Publication date: 28.07.2024
Lawyer
Registering a company in Estonia: a step-by-step guide
Known for its digital infrastructure and favorable business climate, Estonia has become an attractive destination for entrepreneurs from around the world. In this article, we will look at the process of registering a company in Estonia and provide useful tips for a successful start of your business.
Advantages of company registration in Estonia
Before starting the registration process, it is worth considering the main advantages of doing business in Estonia:
- Quick and fully online company registration
- Progressive electronic residency system (e-Residency)
- Favorable tax legislation
- Membership in the European Union
- Developed digital infrastructure
A legal analysis of the situation shows that these factors make Estonia particularly attractive for technology startups and online businesses.
Types of companies in Estonia
In Estonia, there are several types of companies that can be registered by foreign investors. Legal analysis of documents will help you choose the most suitable form for your business:
- Private Limited Liability Company (OÜ)
- Joint-stock company (AS)
- Full Society (TÜ)
- Limited partnership (UÜ)
Consulting a lawyer will help you understand the specifics of each type and choose the best option for your business.
Steps to register a company in Estonia
The company registration process in Estonia is one of the fastest and easiest in the world. Here are the main steps you need to go through:
- Obtaining the status of electronic resident (if necessary)
- Choosing a company name and checking its availability
- Preparation of constituent documents
- Opening a bank account or an account in the payment system
- Submission of documents through the e-Business Register portal
- Obtaining a company registration number
A lawyer's legal opinion at each stage will help to avoid mistakes and speed up the registration process.
Necessary documents for registration
Verification of documents by a lawyer is important for successful registration. Here is a list of the main documents you will need:
- Founding agreement and company charter
- Copies of passports of founders and board members
- Confirmation of the address of the registered office in Estonia
- Information about beneficial owners
- Description of the main activity of the company
Document analysis by a professional lawyer will help avoid delays in the registration process and ensure compliance with all requirements of Estonian legislation.
Features of taxation in Estonia
Estonia is known for its unique taxation system. A legal analysis of the situation shows that companies in Estonia enjoy the following advantages:
- Income tax (20%) is paid only when dividends are distributed
- The possibility of reinvesting profits without taxation
- A wide network of agreements on the avoidance of double taxation
- Simplified tax reporting system
Consultation with a lawyer will help you develop an effective tax strategy for your company in Estonia.
Electronic residency (e-Residency)
A unique feature of Estonia is the e-residency program, which allows non-residents to manage businesses remotely. Legal analysis of the situation shows that e-Residency provides the following opportunities:
- Digital identification recognized in the EU
- The possibility of signing documents with an electronic signature
- Access to Estonian government online services
- Simplified procedure for opening bank accounts
A lawyer's consultation will help you evaluate the benefits of e-Residency for your business.
Client case: successful registration of an IT startup in Estonia
Recently, we were approached by a client who planned to launch an international IT startup. After conducting a legal analysis of the documents, we recommended registering a private limited liability company (OÜ) in Estonia. With legal advice and professional support at every stage, the registration process was completed in 3 days. The company is now operating successfully, taking advantage of Estonia's digital infrastructure and favorable tax regime.
The most common problems when registering a company in Estonia
In the process of registering a company in Estonia, entrepreneurs may face certain difficulties. Here are some of the most common problems and ways to solve them with the help of a lawyer:
- Difficulties with obtaining electronic resident status
- Difficulties with opening a bank account for non-residents
- Misunderstanding of the requirements for authorized capital
- Questions regarding the taxation of international transactions
A lawyer's written consultation and legal opinion of a lawyer will help avoid these problems or solve them effectively.
Recommendations for successful registration and doing business in Estonia
For successful registration and further business in Estonia, you should follow the following recommendations:
- Thoroughly study Estonian legislation and peculiarities of doing business in the country
- Consider the possibility of obtaining the status of electronic resident
- Enlist the support of an experienced local lawyer or consultant
- Develop a clear business plan and development strategy companies
- Regularly conduct a legal analysis of your company's documents and activities
Requirements to the board and shareholders
Estonian legislation sets certain requirements for the board and shareholders of companies:
- The minimum number of board members is one
- The minimum number of shareholders is one
- Board members may be non-residents of Estonia
- Some activities may require the presence of a local representative
A legal analysis of the situation will help you properly structure the management of your company and meet all legal requirements.
Features of accounting
There are clear accounting and reporting requirements in Estonia. Legal analysis of documents shows that companies must:
- Keep accounting in accordance with Estonian standards
- Submit annual financial statements
- Keep accounting documents for 7 years
- Under certain conditions, undergo an audit
Consulting a lawyer will help you organize accounting in accordance with all requirements of Estonian law.
Registering a company in Estonia provides entrepreneurs with a number of advantages, including a quick registration process, favorable tax laws and access to advanced digital infrastructure. Although the registration process is quite simple, professional legal support will help you avoid potential problems and ensure a successful start of your business in this innovative country.
For detailed consultation and professional assistance in registering a company in Estonia, we recommend contacting the CONSULTANT legal marketplace. Here you will find qualified lawyers and attorneys who specialize in international business law and have experience working with Estonian companies. An lawyer online is always ready to provide you with the necessary support and ensure a successful start of your business in Estonia.
