Question 1

Which documents are needed to open a bank account?

John Doe · Accepted Answer

As a general rule, the bank asks for a certified copy of the shareholder's and director's passport (beneficial owner), as well as recent proof of residence which, must be less than three months old. However, the full scope of documents depends on the bank, and on the particulars of each case. If the client goes to the bank in person to open the account, a certified copy of the passport is not required. We will send you the additional documents necessary for opening the account by email, as an attachment, for you to sign and return to us preferably by special courier ( DHL, FedEx or Chronopost), along with the other documents mentioned above. Disclaimer:

Each bank account application is subject to the bank’s mandatory due diligence requirements and duties under national and international (FATF) standards, in particular, to prevent money laundering, and nothing on this webpage shall be construed as an offer to waive such requirements and duties.
Banks are listed as examples only. You will need to confirm your choice of a bank after the registration of your company. You have no obligation to select a listed bank and may propose another bank of your choice. SFM is not proposing bank services. An introduction service includes the preparation of the application form and the submission of the application file. Any application is subject to the acceptance of the client by the bank.

Question 2

Where is the service agreement what needs to signed?

John Doe · Accepted Answer

It is included with your order confirmation to be automatically downloaded.

Please check your email.

Question 3

Where is my contact person certificate?

John Doe · Accepted Answer

It is included with your subscription confirmation to be automatically downloaded.

Please check your email.

Question 4

Where is my address certificate?

John Doe · Accepted Answer

This will be provided upon order or subscription renewal.

The certificate will be automatically sent to the email you provided during the order process. In the event that you are unable to locate it, please inform us, and we will manually resend it to you.

Question 5

What ID cards can be used?

John Doe · Accepted Answer

The following forms of identification are permissible:

Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-resident cards
Estonian Smart ID
Estonian and Lithuanian Mobile IDs

However, it should be noted that legal statuses are subject to change over time. Therefore, it is imperative to remain vigilant and keep abreast of any such developments. Additional info: https://www.youtube.com/watch?v=qPIxhFZcP_Y&t=18s

Question 6

What do you mean by employer registration, we don’t have them yet?

John Doe · Accepted Answer

We will register your readiness in the Estonian Tax and Customs Board. Later on, detailed data will be added by you or by us as your accountant.

Question 7

What are the requirements for a power of attorney?

John Doe · Accepted Answer

The power of attorney is necessary so that we can carry out transactions on behalf of the client within the framework of the authorization given by him.

The document must be apostilled in the country where it was issued. The translation must be made by an Estonian sworn translator.

Question 8

Is the contact person a juridical or physical person?

John Doe · Accepted Answer

They are different options out there, we offer a juridical option.

Question 9

Is offered address "virtual" or real?

John Doe · Accepted Answer

The authenticity of an address is a crucial factor in various institutional settings, including the Estonian Business Registry, payment solution providers, and banks, among others.

It is important to note that these entities do not accept the use of "not real" or "virtual addresses." Therefore, it is recommended that individuals and companies provide accurate and verifiable address information when engaging in transactions with these institutions. That's what we are offering. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/package-one/

Question 10

Is mail scanning and forwarding, and forwarding of small packages are also within the service?

John Doe · Accepted Answer

If there are some letters per year we will scan or onward them for free and charge only posting costs. We don’t wrestle with small packages, right now.

Question 11

In what form are the documents of incorporation handed over?

John Doe · Accepted Answer

If a company or nonprofit association is established remotely, no documents will be received on paper immediately.

Each founder can download and print copies of the commercial register free of charge. In the exceptional case, if the incorporation takes place with a Public Notary, then the verified documents on paper can also be received. If there is a need to use these papers abroad, they must be legalized through the apostille: https://virtualofficeinestonia.com/product/apostilled-documents/

Question 12

How quickly the service is activated?

John Doe · Accepted Answer

Upon order and payment services are activated in 24 hours.

