Subsidiary in Estonia

Subsidiary in Estonia – Register It!

Open Subsidiary in Estonia

A subsidiary company is a business entity that is controlled and owned by another company, known as the parent company. The parent company holds a significant portion of the subsidiary’s voting stock, allowing it to influence and make decisions for the subsidiary.

🇬🇧 A British company will retain 100% ownership in an Estonian company. The British company is the sole shareholder in the Estonian company. 🇪🇪

10 Benefits of a Subsidiary in Estonia

🌍 Access to the European Single Market: Estonia offers easy access to the European Single Market, allowing your business to tap into a vast customer base without hassles.

💰 Low Corporate Taxation:   Deffer Corporation Tax – 0% Corporation Tax – See more tax benefits of opening company in Estonia (Regarding Corporate Income Tax (CIT), the relevant rate is set to rise to 22% in 2024)

💼🌱 Tax Exemptions for Reinvested Profits: Estonia encourages long-term investment by exempting corporate income tax on reinvested profits, helping your business grow sustainably.

🤝✅ Ease of Doing Business: Estonia consistently ranks at the top of business-friendly countries, with accolades such as being 1st in the International Tax Competitiveness Index in 2022 and ranking 18th in the Ease of Doing Business Index in 2019.

📈🔐 E-Residency Program: Estonia’s E-Residency program is thriving, with over 105,011 e-residents and 27,090 Estonian companies established by e-residents. It’s a fantastic option for remote management of your subsidiary.

💼🎓 Skilled Workforce: Estonia boasts a highly educated and tech-savvy workforce, ready to support your business endeavors. Hire employees through Upwork.com directly from Tallinn.

🏛️🤝 Stable Political Environment: Estonia’s stable political climate and commitment to the rule of law ensure a secure and reliable business environment.

📚🔒 Protection of Intellectual Property: Estonia enforces strong intellectual property laws. Our firm, Eesti Consulting, can help you register a trademark in Estonia or the EU for your subsidiary company.

🇪🇺💰 Access to EU Funding: Whether you represent an Estonian company or a foreign one registered in an EU country, you’re eligible for EU funding. But hurry, it’s first come, first served! You can get grants from the EU and reduce state fees by -75%.

🌟🌐 Strategic Location: Estonia’s strategic location in Northern Europe serves as a gateway to markets in Scandinavia and the Baltics, making it a prime choice for expansion.

Registration a subsidiary in Estonia offers numerous benefits, from tax advantages to a supportive business environment, and our Eesti Consulting team is here to assist you every step of the way! 🇪🇪🏢💼

Start Registration Subsidiary in Estonia

Open Branch in Estonia

🌍 Foreign Branch in Estonia 🇪🇪

Imagine your company wants to expand its reach to Estonia! 🛫 But instead of creating a whole new company there, you decide to open a foreign branch. 🏢

This branch in Estonia is like a branch of a tree, attached to your main company trunk. 🌳 It’s part of your company, but it’s located in a different country.

The cool thing is, your Estonian foreign branch operates under your company’s name and follows your company’s rules. It’s like having a friendly outpost in Estonia, ready to do business on your behalf. 👥📈

While it enjoys some independence to adapt to local stuff, like Estonian laws and market trends, it’s still part of your company family. 💼

So, when it comes to profits, losses, and assets, they’re all part of the same pot. 🍲

But be ready for some paperwork! 📝 Your Estonian foreign branch will need to follow Estonian regulations, and there might be some tax considerations to sort out in both your home country and Estonia. 💰📑

It’s a great way to expand your company’s horizons and make friends in Estonia. 🇪🇪🌟 Just remember, it’s a bit like having a distant cousin – related but with its own unique character! 😉

🇪🇪 Branch in Estonia – Key Features Simplified 🏢

So, you’re thinking about opening a branch in Estonia? Great choice! 🌍

Here’s the lowdown in a nutshell:

🚫 No Legal Personality: Your Estonian branch won’t have its own legal personality. It’s like the supporting actor in a movie, important but not the star. 🌟

🔒 Legal Capacity: Your branch won’t have legal capacity either. It’s like the sidekick, there to help but not the decision-maker.

💼 Corporation Tax: Your branch is responsible for paying Corporation Tax only on the profits it earns in Estonia. Think of it as paying your dues in the local scene.

📜 Paperwork: The parent company takes care of the branch’s operation, including paperwork like billing and Annual Accounts (Profit & Loss, Balance Sheet, Trial Balance). It’s a team effort! 🤝

🤝 Estonian Representative: You’ll need an Estonian representative (Authorized contact person). They’ll be your branch’s local connection, kind of like a tour guide in a new city.

🔄 Identical Operations: Make sure your branch’s operations are identical to the parent company. Consistency is the name of the game.

Now, about opening that branch in Estonia, Eesti can lend a helping hand. They’re experts in making this process smooth and hassle-free. 🤗

So, get ready to make your mark in Estonia! 🇪🇪💼

Documentation Required for Establishing a Branch in Estonia 📄🇪🇪

To set up your branch in Estonia, you’ll need to gather these vital documents:

📝 Name and Legal Form of the Parent Company: Tell us all about your parent company’s name and legal structure.

🌍 Country of Registration: Where is your parent company registered? We need to know the country.

📊 Subject of Activity (SIC Codes): Let us know the areas your company will be active in, following the EMTAK classification.

🎯 Purpose of Company Registration: What’s the big goal for your company in Estonia? Share your purpose with us.

🏢 Company Address: Provide the address where your branch will operate in Estonia. (Eesti offers company address in Estonia)

👥 List of Actual Beneficiaries: Tell us who owns shares in your company. We’re curious about the stakeholders.

👩‍💼 List of Board Members: Who’s steering the ship? Share the names of your board members.

📜 Articles of Association: Share the document that outlines your company’s internal rules and operations.

🗂️ Memorandum of Association: This document tells us about the relationship between your company and its members or shareholders.

📄 Registration Certificate: Proof that your company is legally registered elsewhere. We’ll need to see it.

Gather these papers, and we’ll help you get your branch up and running in Estonia! 🇪🇪💼

Payment of a share capital

📈 No More €2,500 Minimum Capital: We’re waving goodbye to the old rule that said you must have at least €2,500 in share capital to start an OÜ (private limited company) in Estonia. Say hello to more choices! 💰

💡 Capital Tailored to Your Needs: Now, you get to decide how much capital your business truly requires. It’s like a menu of options, and you’re in charge of picking what suits your business best. 🍽️

📜 A Change Long Overdue: The old rule, in place since 1995, didn’t always make sense. Many business owners automatically set their capital at the minimum, whether they needed it or not. 🤷‍♂️

🤝 More Responsibility, More Efficiency: With this new regulation, you’ll be responsible for determining the right amount of share capital. It’s a step towards smarter, more efficient business formation in Estonia. 💼🔍

📅 Effective from February 1, 2023: Mark your calendars! These exciting changes to the Estonian Commercial Code come into play on 1st February 2023. Don’t miss out! 🗓️

Easily Register Your Branch with a Power of Attorney! 🖋️

Hey there, future branch owner! We’ve got a hassle-free solution for you to register your branch in Estonia. 🏢🇪🇪

📜 Power of Attorney (POA) Registration: We’re here to make things simple. We offer branch registration based on a power of attorney (POA) with a notary public in Estonia.

👩‍⚖️ Notary-Powered: There are about 30 notaries in Tallinn, and they all have tight schedules. But no worries! We’ll set up a meeting with a notary on your behalf.

