Question 1

Is this background check regarded with the e-residency program?

John Doe · Accepted Answer

To clarify, this is not a background check related to obtaining an Estonian e-residency.

E-residency is a transnational digital identity designed to facilitate location-independent business administration. It provides access to secure and convenient digital services that enhance credibility and trust online. Please note that e-residency does not confer citizenship, tax residency, residence, or right of entry to Estonia or the European Union. It is not a visa or residence permit, and the e-resident digital-ID card does not function as a physical identification or travel document. Applicants for e-residency are subject to a state fee. Depending on the selected pick-up location, additional fees may apply. If an office in Estonia is chosen as the pick-up location, there is no additional fee. If a foreign representation of Estonia is selected, an additional fee of 20 euros will be charged upon application. If the pick-up location in Seoul, South Korea; Tokyo, Japan; or San Francisco, USA, an additional service fee will apply, which must be paid directly to the service provider upon collecting the document. Please note that the Police and Border Guard Board conducts background checks on all e-residency applicants. More detailed information about applicable fees for each location is displayed upon selecting a specific pick-up location. The laws and regulations governing e-residency applications can be found in the Identity Documents Act and the State Fees Act. The terms and conditions for the use of personal identification documents of the Republic of Estonia can be accessed here. For more information, please visit Police and Border Guard Board. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/background-check/

Question 2

How the process will be carried on?

John Doe · Accepted Answer

Upon receipt of your order and payment, we request that you provide us with the necessary data to proceed with the background check.

We will conduct a thorough investigation by checking all relevant official registries in Estonia. Upon completion of our investigation, we will compile the relevant data and prepare a comprehensive report which will be provided to you in PDF format. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/background-check/

Question 3

Why registar a trademark?

John Doe · Accepted Answer

Once Trademark is registered, the owner will have exclusive rights and no one else will be able to use the same mark.

In a specific field and in Estonia, in the European Union. Trademark registration is one of the most powerful tools in how companies are able to protect themselves from unfair competition and avoid that someone else will use their brand for business purposes. It is easier and cheaper to register your Trademark than to go to court and prove that someone has used your brand name if you haven’t registered the Trademark. So far there are already several EU Members States (Estonia, Germany, Spain, etc.) who are checking EUIPO's existing trademarks before registering a company. This means that if you have registered a Trademark with your company name, no one else will be able to register a company with the same name unless you will grant them permission.

Question 4

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 5

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 6

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 7

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 8

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 9

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 10

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 11

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.

Question 12

Who activates the roaming in the card?

John Doe · Accepted Answer

It is imperative to activate the SIM Card roaming before sending it abroad.

Our company ensures that the SIM card is activated in Estonia before dispatching it to the customer. If there are any obstacles during the activation process, our service provider, Telia (www.telia.ee), can provide assistance. Please note that any issues arising after the SIM card has been dispatched are the responsibility of the customer and should be addressed directly with the service provider.

Question 13

What is your advantage over competitors?

John Doe · Accepted Answer

A physical, tangible SIM card is

required by numerous service providers (such as Google, and LinkedIn, among others) as they do not recognize virtual numbers within several of their control systems.

Question 14

How to start with the SIM Card?

John Doe · Accepted Answer

To commence usage of the prepaid card, simply insert the SIM card into your mobile device, turn it on, and enter the designated PIN code of 0000.

The usage time of the card commences upon activation, which is achieved by initiating a call. Roaming capabilities have been enabled within Estonia, providing further convenience and ease of use for travelers and locals alike. The starter kit for the prepaid card includes an initial balance of 1 EUR. The card remains active for a period of 180 days from the day of activation or top-up with a minimum of 3 EUR. After the 180-day period has lapsed, the card will still enable the user to answer incoming calls, read messages, make calls to the Estonian emergency number 112, and top up the card for an additional 30 days. This arrangement affords users greater flexibility and autonomy in managing their communication needs.

Question 15

How do charge talk time?