However, please note that in certain cases, such as when a signed contract and KYC documents are required, the activation of the service may be subject to the timely provision of these additional materials. Our team will promptly inform you of any such requirements and work with you to ensure a smooth and efficient activation process.

Question 13

Does the price include government fee 265 EUR?

John Doe · Accepted Answer

Yes.

Question 14

Can the subscription be down- or upgraded?

John Doe · Accepted Answer

Of course.

From our services address, address and contact person and accounting services are subscription based services. In the Customer Area view Subscription page, subscribers have the ability to perform various actions such as suspending or canceling their subscription, modifying the shipping address or payment method for future renewals, and upgrading or downgrading their subscription level.

Question 15

Can I cancel my subscription at anytime?

John Doe · Accepted Answer

Of course. Just let us know via e-mail with an advance of 7 days, before the date of the subscription extension date and not having an invoice unpaid. Also, you can log in to the customer area and close your subscription yourself. What needs to be noticed is that the waiver does not have a retroactive effect, ie the period for which it has already been paid is valid until the end. Also, it is very important to remember that the order ends permanently when the address and/or contact person has also been deleted from the Estonian Business Registry. Without it, the standing order is not completed.

Question 16

Adding Term of Office of the Contact Person

John Doe · Accepted Answer

Legal entities whose address is located or a board resides in a foreign country must appoint a contact person.

A deadline can be set for the contact person. After measuring the deadline, the contact person is automatically deleted from the company. After that, the contact person must be appointed for a new term.

Additional information

Adding-Term-of-Office-of-the-Contact-Person Download

Question 17

Who is responsible for accurate information?

John Doe · Accepted Answer

Client and accountant together.

The client is responsible for ensuring that the raw data provided is true and the accountant is responsible for ensuring that the raw data has been used lawfully according to law.

Question 18

What to do with negative share capital?

John Doe · Accepted Answer

The Estonian Commercial Code states that it needs to be raised.

If a private limited company has less than half of its share capital or less than the amount of share capital specified in § 136 of this Code or the other minimum amount of share capital provided by the law, the shareholders shall decide: 1) Reduction or increase of share capital 2) The dissolution, merger, division or transformation of a private limited company 3) Submission of a bankruptcy petition We can help with the terminal liquidation process. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/company-termination/

Question 19

What reports must be shown in the annual report?

John Doe · Accepted Answer

The information you need to provide in the annual report depends on the size of the company.

For example, micro- and small businesses are required to provide a balance sheet, income statement, cash flow report, activity report, and specifically required notes: accounting principles, number of employees, and information about related parties. Our customers are mostly micro and small companies. A micro-enterprise is a private limited company with total assets of up to 175 thousand euros, liabilities not exceeding equity, and annual sales revenue of up to 50 thousand euros. The micro-enterprise has one shareholder who is also a member of the management board. The micro-enterprise does not have to submit an activity report in the annual report and the number of annexes is also minimal. A small company is a company with total assets of up to 4 million euros, annual sales of up to 8 million euros, and an average number of employees of up to 50 people, one of which may be exceeded.

Question 20

What language must the source documents be?

John Doe · Accepted Answer

Regarding the Estonian accounting law we accept the source documents in Estonian and English language.

Original documents in other languages must be sworn translated into the above languages, otherwise they cannot be accepted. There are certain restrictions for source documents, take a look at information about requirements.

Question 21

What is a company’s annual report?

John Doe · Accepted Answer

An annual report is the company’s financial statement of the past financial year.

All legal entities need to submit an annual report in Estonia – which of course includes companies owned by e-residents. Under the Commercial Code (see § 60), it’s mandatory to submit the report even if the company doesn’t have any activities during the financial year. It must be prepared in Estonian and in the official currency (EUR).

The deadline is six months after the financial year is over. Usually at late last day of June. But it is always wise to do it early.

The annual report can be submitted remotely if you have an Estonian e-residency card, Estonian ID card, Estonian Mobile ID or Smart ID. In other cases, the services of a public notary must be used.

