Virtual Office FAQ
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: 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. 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: The following information needs to be written on invoices: There are certain restrictions for source documents, take a look at information about requirements. 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:
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: 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. 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. 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: 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: 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: 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. For physical persons, an address provides a means to receive letters, small packages, and other physical mail. Additionally, for individuals seeking to launch their own businesses, it is mandatory to have an address for establishing a company in Estonia. For juridical persons utilizing a professional address can increase the credibility and professionalism of a business and make it more approachable to potential clients. It also provides a location for official correspondence and legal documentation, making it easier for companies to stay on top of important matters. In addition to these benefits, an address can also help companies comply with legal requirements. For example, certain types of businesses may need to have a physical address in order to obtain necessary licenses and permits. By having a registered address, companies can avoid potential legal issues and ensure that they are operating in accordance with the law. Overall, whether you are a physical or juridical person, utilizing an address can provide numerous benefits for both personal and professional use. From receiving physical mail to establishing a professional presence, an address is a crucial component of any successful business or personal venture. Please take a closer look at our respective service: 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. Addresses may be added and changed as the activity expands. Juhkentali 8, Tallinn 10132 Tornimäe 7, Tallinn 10145 During the final phase of the application submission process in the Register, bank account, and reference number information is provided. There is also an option to pay instantly using bank links. It should be noted that failure to pay the state fee will result in the application not being processed. Should any obstacles arise during the payment process, we offer a specialized service free of charge to assist with payment. 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: It is possible to add a new address, such as the one we provide, to an existing company as well. Instructions on how to add or change an address will be included in your order confirmation, which can be downloaded for your convenience. If you encounter any difficulties locating the instructions, please let us know, and we will resend them manually. Please note that the aforementioned instructions apply if the establisher of the company or the owner/s has an Estonian e-residency card or other accepted digital ID solution. If this is not the case, a Power of Attorney or the presence of the individual at an Estonian Public Notary is required. Our company is dedicated to helping our clients navigate these requirements, and we are available to provide assistance with all necessary steps. Please take a closer look at our respective service: 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. 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: 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:
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: 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. 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. 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: 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. 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: 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: A business account is a good alternative if you don’t want to own a company. Taxes are calculated and paid automatically. When using an entrepreneur account, the person cannot be a VAT liable person or operate as a self-employed person (FIE) in the same or similar area of activity. If a customer is currently registered with the Unemployment Insurance Fund as unemployed and opens an entrepreneur account through the bank, this information will reach the Unemployment Insurance Fund and the customer’s unemployed status will end, regardless of whether the customer has received any funds on the entrepreneur account. Either pay it during the establishment process or pay it later. So a company can be set up without an immediate share capital down payment. The shareholder shall pay for the share in full within one year, but at the latest share capital must be paid when dividends will be paid. No share capital paid, no dividends. To the registration department of a country court no later than within 6 months after the end of the financial year. The report can be submitted through the Company Registration Portal. If you do not submit the report in due time, the court maintaining the register may fine both the company and its management board members without advance warning. The company’s financial year is always the calendar year, starting on the 1st of January and ending on the 31st of December. Must be stated in the company’s business documents and on its website. The annual report must also state those data and additionally the company’s e-mail address and website address as well as other telecommunications data. Are presented in the annual report. Enclose up to 10 largest activities by sales revenue as annexes to the report. Activity cannot be freely described but instead must be indicated as the relevant wording in the Estonian Classification of Economic Activities, level 4. Insignificant activities are not required to be stated. The management report provides a more detailed description of the reporting year’s activities and the changes planned for the coming year. Please keep in mind that stating an activity in the Commercial Register does not automatically grant you the right to engage in it if a special law prescribes any additional