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COMPANY FORMATION

Company registration in estonia

Are you ready for company formation in Estonia? Eesticonsulting.ee cans help you to become a member of a digital nation. With our assistance, you will receive own e-Residency card from your home country. We are glad to help you with the process of company registration in Estonia.  Our business is approved by the Financial Intelligence Unit with the license number. Let us work for you and consult your business model today.    We offer a wide range of services starting from running the company in Estonia, ending for obtaining the cryptocurrency licenses.

Tax incentives in estonia country

Why estonia?

0% corporation tax

if you do not distribute profits (do not pay out dividends, fringe benefits , f.e loans to shareholders)

fully remote

Run your business simply via e-Residency card - put your digital signature and start activities.

simple accounting

Cheap and very easy accounting services - cash metod and clear and transparent Income Tax Act regulation.

OÜ company formation recruitments

share capital

Share capital is 2500€m but you have not obligation to pay upon starting the company. 

 

non monetary contribution

Non-monetary contribution is allowed

shareholders

Shareholder is not personaly liable for debts of company  and not engaged in management of company. The limit of liability of shareholder is limited to the amount of share capital.

 

shares

the minimum value of a share is 1 EUR

directors

at least 1 person, who will be a natural person.

contact person

Statutory duty if half of the board of directors reside out of Estonia.

How to incorporate company in estonia?

setting up of company

with e-Residency card

Company registration with e-Residency card - you can live​ everywhere. The setting up of Estonian company may be done from home.

by notary public

We ask the notary public from Tallinn about appointment date for company formation purpose. You come to Tallinn and go to the notary with your Passport or EEA card.

POWER OF ATTORNEY

Contact our service - we will prepare Power of Attorney for you. You have to go to the local notary office and grant us with POA for purpose of the setting up the Estonian OU company.

Choose your plan

This is one time payment upon starting relationship.

e-Residents

500 one-time
  • Company name check
  • Company registration remotely
  • Registered office address for 1 year
  • Estonian "contact person" service for 1 year

    State fee(€190) not included
Popular

other clients

900 one-time
  • Company name check
  • Setting up Estonian OU company
  • Registered office adress for 1 year
  • Estonian "contact person" for 1 year

    State fee(€190) not included

    Power of Attorney - person who will be acts on behalf of you

our services

opening of estonian company

Run your business directly from home with e-Residency card. We will assist you.

accounting services

For small business & blockchain clients. Accounting for e-Residents is very easy and cheap.

licensing

We will obtain every license for your business. The most popular licences are for blockchain sector - providing cryptocurrency exchange services and wallet.

Legal address

Do you have not legal adress for your company? We will supply it .

setting up company
process

step 1 - apply for e-resident card

Go to the website https://e-resident.gov.ee/ and know more about this government initiative. You can stay at home at applying wholly remotely from home. The next step is collecting your e-ID card from local Estonian Embassy. Jump here to see pic-up locations.

step 4 - choose company name and capital

You decided to open a company in Estonia.  Remember – you should reserve the correct name for your company.   Check please RIK – Commercial Register and check your name is free. The company name needs to end with “OÜ”.  The minimum capital of OÜ company is 2500 EUR, but still possible is option “Non-monetary contribution”.  Ask our service about this method before company incorporation.

step 2 - choose legal address

Legal address is called often as a virtual office.   Your company registered under the law of Estonia needs have at least a virtual office address located in Estonia.   Is not necessary to have a physical presence.  We offer prestige address location in the heart of Tallinn.

step 5 - accounting services

Connect your company to our accounting software and let us maintain with your accounting duties – a day to day bookkeeping,  accounts preparation and financial statements processing.

step 3 - choose contact person

Starting from 15.01.2018 “contact person” is mandatory service for companies registered under the law of Estonia if the management board is located out of Estonia ( read: non-residents). We are approved by Financial Intelligence Unit (FIU) as “company service provider”.

step 6 - open bank account in estonia

Our competitors from “accounting sector” tell our customers:  “Is not possible to open SWEDBANK account in Tallinn”.   We have a bit more experience with dealing with nonresidents queries and portfolio.  Trust Eesticonsulting.ee

Income Tax

The most know incentive of the Estonian tax system is shifting moment of taxation to time, where the profit is distributed. If the board of directors decide to not pay out dividends to its shareholders, all profits are re-investment. Therefore company will be not liable to pay Corporation Tax. Some people treat this rule commonly as “Corporation Tax 0%”.

What does mean “distributed profits”?

– corporate profits distributed in the tax period
– gifts, donations and expenses in relation to representatio
– private expenses and payments not connected with the business
– transfer of the assets of the permanent establishment (PE) to its main headquarter or to other companies

VAT

When establishing a company in Estonia, you can take advantage of the VAT exemption if you do not exceed a turnover of EUR 40,000 per year.

If you exceed this limit, registration for VAT is mandatory.

You can register for VAT voluntarily on the day of starting your business, however, the tax office in Estonia will want to get confirmation that your business is associated with Estonia, e.g. you have clients, an office or contractors with whom you work.

become e-resident

Become an e-resident and collect your e-Residency card from your country’s embassy. You don’t have to fly to Estonia to Tallinn. Thanks to the card you will be able to set up a company in Estonia, a bank account and use it as an electronic signature. You can do 95% of your business with the e-Residency card without leaving your home.

