Author Archives: admin

How much Tax you pay from not distributed profits 1 % United kingdom You pay 19% CT from Net Profits if you have british limited liability company (LTD) 1 % estonia* *This is not a tax rate.   If you don’t pay a dividend to the company shareholder,  you pay nothing to tax. united kingdom directors At least 1 director – natural person. shareholders At least 1 shareholders – may be a legal person.  state fee £10 – WebFilling fee or £40 by paper incorporation Fully remote incorporation via WebFilling Portal bank Troubles with British high-street banks. selling shares You do not need notarial agreement.  estonia directors At least 1 director – natural person. shareholders At least 1 shareholders – may be a legal person.  state fee 190€ via e-Residency card  incorporation Remotely only if you are e-Resident card holder.  Another way is the incorporation by Power of Attorney bank The…

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Beneficial owner term A beneficial owner is a natural person who owns the benefits of ownership even though right to some form of business is in another name. It also indicates any individual or group of individuals who, both directly or indirectly, has the ability to vote or control the transaction decisions regarding specific security, such as shares in a company In the event of natural person holds at least 25 % shares in the company, he is treated as a beneficial owner.   Most of the companies have only 1 director and 1 shareholder with 100% shares.    In this scenario, the beneficial owner is the 100% shareholder, who are together the director of the company. Look at the other example.    Company has 5 shareholders: A keeps 20% shares, B – 30%, C-30%, D – 10% and E – 10% shares  in the share capital of the company.  Who…

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Another reason to work and do business in Estonia is the fact that it has one of the most flexible taxation laws in the European Union as well as the rest of the world. The 0% tax on retained and reinvested profits alone has got local and foreign investors on a rat race trying to squeeze their way through immigration just so they can have a piece of that proverbial “pie” of the Estonian economy. But there are more tax benefits from Estonian company that any investor could enjoy if he decides to start a business in Estonia that are just too good to ignore. Taxes in Estonia Corporate Income Tax Labour Tax Value Added Tax (VAT) Personal Income Tax Corporate Income Tax – 0% tax in Estonia! As stated above there is no more corporate income tax on retained and reinvested profits, which means that local and foreign companies…

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How to start business in estonia There are 3 ways of setting up company in Estonia.    for e-residency card holders This way is dedicated especially for e-Residency card holders.  Company formation remotely from your home country. come to tallinn and go to the local notary We will assist you if you come to Tallinn.  Ask our staff about setting up of appointment in the notary office for company formation purpose. stay at home and provide us with proxy Issue Power of Attorney in the form of notarial deed in your country of living.  Arrange courier postage and let us act in your name for company registration in Estonia. start 1. Collect basic information about the company. Decide how many shareholders and directors there will be in the company.  Select the subject of activity and decide if the share capital (2500 EUR minimum) will be paid or you will use a…

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Most of the e-Residents is looking for solutions for collecting payments from their customers. They consider highstreet banking vs fintech Payment Service Providers. The goal of this article is showing you the way of the opening bank account at LHV Pank – biggest domestic financial institution, employing over 400 people in Tallinn and Tartu cities, holding 177,000 clients. If you are e-Resident card holder, please execute these steps as follows: 1) Fill the application form for the business client – https://www.lhv.ee/assets/files/applications/Application_to_open_an_account_in_LHV_Pank_natural_person-EN.pdf 2) Fill the online application form with using your e-Resident card. 3) Attach your ID document (EEA card or passport) and send to the address info@lhv.ee. Application need be signed electronically with e-ID software. Considering of application takes 7 business days. Then the bank will notify about the positive or negative decision. In the case of a positive decision of concluding the relationship, mandatory is visiting local LHV branch…

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There are 2 possibilities of authentication of Estonian documents grounds of international law rules: Process of legalisation Apostille stamp The legalisation of a public document is performed on grounds on § 43 of the Consular Act and Regulation No 15 of the Minister of Foreign Affairs “Order of the legalisation of a public document and the application form”, (17.06.2019) A public document may be used in another country if it is certified by local authorities in Estonia. Legalisation or Apostille procedure should be applied. The list of countries, where Apostille is not needed: Belgium Denmark France Ireland Italy Latvia Lithuania Poland Russia Ukraine Moreover, Estonian Parliament has concluded a legal agreement with Lithuania, Latvia, Poland, Ukraine and Russia, which means that documents from the above countries are recognised without additional certification likes Apostille or legalisation. Which types of documents can be legalised? a paper, issued by a court or by…

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“Selling company” is a common definition. You can not sell the company, because it is a legal person. So, you can transfer shares from your person to another person – i.e – to a natural or legal person. According to Estonian Commercial code, a transaction constituting an obligation to transfer a share of a limited liability company (OÜ) need be notarized. There are 2 ways for changing of transfer: Comming to local Estonian notary public with identity document Granting Power of Attorney to our employee, who will come to the notary public on behalf of you. The notary office is responsible for preparing paperwork ( Purchase Shares Agreement) and notifying Commercial Register (called “RIK) within 2 business days from date of certification of selling shares agreement. Note that the procedure of notarial certification is applicable in this process – not notarial authentication. The list of needed documents regarding procedure of…

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state fee for crypto-license will grow from 345 EUR to 3300 EUR The Ministry of Finance in Estonia changes the rules for issuing crypto licenses. The application is being reviewed from 30 to 90 days and the price from 345 EUR to 3300 EUR for one license – comments Paweł Krok – CEO at Eesticonsulting.ee. “We have learned our lesson from the banking sector the hard way, and we must now deal with new international risks, with cryptocurrencies among the most urgent of these,” M. Helme from Ministry of Finance – Estonia The Ministry of Finance in Estonia changes the rules for issuing crypto licenses. The application is being reviewed from 30 to 90 days and the price from 345 EUR to 3300 EUR for one license – comments Paweł Krok – CEO at Eesticonsulting.ee. The Estonian government introduced changes to the granting of cryptocurrency licenses.  Minister of Finance –…

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Share on facebook Facebook Share on google Google+ Share on twitter Twitter Share on linkedin LinkedIn E-Residency card text. What is e-Residency card? E-Residency card is such as personal identity card with a built-in microchip, that let you identify yourself and put digital signature anywhere, f.e signing electronic documents, file VAT returns or send a petition to Commercial Registrar. E-Residency card let you run the business wholly remotely wherever you are. Thanks for a digital identity card, you don’t need travel to Estonia and do paperwork. Note that e-Residency card has no impact for your citizenship, tax residency and work permit in Estonia or other EU/EEA country. This is not substituted from travel documents, because it does not contain a photo. Process of issuing of the document takes 1 -1,5 months and cost 100 EUR. Authority responsible for the process of issuing of e-ID is Estonian Police and Border Guard…

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Have you ever though about applying for e-Residency card? Please read carrefully this posts and know advantages of Estonian e-ID card. Imagine 2 scenarios: Martin has not e-Residency card. He needs travel to notary public , to Tallin in order to incorporate estonian company. He needs visit the SWEDBANK branch and spend a lot of money for flights and accomodation. Martin Robert is e-Resident card holder. He cans incorporate the company wholly online remote from home and file statutory documents such as accounts, vat returns and others. Robert It is essential to apply for e-Residency card earlier due to waiting for approve by Police Border Guard. Statutory period for accepting your application is aprox. 30 business days. Step by step Fill the application form and include passport photo with correct format and consistent with specification Wait for decision of Police Border Guard from Estonia Receive e-mail confirmation about granting you…

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