Virtual Office FAQ
1. What benefits Virtual Office in Estonia gives me?
- A Virtual Office in Estonia gives You all the benefits of a prime Tallinn location without the need to actually be there and without a cost of renting property or office.
- Virtual Office gives You a Tallinn central area address which You can use on your letterhead, website and other communications.
- The real address and physical presence in the country for correspondence, not just a PO Box. A post can be held or re-directed to You.
- Virtual Office address is mandatory by Estonian Commercial code for establishing a company in Estonia.
- The service is also suitable for e-residents that want to establish their company in Estonia and need a legal address. The e-residency program allows anyone in the world to apply for digital identity and legally operate a business virtually based in Estonia, an EU member since 2004.
- We offer also contact person service, help with establishing a company, bookkeeping, applying for VAT etc.
2. What includes in Virtual Office service?
It depends on the package selected. There is a legal address for a company or private person. But also contact person service, document samples, help with establishing a company in Estonia, companies from self, bookkeeping services etc. For details, see the specific service.
3. Do you have a licence for services what you are providing?
To provide contact person services there is a need for a licence, we have that. Virtual Office in Estonia has a licence (licence no FIU000051) to be an authorized contact person in Estonia. The licence is provided by Estonian Ministry of Economic Affairs.
4. Refund policy
Since we offer services, not a commodities, it is generally not possible. Exceptionally, for example, if a service has not yet been provided, cancellation of the order is possible.
5. Are there any additional services?
There are lots of them 🙂
6. Where are the virtual office addresses located?
The virtual offices, offered by us, are located at several locations across Tallinn, mainly in the downtown hotspots. There is close by Tallinna Airport, T1 shopping centre, Tallinn Bus station, Hilton hotel, Radisson hotel etc.
7. How the address will be added to the company?
When establishing a company in the Estonian Commercial Register e-environment, the address must be added by the establisher or establishers. The address will appear on the company foundation decision, the articles of association as well as on the registry card.
The software ensures that only real addresses can be added. When establishing with a notary, the address of your company must be notified to the notary.
8. When we can come into the office?
The office hours are from 9 AM – 5 PM on weekdays where you are free to schedule a visit or check in and enjoy the rented space.
9. Do I need to show address proof certificate somewhere?
Establishing a company in the e-environment of the Estonian business register does not need to present address proofs. At the same time, the official may ask for proof of affiliation with the address. You can then show the document.
10. Can I order the virtual office solution already before creating a company?
Yes, you can. Actually, you need it before establishing a company in Estonia. Real address in Estonia and contact person who resides in Estonia are mandatory for establishing a company if board member/s are residing outside of Estonia.
11. How do I get my post from the virtual office?
You can get post via e-mail. If necessary we will post the letters and parcels to the address of your choice. For the entry package is posting letters and parcels additional service.
12. Does Estonian company has to have local contact person?
Unless the residence of at least one-half of the board members of the company is in Estonia, in another Member State of the European Economic Area or in the Swiss Confederation, the foreign company must have a local contact person.
A contact person will be registered in Estonian Commercial Registry. A contact person must confirm his will to be a contact person.
13. What is a company from the shelf?
Ready made, company in a paper, that has fulfilled all requirements for legal registration and may be bought by anyone to bypass the lengthy registration or incorporation process. Shelf companies are formed and sold usually by accounting or law firms. Also called blank check company.
14. Before starting a company?
Yes, check it out:
15. What about non-profit juridical forms?
Can also be used in business, but there are differences compared to a regular company.
Requires at least 2 board members. Will go through automatic liquidation if less. Money can only be used towards the goal set in its charter. By definition, they can’t make a profit, that means you can’t take out the profit as dividends, a non-profit can only pay a salary to its employees.
But the advantages are the following, no equity.
There is no equity to claim against 🙂 if the members of the board have not shown a significant degree of negligence in the management of the non-profit organization.
16. Is my desired name available?
In Estonia, your company name must be written in the Latin alphabet and preferably without any special characters or symbols. You also need to choose a name that’s unique in Estonia’s company registry and ensure that the name is not protected by trademark.
As an Estonian company is an EU company, you’ll also want to check if there are other trademarks that are similar across the continent. The EU is the world’s largest single market and home to more than 500 million consumers, as well as plenty of entrepreneurs, so it’s unlikely that your company name is completely unique
17. Does the self-employed person need a contact person?
No. But they need an Estonian address.