requirements (for example the Trading Act requires that a place of sale be registered with the local government, the Building Act requires that a building contractor be registered, the Public Transport Act requires a public transport or taxi license, etc.). A petition for entry of change is filed with the county court maintaining the register. A petition for entry can be filed through Company Registration Portal or a notary. A state fee must be paid when filing a petition for entry (indicating the company’s registry code and the relevant reference code). Notice of changes to data outside entries must be sent through Company Registration Portal or by post. Data outside entries can be changed without a state fee. A state fee is also not required for submitting a resolution of shareholders or the supervisory board to extend the duration of powers of a management board member entered into the register. Documents (both on paper and digital) must be submitted as originals (incl. with original signatures) or as notarised copies. A notary may also prepare a digital copy of a document. Documents must be in Estonian or accompanied by a translation made by a sworn translator or certified by a notary. If failing to submit the required data, the company, as well as all its management board members can be fined repeatedly. Is looked up from the Population Register by the county court maintaining the register. But if a company’s management board member, liquidator or the chair of the supervisory board does not have a place of residence registered in the Estonian Population Register, the data of that place of residence must be submitted and any changes in those data must be notified of immediately. Those data are also considered data outside entries so no state fee is required for them. Every Estonian company must have an Estonian address. Is kept by the private limited company’s management board. If other shareholders have a pre-emptive purchase right, a shareholder selling its share must present the sales contract to the management board so that the management board can inform other shareholders. The notary certifying a sale or pledge of a share will also communicate the transaction to the county court maintaining the register. The management board may assign the list of shareholders to be maintained by the Estonian Central Register of Securities for a fee. In that case transactions with shares are conducted through a securities account opened in a bank. If a company had multiple shareholders and only a sole shareholder remains then the management board must send a notice to that effect to the county court maintaining the register. Only private persons who have an Estonian personal ID code can register an Estonian company online. If you as a legal entity would like to register an Estonian company, please get in touch with us. We will help you with the registration process. The company can be registered by one founder. If you have more than one founder, please get in touch with us. We will help you with the registration process. To register an Estonian company, both the founder and the board member(s) must have an Estonian personal ID code. If the founder and the board member are different persons, both must digitally sign the company registration application. You will be able to download the application after filling out the registration form. Once you have signed the downloaded document, you must upload it to the portal for submission. The management board of an Estonian company can be located outside of Estonia. In this case it is regulated by the law to provide the address of the board and appoint an authorized contact person. You must make sure that the company’s net assets (equity capital) do not decrease below one half of its share capital, and never below the lower limit of share capital set forth in the law. Otherwise the management board must summon the shareholders to decide an involvement of new funds, a merger, a reconstruction or dissolution of the company, etc. In the case of long-term insolvency, the management board must immediately present the court with a bankruptcy petition. Failure to react can bring about proprietary and criminal liability for the management board. The share capital of the company must be at least 2500 euro. The maximum share capital permitted is 25 000 euro. You can register the company without having to deposit the share capital. You can do this later at the bank. And other national and local authorities utilise the Commercial Register’s data through a computer network and they are forbidden from requesting you to submit an excerpt of the Commercial Register (§ 541 (1¹) of the Commercial Code). You do not have to register separately as a person paying income tax, social tax and land tax. Still, you have to register as a person paying value added tax (VAT) if your company’s annual turnover exceeds the lower limit set forth in the law. You can register as a person paying value added tax through the website of the Tax and Customs Board. 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: 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. 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. Other possibilities are visiting a Public Notary in Estonia or using a power of attorney. These are more expensive options, different service and translation fees are added. 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: All information, founding documents, statutes, annual reports, court decisions, etc. are publicly available from the e-environment of the business registry. Additional info: This requires, for example, cooperation partners in Estonia, the partnership must also be verifiable (contracts, sales invoices, letters of confirmation), etc. Also, to open an account with an Estonian bank, a board member of the company shall be present in the opening process. But wait a moment, why you need a bank account in Estonia? You can open a bank account in your selected country, in your home country, or use our partners. Just establish a company in Estonia, get your papers legislated, and open a bank account where you want and can do it. It is possible to add a new address, such as the one we provide, to an existing company as well. Instructions on how to add or change an address will be included in your order confirmation, which can be downloaded for your convenience. If you encounter any difficulties locating the instructions, please let us know, and we will resend them manually. Please note that the aforementioned instructions apply if the establisher of the company or the owner/s has an Estonian e-residency card or other accepted digital ID solution. If this is not the case, a Power of Attorney or the presence of the individual at an Estonian Public Notary is required. Our company is dedicated to helping our clients navigate these requirements, and we are available to provide assistance with all necessary steps. Please take a closer look at our respective service: 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. 