John Doe · Accepted Answer

The process of charging, or adding credit to an account, is a straightforward and convenient procedure.

It can be accomplished remotely through various means, such as accessing the Telia portal or utilizing the Telia app. Additionally, Telia offers a global option to purchase calling time, allowing for seamless communication across international borders. These multiple avenues for charging facilitate accessibility and flexibility for users, while also ensuring consistent and reliable service from Telia.

Question 16

Call rates?

John Doe · Accepted Answer

There exist various pricing options, with the ultimate determination of such prices being made by the service provider Telia.

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Question 17

Why I should need them?

John Doe · Accepted Answer

This makes it possible to use these documents in other countries.

This package of documents will allow you, for example, to apply for opening an account with a foreign bank for your Estonian company or carry out transactions on behalf of the Estonian company in other countries.

Question 18

What is an apostille?

John Doe · Accepted Answer

Apostille proves the authenticity of the document.

The person who signs the document and makes a national public document of one country available to a foreign country that is a party to the relevant international convention (the list of the convicted states can be consulted on the convention website.

Only Public Notaries draw up public documents for the Republic of Estonia. A notary cannot certify with an apostille a document that he has certified or authenticated.

Therefore, two notaries must be used. Later, the document must also be translated into a suitable language by a sworn translator.

Check out our corresponding service:

https://virtualofficeinestonia.com/product/apostilled-documents/

Question 19

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 20

Is the shareholder list also Apostilled?

John Doe · Accepted Answer

An unofficial document is not certified by a Notary.

In Estonia, the list of shareholders is maintained by board members and has no official meaning. The information provided in the registry card is of official significance to the shareholders. But we can translate it with a sworn translator. How do we get a shareholder list? A sample will be included with your order, which you can fill out with your details and then send it back to us.

Question 21

Are paper delivery costs included?

John Doe · Accepted Answer

Shipping costs will be additional.

They will vary depending on the mode of transport that will be chosen. Please take a closer look at our respective service: https://virtualofficeinestonia.com/product/apostilled-documents/

Question 22

Why the price is so small?

John Doe · Accepted Answer

Our price is for a company with no debts and no or little business activity.

Question 23

Whether to assist in the liquidation of a company with large debts and court proceedings?

John Doe · Accepted Answer

It actually depends on each specific case.

We help with liquidation and bankruptcy proceedings. If necessary, we involve partners.

However, the first step is to contact us and describe your problem as precisely as possible.

Question 24

Whether somewhere need to be notified when liquidation has been started?

John Doe · Accepted Answer

Yes, this must be done in the so-called official notices, after the liquidation decision has been submitted to the Estonian Business Registry.

<img class="alignnone size-full wp-image-6404" src="http://virtualofficeinestonia.com/wp-content/uploads/2020/09/ametlikud-teadaanded-logo.png" alt="" width="293" height="80" />

Adding it there or instructing to do it is included in the price of our service.

Question 25

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 26

Using an e-notary?

John Doe · Accepted Answer

Estonian notaries have launched an e-notary service so that company owners can visit an Estonian Embassy abroad to transfer shares, instead of at a notary office in Estonia. You can read more about this on the e-Residency blog here. You can choose a notary by logging in with your digital ID at notar.ee. Don’t worry too much about which one to choose, as long as they can conduct the transaction in English and are part of the e-notary scheme. Notary fees are regulated by law and they all provide the same good quality of service. In the self-service you can:

Choose a notary and make an appointment
Initiate transactions and enter transaction details
Examine contracts before the transaction
View all your notarial transactions and invoices

You can use e-Notary in:

all over Estonia and in the following embassies:
Helsinki
Stockholm
Brussels
London
Riga

In the self-service you can:

Start and sell of companies shares
Certification of copies, printouts, signatures
Authentication of power of attorney
Apostille
etc.

What is the address of the e-notary? https://iseteenindus.notar.ee

Question 27

The Power of Attorney for liquitation?