All, but micro-enterprises must also include the management report. Larger companies must submit a cash flow statement and a statement of changes in equity. In certain cases, an auditor’s evaluation is mandatory.

Keep in mind that anyone can access the management reports. Therefore, consider carefully what the report contains.

Please take a closer look at our respective service:

https://virtualofficeinestonia.com/product/basic-annual-report/

Question 22

What data must an invoice contain?

John Doe · Accepted Answer

The law establishes what data must be present on the invoice so that it complies with the Estonian Accounting Legislation.

The following information needs to be written on invoices:

Title (e.g. “Invoice” or similar)
Invoice number
Date of issue
Description of goods or services purchased
Numerical data (amount, price of a unit, total sum)
Names of the seller and buyer
Addresses of the seller and buyer
Seller’s company registration number
Seller’s VAT number (in case the seller has it)

There are certain restrictions for source documents, take a look at information about requirements.

Question 23

What are the requirements for expense documents?

John Doe · Accepted Answer

Legislation states that only business-related expenses can be included in the company's reporting. Non-related expenses are treated as non-purpose based on the Estonian Accounting legislation and are taxed with an additional preferential tax.

They must include:

Date of issue
Receipt number
Description of goods or services purchased
Numerical data (amount, price of unit, total sum)
Name of the seller
Address of the seller
Seller’s company registration number
Seller’s VAT number (in case the seller has it)

They can be transmitted to us through various communication channels, preferably through various applications that automatically add them to the accounting software.

Question 24

What are annual report deadlines in Estonia?

John Doe · Accepted Answer

In most cases, the financial year is the same as the calendar year in which case the deadline is the last day of June.

In special cases, a different period may be set for the financial year. Submitting an annual report is mandatory for all the companies registered in Estonia, within 6 months from the end of the company's financial year. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/annual-report/

Question 25

How to give the accountant representation rights at the Tax and Customs Board?

John Doe · Accepted Answer

Necessary to submit tax returns on behalf of the company.

Login to the Estonian Tax and Customs Board. Choose your company.

On the left side, there will be "Settings", follow these steps:

Access Permissions -> Access permissions of representatives> New Access permission.

There is necessary to add the identification code of the representative there. That's 11253141 for that.

The following page opens, where you can add an expiration date if necessary.

Additional data

If you want to add access rights as a package eg Accountant Package, Customs Package, Excise Package, Send data through system-to-system interface, etc., you need just to scroll to the bottom of the page and click on search. Five packages appear. Please mark the desired package (s) and click on add.
If you want to add separate access permissions, you must select the separate access permissions tab. The most exploitable access permissions are in the "over areas " area
If you want to add user management permissions, select the separate permissions tab, enter "right" in the name box to simplify the search, and press the search button. There appear several access permissions. The permission you need to add in such a case is: "The right of the representative of the legal person to administer the user rights of applications".

Comprehensive and bulky manual: https://www.emta.ee/eng/information-and-news-e-mta/instructions-using-e-services/access-permissions-and-authorisations-e-mta

Video manual

https://www.youtube.com/watch?v=uKJ3zgS5oTc&t=14s

Question 26

How to authorize an accountant?

John Doe · Accepted Answer

Annual reports are submitted in the e-environment of the business register.

If you have an Estonian ID, Mobile ID, or e-residency, the right of representation can be granted with the following steps:

Log in to the Business Registry
From the upper bar choose ,,Annual report''
From the bar below choose „Defining persons entering data“
Press the button below „Add new person for entering data“
Fill in the field „Personal identification code of the person entering data”
Select the company you want to add the person entering the data
Click: “The person entering data is authorized to submit the report”
Push the „Save“ button below

Now your accountant can enter your annual report data and submit it.

It should also be noted that the submitted report must also be digitally confirmed by a board member.

Question 27

Do I have to pay taxes for employees outside Estonia?

John Doe · Accepted Answer

No, you don’t.

