Company registration in Estonia

Company registration in Estonia
Estonia

Located in Northern Europe, the Republic of Estonia can offer foreign investors a number of business advantages. If you wish to register a company in Estonia, this country is exactly what you need.

Advantages of Opening a Company in Estonia

The main advantages are:

  • EU membership;
  • one of the lowest levels of corruption;
  • well-developed banking sector;
  • opportunity to open an account with an Estonian bank (only for a resident company that has a registered office);
  • opportunity to obtain Estonian citizenship, residence permit, permanent residence and affordable housing;
  • stable currency;
  • access to the EU market;
  • OECD membership;
  • reduced tax rates for non-residents;
  • well-developed IT sector;
  • DTA agreements with 60 countries.

Registration Requirements

If you are interested in opening a business in Southern Europe, you can set up an LLC in Estonia remotely (OÜ). In this case, you will need to meet the following conditions:

  • coming up with a unique name and translating it into Estonian, Russian or English;
  • preparing the Memorandum and Articles of Association;
  • having at least one founder (can be physical persons and legal entities; there is no residency requirement);
  • no secretary required;
  • BoD meetings can be held anywhere or via the Internet;
  • having a paid up share capital: of 2 500 euros; minimum nominal value of one share is 1 euro;
  • conducting an audit, if a company’s annual turnover exceeds 4 million euros; at the end of the fiscal year, the BoD must submit an annual financial statement and business activity report to the auditor.

Taxation

Those interested in setting up a company in Estonia should keep in mind the following:

  • preferential interest rate (0%) on corporate tax is applied provided that the company distributes its profits at the end of the reporting period (or is its management decides to invest the profits in business development);
  • if a company operates in Estonia, it must pay a tax at the rate of 25%;
  • VAT is 20% (for some goods (e.g. pharmaceuticals) the rate is reduced to 9%)).

Companies registered in Estonia can obtain a VAT status. Obtaining it requires a company to operate in the European Union and has a turnover of 16, 000 euros.

Considering registering a company in Estonia remotely? Need advice on opening a corporate account with an Estonian bank? Why not contact YB Case?

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