Employment registration

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

Which data must be entered into the employment register?

  1. First of all you will need provide us with personal
    identification code, including first name, surname and date of brith
  2. Date when your employment starts
  3. Kind of employment

Self – employed
Local government – local government
SM without obligation – without obligation to pay social tax
TSD – declaration of income and social tax, payment of mandatory funded pension and unemployment insurance contribution
TM obligation – obligation to pay income tax
VÕS contract – a contract under the law of obligations

  1. Rate of working time
  2. Your job title
  3. Addess, where your work is performed.

Where I can register employment contract?

To register an employee , please log in to the e-MTA portal of the Estonian Tax and Customs Board and choose your role as business client.

https://maasikas.emta.ee/login/?lang=en

Who is entitled to registration under simplified procedure?

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“

What is the difference between “unpaid work” and “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.

What formalities are involved after employment’s registration?

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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how to register a company in estonia

Company in Estonia with Eesti Consulting

Benefits of registering a company in Estonia

  • 1- Corporation Tax may be deferred in the event when the profits achieved by the company will be invested – brought forward (0% Corporation Tax?)
  • 2- Gain access to e-Residency card and manage your company paperless i.e
  • digitally sign all letters from authorities, documents, business correspondence, encrypt data
  • and communicate safely with your counterparties
  • 3- Obtain easily a cryptocurrency license in Estonia if you want to provide crypto-related services to your customers such as cryptocurrency exchange or digital wallet services
  • 4- Open a bank account with no hassle with the assistance of Eesti Consulting in or outside Estonia

How to Establish a Company in Estonia

There are various ways of company registration in Estonia. In this article we learn only about the most commonly used form of business in Estonia – limited liability company (LLC) – a private limited company, know in Estonia “osaühing” the abbreviation “OÜ

REGISTRATION 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.

REGISTRATION 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/
  2. Visit e-Residency Marketplace to compare all legal service providers and choose solution for your company
  3. 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€

Banking solutions

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

  1. Register a company in Estonia with the assistance of Eesti Consulting
  2. 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

You can order bundle pack here:

  1. Reach Eesti Consulting and tell us about your business needs.
  2. We advise you with a business bank account in or outside Estonia
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