🚀 Your Convenient Option: You have choices! You can either come to Estonia, and we’ll assist you with the registration process, or we can handle everything remotely using a power of attorney. We’ll even provide you with a power of attorney template.

✍️ Acting on Your Behalf: We’ve got your back! Eesti Consulting will act as your attorney, making sure everything goes smoothly.

📜🔐 Notary and Apostille: We’ll take care of all the notary and Apostille requirements, so you don’t have to worry about a thing.

🚀 Subsidiary Information Requirements Made Easy! 📋🇪🇪

Hey there, future business owner! 🌟 Getting your subsidiary registered in Estonia is a breeze when you know what we need. It’s all straightforward and friendly. 😊

📝 Here’s the Scoop: For your subsidiary registration, we’ll need some basic info:

    • 📚 Name and surname of directors
    • 🌍 Passport or EEA card number
    • 🎂 Date of birth
    • 🏡 Full residential address
    • 🌐 Country of residence
    • 📞 Phone number
    • ✉️ Email address
    • 💻 Website URL
    • 🏢 Company name
    • 💼 Nature of business
    • 💰 Capital (minimum 2500 EUR)
    • 👥 Beneficial owners list

 

🚀 Free Consultation with EESTI CONSULTING! 👋

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Benefits of Company in Estonia

Benefits of opening a company in Estonia

5 Benefits of Opening a Company in Estonia 🇪🇪

BENEFIT 1:  Corporation Tax Rate – 0%

Distinctive Benefit: Businesses Pay 0% Tax on Retained Earnings In Estonia, businesses benefit from a 0% corporate tax rate on retained earnings. This implies that companies are exempt from paying any tax on their profits until they choose to distribute dividends among the owners.

This freedom allows businesses to save and invest their profits without the concern of corporate taxes

BENEFIT 2: Unbeatable Company Formation Fees – 234€🇪🇺💶

EESTI CONSULTING benefits:

⏰ Quick Launch – Set up a business in Estonia in 3 days in 1 day – Fill in the form here or chat online to know more about company registration in Estonia

💰 Get a Bank Account – Receive corporate documents from Eesti and Open bank account in Estonia  100€  0€ 

⚖️ Get a free advice – Ask for a taxation or law issues when you form a company in Estonia – 0€

📄 Free Tax Residency Certificate – Get It for free insted of paying 100€ 

🧠 Get up to 1000​ for start-up – Eesti will show you how to Get a grant from the EU for trademark registration in Estonia or EU (reduce state fee by 625€ – read more on e-Residency Blog)

BENEFIT 3: MANAGE COMPANY WITH E-RESIDENCY CARD

The E-Residency Card makes managing your company a breeze! You can sign VAT returns, file Annual Reports, start a company, or register for VAT with just your e-Residency card. Apply for your e-Residency card today and wave goodbye to the hassle of dealing with Power of Attorney!

✍️ Sign Papers Digitally: Use the card to sign documents online easily and safely.

🔍 Check Document Authenticity: Make sure signed documents are real and trustworthy.

📤 Send Secure Documents: Safely encrypt and send important files with confidence.

🌐 Access Online Services: Explore a variety of online services in Estonia, both public and private.

🚀 Start a Company Online: Easily set up an Estonian company without leaving your computer.

🌍 Manage Your Company Anywhere: Control and run your Estonian company from any location worldwide.

💳 Digital Banking: Apply for digital business banking and handle online payments with ease.

📝 File Taxes Online: If your company is a tax resident in Estonia, conveniently declare corporate taxes online.

 

Not sure about getting an e-Residency Card? You can also purchase a ready-made company from Estonia, already established with Power of Attorney. 🏢💳

How to Become E-Resident?

  1. Visit official e-Residency Website
  2. Click on the button “Apply Now!”
  3. Fill in the form
  4. Choose Pick-up Location to receive your e-Residency card
  5. Receive e-Residency Card and Install All Drivers and DigiDoc Software
  6. NOW You can sign all documments and set up company in Estonia.
Apply for e-Residency card
How to Apply for e-Residency card

How to start company without e-Residency card?

You can start a company in Estonia by Power of Attorney from scratch or Buy Ready Made Company with a bank account.

BENFIT 4:  CONNECT WITH E-Residency Marketplace 

The e-Residency Marketplace is a curated platform designed to connect e-residents with trusted service providers, streamlining the process of launching and expanding businesses in the digital world. It serves as a valuable resource for individuals seeking essential services within the e-Residency ecosystem.

In this marketplace, e-residents gain access to a carefully selected list of service providers who have undergone rigorous evaluation by the e-Residency team. These providers offer a range of services, from legal and financial support to various business solutions.

Choosing the e-Residency Marketplace means embracing a simplified and secure approach to find the right partners for your business needs. It allows e-residents to explore service providers with confidence, knowing that each has met specific criteria related to service quality, background, and alignment with the unique requirements of e-residents.

For those venturing into the e-Residency ecosystem, this marketplace provides a centralized hub to discover and connect with service providers who can facilitate key aspects of business development. By leveraging the e-Residency Marketplace, individuals can navigate the complexities of entrepreneurship more efficiently, making it an invaluable tool for those looking to thrive in the digital business landscape.

 

e-Residency Marketplace

BENEFIT 5:  GET A 1000€ VOUCHER FROM EU for TRADEMARK!

In the last decade, Estonia has become a favorite European destination for startups. Entrepreneurs are lured by the welcoming business environment, robust government support, and a tax system that allows them to keep and reinvest profits with a zero corporate income tax. 😊

Remember, trademark registration is crucial for every startup, not just the big players but especially for SMEs. The SME FUND 2024 program, which kicked off on January 22nd, offers Estonian companies the opportunity to apply for a 1000 EUR voucher for trademark registration. The added benefit? Enjoy a 75% reduction in the state fee. 🚀

INCREDIBLE? SEE YOUR SAVINGS IN THE TABLE BELOW: 💰👀

Country of Registration Registrar Fee (without grant/with grant)
🇪🇺 EU Fee €850 / €212
🇪🇪 Estonia Fee €145 / €37

 

Conclusion

If you’re considering establishing a European company and are still searching for the right location, Estonia could be an excellent choice with its favorable and friendly tax system.  

 

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Employment registration

Employment Registration 🧮

Did you register a company in Estonia? Now it’s time to hire an employee.

EMTA requires the following data [EXAMPLE]

Employee’s ID Start Date of Employment Employment Type Work Hours Job Title Workplace Address
001 2022-03-15 Full-time 40 hours Manager 🏢 Tallinn
002 2021-08-02 Part-time 20 hours Clerk 🏢 Tallinn
003 2023-01-10 Full-time 35 hours Technician 🏢 Tallinn

Legal Acts

Section 254(1) of the Taxation Act and Section 53(2)(7, 11–13)

Section 53(4) of the Register of Taxable Persons

Simplified Procedure for Employee Registration in Estonia

Every person, who holds a personal identification code can be registered under the simplified procedure.
The way of registration is as follows:

  1. Call on 880 0812
  2. Send an SMS message to 1811
    The format of a string should be the same:
    ”employer’s registry code/ID-code(space)employee’s ID-code(space)date of commencement of the employment“

Unpaid work or voluntary work?


Unpaid work requires registration in the employment register because this kind of work
is normally paid in other circumstances. An employee works under an employment
contract or the law of obligation.
Whereas voluntary work does not require registration, because this kind of work
is associated with typical non-profit activities like helping other people.

Employment Registration formalities….

File the “TSD” declaration until 10 day of month following the taxable period.


First of all you have legal obligation to record the rate of working in the employment register on the TSD declaration (the social tax and income tax return). You need to perform this duty until the 10 day of month following the taxable period. What is important
you can not modify the working time rate retroactively.