Nevertheless, all sole proprietors (FIE) must file an application to be entered into the commercial register before they start operating. Individuals from creative professions working on a freelance basis are subject to the same requirement.
There is no need to register separately with the Estonian Tax and Customs Board, as the information about registration will be forwarded automatically.
If an e-resident registers as a sole proprietor in Estonia, it is accompanied by a commitment to pay advance payments of social tax 4 times a year. The size of advance payment actually does not depend on the size of income, it is set each year with the state budget.
18. How the contact person is linked to my company?
Establishing a company in the e-register the contact person needs to be added by the establisher/s. After adding it, the contact person confirms it in the same environment. If the company is founded by a notary, the contact person gives a digitally signed confirmation as a separate document or gives it directly at the place to the notary.
19. When will be contact person ready to sign?
After we receive order and get payment contact person is ready to sign in as the contact person for your company in Estonian Commercial Registry
20. How will be the VAT application service carried on?
After payment, we will send you questions that you need to answer. We fill in all the necessary forms. If you are an e-resident you can digitally authorize us to submit the application on behalf of the company. If you are not an e-resident you need to come to Tallinn or authorize our representative to act on behalf of the company. We send the application to the tax office. If they have additional questions, we help with the answers.
21. Economic operators registration and identification system (EORI)
Starting from 1 July 2010 the traders who are engaged in foreign trade and to whom the VAT number(s) have been issued by other Member States are obliged to write these numbers in their EORI applications. This requirement arises from Article 2 of the Commission Regulation (EC) No 312/2009 of 16 April 2009.
Supplementary information on entering of the VAT numbers is available in “Example 3(13.11 KB, PDF)“.
On 1 July 2009, the Economic Operators Registration and Identification System (EORI) was introduced in all EU Member States for identification of economic operators as regards their customs related activities. Economic operators engaged in foreign trade who register themselves in the EORI system are given unique identification numbers (EORI numbers), which will be forwarded to the EORI central database.
Starting from 1 July 2009 the use of an EORI number enabling to identify economic operators within the entire EU customs territory became mandatory for all economic operators engaged in import or export of goods, transit transportations or when performing other customs related activities.
A legal representative of a legal entity may apply for a EORI number submitting the respective application electronically in the e-maksuamet/e-toll environment. The application form is accessible in subsections
- EORI registration
In the application you are expected to indicate definitely if you agree with making your EORI number, name and address accessible on the European Commission homepage.
Persons who are not registered in the Commercial Register of Estonia and who have the need to apply for an EORI number are required to:
- apply for registration with the register of non-residents in Estonia for getting the MRR number,
- conclude the contract for using of e-maksuamet/e-toll (e-Tax Board/e-Customs),
- submit the application for the EORI registration.
The electronic system of the Estonian Tax and Customs Board (ETCB) is accessible in the Estonian language only. If needed, please ask the official who accepted your MRR application for assistance.
In the Internet, it is possible to check a disclosed EORI number, name and legal address of a person via the data dissemination system DDS. If a person has not given consent for disclosure of these data, then it is possible check only the validity/invalidity of an EORI number in the DDS system.
It is possible to enter the request for the amendment of the EORI data ca 1 week after you have amended the data in the commercial register/population register, because the changes made in the commercial register will be carried over to the register of taxable persons (MKR) of the Estonian Tax and Customs Board mostly within 1 week since they have been made.
22. E-residency and Estonian taxis?
An e-resident is a non-resident according to Estonian tax legislation.
Only income derived in Estonia is taxed in Estonia.
If there is no activity or income derived from Estonia, taxes should be paid in the country where the service is provided or activity is done or income is derived from, the pure e-residency alone does not influence the foreign or Estonian taxation.
The Estonian e-residency does not automatically exempt from taxation elsewhere.
An Estonian company established by an e-resident is an Estonian tax resident.
23. What are annual report deadlines in Estonia?
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. Usually, the financial year is the same as the calendar year in which case the deadline is the last day of June.
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 legal person or decide on its dissolution or liquidation.
24. What if Estonian bank will not open us a bank account?
If the bank does not accept to open your account, you will receive a 50% refund if you have ordered help for opening a bank account in Estonia.
What to keep in mind is that Estonian banks do not open an account without meeting you. However, for example, you can open an account (LHV Bank) remotely if you already have an account in that bank.
Alternative solutions are Transferwise, Monese, Revolut and so on.