If the company has employees who are not tax residents of Estonia and work outside Estonia, the salary payments to these foreign employees are not taxed in Estonia, and we do not file tax returns for these employees. Foreign employees must declare their income on behalf of an Estonian company in the country in which they are taxable.

Question 28

Do I have to do accounting?

John Doe · Accepted Answer

Yes, it's mandatory. When operating a business in Estonia, it is essential to comply with local accounting and legal standards to ensure that your company is adhering to the best practices in accounting.

Keeping your books in order is crucial to providing financial transparency to your creditors and business partners and ensuring the accurate calculation of taxes. There are three main accounting policies that you must follow in Estonia:

The Accounting Act of the Republic of Estonia - this law outlines the requirements for accounting practices, including bookkeeping, accounting documentation, and financial reporting.
Estonia’s Good Accounting Practices - these guidelines provide recommendations for accounting standards and practices, including financial statement preparation, accounting documentation, and audit procedures.
The guidelines issued by the Accounting Board of the Republic of Estonia - this is an advisory board that issues guidance on accounting practices and standards, including the interpretation of accounting regulations and the development of new accounting principles.

By adhering to these accounting policies, you can ensure that your company's financial information is accurate and transparent. Moreover, accounting is the basis for preparing the annual report. Submission of the annual report is mandatory, if not submitted, the state imposes a fine, and in some cases also forced termination. Check out our corresponding service: https://virtualofficeinestonia.com/product/starter-accounting/

Question 29

Debitors managment procedure

John Doe · Accepted Answer

Standard Procedure for Non-Payment of Services:

The established protocol for addressing non-payment of services typically involves several steps to ensure a fair resolution. These steps are as follows:

Reminder Letter: A formal communication is sent to the debtor, notifying them of the outstanding payment and requesting immediate settlement. The letter serves as an initial reminder and allows the debtor an opportunity to rectify the situation promptly.
Repeated Reminder Letter: In the event that the debtor fails to respond or settle the outstanding amount after the initial reminder, a subsequent reminder letter is sent as a follow-up measure. This letter reiterates the urgency of payment and emphasizes the potential consequences of continued non-compliance.
SMS Reminder: In addition to written communication, a text message reminder is commonly employed as a supplementary means of notification. This method aims to further prompt the debtor to take immediate action in resolving the unpaid balance.
Register of Debtors: If the debtor remains unresponsive or persistent in non-payment, their details may be recorded in a register of debtors. This record serves as a reference for future actions and ensures transparency within the process.
Court Proceedings: Should the previous steps prove ineffective, legal action may be pursued through court proceedings. This involves initiating a formal lawsuit against the debtor, presenting the case before a judge or magistrate, and seeking a legal judgment in favor of the owed amount.
Bailiff or Debt Collection Company: If necessary, following a court judgment, the services of a bailiff or a reputable debt collection company may be enlisted. These professionals are authorized to take further action to recover the owed funds, which may include seizing assets, enforcing payment plans, or implementing other legal measures.

It is important to note that throughout this process, initial transaction costs incurred as a result of pursuing the outstanding payment will be included. Additionally, as the proceedings progress, state fees and bailiff costs, which are associated with legal action and the involvement of authorized officials, will be added to the outstanding balance.

Question 30

Can you arrange accounting from previous periods?

John Doe · Accepted Answer

We are able to provide accounting services for previous periods upon request.

Our pricing model is based on the number of transactions involved. For more information on pricing and to discuss any special requirements, please feel free to contact us. We will be pleased to provide you with a customized pricing solution. Related product: https://virtualofficeinestonia.com/product/basic-annual-report/

Question 31

What reports must be shown in the annual report?

John Doe · Accepted Answer

The information you need to provide in the annual report depends on the size of the company.

