Publication date: 12.05.2024
Estonia has become one of the most attractive European jurisdictions for company registration. Thanks to its advanced digital infrastructure, favorable tax regime and convenient registration process, this small country on the Baltic coast has become a popular place to start a business among entrepreneurs from all over the world. In this article, we will consider in detail the procedure for registering a company in Estonia.
1. Choice of ownership form
The first step in the process of setting up a company in Estonia is choosing the appropriate form of ownership. The most common is a private joint-stock company (PJSC), which corresponds to a limited liability company (LLC) in most other countries. Other options include a public joint stock company (PJSC), a limited partnership, and a branch of a foreign company.
2. Choosing a company name
After determining the form of ownership, it is necessary to choose a name for the company. The name must be unique and not misleading about the type of activity. It is important to consider the requirements for the use of certain words or abbreviations in company names depending on the form of ownership.
3. Preparation of constituent documents
The next stage is the preparation of constituent documents, such as articles of association or memorandum of association. These documents define the structure of the company, its goals, rights and obligations of shareholders or participants, as well as other important aspects of its functioning.
4. Formation of authorized capital
In Estonia, there are requirements regarding the minimum size of authorized capital for different forms of ownership. For example, the minimum authorized capital for PrJSC is 2,500 euros, and for PJSC - 25,000 euros. These funds must be deposited into a temporary bank account before the company registration is completed.
5. Designation of the director and legal address
A company must appoint at least one director to manage its activities. The director can be both a natural person and a legal entity. It is also necessary to specify the legal address of the company in Estonia.
6. Submission of documents to the Registration Department
After preparing all the necessary documents, they must be submitted to the Registration Department of Estonia. This process can be done online using the electronic company registration system, which greatly simplifies and speeds up the procedure.
7. Obtaining a registration code and commercial number
After successful company registration, it will be assigned a unique registration code and commercial number. These identifiers are necessary for doing business in Estonia and participating in various government systems, such as the electronic tax system.
8. Opening a bank account
After registration, you should open a bank account for the company. For this, it is necessary to provide the founding documents, registration code and other necessary documents in accordance with the requirements of the selected bank.
9. Registration at the Tax and Customs Board
The company must be registered with the Estonian Tax and Customs Board (Maksu-ja Tolliameti) for tax purposes. This can be done online using the electronic registration system.
10. Compliance with reporting and taxation requirements
Once the registration is complete, the company must comply with all reporting and tax requirements in Estonia. This country has one of the most favorable tax systems in Europe, where corporate tax is levied only on distributed profits at a rate of 20%.
Registering a company in Estonia is a relatively simple and quick procedure that can be done entirely electronically. Thanks to its advanced digital infrastructure and favorable business environment, Estonia has become an attractive place to start a business for both local and foreign entrepreneurs.
