According to the ranking of the international magazine Doing Business, the country has been in the top 20 for the ease of starting and doing business for years. The favorable business climate is evident in everything, from tax rates to the attitude of state authorities to the activities of Estonian companies.
Estonia company registration is a unique opportunity for non-resident businessmen as there are no taxes on retained earnings. This opens wide opportunities for business development and capital accumulation.
The client needs to provide 3 variant names of the company. We will check the availability of these variants for registration and offer free options for the final choice. If all three names are filled, we will ask for additional ones. Three names provision isn't a mandatory requirement, but will speed up the verification process.
The client needs to prepare personal documents for company registration. Preparation can be carried out in parallel with the first stage. The exact list of documents depends on the characteristics of the future company. Usually, a copy of the passport and confirmation of the address of the company's participants, as well as a power of attorney, should be provided.
A package of documents is formed for submission to the Register based on the data provided by the client.
The collected package of documents is submitted to the Register. After that, the documents are processed by the registrar and the company is entered into the Register database.
After entering the company into the Register, you can see its registration data in it and if necessary order paper versions of the statutory documents with or without certification. The specialists of our company will help you with all the necessary certification (notarization, apostille) and translations into other languages, if necessary.
Estonia business registration is a good option for foreigners as the country has a special attitude toward corporate taxes. According to the current system, there is no corporate income tax. It occurs when dividends are distributed to shareholders. In this case, the tax is 20%.
If you open a company in Estonia as a VAT payer, the tax rate is:
There is no taxation on capital gains in the state as they are considered part of the firm's income. They are only subject to tax upon distribution of profits.
Social insurance payments and land tax are also included. For all transactions involving real estate, stamp duty additionally applies.
Each Estonian company must submit annual financial statements. In almost all cases firms can prepare them according to international standards — IFRS.
In many cases, the duration of the financial year coincides with the calendar year — 12 months, but if necessary, it can be scheduled differently in the company's charter. Financial statements must be filed with the Trade Register. This must be done no later than six months after the end of the financial year.
The audit is obligatory if you register a company in Estonia and it meets at least two of the following criteria:
The absence of tax on retained earnings makes registering a business in Estonia the best solution if you will use all the income for the further development of the company.
Estonia company registration has other advantages for non-residents:
After company registration in Estonia, the founder can grant it loans unlimited in size and quantity. This allows the shareholder to withdraw part of the profit, which will not be taxed as an annual interest payment.
A company can only open an account within the country if it has a real office, employees, and Estonian counterparties. The account can be closed if the bank does not see the real activity of the company, payments of rent are missing, and so on.
You can register a company in Estonia online only if you have Estonian ID card or through virtual residence (e-residency).
There are two options for Estonia company registration: independently and by power of attorney. It is also possible to register online. The remote method is provided by e-Business Register system.
When you successfully register a business in Estonia, any user will be able to find basic and additional data about the company. Among them are name, registration number, date of opening of the company, and so on. You can do this on the website of the Estonian Commercial Register.
After determining how to register a company in Estonia on the Internet, you may encounter certain peculiarities of the procedure. For such cases, we provide additional services.
If the taxable turnover of a legal entity exceeds 40,000 euros, mandatory registration as a VAT (VAT) payer is required. To obtain a VAT number voluntarily, you have to submit an application to the tax administrator. The document must be supported by one of the proofs:
If you have decided to register a company in Estonia, the price of preparing financial statements will depend on the monthly number of transactions and activities of the enterprise. At the same time, you need to:
Substance is a set of requirements that an Estonian company must meet to be perceived by the state as actually existing in its jurisdiction.
Before you register company online Estonia, you should hire employees and rent an office. As a result, the company will be able to open an account in Estonia, getting a stable firm + account in the same jurisdiction. Estonian banks offer a large number of financial services for such cases at reasonable prices.
To register a company in Estonia online, you need to choose a bank to open an account. The decision is made individually and is influenced by many factors:
If the bank refused to open an account for the company, the same will happen at the second application, even with the help of professionals. This is due to the fact that the European bank has already made a decision and will not change it.
It is possible to open a company in Estonia without a bank, for example, if you open an account in a payment system. It is faster in terms of time and more loyal in terms of rates, but it is not suitable for every business model.
The Estonian Commercial Code obliges all companies to have a legal address and, in some cases, a contact person. It can be either a natural person or a legal entity with Estonian citizenship.
The contact person fulfills two functions:
Knowing how to open a company in Estonia, you should keep in mind that the following factors can affect the cost of the procedure:
Our specialists will tell you how to register a business in Estonia online and help you to do it quickly and with maximum profit for your future company.
Frequently Asked Questions:
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