John Doe · Accepted Answer

If you cannot come to visit an Estonian notary, you cannot visit an e-notary, then the only way to conduct the whole process by power of attorney.

The sample power of attorney will be sent to you automatically with the order confirmation. You can add the necessary information there, legalize it and send it back to us.

Question 28

Is there need for report somewhere about liquidation?

John Doe · Accepted Answer

The liquidators shall immediately publish a notice of the liquidation proceedings of the private limited company in the official publication Ametlikud Teadaanded. The notice of liquidation must state that the creditors if they exist, must submit their claims within four months of the publication of the notice.

Question 29

Is the Estonian company liquidation procedure the same for local and foreign business owners?

John Doe · Accepted Answer

Yes, there is no difference between foreign and local owners liquidating companies in Estonia.

Question 30

I am abroad, I want to liquidate my companies, I can't come to Estonia?

John Doe · Accepted Answer

The story is that we are offering a faster way, 48 hours, to get rid of your business, but process speed will start to run from the moment when Public Notary has verified documents.

Question 31

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 32

How long it takes to liquitate the company?

John Doe · Accepted Answer

The usual liquidation process lasts at least half a year.

It starts with the initial decision and ends with the final balance and deletion from the register. A faster solution is to sell the company to us, and then we will continue with the liquidation ourselves.

Question 33

How long does the liquidation last?

John Doe · Accepted Answer

The fastest timeline for completing the liquidation of a private limited company in Estonia is six months after the entry of the dissolution in the commercial register and publication of the liquidation notice, as well as three months after notifying shareholders of the final balance sheet and asset distribution plan.

It is important to note that this timeline is dependent on all necessary requirements being fulfilled within this timeframe.

Question 34

How can a private limited company be dissolved?

John Doe · Accepted Answer

A private limited company can be dissolved by a resolution of the shareholders, a court decision, bankruptcy or other conditions specially specified for that purpose in the articles of association.

Question 35

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 36

Can I also liquidate a company by joining a natural person?

John Doe · Accepted Answer

Yes, it's possible.

A private limited company or public limited company may, as a company being acquired, merge with the assets of a natural person (acquiring natural person) who is the sole shareholder of the company.

The merger is permitted also in case the shares are in the joint ownership of the spouses. The merger of a private limited company or public limited company with the assets of the company's shareholder who is a natural person is permitted also in case in addition to this shareholder the shares of a private limited company or public limited company being acquired are held exclusively by the company itself.

The assets of a company being acquired, including its obligations, shall transfer to the acquiring company upon merger.

The merger will take place without liquidation proceedings. So it's faster than conventional liquidation.

The merger process between a natural person and her/his company takes far less than the conventional liquidation - about 2-4 months.

Question 37

Are company liquidation and bankruptcy the same?

John Doe · Accepted Answer

No, they are two different procedures. A company must first declare bankrupt and then be liquidated.

Question 38

Why the price is so small?

John Doe · Accepted Answer

Our price is for a company with no debts and no or little business activity.

Question 39

Whether to assist in the liquidation of a company with large debts and court proceedings?

John Doe · Accepted Answer

It actually depends on each specific case.

We help with liquidation and bankruptcy proceedings. If necessary, we involve partners.

However, the first step is to contact us and describe your problem as precisely as possible.

Question 40

Whether somewhere need to be notified when liquidation has been started?

John Doe · Accepted Answer

Yes, this must be done in the so-called official notices, after the liquidation decision has been submitted to the Estonian Business Registry.

<img class="alignnone size-full wp-image-6404" src="http://virtualofficeinestonia.com/wp-content/uploads/2020/09/ametlikud-teadaanded-logo.png" alt="" width="293" height="80" />

Adding it there or instructing to do it is included in the price of our service.

Question 41

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 42

Using an e-notary?