What is a workplace?

A workplace is a place of work and its surroundings on the premises of an enterprise of a sole proprietor or company, a state or local government agency, a non-profit association or a foundation (hereinafter enterprise) or any other places of work to which an employee has access in the course of his or her employment or where he or she works with the permission or on the order of the employer (§ 4 (1) of the Occupational Health and Safety Act ).

A place of business is the place of the permanent and continuous business or professional activities of a person (§ 9 (2) of the Taxation Act ).
Source: Emta.ee

What are the rules of working place address in Estonia?

The workplace is generally the place where the employer performs business activities. The employer can have one or more business places – f.e stores, and branches and an employee
may work in a few places.

In the case when employee performs the work at several locations the address of the workplace shall be location where the employee works for most of the working time
If the employee works f.e 50% in one location and exactly 50% of the times in another location,
the employer has the right to decide which address will be assigned to the employee.

In the case of remote working – the employee’s workplace address will be the same
as the place of business of employers.

 

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Start company in Estonia

Start company in Estonia in 4 steps!

 

    1. 📊 Delay paying Corporation Tax if your company plans to reinvest its profits. Could this mean a 0% Corporation Tax in the future? Get a tax guide here.

 

    1. 💼 Get your e-Residency card and go completely paperless with your company. You can digitally sign all your letters from authorities, handle documents, carry out business correspondence, encrypt data, and communicate securely with your partners.

 

    1. 💱 If you’re looking to offer cryptocurrency-related services like exchanges or digital wallets, obtaining a cryptocurrency license in Estonia is a breeze.

 

    1. 🏦 Opening a bank account has never been easier, whether it’s in Estonia or elsewhere, with the help of Eesti Consulting. No more hassle!

 

How to start a company in Estonia

Starting a company in Estonia offers various registration options. In this article, we’ll focus on the most commonly used business structure in Estonia: the limited liability company (LLC), also known as “osaühing” or abbreviated as “OÜ.”

 

START COMPANY THROUGH A NOTARY

There are 2 different ways of this method. A founder will meet a notary or we will act as an attorney. To act as attorney, in the name of the client we need to get notarized and apostilled Power of Attorney. Then we will order a certified translation of this document to the Estonian language. Then the notary will prepare an application of establishing a company, the memorandum of association and articles of association.

 

START COMPANY THROUGH e-Residency card

We recommend a company registration through an e-Residency card. See this video to explore how to apply for an e-Residency card

Steps:

 

How to apply for e-Residency card from your home country?

 

    1. Become and e-Resident here: https://e-resident.gov.ee/become-an-e-resident/

 

    1. Visit e-Residency Marketplace to compare all legal service providers and choose solution for your company

 

    1. Get a free certificate of tax residency ( worth: 100€ – you pay: 0€) if you choose Eesti Consulting as your legal advisor and company formation agent. Coupon code: #FREETAXRESIDENCY

 

 

 

 

 

Recruitments of a company in Estonia

 

Business name of the company

    • Company may have only one business name

    • The company name must contain the appendage “osaühing” or the abbreviation “OÜ”

    • The appendage or abbreviation must be visible at the beginning or end of the business name

    • The business name of the branch of a foreign company shall consist of the business name of the company and the phrase “Eesti filiaal” – Estonian branch

 

Management board

    • The management board may have one or several members

    • A member must be a natural person

    • A member need not be a shareholder but a member may be a shareholder too.

    • Every member may represent Estonian company in all transactions unless the articles of association prescribe that some or all of the members shall represent Estonian company jointly

    • A transaction made between an Estonian company and a member of the management board is not valid

    • if the supervisory board or shareholders do not agree to the transaction ( exception is in the event of

    • every day economic activities undertaken by Estonian company according to the market price of a service)

 

Share capital

    • At least 2500 € as share capital of OU company. ( in the event of providing a cryptocurrency-related services – the share capital shall be at least 12,000 €)

    • A contribution may be monetary or non-monetary

    • The minimum nominal value of a share is 0,01€

    • The share capital may be paid to your bank account located in Estonia or outside Estonia (only within the European Economic Area)

    • The share capital shall be registered in the Estonian Business Register and declare at the Estonian Tax and Customs Board

    • You can use share capital to pay for business expenses and costs of a company but is not permitted to pay dividends from share capital to shareholders

    • You have a right to deferring of share capital payment for up to 10 years if you meet these 2 conditions: ****All founders are private members AND ****The share capital is less than or equal to 25,000€

 

 

Start a company in Estonia as a ready made business!

A ready made company, also known as a shelf company or an aged company, is a business entity that has been registered but has remained dormant, typically without engaging in any significant business activities. These companies are pre-registered by a formation agent or service provider and are often offered for sale to individuals or businesses who wish to have a pre-existing company rather than going through the process of incorporating a new one.

 

Typical ready made company for sale

A typical ready-made company for sale, like this Estonian company priced at €900, offers several advantages to entrepreneurs and businesses. These companies are pre-registered, in this case, dating back to 2019, ensuring they are in compliance with local regulations, which can save valuable time and effort. The purchase price often includes the state fee, such as the 260EUR mentioned here, making it a cost-effective option. However, it’s important to note that notarial fees and certified translations are typically not included in the purchase. One significant benefit is that these ready-made companies usually come with no civil or tax liabilities, providing buyers with peace of mind and a clean slate to commence their business endeavors.

Banking solutions 🏦


How to open a bank account in Estonia acting as an Estonian company? Follow these steps to
start banking in Estonia:

Register a company in Estonia with the assistance of Eesti Consulting

Purchase a set of corporate documents regarding your company (Certificate of tax residency, Apostille, True copies of corporate documents, Article of Association translated from Estonian to English)

 

Reach Eesti Consulting and tell us about your business needs.


We advise you with a business bank account in or outside Estonia 🌍

Open WISE Bank Account

Worth it for seamless global finances: Borderless Banking, low fees, real exchange rates, multi-currency support in 80+ countries, and convenient local bank details. 🌐💸💳🌍🏦

Open WISE Now!

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💳 Multi-Currency (USD, GBP, EUR)
🌍 80+ Countries
🏦 Local Bank Details

Unlock your Business Potential with Payoneer account

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More than 200,000 clients are using banking services. Bank has the strongest investment and entrepreneurship experience.

Open bank account at LHV

  • Monthly maintenance fee – 0 €
  • Free of charge up to 50 SEPA payments
  • Debit card from 2€
  • Accepting card payments and payments in online stores
  • Payments via bank link
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Payment institution Lithuania

Payment institution in Lithuania

Payment institutions are like special banks 💼 that help people and businesses send and receive money 💸. They need permission 📜 from financial leaders to work. They can help you transfer money 💵, change currencies 🌍, or use electronic money 📲. They also have tools 🛠️ to stop fraud and manage data 💽. These institutions are great for quick online payments 💻 and help those who don’t use regular banks 🏦.

💳 Set up payment institution in Lithuania with Eesti Consulting

🤔 Payment institution or EMI License called?

The electronic money institution, often referred to as an EMI license or E-money license 💳, is a regulated financial institution designed to offer services connected to electronic money and payments. Holding the full E-Money license means there’s no expiry date and no restriction on the type of activity. When a company secures a license as an electronic money institution in Lithuania 🇱🇹, it gains the freedom to serve across the European Economic Area (EEA) without needing extra approvals in other EU nations. In essence, once licensed in Lithuania, the institution can expand its services to other EEA countries by opening branches there 🌍.