For example, micro- and small businesses are required to provide a balance sheet, income statement, cash flow report, activity report, and specifically required notes: accounting principles, number of employees, and information about related parties. Our customers are mostly micro and small companies. A micro-enterprise is a private limited company with total assets of up to 175 thousand euros, liabilities not exceeding equity, and annual sales revenue of up to 50 thousand euros. The micro-enterprise has one shareholder who is also a member of the management board. The micro-enterprise does not have to submit an activity report in the annual report and the number of annexes is also minimal. A small company is a company with total assets of up to 4 million euros, annual sales of up to 8 million euros, and an average number of employees of up to 50 people, one of which may be exceeded.

Question 32

What is a company’s annual report?

John Doe · Accepted Answer

An annual report is the company’s financial statement of the past financial year.

All legal entities need to submit an annual report in Estonia – which of course includes companies owned by e-residents. Under the Commercial Code (see § 60), it’s mandatory to submit the report even if the company doesn’t have any activities during the financial year. It must be prepared in Estonian and in the official currency (EUR).

The deadline is six months after the financial year is over. Usually at late last day of June. But it is always wise to do it early.

The annual report can be submitted remotely if you have an Estonian e-residency card, Estonian ID card, Estonian Mobile ID or Smart ID. In other cases, the services of a public notary must be used.

All, but micro-enterprises must also include the management report. Larger companies must submit a cash flow statement and a statement of changes in equity. In certain cases, an auditor’s evaluation is mandatory.

Keep in mind that anyone can access the management reports. Therefore, consider carefully what the report contains.

Please take a closer look at our respective service:

https://virtualofficeinestonia.com/product/basic-annual-report/

Question 33

What are annual report deadlines in Estonia?

John Doe · Accepted Answer

In most cases, the financial year is the same as the calendar year in which case the deadline is the last day of June.

In special cases, a different period may be set for the financial year. Submitting an annual report is mandatory for all the companies registered in Estonia, within 6 months from the end of the company's financial year. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/annual-report/

Question 34

In what language should it be written?

John Doe · Accepted Answer

It has to be prepared in Estonian and in the currency officially applicable in Estonia (EUR).

It can be done remotely. If you have an Estonian e-residency card, Estonian Mobile ID, or other suitable cards. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/basic-annual-report/

Question 35

If not submitted, what will happen?

John Doe · Accepted Answer

The court maintaining the register has the right to repeatedly and without warning to punish the undertaking and all persons required to submit the data for failure to submit the report on time.

The fine is determined to the extent provided for in the Code of Civil Procedure. If the report has not been submitted within 18 months after the end of the financial year, the court which maintains the register shall delete the register of a legal person or decide on its dissolution or liquidation. We can help. It can be done remotely. If you have an Estonian e-residency card. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/basic-annual-report/

Question 36

How to authorize an accountant?

John Doe · Accepted Answer

Annual reports are submitted in the e-environment of the business register.

If you have an Estonian ID, Mobile ID, or e-residency, the right of representation can be granted with the following steps:

Log in to the Business Registry
From the upper bar choose ,,Annual report''
From the bar below choose „Defining persons entering data“
Press the button below „Add new person for entering data“
Fill in the field „Personal identification code of the person entering data”
Select the company you want to add the person entering the data
Click: “The person entering data is authorized to submit the report”
Push the „Save“ button below

Now your accountant can enter your annual report data and submit it.

It should also be noted that the submitted report must also be digitally confirmed by a board member.

Question 37

How quickly the service is activated?

John Doe · Accepted Answer

Upon order and payment services are activated in 24 hours.

However, please note that in certain cases, such as when a signed contract and KYC documents are required, the activation of the service may be subject to the timely provision of these additional materials. Our team will promptly inform you of any such requirements and work with you to ensure a smooth and efficient activation process.

Question 38

Do I have to submit an annual report?

John Doe · Accepted Answer

If you have an Estonian company then submitting an annual report is required for all companies registered in Estonia even if there is no activity during the financial year.

It can be done remotely. If you have an Estonian e-resideny card. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/basic-annual-report/

Question 39

When will arise obligation to have VAT number?

John Doe · Accepted Answer

The VAT registration obligation in Estonia arises from the moment when the company’s sales turnover exceeds 40 000 EUR per calendar year.

