Company registration in Estonia
The European market is very attractive for many businesses. To access local clients, it is convenient to have a legal entity with an EU registration. Therefore, many entrepreneurs consider Estonia as a possible location for the signup of a firm. The state is well known for its ease of doing business, transparent legislation, favorable taxation regime, and loyalty towards foreign investors. Furthermore, belonging to the European Union guarantees a positive reputation of the corporation in the international arena and opens up access to many global markets.
There is straightforward reporting and a clear algorithm for providing documentation. Opening a firm in Estonia makes it possible for a non-resident to obtain the status of a European Union taxpayer and issue VAT and EORI numbers. Also, the country has an agreement on the avoidance of double taxation with almost all governments of the globe.
What is business registration in Estonia?
To start a legal business, you need to list a new company in the Estonian company register. This is the state registry of legal entities and private entrepreneurs, which contains all the information about the subjects of commercial activity.
The government went to meet new entrepreneurs and simplified procedures and requirements as much as possible. All papers might be scanned and submitted online. The process itself takes a couple of hours. For those who are fluent in Estonian, English or Russian, it will not be problematic to understand the website of the state registrar and fill out the application forms. A new legal entity can be established either by a citizen of the country or by any person residing anyplace in the world. But this will require an electronic resident card.
Our advantages in company incorporation
Although enlisting with the Estonian company register is not difficult, it is still better to approach an adviser if you have not accomplished it yourself before. Fintech Harbor corporate team has been involved in the signup of resident and non-resident legal entities in the EU member countries for many years.
Working with us, you get a number of benefits:
Steps to set up your enterprise in Estonia
To create an Estonian firm (OÜ, AS, or another type), you first need to choose a title and make sure it’s available and then register an office in this country. E-resident card owners can set up the firm virtually without a visit through the site of the Estonian business register. Simultaneously, you should settle the state fixed charge and the authorized capital when submitting an application.
The second step is opening a corporate account with a local or international bank. If special requirements apply to the activity, you need to obtain a business license. If necessary, the company must be registered as a VAT payer.
Thanks to the help of Fintech Harbor lawyers, we have successfully registered a new company in Estonia in just 2 days! We didn’t even think that this was possible. Very efficient, bravo!
I really enjoyed working with the solicitors of this firm. They were very attentive to detail, which is what is required of skilled counselors.
No, taxes are not paid during company registration in Estonia. You ought to settle the governmental fee for considering the application. This amount is designated, it is paid one-time and is non-refundable. A firm can become a taxpayer only after completing the registration process and being enlisted with the tax authorities.
The price depends on the chosen registration method. This method is suitable only for those who have an e-resident card. Foreign citizens will have to use the help of lawyers and notaries. When registering by power of attorney, an additional fee is charged for the preparation and courier delivery of documents. To find out the cost of registering a company in Estonia, leave a request on the website or call us.
Before you start to fully use your new firm, conclude contracts, provide services and receive payments from customers, you need to make sure that your establishment:
- is enlisted into the Estonian company register;
- received the taxpayer certificate and VAT number (if applicable);
- has a corporate bank account;
- acquired necessary licenses to carry out specific types of activities.
If all these conditions are met, you can start working as an entrepreneur legally.
Estonian authorities request a standard set of information from applicants, including the agreement of incorporation, articles of association, application, and contact details. You must also provide receipts from the bank on the contribution of the authorized capital and state fees. If the founder is a legal entity, you must additionally provide data on the activities of the company, the identity of the founder, papers confirming the reliability and source of income. If all records are in order, the new legal entity will be entered into the Estonia company register the very next business day.
Estonian corporations have a minimum authorized capital of 2,500 euros. Individuals who establish a new business do not need to pay the whole amount at the time of registration, it is enough to declare the funds. Legal entities are required to deposit the specified amount to the corporate account. After that, the capital can be used for the needs of the firm.