Services that need a license in Lithuania 🇱🇹

🔹 Depositing money into a payment account and managing that account.

🔹 Withdrawing cash from a payment account and all related tasks to manage that account.

🔹 Carrying out payment tasks, like transferring funds between different accounts, whether they’re with the same provider or a different one. This includes one-time payments, using payment cards, or setting up regular transfers.

🔹 Completing payment activities where the user has a credit line. This encompasses direct one-off charges, transactions via payment cards, or setting up repeated transfers.

🔹 Giving out or receiving payment tools.

🔹 Managing money transfers.

🔹 Handling payments where users approve transactions using phones, computers, or other digital devices. The tech or telecom company only acts as a go-between, connecting the seller of a product or service with the buyer.

Share Capital Requirements for EMI, PSP, and E-Money Licenses” 📈

Share capitalConditions
>= 20 000 € Not less than EUR 20,000 if the payment institution intends to provide only money transfer services – transfers – “money transfer services”
>= 50 000€Not less than EUR 50,000 if the institution intends to provide payment initiation services
>= 125 00 € Not less than EUR 125,000 if the institution will provide services from the following catalog*
  • 🏦 “Service allowing money deposits into a payment account and all necessary operations to manage it.”
  • 💵 “Service that facilitates cash withdrawals from a payment account and all essential tasks to run that account.”
  • 🔄 “Payment activities, which include fund transfers to accounts either within the same institution or to another payment service provider. This covers direct debits, transactions via payment cards, and setting up regular transfers.”
  • 💳 “Transactions where the money comes from a user’s credit line. This includes one-time direct debits, card transactions, and regular transfers.”
  • 🛍️ “Issuing or acquiring payment tools and handling payment transactions.


Authorization Process for Payment License in Lithuania” 🇱🇹📜

The Bank of Lithuania 🏦 takes an open approach to authorising payment institutions and other entities, initiating the journey even before the formal application lands on their desk. For those considering obtaining a license, the Bank advocates for early engagement 📆, offering a platform to understand which financial activities necessitate licensing. Early discussions set the stage for a comprehensive understanding of the roadmap ahead – detailing procedural steps 📋, critical requirements, potential challenges, and the Bank’s expectations 🎯.

The heart ❤️ of the authorization procedure is the submission of an application to the Bank’s Supervision Service. This step is accompanied by a rigorous review 🧐 of the submitted materials. Although the aim is to conclude this review within a three-month window ⏳, the need for supplemental data or documentation might necessitate additional time. Once the assessment reaches its conclusion, the Bank of Lithuania’s Board takes the reins, deciding the fate of the application – to grant the coveted license 📜 or not.

Step-by-Step Guide to Obtaining an EU E-Money License in Lithuania” 🇪🇺📜🇱🇹

STEP 1️⃣ COMPANY REGISTRATION

  • Certificate of incorporation
  • Power of attorney ( notarial deed)
  • Register of shareholders
  • Drafting of the articles of association
  • Beneficial owners list
  • Technical documentation of new fintech company
  • Company income statement over the last few years
  • UBO income statement for the last few years
  • Directors of the company
  • CV and professional experience
  • AML certificates
  • Current procedures regarding company wallet accounts

STEP 2️⃣ FILLING OUT APPLICATIONS

  • Fintech business plan
  • Company organizational structure
  • IT security – schemes
  • Financial forecasts in the form of schametes

STEP 3️⃣: FINANCIAL DOCUMENTS

  • Opening a bank account
  • Registration for VAT
  • Contract for accounting and financial statements
  • AML KYC CTS training
  • Risk management
  • Meeting with bank representatives

11 Advantages of Obtaining a PSP License in Lithuania” 🇱🇹🔑

1️⃣ Welcoming Non-Residents 🌍: Lithuania doesn’t mandate the company’s management board to be its residents.

2️⃣ Post-License Company Registration 📜⏭️🏢: Begin forming your company only after securing the license.

3️⃣ License First 📝: Submit the license application even before company establishment.

4️⃣ English Proficiency 🇬🇧: Documentation can be prepared entirely in English.

5️⃣ IBAN Access 🌐: Customers enjoy access to the IBAN system, receiving their own IBAN accounts.

6️⃣ PSD2 Ready 🔗: Embrace PSD2 to offer payment initiation service (PIS) and account information service (AIS).

7️⃣ Remote KYC & AML 🖥️✅: Use advanced tech for remote customer verification, like the systems used by Paysera or Mistertango.

8️⃣ SEPA Access 💶: Direct entry into the single payment area in EUR within the SEPA framework.

9️⃣ EU Gateway 🚪🇪🇺: Operate across the European Union with a single Lithuanian-issued license. Fun fact: Google has a license from Lithuania!

🔟 Grace Period for Newbies ⚖️🚫: No financial penalties during the first year for minor infringements by new businesses in the regulated sector.


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Company Liquidation with e-Residency Card

E-Residency in Estonia Statistics [2023]

E-Residency Statistics from Estonia [2023]

E-Resident is an individual from a foreign country whose request for e-residency has been sanctioned by the Estonian Police and Border Guard Board, signifying the approval of an e-resident’s digital identity card. The status of an e-resident remains unaffected even after the expiration of the digital ID card

Company Liquidation with e-Residency Card
Design of e-Residency Card – Front Side

E-Residents Paid about 40M € Taxes

In the initial half of 2023, businesses owned by Estonian e-residents contributed 37.7 million euros in tax revenue, marking a 57% growth from the previous year. The e-Residency program has, to date, generated a total economic impact of 183 million euros for Estonia.   Start company in Estonia with few clicks.

109,000 E-Residents In 2024 💳

Estonia boasts over 109,000 e-residents, with more than 28,500 Estonian companies established by them. In November 2023 alone, there were 1,240 new e-residency applications and 362 new Estonian companies formed by e-residents. The e-Residency Marketplace features 130+ global service providers.

Number of e-Residents
Source: https://www.e-resident.gov.ee/

TOP 10 e-Residency Countries

In terms of Estonian e-residency interest, 🇺🇦 Ukraine leads with 6,778 applications, followed closely by 🇩🇪 Germany with 6,499 and 🇫🇮 Finland with 6,037 applications. 🇷🇺 Russia and 🇪🇸 Spain also show significant interest, with 5,771 and 5,431 applications, respectively.  Open e-Residency company in Estonia.

The List of Countries with e-Residency Card
Source: https://www.e-resident.gov.ee/

E-Residents Application 2014-2020

Companies launched by e-Residents 2014-2020

Companies founded by e-Residents

The Advantages of e-Residency Card 🇪🇪

 

E-Residency Card Advantages
Tallinn in Estonia – Aerial View

Have you ever thought about applying for an e-Residency card? Please read carefully this post and discover the advantages of the Estonian e-ID card. 💡

Imagine two scenarios: 🌍

Martin does not have an e-Residency card. He needs to travel to a notary public in Tallinn in order to incorporate an Estonian company as a holding company. He needs to visit the SWEDBANK branch and spend a lot of money on flights and accommodation. Robert is an e-Resident card holder. He can incorporate the company wholly online, remotely from home, and file statutory documents such as accounts, VAT returns, and others. It is essential to apply for an e-Residency card earlier due to waiting for approval by Police Border Guard. The statutory period for accepting your application is approximately 30 business days. ⏳ Martin will apply for a Trademark Registration soon.

