Entrepreneurial consultations: company formation, an address and contact person services, accounting, VAT number, etc. specifically in Estonia, in EU.

FAQ Tag: Company

Adding an official note about liquidation?

The liquidator’s right of representation is identified only from the business register.

Ametlikud Teadaande is the official online publication of the Republic of Estonia, in which announcements, invitations, and announcements are published for public announcement.

The data can be added by entering the e-business register as a natural person with your e-residency card, ID card, Mobile ID, or Smart ID.

The manual:

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How is the legal address registered for the company?

When establishing a company, the legal address is drawn up by the founder or founders in the process of establishing.

The address will be indicated also in the decision on the establishment of the company, the Articles of Association.

The address will be shown on the business registry registration card.

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In what form are the documents of incorporation handed over?

If a company or non profit 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 immediately.

If there is a need to use these papers abroad, they must be legalized through the apostille:

Apostilled Documents

All information, founding documents, statutes, annual reports, court decisions, etc. are publicly available from the e-environment of the business registry.

Additional info:

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Can there be a multible shareholders?

Single or multiple founders are possible.

All founders must log in to the Estonian Commercial Register with an e-residency ID card and provide their signature.

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Tax Benefits of an Estonian Company?

Estonia has a very transparent tax system and it is easy to understand for the foreigners, because of the flat tax rates. Here are some of the main tax benefits of an Estonian company.

  1. The most important aspect about Estonian company’s taxes is that you only pay corporate income tax when you distribute dividends. If you don’t distribute dividends, then you don’t have to pay corporate income tax. So, you can use all the money that goes to your business bank account for reinvesting and growing the business and you won’t be taxed for that. In that sense, Estonia is the ideal place for growing your business compared to many other European countries where you have to pay taxes as soon as you earn income.
  2. In some cases, you can take out tax-free dividends, for example if you have a permanent establishment or when you receive dividends from a subsidiary. We will discuss permanent establishment separately in the upcoming sections.
  3. And lastly, a unique regulation about the Estonian tax system is that you, as a private person, don’t have to pay personal income tax additionally to the corporate income tax when the company pays you dividends. However, this applies only when you, as a private person, are a tax resident of Estonia. This is unique, because in most of the countries a private persons must pay personal income tax when they receive dividends. Nevertheless, this doesn’t mean that you, as a private person, don’t have to pay the personal income tax in your homeland.

It is very important to understand that there are different taxes for the company, and you as a private person. Therefore, you have to keep your personal and company’s money separate, as these are two independent persons: a natural person and a legal person.

This also means that it is not considered as double taxation when the company distributes dividends and pays corporate income tax, and when a private person receives dividends and pays personal income tax on that. We will discuss how double taxation works in the following section.

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