEB opens a temporary account applied for by e-signature within two business days, and it is free when opened remotely.
• Citadele opens one remotely only for new Latvian companies with up to five founders, all resident in the Baltic states, so a founder from further away applies in person or goes elsewhere.

The current account. Once the company is registered, the temporary account converts into a current account, or you open one at another bank. This is the application where the questions start.

The law's word is payment account, not bank account, and the registration guide explains what that allows.

What Do Latvian Banks Ask When Opening a Company Account?

A Latvian bank must establish the purpose and expected nature of the relationship, the planned number and size of transactions, and where needed the origin of the money, so it asks about the business model, turnover, and main customers. If it cannot complete those checks, it does not open the account.

Latvijas Banka explains that a bank may also ask for an owner's CV to check that the beneficial owner's background fits the company's business.

One point in your favour. A new company often does not know its customers yet, and Latvijas Banka has told banks that missing information about future business partners is not a reason to refuse the account. Describe the planned business model instead of leaving the form blank.

Swedbank's list of documents is typical: identity documents for the people representing the company, and documents showing the ownership structure. If any owner in the chain is a company registered abroad, it wants a current certificate of that company's ownership. A company registered outside Latvia is also asked for documents showing why it needs an account in Latvia.

What Does Swedbank Charge a Foreign-Owned Company?

Swedbank's business account costs EUR 5 a month, free in a new company's first year, plus a EUR 300 document check where a board member or owner is from abroad and EUR 35 to EUR 1,000 a month where extended due diligence applies. Remote signing needs a passport or ID card issued in Latvia.

Swedbank takes applications through its internet bank and answers within one business day. The agreement can be signed remotely only by a signatory with sole signing rights who holds a passport or ID card issued in Latvia; everyone else books a branch appointment.

The account costs EUR 5 a month, and it is free for the first year for a company that opens its account within twelve months of registration. Two further charges fall on companies with foreign owners:

• A first-time document inspection of EUR 300 for a company registered abroad, or a Latvian company whose board, owner, or beneficial owner includes someone from abroad. It is charged before the account opens, and it is not refunded if the bank declines.
• A service fee of EUR 35 to EUR 1,000 a month for companies that need extended due diligence. Swedbank's criteria include an owner or beneficial owner who holds identity documents from outside the EEA, or from Bulgaria, Hungary, Croatia, Liechtenstein, or Cyprus, and has no Latvian identity document. Swedbank sets the amount per company and gives 30 days' notice of it.

What Does SEB Charge a Foreign-Owned Company?

SEB names a connection with Latvia as its main condition for a business current account. Its first document check is free of charge when every owner and signatory holds Latvian documents and EUR 700 when any does not, and a Latvian company's current account costs EUR 5 a month.

SEB offers opening in its internet bank, by video meeting, or at a branch, and names a connection with Latvia as the main condition for a current account.

Its price list separates companies by the documents their people hold. The first document verification for opening a current account is free of charge for a Latvian company whose owners, beneficial owners, and signatories hold Latvian passports, identity cards, or residence documents. It is EUR 700 where any of them has no Latvian identity document or permanent residence permit, or holds a foreigner's identity card. Servicing a current account costs a Latvian company EUR 5 a month, and SEB's entrepreneur's plan is not available to non-residents.

How Fast Does Citadele Open a Business Account?

Citadele says 86% of remote business applications open within 6 minutes, and a representative contacts the rest within one business day. Remote opening needs one person who can represent the company alone with a qualified Smart-ID, eID card, or eParaksts mobile. Without a service plan, the account costs EUR 4.50 a month.

Citadele opens business accounts remotely for a company that one person can represent alone, using a qualified Smart-ID, an eID card, or eParaksts mobile. It says 86% of those accounts open within 6 minutes of the application, and that otherwise a bank representative contacts you within one business day. Without a service plan, a current account costs EUR 4.50 a month.

Every remote route here depends on a Latvian electronic identity. If you do not have one yet, the e-signature guide explains who can get which.

How Do Swedbank, SEB, and Citadele Compare for a Foreign-Owned Company?

For a Latvian company with a foreign owner, the first document check costs EUR 300 at Swedbank and EUR 700 at SEB, and Citadele does not publish one on the pages we read. Current accounts cost EUR 5 a month at Swedbank, EUR 5 a month at SEB, and EUR 4.50 a month at Citadele without a plan.

Why Do Latvian Banks Refuse Business Accounts?

Latvian banks refuse business accounts for three reasons: the bank cannot complete the checks the anti-money-laundering law requires, the company's risk profile does not fit, such as no link to Latvia or owners from outside the EEA, or the applicant's answers do not add up. Only the third is within the applicant's control.