Application for e-Residency Card in 5 steps 📝

  1. Fill out the application form and include a passport photo with the correct format and consistent with specifications. 📄
  2. Wait for a decision from the Police Border Guard in Estonia. 🚓
  3. Receive an email confirmation about the granting of your e-ID card then apply for a Virtual Office. 📧 from Eesti Consulting
  4. Travel to the local Estonian Embassy in your home country to pick up your document. 🌐
  5. Register a company in Estonia with Eesti Consulting and start the business soon. 💼

What Can You Do with e-Residency Card? 🌟

  1. Company formation in Estonia done fully remotely 🏢
  2. Conclude agreements between you and other counterparties. 🤝
  3. Connect and log in to the e-banking services securely with e-ID – do not be afraid of phishing attacks – stop hackers from taking over bank account🌍 Where to Pick Up e-Residency Card? 📦s. 🔒
  4. Fulfill statutory duties with the e-ID card – for example, submit Annual Reports in Estonia (Profit & Loss, Balance Sheet) to RIK or do VAT Registration or file VAT returns to EMTA. 📈

 

Start Company in Estonia with EESTI CONSULTING! 👋

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Certified translations of Estonian documents

Our company offers specialized translation services from Estonian into other foreign languages.

Sworn translations concern translations from Estonian into:
– English
– German
– French
– Spanish language
– Italian language
– Finnish language
– Polish language

Our sworn translators have over years of experience, especially in legal translations. Usually, our translation orders concern translations of printouts from the commercial register – RIK, company agreements, lists of directors and shareholders, as well as translations of certificates of residence, corporate correspondence, as well as civil law contracts.

We also provide telephone and interpreting services, e.g. during visits to Estonian offices.

Sample Translations

  1. Certified translation of Article of Association from RIK Register
  2. Sworn translation of Extract from Commercial Register
  3. Sworn translation of Certificate of tax residency from Estonia

How and where to verify person, who is sworn translator?

  1. Chamber of Sworn Translators www.vandetolgid.ee
  2. Sworn Translators Act www.riigiteataja.ee

Permissions of sworn translators

  • Translate documents
  • Prepare certified copies or printouts of corporate documents they translate
  • they can also advise clients and arrange the authentication of documents to be translated or translations with an apostille
  • translate contracts, invoices and international agreements.

See our products concerning certified translation

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Crypto bank account

BANKING SOLUTIONS FOR CRYPTOCURRENCY BUSINESS

You’ve heard that it’s difficult to open a bank account for cryptocurrency services. Today we will tell you how to start preparations for opening such an account.

Customers who contact us say they are refused to set up an account. They set up companies in EU countries and then encounter difficulties in opening a bank account.

Is it even possible to open such a bank account?

ACCOUNT TYPE FOR CRYPTO CLIENTS

HIGH STREET BANK It is crypto-friendly bank, who operates as traditional high street bank – financial institution

PAYMENT SERVICE PROVIDER

It operates under the E-Money License – it works like fintech apps – likes Revolut, Trasnferwise but it is crypto-friendly

OUR FEES

We will help you estabilish bank account or PSP service for your cryptocurrency business.

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Tax residency in Estonia

NATURAL PERSONS

A natural person is resident if one of the conditions is met: – the place of residence is in Estonia – the residence time in Estonia is at least 183 days per year

LEGAL PERSONS

A legal person is a resident of Estonia based on the place of registration of the company

§ 6. Resident (1) A natural person is a resident if his or her place of residence is in Estonia or if he or she stays in Estonia for at least 183 days over the course of a period of 12 consecutive calendar months. A person shall be deemed to be a resident as of the date of his or her arrival in Estonia. Estonian diplomats who are in foreign service are also residents. A resident natural person shall pay income tax on all income derived by him or her in Estonia and outside Estonia, regardless of whether the income is listed in §§ 13–22 or not. [RT I, 06.07.2012, 1 – entry into force 01.04.2013]

(2) A legal person is a resident if it is established pursuant to Estonian law. European public limited companies (SE) and European associations (SCE) whose seat is registered in Estonia are also residents. A resident legal person shall pay income tax on the objects of taxation prescribed in §§ 48–52 and withhold income tax from payments listed in § 41.

Source:  Income Tax Act Estonia – read full act here


ASK ABOUT TAX RESIDENCY

DOES THE E-RESIDENCE CARD AFFECT MY TAX RESIDENCE?

The e-Residence card has no effect on the residence. This is only a document that allows you to sign an electronic signature and correctly identify when setting up a company or operating a bank account. Thanks to the e-Residence card, we have access to the Estonian market.

CAN I GET THE CERTIFICATE OF TAX RESIDENCY SIGNED AND STAMPED BY REVENUE?

Yes – we offer this service. You can order a residence certificate with the official stamp and signature. You will need it when making payments to non-residents – e.g. if you avoid paying withholding tax in other countries.

WHICH TAXES ARE PAID BY NON-RESIDENT IN ESTONIA?

The non-resident pays taxes only on remuneration obtained from sources located in Estonia – e.g. if the workplace is in Estonia – the non-resident has a limited tax liability in Estonia, and unlimited in the country where he is a resident, e.g. in Poland or Germany.

DIRECTOR’S FEE FOR NON-RESIDENT

Director’s fee is taxed in the Estonia – is not important you are resident or non-resident. You need pay usually Income Tax in Estonia and social securities depending on your employment status. If you have other functions in other countries, you can present A-1 certificate and be exempt from the social security.

COMPANY HAS THE TAX RESIDENCY IN BOTH COUNTRIES (…)

It may turn out that a limited company (legal entity) will have a residence not only in Estonia, but also in another country. It is the agreements on the avoidance of double taxation that resolve the conflict of tax residence – and in particular Article 4.

I WILL CHANGE THE TAX RESIDENCY AS NATURAL PERSON – WHAT TO DO?

You need file the “R” form and sent it to EMTA (Revenue) when you change the tax residency or leave the country. This notification of tax authorities is mandatory.

FEE FOR CERTIFICATE OF RESIDENCE

DISCLAIMER

Non-residents  have a limited tax liability in Estonia, only the Estonian-source income is taxed.

Thus, where by reason of the provisions of agreement between two countries who have concluded a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income , a person is a resident of both contracting states, his status shall be determined according to article 4 of the tax treaty.
If the residency prescribed on the basis of an international agreement  differs from the residency prescribed pursuant to the Estonian Income Tax Act, the provisions of the international agreement apply.

NB! The foreign tax authorities could determine PE – permanent establishment – to be in their country. If the Estonian tax board recognizes during control that Estonian company created by e-resident is operating in a foreign country and should pay it’s taxes there, EMTA will share that information with other country’s tax authorities.

Not every business model is suitable for the Estonian company. Our employees will advise you on how to minimize international taxation risks.

EXAMPLE OF CERTIFICATE OF RESIDENCY AND TAX LIABILITY FROM ESTONIA

WHAT INFORMATION DOES THE CERTIFICATE CONTAIN?

The certificate of residence and tax liability is issued by Tax and Customs Board from Republic of Estonia called in Estonian “Eesti Maksu- ja Tolliament”.

On the certificate of residence you can see the company name (“nimi”), company number (“registrikood”) and registered office address (“aadress”). The Tax and Customs Board confirms that OU company is a resident of Estonia according to the Estonian Income Tax Act for the purposes of the Estonian income taxation.

Every valid certificate of residency from Estonia needs to be signed by officer and to be stamped.

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How to appoint beneficial owner in RIK?

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 is the beneficial owner of the company in this case?  Only B and C candidates because they have more than 25% shares in the company capital.  Persons called “B” and “C” should fullfill statutory duties and be appointed as “Beneficial Owners” to Commercial Registrar.

