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.

 

Read more

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!

🌐 Borderless Banking
💸 Low Fees, Real Rates
💳 Multi-Currency (USD, GBP, EUR)
🌍 80+ Countries
🏦 Local Bank Details

Unlock your Business Potential with Payoneer account

Open Payonner account Now!

🏦 10+ Currency Accounts in 1 Day
💼 Global Swift WIRE (USD/Euro/GBP)
💰 Payments from 200+ Countries
🌐 Receive from 2000+ Marketplaces
💳 Pay Worldwide: 200+ Countries
💳 Multi-currency MasterCard
💲 Competitive FX Fees

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
Read more