John Doe · Accepted Answer

Estonian notaries have launched an e-notary service so that company owners can visit an Estonian Embassy abroad to transfer shares, instead of at a notary office in Estonia. You can read more about this on the e-Residency blog here. You can choose a notary by logging in with your digital ID at notar.ee. Don’t worry too much about which one to choose, as long as they can conduct the transaction in English and are part of the e-notary scheme. Notary fees are regulated by law and they all provide the same good quality of service. In the self-service you can:

Choose a notary and make an appointment
Initiate transactions and enter transaction details
Examine contracts before the transaction
View all your notarial transactions and invoices

You can use e-Notary in:

all over Estonia and in the following embassies:
Helsinki
Stockholm
Brussels
London
Riga

In the self-service you can:

Start and sell of companies shares
Certification of copies, printouts, signatures
Authentication of power of attorney
Apostille
etc.

What is the address of the e-notary? https://iseteenindus.notar.ee

Question 43

The Power of Attorney for liquitation?

John Doe · Accepted Answer

If you cannot come to visit an Estonian notary, you cannot visit an e-notary, then the only way to conduct the whole process by power of attorney.

The sample power of attorney will be sent to you automatically with the order confirmation. You can add the necessary information there, legalize it and send it back to us.

Question 44

Is there need for report somewhere about liquidation?

John Doe · Accepted Answer

The liquidators shall immediately publish a notice of the liquidation proceedings of the private limited company in the official publication Ametlikud Teadaanded. The notice of liquidation must state that the creditors if they exist, must submit their claims within four months of the publication of the notice.

Question 45

Is the Estonian company liquidation procedure the same for local and foreign business owners?

John Doe · Accepted Answer

Yes, there is no difference between foreign and local owners liquidating companies in Estonia.

Question 46

I am abroad, I want to liquidate my companies, I can't come to Estonia?

John Doe · Accepted Answer

The story is that we are offering a faster way, 48 hours, to get rid of your business, but process speed will start to run from the moment when Public Notary has verified documents.

Question 47

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 48

How long it takes to liquitate the company?

John Doe · Accepted Answer

The usual liquidation process lasts at least half a year.

It starts with the initial decision and ends with the final balance and deletion from the register. A faster solution is to sell the company to us, and then we will continue with the liquidation ourselves.

Question 49

How long does the liquidation last?

John Doe · Accepted Answer

The fastest timeline for completing the liquidation of a private limited company in Estonia is six months after the entry of the dissolution in the commercial register and publication of the liquidation notice, as well as three months after notifying shareholders of the final balance sheet and asset distribution plan.

It is important to note that this timeline is dependent on all necessary requirements being fulfilled within this timeframe.

Question 50

How can a private limited company be dissolved?

John Doe · Accepted Answer

A private limited company can be dissolved by a resolution of the shareholders, a court decision, bankruptcy or other conditions specially specified for that purpose in the articles of association.

Question 51

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 52

Can I also liquidate a company by joining a natural person?

John Doe · Accepted Answer

Yes, it's possible.

A private limited company or public limited company may, as a company being acquired, merge with the assets of a natural person (acquiring natural person) who is the sole shareholder of the company.

The merger is permitted also in case the shares are in the joint ownership of the spouses. The merger of a private limited company or public limited company with the assets of the company's shareholder who is a natural person is permitted also in case in addition to this shareholder the shares of a private limited company or public limited company being acquired are held exclusively by the company itself.

The assets of a company being acquired, including its obligations, shall transfer to the acquiring company upon merger.

The merger will take place without liquidation proceedings. So it's faster than conventional liquidation.

The merger process between a natural person and her/his company takes far less than the conventional liquidation - about 2-4 months.

Question 53

Are company liquidation and bankruptcy the same?

John Doe · Accepted Answer

No, they are two different procedures. A company must first declare bankrupt and then be liquidated.

Question 54

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 55

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 56

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 57

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 58

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 59

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 60

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 61

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 62

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 63

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 64

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.

Ready made company

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Benefits of an Estonian Company

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Ready made company

Description

Service Description:

Benefits of an Estonian Company

Information Needed in Advance:

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