2.  WHICH ENTITIES ARE OBLIGED TO SUBMIT THEIR DATA TO REGISTRAR?

  • Private limited companies (OU companies)
  • Public limited companies
  • General partnerships
  • Limited partnerships
  • Commercial associations
  • Foundations
  • Non-profit associations
  • European company and European Economic Interest Grouping

3. BRANCH OF FOREIGN COMPANIES

As article no. 384 (2) of the Commercial Code stipulates:

“(2) A branch is not a legal person. The company shall be liable for the obligations arising from the activities of the branch.”

The legal entity registered under foreign law is responsible for its branch and receiving information concerning the beneficial owners, who control the company.    Branch of foreign companies is not obliged to appoint beneficial owners to Commercial Register.

SHAREHOLDERS, WHO ARE LISTED COMPANIES ON REGULATED MARKETS

Only subsidiaries belonging to companies listed on the stock market are obliged to appointing of beneficial owners.
Others – listed companies do not need to do it. If the not listed company has one shareholder – listed company
on the regulated market – you do not need to indicate the beneficial owner.

PENALTIES AND NOTIFYING OF RIK ABOUT UBO

The beneficial owner’s data needs are submitted within 60 days of 1 September. The entered data of beneficial owners in the RIK can be changed, confirmed or added. Needed details of beneficial owners in case of private limited companies:

1) The name of the person
2) The personal code from e-Residency card
3) Country of living
4) Place and date of birth in the event if e-ID is not issued
5) data of the manner in which the person exercises control

Max amount of penalty for a natural person is 32,000 EUR for the failure of submitting UBO to Commercial Register.

OUR ASSISTANCE

We can help you manage corporate records to indicate correctly the Ultimate Beneficial Owners of the company. We need to do with diffirent ways:

  • as your Attorney ( on grounds of Power of Attorney ) – you will issue POA in your country of living in the form of notarial deed and post this POA to our estonian office)
  • as your Attorney ( you will grant access via RIK with using e-ID e-Residency card)

OUR PRICING

APPOINTING OF BENEFICIAL OWNER for e-Residents

€ 100 ONE TIME FEE

APPOINTING OF BENEFICIAL OWNER by notary public (POA)

€ 300 ONE TIME FEE

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Taxation in Estonia

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

  1. Corporate Income Tax
  2. Labour Tax
  3. Value Added Tax (VAT)
  4. 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 alike no longer have to pay this kind of tax to the Estonian government. Only distributed profits will be taxed at the amount of 20% of the net
amount 
(both actual and deemed).

WHAT MEANS “DISTRIBUTED PROFITS” ?

  • Distributed corporate profits during tax period
  • Gifts, donations and representation expenses
  • Payments and expenses that are not connected to the business
  • Asset transfers of the business entity that has a permanent establishment in Estonia
  • (local or foreign) to its head office or to different companies

LABOUR TAX

Labour taxes also called social taxes is 33% of the total the share of labour costs attributable to
income taxes and social-security contributions minus cash benefits. It is divided into 2 parts one
being the social security (20% of the labour tax goes here) and health benefits (13% of the
labour tax is allocated to this as well). Estonia also levies an unemployment tax to businesses at
0.8% is paid on the gross salary. The government also withholds an additional 1.6% tax from
the employee’s wages.

VALUE ADDED TAX

The standard VAT rate is 20% for a business or a taxable person (if
your business is just a sole proprietorship), then it can be reduced to 9% depending on the circumstances of your acquisition of goods.

E-TAX SYSTEM

The e-Tax System is not a form of tax law but just a means to easily and efficiently file your
taxes on an electronic platform on the internet. In fact, 95% of all taxes in Estonia are declared
online which makes government transactions from their agency that handles the taxes of
Estonia get processed smoothly.

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How can I start the company 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 non-monetary contribution.

Here you can check if the company name is available – https://ariregister.rik.ee/lihtparing.py

Here you can check the classification of the subject of activity https://emtak.rik.ee/EMTAK/pages/klassifikaatorOtsing.jspx The company name must end with OU – known as osaühing or OÜ.

CHOOSE SERVICE PROVIDER

It is necessary to select a registration address in Estonia – a virtual office and a “contact person” – a legal person required if the board is outside of Estonia. The fee for the registration address and contact person is paid every year. We invite you to familiarize yourself with our packages.

Our company formation packages are visible here:

https://eesticonsulting.ee

VAT REGISTRATION

Registration to VAT taxation can be volountary in the event the custommer will decide to register to VAT from incorporation date. In the event when business transactions exceeds 40 000 euros from the begining of calender year, the OU company needs to be VAT registered obligatory.

The company director is required to submit an application for VAT registration to the EMTA. In the case of voluntary registration – the tax office may ask the client about his clients and the connection with Estonia. In order to issue an EE VAT number – the office sometimes asks for contracts with contractors, invoices or commercial correspondence.

There is no stamp duty for VAT registration. Here you can find VAT registration forms from EMTA directly:
https://www.emta.ee/eng/business-client/income-expenses-supply-profits/general-information-value-added-tax/vat-forms

BANK ACCOUNT OPENING

Opening an account in Estonia does not have to be difficult. We work with SWEDBANK and LHV banks – we represent our clients and help prepare for meetings with banquets.

The customer may wish to open a bank account outside of Estonia. In this situation, we have prepared an offer for countries such as Lithuania, Latvia, Estonia, Poland, Switzerland or Great Britain.

Many customers want to open an account on PSP – Payment Service Providers such as Transferwise or RevolutCryptocurrency companies (with issued license) do not have an easy way to open an account, which is why we have a specially prepared offer for high-risk businesses here.

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How to open LHV bank account?

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 and present passport or EEA identity card for the purpose of signing the agreement.

HOW TO GET A POSITIVE DECISION FROM LHV?

Estonian banks treat KYC (Know Your Customer) and AML/CTS seriously.
Moreover, they want to check your connection with Estonia. If you are
non-resident and live out of Estonia and you won’t demonstrate that you have counterparties in Estonia, you can forget about setting up an account.

I will describe to you what is the method of explaining them your business presence in Tallinn.

1) Tax reasons for the opening company in Estonia and bank account is not indifferent.
2) Find your business partners on upwork.com or peopleperhour.com and outsource them your job. You can show the bank print-outs from upwork.com, quotes, invoices or cover letter.
3) Find your business clients in Estonia ( translate your website into Estonian language and show the bank that you have a business presence in Tallinn)
4) Use a trusted company formation partner (likes Eesticonsulting.ee). A trusted company will provide you legal address, that will be accepted by the bank.
5) Setup Estonian domain (.ee) and phone number (+372) for the purpose of contacting with counterparties.

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State fee for crypto license will increase in Estonia 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.

[wpsm_quote author=”M. Helme from Ministry of Finance – Estonia” float=”left” width=”100%”]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[/wpsm_quote]

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 – Martin Helme tells that this is only the first step in the field of prevention of money laundering. The bill

introduces numbered formal obligations. Application processing time will be extended from 30 to 90 days. Required will be company incorporation in Estonia or running a branch of a foreign company. Moreover, registered office address and board of directors need to be in Estonia. So far, the fee

stamp for the issuance of the license was 345EUR, and the amendment increases it 10 times to 3330 EUR from one license – adds Paweł Krok from Eesticonsulting.ee. Current license holders have a deadline until 31 December 2019 to fulfil statutory requirements under pain of withdrawal

license by the Estonian financial market regulator – Financial Intelligence Unit (FIU).

Goverment source:

https://www.rahandusministeerium.ee/en/news/granting-virtual-currency-activity-licences-set-become-tougher-under-new-bill

[quick_offer id=646]

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E-RESIDENCY guide

HOW TO APPLY FOR E-RESIDENCY CARD?

