Entity choice
OU vs SIA vs UAB: choosing a Baltic company form
OU, SIA, and UAB are the common private limited company forms in Estonia, Latvia, and Lithuania. The choice should follow your operating model: management location, hiring plan, VAT profile, banking needs, and where customers or suppliers expect local presence.
| Form | Country | Good fit | Watch point |
|---|---|---|---|
| OU | Estonia | Remote administration, retained-profit cash flow, digital founders. | Foreign management can create tax questions elsewhere. |
| SIA | Latvia | Riga-based operations, logistics, regional service teams. | Distribution tax and payroll need local modelling. |
| UAB | Lithuania | Larger local market, sales presence, Lithuanian hiring base. | Standard taxable-profit model; small-company relief has conditions. |
- Where will directors make decisions?
- Where will the first employees work?
- Where will contracts be negotiated and signed?
- Which country will banks, customers, and suppliers expect?
Sources: Estonian tax guidance, Latvian State Revenue Service, Lithuanian State Tax Inspectorate.