• The bank cannot complete its checks. Then the law requires it not to open the account.
• The risk profile. A company with no link to Latvia, or owners from outside the EEA, is exactly what SEB's condition and Swedbank's pricing describe. That is the bank's risk model, and arguing the merits of your business does not change it.
• Answers that do not add up. Latvijas Banka's guidance says a customer must give true information and a bank looks into activity that differs from what was declared. Vague or inconsistent answers at the start make that comparison impossible.

What Can You Do If a Latvian Bank Refuses Your Account?

Ask what was missing and supply it, then apply to another bank, since criteria and prices differ. Where a bank's demands look disproportionate, Latvijas Banka asks customers to get in touch and offers mediation. The legally guaranteed basic account does not help a company, because it is only for individuals resident in the EU.

Where a bank's requirements prove disproportionate, Latvijas Banka can instruct it to change its procedures.

Can a Latvian Company Use an E-Money Account Instead of a Bank?

Yes. An e-money institution can provide the payment account the Commercial Law asks for when share capital is paid in. The difference is protection: bank deposits are guaranteed up to EUR 100,000 per depositor, while money at an e-money institution is not a deposit and is safeguarded instead.

The difference is in protection. Bank deposits are guaranteed up to EUR 100,000 per depositor at each institution, and the guarantee covers deposits at credit institutions and credit unions; an explainer prepared with Latvijas Banka confirms it applies to companies as well as people. Money held by an e-money institution is not a deposit. The law instead requires that customer money is insured or guaranteed, or kept apart from other money and out of reach of the institution's other creditors.

Before you rely on one, check three things: whether the provider is an e-money institution or a bank, which country licensed it, and whether the services you need later, such as card acceptance or credit, are available to its customers. What it takes to become one of these rather than bank with one is its own guide.

What Is the Right Order for Opening a Company Bank Account?

Decide where the capital goes before filing, write down answers on the business model, turnover, and source of funds, budget up to EUR 700 for document checks, start the current account as soon as the company is registered, and keep a second bank or e-money option ready in case of refusal.

1. Decide where the capital goes, before you file: a temporary account at a bank, or a payment account with an e-money institution.
2. Write down your answers first. The business model, expected turnover and payment flows, the source of the capital, likely customers and suppliers or a description of the planned model, and each owner's background.
3. Budget the checks. A Latvian company with a foreign owner can pay EUR 300 at Swedbank or EUR 700 at SEB before any account opens.
4. Start the current account as soon as the company is registered, and have a second option ready before you need it.
5. Get a Latvian e-signature if you qualify. It opens the remote routes above.
6. If you are refused, ask what was missing, apply elsewhere, and take disproportionate demands to Latvijas Banka.

Frequently Asked Questions

Can a Non-Resident Open a Business Bank Account in Latvia?

Yes, but expect extra checks and fees. Swedbank charges EUR 300 and SEB EUR 700 to check documents for a company with owners from abroad, and SEB states that its main condition is a connection with Latvia. Signing remotely at Swedbank needs a passport or ID card issued in Latvia.

How Long Does It Take to Open a Business Account in Latvia?

Citadele opens 86% of remote applications within 6 minutes, Swedbank answers remote applications within one business day, and SEB opens a temporary capital account within two business days. A company with foreign owners can expect further document requests during the checks.

Do You Need a Latvian Bank to Pay In Share Capital?

No. The Commercial Law asks founders to certify that the capital went into a payment account opened in the company's name, and for cash capital up to EUR 50,000 that certification is enough without a bank letter. An e-money institution's payment account meets that wording.

Are Company Deposits Protected in Latvia?

Yes, at banks and credit unions. The Latvian deposit guarantee pays up to EUR 100,000 per depositor at each institution, and it covers companies as well as people. Money held by an e-money institution is not a deposit and is safeguarded instead.

Can a Bank Refuse Because a New Company Has No Clients Yet?

Not for that reason alone. Latvijas Banka has told banks that missing information about future business partners is not a reason to refuse the account. A new company can describe its planned business model instead of naming customers it does not have yet.

Sources

• Komerclikums, the Commercial Law, article 147, for paying in share capital.
• The anti-money-laundering law, for what a bank must establish and when it must refuse.
• Latvijas Banka on account opening and refusals and customer due diligence.
• Swedbank's remote onboarding and account price list.
• SEB's becoming a customer, temporary account, entrepreneur's plan, and general price list for corporate customers.
• Citadele's remote business onboarding and temporary account.
• The Noguldījumu garantiju likums, the Deposit Guarantee Law, and the Maksājumu pakalpojumu un elektroniskās naudas likums, the Payment Services and Electronic Money Law, article 38.
• The foreign ownership report, for how many companies on this map have a foreign owner.

This page describes published terms and what the law requires of banks. It cannot tell you whether a particular bank will take your company, and that depends on facts only the bank sees.