GET E-RESIDENCY CARD FROM HOME
Ready this guide to know how to obtain e-Resident card smoothly from your home and run your business working worldwide borderless.

FACTS AND MYTHS

[wpsm_column size=”one-half”][wpsm_pros title=”PROS:”]

  • With e resident card you can register Estonian company remotely from home
  • With e-residency card you have to open remotely the bank account or PSP (Payment Service Provider)
  • You can put your digital signature on business documents and the signature will be valid worldwide
  • You can reserve .ee domain and approve all official documents -f.e file the VAT return, Income Tax return and financial statements to Commercial Register
  • You are not obliged to travel to Estonia for the purpose of company registration or for the purpose of obtaining business licenses
  • You can not travel to Tallinn for the purpose of the e-ID card. Receive the card from the local embassy located in your home country.

[/wpsm_pros][/wpsm_column][wpsm_column size=”one-half” position=”last”][wpsm_cons title=”CONS:”]

  • E-Residency card has not any impact for your personal tax residency in your home country based on bilateral agreements tax regulations.
  • e-ID is not a VISA
  • e-ID has not influence for your temporary residence permitt in Estonia.
  • You can not receive e residency card by post or by attorney , because the fingerprints are required.

[/wpsm_cons][/wpsm_column]

 

PLUG & PLAY

5 STEPS FROM COLLECTING E-ID CARD TO BANK ACCOUNT

[wpsm_numhead num=”1″ style=”2″ heading=”2″]APPLY FOR E-RESIDENCY CARD[/wpsm_numhead]
Go to website https://e-resident.gov.ee/become-an-e-resident/. You will need a copy of EEA card or Passport and motivation statement. Then you have to pay for the application fee €100. Then you will be patient because application review is made by Estonian Police & Border Guard Board in the timeframe of 6-8 weeks. The final step is receiving of e-Residency kit. You can collect it at the selected location, f.e in the nearest Estonian embassy in your country of living.
[wpsm_numhead num=”2″ style=”2″ heading=”2″]CHOOSE YOUR PROVIDER[/wpsm_numhead]
You can choose your “company & trust service provider”. Remember that you have to verify the provider on mtr.km.ee website. Every company that offers company registration services in Estonia needs be provided with license number by the Financial Intelligence Unit. Eesticonsulting.ee has issued license number: FIU000310.   More information you will find in About us website.
[wpsm_numhead num=”3″ style=”2″ heading=”2″]LEGAL ADDRESS[/wpsm_numhead]
Estonian legal address is required by law for the purpose of the company registration. Every company is treated as an Estonian legal resident. Eesticonsulting.ee offers the legal address for your Estonian corporation in the heart of Tallinn. We charge you grounds of the annual subscription. More about virtual office services here.
[wpsm_numhead num=”4″ style=”2″ heading=”2″]CONTACT PERSON[/wpsm_numhead]
Estonian Commercial Code § 63 stipulates that if the board of directors reside out of Estonia, “contact person” needs be appointed in this situation. We provide Contact person service, especially for nonresidents. If you won’t appoint a contact person, your firm won’t is registered.
[wpsm_numhead num=”5″ style=”2″ heading=”2″]BANKING[/wpsm_numhead]
Did you hear a story about opening a bank account in Estonia for nonresidents? A lot of advisories tell: It is not possible – really – don’t try. Believe us. We have documented the experience and positive track record. We will try to advise you how to open an Estonian bank account and PSP provider.

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12.12.2019 – Changes in law for cryptocurrency license holders

On December 12, 2019, the Estonian parliament approved a law that applies to companies providing virtual currency wallet service or exchanging virtual currency against fiat currency.

Companies that have licenses issued must implement new procedures by July 1, 2020. Otherwise, the Financial Intelligence Unit may revoke their licenses – says Paweł Krok from Eesticonsulting.ee.

A company that wants to obtain a license for an exchange office and a currency portfolio must provide no criminal record proof and a CV for all members of the company. Everyone involved must present a copy of the passport certified by a notary public, as well as the AML procedure as before. A company should set up a bank account in Estonia or any EEA country. Share capital should be at least EUR 12,000. The non-monetary contribution is not allowed. The company should have its own office and management on the territory of the Republic of Estonia. For new applicants – the cost of the license will change from 345 to 3300 EUR. Time for consideration of the application is 60 days. Foreign companies can establish a branch in Estonia and apply for a license from this level.

Link to Google Docs PR:
https://docs.google.com/document/d/e/2PACX-1vTQZEFCZtdR82sBLbXg4qjMYTbYvfJwnCCEg0GN_lfeoGpUdk1cHB3sx2WnKIOI6_r6XvQ-nO320cxg/pub

Contact information:
Paweł Krok
contact@eesticonsulting.ee

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Remotely notary public

NOTARIAL ACTIVITIES ONLINE

REMOTE NOTARY FROM FEBRUARY 2020

Since February 2020, new solutions are entering Estonia, which are aimed at facilitating many activities that until now had to take place in a notary office.

Notaries can perform remote verification of clients remotely. A person who wants to use this solution must have an Estonian e-Residency (e-ID) or Mobil-ID card, Google Chrome browser with the appropriate plug, as well as an internet connection with a speed of about 30Mbit / s.

If a person wants to make a notarial deed – they must log into E-Notary and be in the room alone without company. If the transaction concerns several people – each of them must be in a separate room.

The notary public always decides whether the transaction will take place – the transaction may be interrupted at any time.

The Estonian system uses biometric face recognition technology – https://www.veriff.com/. The solutions were financed from the European Union’s Structural Fund and the budget of the Chamber of Notaries.

For people who do not have an e-ID or e-Residency card – service in Estonian embassies is available in the following cities:

  • Helsinki
  • Brussels
  • stockholm
  • London
  • Riga

Examples of actions:

– marriage or divorce applications

– succession applications

– purchase of shares in a private limited company

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Digital nomad visa for remote workers

Are you digital nomad worker and would you like to stay in Estonia up to 12 months? Starting from 1 August you may apply for digital nomad visa for remote workers.

Who can apply?

You need meet all following recrutiments:

  • You can work independent of your location
  • You can deliver your work services remotely using internet
  • You are employeed by the company registered outside of Estonia, conduct business through your own company registered abroad or work as a freelancer for clients mostly outside of Estonia.
  • You have possibility to provide authorities with the evidence that confirm the minimum threshold (€3504) during the six months before the application.

TYPES OF VISA

Type C for short stay – state fee is: 80€

Type D for long stay – state fee is: 100€

LIST OF EMBASSIES WHERE YOU CAN APPLY FOR VISA FOR NOMADS

Estonian Embassy in Ankara: https://ankara.mfa.ee 

Estonian Embassy in Abu Dhabi: https://abudhabi.mfa.ee (only D-visa applications as of September 1, 2020)

Estonian Embassy in Beijing: https://beijing.mfa.ee  

Estonian Embassy in Cairo: https://cairo.mfa.ee

Estonian Embassy in Canberra: https://canberra.mfa.ee

Estonian Embassy in Dublin: https://dublin.mfa.ee 

Estonian Embassy in Helsinki: https://helsinki.mfa.ee (only D-visa applications)

Estonian Embassy in Kyiv: https://kyiv.mfa.ee  

Estonian Embassy in London: https://london.mfa.ee

Estonian Embassy in Minsk: https://minsk.mfa.ee

Estonian Embassy in Moscow: https://moscow.mfa.ee

Estonian Embassy in New Delhi: https://newdelhi.mfa.ee 

Estonian Consulate General in New York: https://newyork.mfa.ee

Estonian Embassy in Nur-Sultan: https://nursultan.mfa.ee/

Estonian Embassy in Ottawa: https://ottawa.mfa.ee 

Estonian Embassy in Paris: https://paris.mfa.ee  (only D-visa applications)

Estonian Embassy in Stockholm: https://stockholm.mfa.ee (only D-visa applications)

Estonian Consulate General in St Petersburg: https://stpetersburg.mfa.ee 

Estonian Consulate General in St Petersburg Chancery in Pskov: https://pskov.mfa.ee

Estonian Embassy in Tbilisi: https://tbilisi.mfa.ee/

Estonian Embassy in Tel Aviv: https://telaviv.mfa.ee 

Estonian Embassy in Tokyo: https://tokyo.mfa.ee

Source: https://vm.ee/en/estonian-representations-which-are-handling-visa-applications

HOW IS THE PROCEDURE OF APPLYING?