25. How can you help if we don’t have an EU residency but we wanna sell/buy products in Amazon, E-Bay etc?
26. To I need company for obtaining a crypto license?
In Estonia yes. To obtain the crypto license you’ll need to have a company and provide the required documentation. It’s strongly advised to register an Estonian company, as the government is not very keen on issuing licenses to foreign entities.
27. Do I have to submit an annual report?
If you have 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.
When the annual report is not submitted, then the Business Register may decide to delete the company.
28. I have an Estonian company, but my customers are outside of Estonia. How about taxis?
E-residency in Estonia does not automatically mean tax residence. It only provides the opportunity to use the e-services that the Estonian state offers. Among them is the establishment of the company. If your turnover is less than EUR 40,000 per the calendar year, you don’t need to add VAT to your invoices. If the turnover is generated outside Estonia, you do not have to add VAT to your invoices if you exceed this amount. If the employees do not work in Estonia, the labour tax according to Estonian law does not have to be taken into account.
29. VAT tax?
The standard rate of VAT is 20%, the reduced rate is 9% and 0% in some cases.
The taxable period is one calendar month, and VAT returns must be submitted to the tax authority by the 20th day of the month following the taxable period.
Usually, Tax and Customs Board will register with the VAT for those companies that engage in economic activities or prove their commencement (§ 20 (4) of the Value Added Tax Act).
As a result, the registration of non-operating ready-made companies is usually not possible for the sale of companies by sellers of the companies.
It is possible to buy formerly operating companies, including VAT registered companies. In this case, the registration of the company as a VAT taxpayer will be retained.
30. Corporate income tax?
There is no corporate income tax on retained and reinvested profits.
Tax on distributed profits is 14-20%.
Distributed profits include:
- corporate profits distributed in the tax period
- gifts, donations and representation expenses
- expenses and payments not related to business
- transfer of the assets of the permanent establishment to its head office or to other companies
Dividends paid to non-residents are no longer subject to withholding tax, irrespective of participation in the share capital of the distributing Estonian company. However, various withholding taxes may still apply to other payments to non-residents if they do not have a permanent establishment in Estonia or unless the tax treaties otherwise provide.
As the tax period for corporate entities is a month, income tax must be returned and paid monthly by the 10th day of the following month.
It is possible to run your company without any corporate income taxation at all.
31. Labour taxes?
The rate of social tax is 33% (20% for social security and 13% for health insurance). Besides the social tax, unemployment insurance tax at a rate of 0.8% must be paid on the gross salary (an additional 1.6% is withheld from the employees’ salary).
Employers registered in Estonia (including the permanent establishments of foreign entities) must pay social tax on all payments made to employees, except on those specifically exempted by law.
32. Personal income tax?
Residents pay tax on their worldwide income. Taxable income includes, in particular, income from employment (salaries, wages, bonuses and other remuneration); business income; interest, royalties, rental income; capital gains; pensions and scholarships (except scholarships financed from the state budget or paid on the basis of law). Taxable income does not include dividends paid by Estonian or foreign companies when the underlying profits have already been taxed.
The personal income tax is withheld from the employees’ gross salary every month and paid by the employer.
Non-residents pay personal income tax only on their income received from Estonian sources. Taxable income in Estonia includes:
- income from work under a labour contract or contractor’s agreement in Estonia
- income from business carried out in Estonia
- interest income received from Estonia (only if it is substantially higher than that of similar debt claims)
- income from the lease of assets located in Estonia
- gains from disposal of assets located in Estonia
- directors’ fees paid by Estonian enterprises; » income of a sportsman or an artist from his or her activities in Estonia
- pensions and scholarships
33. Is there need to have e-residency card to order our services?
No, there is no need for that.
34. Will there be a contract?
Yes, entering into a contract is beneficial to both sides of us, provides assurance and ensures continuity. The contract is concluded in two ways, digitally or manually signing. As is appropriate for the customer.
35. If I have no revenue, is there anything I can do to lower my fee?
If your company has no revenue coming in, and no activity taking place, you can consider hibernating your company for a while to consider your next steps. This lowers your fee to 19 EUR a month until you want to get started again. As soon as your company starts making revenue, or you’re actively using it, your fee will return to the normal monthly price.
36. Are there any hidden fees?
No hidden fees
- No per-minute charges
- No cancellation fees
- No activation fees
- No setup fees
- No deposit