Virtual Office FAQ

 

Accounting (8)

During the term of the contract, the accountant has the obligation to provide the accounting service in accordance with the applicable legislation, which also implies the obligation to keep the accounting records. After the expiry of the contract, the contracting authority shall have the right to require the accounting officer to keep the documents or to return them, thereby transferring the obligation to retain the documents to the contracting authority.

Specifically for the service we offer, the raw data is stored in web based accounting software from which all parties can check and download it.

Category: Accounting
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.
Category: Accounting

It needs to be raised

Estonian Commercial Code states that 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 law, the shareholders shall decide:

1) reduction or increase of share capital, provided that the number of net assets would thereby form at least half of the share capital and at least the amount of share capital specified in § 136 of this Code or other minimum amount of share capital provided by law, or taking other measures as a result of which the amount of the net assets of the private limited company would be at least half of the share capital and at least the amount of share capital specified in § 136 of this Code or other minimum amount of share capital provided by law;

2) the dissolution, merger, division, or transformation of a private limited company, or

3) submission of a bankruptcy petition.

We can help with the terminal liquidation process.

We accept the source documents in Estonian and English language.

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

Category: Accounting

The following information needs to be written on purchase and sales 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.

Category: Accounting

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.

In case the company has employees who are not Estonian tax residents and who live and work outside Estonia, salary payments to these foreign employees are not taxed in Estonia and we do not submit any tax declarations about these employees.

In such case, these foreign employees must declare their income from your Estonian company in the country in which they live and are tax residents.

When conducting business in Estonia, you should comply with the local accounting and legal standards. A company needs to keep its books so that the creditors and business partners may rest assured about the financial position of the company and taxes can be calculated correctly.

There are three main accounting policies to abide by:

  • the Accounting Act of the Republic of Estonia
  • Estonia’s Good Accounting Practices
  • the guidelines issued by the Accounting Board of the Republic of Estonia

 

Category: Accounting

Address service (4)

Besides, it’s mandatory to have an address for establishing a company in Estonia it also gives you a physical business address and office number for your business cards, website, and email and registering a new company. It increases your professionalism and credibility as a business and makes you more approachable to potential clients.

Also please keep in mind that it’s actually a real physical address not so called imaginary virtual address. We just call it like this

It’s real.

In the steady concrete building.

Estonian Business Registry (and payment solution providers, banks, etc) don’t accept “not real” or “virtual addresses”.

Yes, a state fee must be paid. A the moment it is 18 EUR.

The state fee must be paid to the Ministry of Finance.

Bank account and reference number information are submitted in the Estonian Business Register e-environment in the final phase of submitting the application.

Without payment of the state fee, the application will not be processed.

If there will be some obstacles, we can help with payment, free of charge.

We can help with official registration in the Estonian population registry if there is legal background for obtaining.

Annual report (1)

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.

Apostille (1)

No.

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 for the shareholders.

But we can translate it with the sworn translator.

Category: Apostille

Background check (1)

e-Residency is a transnational digital identity available to anyone in the world interested in administering a location-independent business online. e-Residency enables to use secure and convenient digital services that facilitate credibility and trust online. Please be aware that e-Residency does not confer citizenship, tax residency, residence or right of entry to Estonia or to the European Union. It is not a visa or residence permit. The e-Resident digi-ID card is not a physical identification or a travel document, and does not display a photo. You’ll find laws and regulations concerning current application here: Identity Documents ActState Fees Act. You’ll find the terms and conditions for use of certificates of personal identification documents of the Republic of Estonia here.

    The state fee for the e-Resident’s digital ID card is 100 euros. Depending on the chosen pick-up location, additional fees apply:

  • if you choose an office in Estonia as the pick-up location there is no additional fee
  • if you choose a foreign representation of Estonia as the pick-up location you will have to pay an additional fee of 20 euros upon applying
  • if you choose Seoul, South Korea; Tokyo, Japan or San Francisco, USA as the pick-up location an additional service fee applies which is to be paid directly to the service provider upon collecting your document (more detailed information about the applicable fee of each location is displayed upon selecting a specific pick-up location)

Please be informed that the Police and Border Guard Board performs background checks on all applicants.

https://apply.gov.ee/

Company formation (4)

Allowed are:

  • Estonian, Latvian, Lithuanian and Belgium ID-Card/Estonian e-resident card/Estonian and Lithuanian Mobile-ID

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.

If an association is established in the e-environment of the Estonian Business Register, no documents will be received on paper immediately. Each founder can download and print copies of the commercial register free of charge.

If there is a need to use these papers abroad, they must be legalized through the apostille. In Estonia, all organizations check the data through the e-environment in the commercial register.

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.

Company liquitation (8)

Yes, this must be done in the so-called official notices, after the liquidation decision has been submitted to the Estonian Business Registry.

Adding it there or instructing to do it is included in the price of our service.

It needs to be raised

Estonian Commercial Code states that 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 law, the shareholders shall decide:

1) reduction or increase of share capital, provided that the number of net assets would thereby form at least half of the share capital and at least the amount of share capital specified in § 136 of this Code or other minimum amount of share capital provided by law, or taking other measures as a result of which the amount of the net assets of the private limited company would be at least half of the share capital and at least the amount of share capital specified in § 136 of this Code or other minimum amount of share capital provided by law;

2) the dissolution, merger, division, or transformation of a private limited company, or

3) submission of a bankruptcy petition.

We can help with the terminal liquidation process.

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.

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.

The story is that we are offering a faster way to get rid of your business, but that speed will start to run from the moment you reach the first person to be considered a notary. From there, our 24-hour time will run.

Fastest in 6 months.

After the completion of the liquidation, but not earlier than six months after the entry of the dissolution of the private limited company in the commercial register and publication of the liquidation notice and three months after notification of the final balance sheet and asset distribution plan to the shareholders and provided.

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.

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.

EORI number (3)

As of 1 July 2009, the EORI number must be assigned to persons whose activities are related to customs activities, ie activities related to the Customs Code and its implementing provisions.

Category: EORI number
Tags: EORI, Estonia, EU

Allowed are:

  • Estonian, Latvian, Lithuanian and Belgium ID-Card/Estonian e-resident card/Estonian and Lithuanian Mobile-ID

For this, you have to give us the right of representation in the Estonian Tax and Customs Board.

That is, either by authorizing us directly with the ID card through the Estonian Tax and Customs Board e-environment or giving us the Power of Attorney.

Take a look tutorial video:

https://www.youtube.com/watch?v=uKJ3zgS5oTc

.. and don’t forget to subscribe to our Youtube channel.