At the same time, the company may apply for VAT status before it reaches this amount. The VAT number registration can be initiated after you’ve registered your company. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/estonian-vat-number/

Question 40

What questions are asked when submitting a VAT application?

John Doe · Accepted Answer

The questions are what the Tax and Customs Board wants to know when accepting the application.

1. Has the desire to register arisen voluntarily or compulsorily?

2. Brief description of business activity, 3-4 sentences.

3. 2-3 main business partners.

4. Sources of business financing: loan, equity or grant?

5. Are there plans to register employees?

Question 41

What is the Import One-Stop Shop (IOSS)?

John Doe · Accepted Answer

The Import One-Stop Shop (IOSS) is an electronic platform available from 1 July 2021 that enables businesses to comply with their VAT e-commerce obligations for distance sales of imported goods.

The IOSS platform enables suppliers and electronic interfaces that sell imported goods to buyers in the EU to collect, declare, and pay VAT to the relevant tax authorities. This eliminates the need for buyers to pay VAT at the moment the goods are imported into the EU, which was previously required for goods valued over 22 EUR. The IOSS provides several advantages to sellers, including simplified VAT collection, declaration, and payment procedures for distance sales of imported goods to buyers in the EU. The IOSS also benefits buyers by charging them at the time of purchase, thereby avoiding any unexpected fees upon delivery. If a seller is not registered in the IOSS, the buyer must pay VAT and potentially a customs clearance fee charged by the transporter. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/ioss-number/

Question 42

What ID cards can be used?

John Doe · Accepted Answer

The following forms of identification are permissible:

Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-resident cards
Estonian Smart ID
Estonian and Lithuanian Mobile IDs

However, it should be noted that legal statuses are subject to change over time. Therefore, it is imperative to remain vigilant and keep abreast of any such developments. Additional info: https://www.youtube.com/watch?v=qPIxhFZcP_Y&t=18s

Question 43

Is getting a VAT number guaranteed?

John Doe · Accepted Answer

Depends on Tax and Customs official evaluation. It will be monitored case by case.

In practice, it is generally the case that if you have had significant problems with the Tax and Customs Board in the past, if you cannot adequately describe your business activities, if you do not have a bank account with an Estonian bank, you will not receive a VAT number. The Tax and Customs Board has the right to request that the person submit additional proof or collect such proof on its own initiative. The proof is any information confirming that the applicant has either commenced business at the place of business stated in the application or has planned to start a business. Such proof can be, for example, preliminary contracts, (commercial lease, procurement, delivery, employment, etc.) contracts, sites for work to be performed, etc.

Question 44

How to give representation rights in the Estonian Tax and Customs Board?

John Doe · Accepted Answer

An authorization is a collection of rights within the limits of which a representative may act on behalf of the principal.

It is essential for the Estonian Tax and Customs Board that the content of authorization would be understandable and the person granting the authorization and the authorized person would be identifiable. The main and also the most convenient and practical way to transfer the right of representation is to do it through a suitable digital identification channel. These are Mobile ID, Estonian ID, e-resident ID, and Smart ID. European Union country ID cards are also suitable. It is important to have the right to log in to the systems of the Estonian state. If necessary, other less convenient and more expensive methods can also be used: power of attorney, lawyer's client agreement, etc. Additional info: https://www.youtube.com/watch?v=uKJ3zgS5oTc&t=4s

Question 45

Can a foreign company register for VAT?

John Doe · Accepted Answer

In order to register for VAT, a foreign company must submit an application and extract from the company register of the country where the company is registered.

Of course, it is also necessary to thoroughly describe how the business will be related to Estonia. Documents can be submitted either by a person authorized to represent or by an authorized person under a notarial power of attorney in our office on site. Tax and Customs Board also accept documents sent by post if the specimen signature of the authorized person is notarized or sent digitally signed (digital signature of the authorized person) to our e-mail address emta@emta.ee or submitted to our service office on site.

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