  1. Visit the website https://eelviisataotlus.vm.ee/ and choose your language
  2. Choose the type of VISA – short stay (C) or long stay (D)
  3. Fill in the form and print it
  4. Make the appointment at Estonian Embassy or Consulate
  5. Take all supporting documents, evidences, identity documents like passport, identity card and submit your applicaiton
  6. Wait plase up to 30 days for approval your application.

NOTE! If you reside in Estonia – please apply for digital nomad visa directly to Police and Border Guard Board office

E-RESIDENCY CARD VS DIGITAL NOMAD VISA

E-RESIDENCY CARD

  • Get your goverment-issued digital identity and authenticate all documments
  • Gain access to Estonia’s e-Services like Estonian residents
  • Register your first company with e-Residency card and take advantage of deffering of Corporate Tax – 0%
  • Open the corporate bank account in Estonia or abroad
  • Complete your VAT return and all statutory duties
  • Apply on e-resident.gov.ee and wait 6-8 weeks for approval
  • Receive youe e-Residency card at local Embassy or Consulate around world.

DIGITAL NOMAD VISA

  • Obtain right for staying in Estonia for up to 1 year
  • Only for digital nomads people, who are be able to perform activities online independent of location
  • For employer with seat outside of Estonia
  • For the comapny with seat outside of Estonia
  • For freelancers, who have clients outside of Estonia
  • Approval time up to 30 days
  • Apply by visiting nearest Estonian Embassy
  • Receive VISA NOMAD at Estonian Embassy or Consulate
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Payment institution in Lithuania

E-MONEY License in Lithuania – payment institution.

The electronic money institution – called often EMI license or E money license – is a regulated financial institution whose purpose is to provide services related to electronic money and payment services.

The full license for E-Money is not limited in time or type of activity. A company that has a license of an electronic money institution in Lithuania can provide any services in the European Economic Area (EEA) without having to obtain a position in another EU country. After obtaining a license in Lithuania, an electronic money institution may provide services in other EEA Member States by establishing branches.

The kind of services that require a license in Lithuania

  1. services enabling cash to be placed on a payment account as well as all operations necessary for operating a payment account;
  2. services enabling cash withdrawals from a payment account, as well as all operations required for operating a payment account;
  3. execution of payment transactions, including the transfer of funds to a payment account with the payment service provider of the payment service user or with another payment service provider: execution of payment orders, including one-off payment orders, execution of payment transactions through a payment card or similar device and / or execution of transfer orders, including standing orders;
  4. execution of payment transactions, in which funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions using a payment card or similar device and / or execution of a transfer order, including standing orders;
  5. issuing and / or acquiring payment instruments;
  6. money orders;
  7. execution of payment transactions in which the payer agrees to perform a payment transaction using any telecommunications terminal equipment, digital or IT device, and the payment is made to the telecommunications network operator or IT system operator, acting only as an intermediary between the supplier of goods or services and the payment service user.

Capital for EMI / PSP / EMONEY license

NOT LESS THAN 20,000 EUR

Option 1: Not less than EUR 20,000 if the payment institution intends to provide only money transfer services – transfers – “money transfer services”


NOT LESS THAN 50,000 EUR

Option 2: Not less than EUR 50,000 if the institution intends to provide payment initiation services


NOT LESS THAN EUR 125,000

Option 3: Not less than EUR 125,000 if the institution will provide services from the following catalog:

“Service enabling cash to be placed on a payment account as well as all operations required for operating a payment account”

“Service enabling cash withdrawals from a payment account as well as all operations required to operate a payment account”

“Payment transactions, including transfers of funds to a payment account at the institution of a payment service provider or payment service user or at the institution of another payment service provider, direct debits, payment transactions via a payment card or similar charging device or the execution of credit transfers, including standing orders “

“Payment transactions in which funds are covered by a credit line for a payment service user, execution of direct debits, including one-off direct debits, execution of payment transactions by means of a payment card or similar device or transfer order, including standing orders”

“Issue of payment instruments or acquisition of payment transactions”


EMI license procedure

The collected documents will be considered by the Lithuanian central bank about 3 months from the date of submission and a decision will be issued by the Lithuanian central bank.

In the event that any formal deficiencies as to form and content are identified, the bank will ask for the missing information or the corrected form in accordance with regulatory requirements. In this case, the consideration process may be extended.

EU e-money license in Lithuania STEP BY STEP

We present the following steps to obtain the EU E-money license from Lithuania called often EMI LICENSE You will have acces to all European Countries based on 1 license coming from Lithuania.

STEP 1: COMPANY REGISTRATION

  • Certificate of incorporation
  • Power of attorney ( notarial deed)
  • Register of shareholders
  • Drafting of the articles of association
  • Beneficial owners list
  • Technical documentation of new fintech company
  • Company income statement over the last few years
  • UBO income statement for the last few years
  • Directors of the company
  • CV and professional experience
  • AML certificates
  • Current procedures regarding company wallet accounts

STEP 2: FILLING OUT APPLICATIONS

  • Fintech business plan
  • Company organizational structure
  • IT security – schemes
  • Financial forecasts in the form of schametes

STEP 3: FINANCIAL DOCUMENTS

  • Opening a bank account
  • Registration for VAT
  • Contract for accounting and financial statements
  • AML KYC CTS training
  • Risk management
  • Meeting with bank representatives

11 benefits of PSP license in Lithuania:

1) THEY LOVE NON-RESIDENTS

The company’s management board does not have to be residents of Lithuania

2) COMPANY REGISTRATION IN LITHUANIA AFTER…

Company formation begins only after the license has been granted.

3) SEND THE LICENSE

License application submitted without setting up a company.

4) WHAT DO I NEED TO OPEN THE FILES?

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5) ALL IN ENGLISH

Preparation of documentation in English

6) IBAN

Access to the IBAN system – every customer will receive an IBAN account.

7) PSD2

Implementation of PSD2 enabling payment initiation service (PIS) and account information service (AIS).

8) REMOTE KYC AML VERIFICATION

Remote KYC customer verification thanks to automated technologies. The customer does not have to come to the facility to open an account – examples of Lithuanian websites are: Paysera or Mistertango.

9) SEPA SCHEME

Direct access to the single payment area in EUR in the SEPA system

10) GATE TO ALL EU COUNTIRES

Do business throughout the European Union based on one license issued by a Lithuanian bank. Did you know that Google also has a Lithuanian license

11) NO FINANCIAL PENALTIES IN THE FIRST YEAR

No financial penalties for the first year for minor infringements of entrepreneurs operating on the regulated market.


Our fees

You will be charged for the plan after the admin approves your vendor account.

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