A company in Estonia

Company registration in Estonia

Estonia was one of the first post-Soviet countries to join the European Union. The country's legal framework is in line with European norms. Today, the small Baltic republic is open to foreign investors. Although the jurisdiction has a zero rate on undistributed profits, Estonia is not considered a tax haven and is not blacklisted by any country in the world.

Official language

Estonian

Capital

Tallinn

Largest cities

Kohtla-Jarve, Narva, Paldiski

Form of government

Parliamentary Republic

Legal system

Baltic (Romano-Germanic family)

Currency

Euro

Organizational and legal forms of companies

1. Private limited partnership (osaühing).
2. A public limited company (aktsiaselts).
3. General Partnership (täisühing).
4. Commercial association (Tulundusühistu).
5. Limited partnership (usaldusühing).

The first two types of company are the most popular.

What is included in the registration fee

The price of legal services for starting a business in Estonia is calculated on an individual basis and includes:

• legal advice;
• Due Diligence procedure;
• preparation of documents, their notarization, apostille;
• payment of duties and contributions;
• lease of a legal address;
• getting an extract from the electronic Registry (Printout from the Registrar);
• legal support for foreign business.

Documents provided after registration

1. Company charter.
2. Memorandum of Association.
3. Extract from the registry.

Algorithm for opening a company in Estonia

1. We provide a detailed consultation on business registration in Estonia (in person at the office or remotely).
2. Performing Due Diligence.
3. Preparing the list of documents.
4. You pay legal fees.
5. Documents that are subject to notarization are certified.
6. Our employees pay registration fees and fees.
7. The company is registered in the electronic registry.

Principles of jurisdiction

1. The system of electronic interaction between business and the state is well established, the level of corruption is low.
2. Tax on retained earnings – 0%.
3. The ability to obtain a residence permit, a work visa.
4. The legal system is convenient for small and medium-sized businesses.
5. The opportunity to use the services of a nominee service, information about the beneficiaries is confidential.
6. No currency control.
7. Simple procedure for opening a business, no need to travel to the country.

Disadvantages of jurisdiction

1. Taxes are quite high.
2. It is necessary to keep accounting, submit annual financial statements.

List of banks in jurisdiction

• Tallinn Business Bank;
• AS SEB Pank;
• Swedbank;
• Danske Bank;
• Versobank.

Company Requirements

Both an individual and a legal entity can open a company in Estonia. Minimum authorized capital – 2500 euros, paid upon registration (for founders of legal entities) or for 3 years, before the payment of dividends (for individuals) in cash or property.

Non-residents are prohibited from banking and providing insurance services. The legal address must be registered in Estonia. Only an individual can be a director.

You can register a commercial organization through the electronic registry or with a notary (for foreigners, only the second method is possible). For non-resident companies, a contact person in Estonia is required, information about him is entered in the Register.

Corporate law

Estonian Corporate Code

Tax Information Agreements

Estonia has signed the multilateral BEPS plan, the MCAA convention. Ukraine has concluded an agreement with the country on the avoidance of double taxation, article 27 contains an order on the exchange of tax information.