Company Formation in Estonia

Looking to Expand Your Business?

One of the hallmarks of a truly global integrated economy is the rise in foreign direct investment. Over the years, Estonia has become an ideal destination to set up your dream enterprise owing to low or lax entry barriers and an investor-friendly climate. We at Enterslice are proficient in our work to provide detailed research and analysis of the commercial and business aspects of company formation in Estonia. Our team of experts and seasoned professionals are uniquely equipped to provide you with financial advisory services that stand out, enabling you in not only for company formation in Estonia but also to achieve sustainable growth. Our objective is to provide you with a trusted partner who will guide and support you in your endeavours and ensure that you benefit from the available resources to the best of your abilities.

Estonia – your ideal business destination

Estonia is becoming one of the sought-after locations for doing business in the European Union. With a stable economy, minimum barriers to incorporation and ample growth opportunities, Estonia is often referred to as the Silicon Valley of Europe. The capital city of Tallinn is situated along the coast of the Baltic Sea, one of the most important waterways of Scandinavian Europe, hence making it extremely accessible to other Northern European Countries. Outsourcing and Financial Services and Real estate comprise of more than 50% of the country's economy. Estonia has a booming digital services and nanotechnology industries market and is a major tech player in Europe owing to a vastly integrated digital network and widespread use of new-age technologies.

Company formation in Estonia would be a highly profitable venture for your business expansion plans and would give you a head start to increase the boundaries of your business beyond Europe.

Key requisites to company formation in Estonia

Choosing Company Name

Selecting a unique name for your business that does not coincide with a competing enterprise is a prerequisite for company formation in Estonia. Enterslice can help you choose a suitable name for your enterprise and verify its availability from the government's e-business register.

Nature of Business Activity

You need to select a business activity your entity would undertake before undertaking company formation in Estonia. Enterslice would ascertain required approvals and permits as per the Estonian Classification of Economic Activities and obtain statutory approvals for the same from the government.

Legal Address and ID of valid person

You need to designate an authorized person in Estonia to act as a legal representative for company formation in Estonia. Enterslice would provide the details of such a local representative in Estonia. The address of the contact person shall be the address of your company.

Types of Business Structures available in Estonia

Partnership (TU/UU)

A partnership protects its shareholders and directors from liability incurred by the company in due - course of business to the extent of their shareholding only. It is of two types – general partnership and limited partnership. Enterslice would help you set up an LLC in Estonia by preparing the necessary necessary papers and obtaining approvals from the statutory bodies required for company formation in Estonia.

Private Limited Company (OU)

A private limited company is the most common form of business entity in Estonia as it requires low paid-up capital and only one member for company formation. Enterslice can help you with the preliminary requirements of an OU – bank account opening, Paper works filing and registration with relevant authorities so as to make your business formation in Estonia process hassle-free.

Commercial Association (ühistu)

Also known as a Joint Stock Company, a commercial association is an entity comprising collective investments of several members in furtherance of a common objective. We can help prepare joint venture deeds and employment contracts and obtain licenses and permits required by the government for the purpose of company formation in Estonia as a commercial association.

Sole Proprietorship (FIE)

Sole Propriety is an entity owned and operated by a single person who incurs all its liabilities and financial gains. FIE is ideal for small-scale business expansion. Enterslice will help you with company formation in Estonia as an FIE by completing the preliminary formalities and obtaining requisite licenses.

Process of company formation in Estonia

Choosing a Name

We at Enterslice help you select a name for company formation in Estonia and verify its availability from the e-Business Registry. We also ensure that the name you choose is unique and not prohibited by the Registry.

Selecting sectors of activity

Our Experts will help you select your desired form of business activity from the Estonian Classification of Economic Activities Code (EMTAK) and proceed to register an application for company formation in Estonia.

St ocal Address and Contact Person

Enterslice would identify a local resident whose residence would be the company's registered office in Estonia and submit the details to the Centre of Registers and Information Systems (RIK).

Opening Bank Account

We can help you open a commercial bank account for the purpose of receiving minimum paid-up capital and initial funds to operate your company.

Registration for VAT

If your company’s annual turnover exceeds 40,000 euros, we will assist your enterprise in registering for value-added tax by making an application to the Tax and Customs Board.

Permits and Licenses

Since a company is required to obtain necessary approvals from the relevant authorities under its respective EMTAK code, our team of professionals would help you obtain the required clearances from the authorities and government authorities.

Submission of necessary papers

We shall collect all the required necessary papers – Memorandum of Association, ID proof of local resident, Bank account details, and EMTAK classification number and submit the same for verification with the E-Business Registry required for company formation in Estonia.

