Estonia

Estonia (the official name of the Republic of Estonia) is the northernmost of the Baltic states in northern Europe. It borders Latvia and the Russian Federation. The Baltic Sea further divides it from Finland and Sweden. Compared to other Baltic states, it is the most economically advanced country with the highest GDP per capita.

The main sectors of the national economy are mainly services, namely information technology, communication and banking.

Estonia is a member of the European Union (as well as the Czech Republic joined the EU in 2004), a member of the Eurozone (since 2011), since 1999 a member of the World Trade Organization.

Entrepreneurship in Estonia is associated with an extremely low bureaucracy, which is very welcome compared to other EU Member States. Local authorities and government have been trying to create a stable and tempting environment for both local and foreign entrepreneurs since the country became independent. Beyond the easy and fast start-up, these trends are reflected in other business-related benefits in Estonia.

The main advantages are zero tax when certain conditions are met (in the case of reinvesting profits in the growth of the company), smooth and quick VAT registration and payment by Euro as the national currency.

• The capital is Tallinn
• The official language is Estonian
• National currency is Euro

Benefits of Estonian Jurisdiction

• Member of the EU, OECD, WTO, NATO, Eurozone
• A large number of double tax treaties (more than 50 countries) concluded with the Czech Republic since 1995, as well as with Singapore and the Isle of Man
• Company Tax 0 % in case of redistribution of profit for further development of the company
• Fast and easy VAT
• Low bureaucracy, electronic communication with authorities via e-Residency card
• Access to EU markets

Basic facts about Estonian business company

The basic form of a capital company is a limited liability company (osaühing or OÜ). The share capital of OÜ is € 2,500 (no obligation to repay it). There is no restriction on the number of members or their nationality. It is necessary for the company to have at least one shareholder and one executive who can be the same person (at least 18 years old). Neither the Managing Director nor the Associate may be resident in Estonia.

The basic rate of Company Tax is 20 %. However, it is a so-called distributive tax, which applies only in the case of profit distribution among the partners. No income tax is paid on retained earnings. Its rate is 0 %. Therefore, if you reinvest the earned funds back into the company, there is no need to pay income tax for the financial year in question.

The basic VAT rate is 20 %, reduced rate is 9 % (applies to pharmaceutical products and aids for disabled persons, newspapers and magazines outside of electronic book readers). The zero rate applies only to domestic transport and certain types of international passenger transport.

Getting a VAT number is very quick and easy, with minimal cost. Also, bookkeeping does not require such costs as other EU companies. The submission of financial statements can be made on-line using the appropriate tax office. Many paperwork will be solved by the so-called e-Residency card, which allows, among other things, online communication with local authorities.

Set up of a company in Estonia

Set up of a company in Estonia can be done online. Therefore, a personal visit of a client for the purpose of establishing a company is not necessary. We also provide clients with a unique registered address in Estonia. We also assist with VAT registration (VAT) and the so-called e-Residency card, which allows, among other things, online communication with local authorities.

Establishing a company takes about ten business days. Upon the client’s request, e.g. because of the need to be physically present when opening a bank account, it is possible to prepare all documents in advance and arrange a meeting with a local notary. In this case, the start-up time will be halved.

The company is set up on the basis of documents that we prepare in advance with regard to the required corporate structure, the company’s occupation or the share capital. The client then only signs the relevant deeds.

Regarding the requirements for directors or shareholders, they are the same as for Czech companies. Thus, a foreign national may also be a director or shareholder.

After the company is established, it is possible to settle other requirements, such as a cryptocurrency exchange licenseor virtual wallet service, or other popular services.

If you need a company in Estonia or any related services for your business, do not hesitate to contact us.

Price List for Set up a Company in Estonia