Company Categories in Latvia: Micro, Small, Medium, Large — Thresholds

Your company's size category in Latvia determines three things: how detailed your annual report must be, whether you need an audit, and how long you have to file. Yet roughly a third of the SIA owners we work with cannot name their company's category — or worse, assume they are "micro" because they feel small, without checking the actual numbers.

The classification uses a "two of three" rule. You belong to a category if you meet at least two of three thresholds.

The Thresholds

| Category | Balance Sheet Total | Net Revenue | Average Employees | |----------|-------------------|-------------|-------------------| | Micro | ≤ EUR 350,000 | ≤ EUR 700,000 | ≤ 10 | | Small | ≤ EUR 4,000,000 | ≤ EUR 8,000,000 | ≤ 50 | | Medium | ≤ EUR 20,000,000 | ≤ EUR 40,000,000 | ≤ 250 | | Large | Exceeds medium | Exceeds medium | > 250 |

Example: A SIA with a EUR 200,000 balance sheet, EUR 900,000 revenue, and 8 employees. Balance sheet and employees are within micro limits, but revenue exceeds EUR 700,000. Two of three criteria still fall within micro → the company is micro.

Counterexample: Same company, but revenue is EUR 900,000 and employees are 12. Now only the balance sheet is within micro limits. Two of three exceed micro → the company is small.

What Each Category Means

Micro: Simplified annual report (abbreviated balance sheet and income statement). No audit. Filing deadline: 4 months after fiscal year end (April 30 for calendar year). The lightest compliance burden.

Small: Standard annual report with full balance sheet and income statement, plus notes. No audit (unless audit thresholds are independently met — balance sheet > EUR 800,000, revenue > EUR 1,600,000, > 50 employees). Filing deadline: April 30.

Medium: Full financial statements including cash flow statement and statement of changes in equity. Management report required. Audit likely (most medium companies exceed the audit thresholds). Filing deadline: July 31.

Large: Everything medium companies must do, plus consolidated statements if the company controls subsidiaries. Always audited. Filing deadline: July 31.

When Categories Change

Reassess your category at each fiscal year-end. A growing company can jump from micro to small between one year and the next. The transition means more detailed reporting, potentially an earlier engagement with auditors, and possibly higher accounting costs.

The reverse also happens: a company that downsized or had a bad year may drop a category, simplifying its obligations. In either direction, the change takes effect for the fiscal year in which the thresholds were crossed.

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Your Category Determines Your Obligations -- Know Where You Stand

Crossing a threshold mid-year changes your audit requirements, reporting format, and filing deadline. We assess your company's classification annually and prepare you for any transition before it catches you off guard.

Get your company category assessed →