Certificate of Incorporation

After verifying the necessary papers, the Estonian Centre of Registers and Information Systems registers the name of your entity in the e-Business Registry, and you receive a copy of the registration through the registered post.

Tax structure in Estonia

One of the advantages of incorporating a business in Estonia is that you do not require a separate tax certificate. The company identification number suffices for tax identification. Estonia has 5 major taxes applicable to businesses: Corporate Income Tax (CIT), which is applicable at 20% for profit distribution and 14% if your business distributes profits regularly. Apart from CIT, Capital Gains Tax is charged at 20%. If your company’s annual revenue exceeds 40,000 Euros, you are required to pay VAT at the rate of 20% (which might increase to 22% in future), which is reducible to 9% on certain items. Also, there are several zero-rate VAT-charged items in Estonia, such as health care, insurance, financial transactions, etc. Transactions in real estate are exempt from tax if they do not fall in the high-volume category. However, you can elect to add VAT to your business transaction, provided certain conditions are met.

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necessary papers required for obtaining an incorporation certificate

Memorandum of Association and Other necessary papers

At Enterslice, we can help prepare the charter necessary papers – the AOA, partnership deed, board resolution, and deed of incorporation- and notarise the necessary papers required to obtain a certificate of incorporation from the Registry.

Bank Account and certificate of payment of paid up capital

Our team at Enterslice would open a bank account on your behalf for your company and obtain a certificate evidencing a deposit of the paid-up capital (if required as per your business structure). This is a requisite for obtaining approvals from the Business Registry for company formation in Estonia.

Registration of Employment

You are required to register the details of all the employees working in your company based in Estonia with the designated entities. We provide payroll services from registering the details of all the employees to updating their employment status with the Estonian Tax and Customs Board. Our team will provide HR and payroll services for your employees and register the record of the same with the Department of Labour. There are no registration charges here.

Business License

At Enterslice, our specialized compliance and regulatory services would assist you in obtaining necessary approvals and permits from the concerned regulatory authorities and bodies according to the business activities of your enterprise.

Requirement of Crypto License

Estonia is one of the few countries in the world to have specific licensing requirements for companies dealing in cryptocurrency. Being a highly advanced and forward country, the Money Laundering Data Office of Estonia has made it compulsory for businesses operating in cryptocurrency to obtain a crypto permit from the Financial Intelligence Unit (FIU). Our compliance and licensing experts at Enterslice apply for a crypto license with the Ministry of Finance by submitting the required IDs, disclosures and necessary papers and paying the license fee (10,000 EUR) on behalf of your company. The Money Laundering Office decides to accept or reject your request within a period of 60 days from the date of submission, and the same will be intimated to you from our end.

Concept of Proxy Ownership

Businesses in Estonia are not required to have the physical presence of their directors and owners in the country. They can establish the company through proxy ownership as well. The requirement for applying for proxy ownership is an E-Resident Card. The proxy or resident member is required to be registered in Estonia's Commercial Register. We at Enterslice would collect the requisite necessary papers from the proxy resident, such as ID and residence proof, Passport, Unique Identification number, power of attorney and authorization, notarize all the necessary papers and make an application to the Business Registry to obtain a valid certificate of company formation in Estonia. For the purpose of authorizing proxy ownership, you are not required to be physically present either. Your signed necessary papers and copies of ID proofs are sufficient to authorize the same.

Benefits of incorporating a company in Estonia

Tax benefits

Estonian Companies enjoy plenty of tax rebates, along with generally lower rates of taxes, on both standardized as well as on special items. Firms and companies are not required to pay any tax on undistributed profits, whereas distributable dividends are taxed at a capped rate of 20%. Also, many Double Taxation Avoidance Treaties with other countries make company formation in Estonia a very attractive venture.

Transparency and ease of doing business

Estonia ranks high on the priority list of nations where corporate transparency and ease of doing business prevails. Fewer costs of registration, timely approvals, low tax rates, a tech-friendly economy, and fewer operational costs make company formation in Estonia a very favourable nation to Europe to branch out your business.

Strategic Location

Estonia is centrally placed in Central Europe, sharing land and maritime borders with countries such as Russia, Finland and Sweden. Company formation in Estonia can give you a locational advantage across Europe as trade would be easier due to fewer inter-border restrictions. Also, since there is no requirement to have a resident director, you can operate your business online smoothly through your local representative.

Ease of Registration and Incorporation Process

Digitized Application Process

The entire process of company formation, from paying application fees and submission of necessary papers to receiving a certificate of incorporation, is fully online and does not require any physical presence. Our team at Enterslice has collaborated with several fintech partners to help you open your bank account in Estonia.