Questions about estonia

Our clients ask our service (...)

Not. Estonia has concluded bilateral conventions for the avoidance of double taxation and the prevention of fiscal evasion with countries over the world. Estonia is a member of the OECD organisation. Moreover, the beneficial owner is visible and published in Estonian RIK – Commercial Register. Even so – there are a lot of tax and business incentives of running the company through Estonia. The Estonian private limited company is called “OÜ” or “osaühing” in Estonian language.

Company formation costs in Estonia is divided into fixed costs and monthly costs. Fixed costs are help in obtaining an e-Residency card (100 €) and the cost of the registration address and contact person.  State fee for Commercial Register is aprox. 190€ in case of electronic company formation via Company Registration Portal.  Monthly costs are the cost of accounting services or one-time submission of financial statements to RIK.  Our company presents 2 kind of incoporation ways:

Opening Estonian company by e-Residency card (cheapeast option) especially for digital nomads

Company registration by Power of Attorney ( usually notarized and apostilled depending on the country of residence – this is exepensive option if you are not e-Residency card holder and you would like incorporate business in Estonia wholly remotely)

You do not need an e resident card for setting up a company, although registration of company via eresidency card is faster and chepeaer than company registration by POA (Power of Attorney). If you are not eResident card holder, the limited liability company registration remains by notarial power of attorney. All you have to do is contact our company, grant a power of attorney to our employee and he will register the company for you on your behalf.  The Power of Attorney needs to be issued in your country of living, neeeds to be notarized and sometimes Apostilled – depending on the country.

It depends on the choice of registration method. Registration of Estonian company with the e-Residency card takes 1 to 2 business days. Setup of OÜ by a notary public may take up to 5 business days. Please note that for company formation process by proxy we need original documents usually bearing the Apostille clause and certified by a notary public.   If you will isue the POA,  send original to our office in Tallinn.  We will hire Estonian qualified person for purpose of translation this documment.

We can help you obtain a certificate of tax residence in Estonia. Just report to our company and authorize us to act on your behalf. We will contact EMTA – the tax office and obtain the original tax residence certificate with the official’s stamp. This document confirms that the company is a tax resident of Estonia. It can be useful in the case of withholding tax or tax control in the country of residence of the director of the company.

Apostille is issued by a local notary public in Estonia. This can be done, for example, in Tallinn or Tartu. If you are a non-resident, we may apply for Apostille on your behalf. Apostille is an official document that certifies the authenticity of documents and can be used, for example, to set up a bank account abroad for an Estonian company.  Additionally, we can obtain for you coporate documents with notarizations. 

1) Application by a local notary public. State fee for running OÜ company is 145 €. The fee does not contain the notary fee, which approximately is 40€.
2) Application by e-Residency card remotely – State fee is paid by BankLink or by transfer wire from local EUR bank account and the amount is 190€. We can cover this fee on behalf of you.

We have ready power of attorney templates for registering a company in Estonia in English. We will make a sworn translation of POA into Estonian, and then arrange a visit to a notary’s office.  Grant a notary power of attorney to our employee who will arrange all formalities for you. After all, we encourage you to apply for the e-Residency card.

  1. Become e-Resident – apply for e-Residency card – visit this website https://e-resident.gov.ee/become-an-e-resident/
  2. Wait for processing your application aprox. 2 – 3 months.
  3. Go to the local Embassy and receive your e-ID card with all instructions, PIN codes.
  4. Contact our company – Eesticonsulting.ee and provide us with your personal documents -ID, proof of address and complete the KYC/AML questionnaire ( we need to know what is the nature of business,  who is the shareholder and director the company, who is the beneficial owner, what is the company capital – minimum is 2500 EUR)
  5. We will provide you with the registered office address – this service is called as “legal address” full address: Pärnu mnt 41a, 10119 Tallinn, Estonia   – we are located in the hear of Tallinn)
  6. We will apply for a VAT registeration on behalf of your company during the company formation process or in the future when you will  exceed the VAT thresold  limit​.
  7. We will apply for a license if your business is regulated grounds on Commercial Code act.
  8. We will connect you to the Payment Service Provider or to the Estonian or EEA Bank ( You can read more about opening the bank account in Estonia ).
  9.  You can use our accounting service independent on your home country – we will prepare for you Annual Accounts ( including Profit & Loss, Balance Sheet, Trial Balance) and other accounting reports pursuant to the general accounting rules).  
  1. Corporation Tax – 0% – the tax point is shifted to the time , when the profits from the company are distributed to the company shareholder
  2. Corporation Tax if the company pay out the money is  from 14-20% depending on the dividend policy.
  3. VAT thresolds – the company doesnt pay VAT Tax if the turnover is not more than €40,000 per annum. 
  4. Share capital can be paid into bank account located in Estonia or other EEA country ( changes in Jan 2019)
  5. Salary (employment) – taxes are paid generally in the country where the work is performed ( usually out of Estonia)
  6. Director’s fee is taxed generally in the Estonia.
  7. 95% of taxes and declared and paid online via emta.ee gateway if you have e-Residency card. 
  8. You can forget about papers and manually accounting service – all services are done remotely by electronic systems. 

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