No Separate Tax Registration

When you apply for a company incorporation in Estonia, there is no separate need, unlike in other countries, to apply for a tax registration certificate and a Certificate of Incorporation received from the Estonian Centre of Registers and Information Systems. We can help you obtain the required Incorporation Certificate, which would serve as an integrated verification of tax registration in Estonia.

Inexpensive Registration Cost

Estonia has one of the least expensive company incorporation costs in Europe. For example, the cost of incorporating an LLC is 215 EUR, including the cost of an E-Resident Card. Apart from that, the cost of annual renewal and filings is equally lower. Our registration and filing services at Enterslice would help you incorporate your desired entity cost-efficiently.

What challenges your business can face in company formation in Estonia?

HR and employment related registrations

Employment laws in Estonia are very stringent. Hence, complying with regulations related to work hours, wages, and terms of employment is important. We can help you formulate an Employment policy for your company and make the required filings of employment registers with the Labour Department.

Tax registrations

In Estonia, you are required to register for VAT and several other taxes. Additionally, your business is subject to various other fringe benefits too. Our tax experts can help you plan for double taxation and unapplicable taxes and claim tax rebates and fringe benefits.

Business license and permits

Your company in Estonia must obtain several industry-specific licenses and permits to operate in the desired industry. We would help you procure the requisite license as per the EMTAK classification.

Opening a Local Bank Account

Local banks have recently strengthened regulations for companies wishing to set up their Estonia branches. Enterslice can help you bypass this issue since we collaborate with local banks, making your bank-opening procedure hassle free.

More about our Company formation in Estonia Services

Our professional services at Enterslice help you stay ahead of others when it comes to running your business efficiently. Our dedicated strategic and financial services would help you align your business synergies effectively and enable you to focus on your growth rather than the incessant hassle of meeting requirements of statutory compliances. We are skilled in in-depth market analysis and bring to you the best of our rich experiences in this domain. Our professionals have vast experience across multiple verticals of corporate advisory and financial planning and analyze every aspect of your company's current and future position to prepare a Detailed Project Report (DPR) of your expansion activities.

As our client, you should be assured that you have trusted the right partner in growth. Dream Company is in safe hands. Our patronage of client testimonies and their confidence in us through repeat projects bear proof of our fidelity and trustworthiness. Your confidence is a potential opportunity for us to improve our services further, and we sincerely hope to collaborate with you in your future endeavours in company formation in Estonia.

Creating a Register for Employees

For the purpose of paying taxes on the salaries of the employees working in your company in Estonia, you are required to maintain an employment register with the E-Tax Registry of the Tax Department. Such registration is also necessary to pay payroll tax returns and other compliances. Enterslice can help you register your employees with the tax authorities and make requisite filings with the authorities as a necessary aspect of company formation in Estonia.

Why choose us?

End to End client support

Our 24x7 customer assistance service and a team of highly dedicated and experienced professionals at Enterslice would work closely with your company's management team and provide crucial advisory assistance necessary for your needs.

Best Quality Servies

At Enterslice, we pride that our services are availed and trusted by more than 100 enterprises across the world. We believe in creating value for our clients by providing satisfying services at affordable prices.

Single window solutions interface

We have collaborations in Estonia with Banks, individual representatives, and regulatory authorities, allowing us to provide seamless and cost-effective solutions to your issues under one roof.

Cost Efficient

Our Services compare with all other existing service providers in the market and ensure that you get the value for your money.

Costs Involved in the Incorporation Process of a Company

Application Fees

You are required to pay a state fee of EUR 100 for the purpose of applying for a company incorporation with the Registration Office.

Incorporation Certificate with E-Residency card

The cost of opening a company in Estonia, along with an e-Residency Certificate, is EUR 350. The E-Residency card is valid for 5 years.

Fee for Company Incorporation

The Estonian government charges EUR 265 to register a Private Limited Company. Also, you are required to authorize a licensed person only as a local representative of your company in Estonia.

Notary Fees

To apply your necessary papers with the E-Registry, they must be duly stamped and notarized with the Estonian Govt. seal. The notary fees can range between EUR 150 to 300.

How our services help you

At Enterslice, we undertake holistic research, analysis and financial forecasting of your enterprise to identify key areas of risks and allow you to plan your business growth efficiently. We provide strategic support and financial intelligence to your endeavours, which helps you tackle even the most complex financial challenges with ease. Our team of experts provides optimized strategies to manage cash flow, identify and mitigate risks, and address operational shortcomings and work closely with your management and financial team to ensure your organization is well-positioned for future success. At Enterslice, you can entrust your valuable time and resources to our impeccable services and be rest assured of excellent results in the domain in Estonia.