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. A legal entity can reserve a business name for six months. A legal entity can have one business name reservation at a time. A legal entity with the same business name cannot book a second time. When reserving a business name, you must choose the legal form and field of activity for which the business name will be used. The reserved business name can only be used in the selected legal form and field of activity. For a good reason, the reservation can be extended once for three months no later than 5 working days before the original reservation expires. In fact, having a legal address and a contact person residing in Estonia are prerequisites for the establishment of an Estonian company, particularly when the board members are based outside of Estonia. These requirements are compulsory in order to comply with Estonian business laws and regulations. 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. 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: 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: You can use e-Notary in: In the self-service you can: What is the address of the e-notary? 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, 48 hours, to get rid of your business, but process speed will start to run from the moment when Public Notary has verified documents. 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. 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. It is important to note that this timeline is dependent on all necessary requirements being fulfilled within this timeframe. 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. 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: 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. 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. You can provide various documents to prove your permanent residence, including a lease agreement signed for at least six months, an employment or service contract lasting for at least six months, proof of property ownership in Estonia, invoices in your name for utilities or fuel, evidence from a school or kindergarten if you have minor children, an annual report if you serve on an Estonian company’s board, transportation tickets with clear dates of stay, letters of explanation from people you live with, and other evidence showing your personal ties to Estonia. If you provide an employment contract, a certificate of studying in Estonia, or a certificate of being in Estonian military service, one certificate is enough. However, for other evidence, such as a lease agreement, additional evidence must also be provided along with the lease agreement. The EORI code is specific to the country where the company is established and is required for customs clearance procedures. For instance, if an Estonian company imports goods directly to Germany, it is still required to obtain an EORI number in Estonia, as this is where the company is registered. This ensures compliance with the EU’s customs regulations and facilitates the efficient movement of goods across borders. The validity or invalidity of an EORI number can be checked by visiting the “Confirmation of EORI Number“. In cases where the concerned person has authorized the disclosure of their information, it is possible to conduct a search for the name and address of the company or individual associated with that EORI number. 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: 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: 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. 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. 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. 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: The number of board members is not limited. Founders can be both natural and legal persons. 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: All information, founding documents, statutes, annual reports, court decisions, etc. are publicly available from the e-environment of the business registry. Additional info: 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. This can be defined in the memorandum and articles of association. Together with the already predetermined option set based on EMTAK. We will draw up an establishing contract and articles of association. The Estonian Classification of Economic Activities (EMTAK) is the national version of the international harmonized NACE classification. EMTAK has a hierarchical structure, being divided into five levels. The first four levels conform to the NACE structure and the fifth level is the national level, established according to the specifics of the Estonian economy and the relevant legislation. Additional info: However, it should not be the only source of income. The main part or some part must still usually come from subsidies and membership fees. Establishing documents must be verified with Public Notary on site in Estonia or we must have Power of Attorney from you to act on your behalf. A stronger connection with Estonia is needed. Establishing a company is a very suitable solution for this. We can help with that. As well as with a contact person and a legal address service. These services will assist you in meeting the necessary requirements and ensuring compliance with the regulations of Estonia’s company registration process. The definition of the beneficial owner is defined in § 9 of the Money Act, according to which a beneficial owner is a natural person who ultimately owns or controls a legal person through the direct or indirect holding of a sufficient number of shares, voting rights, or ownership, including participation in bearer shares or otherwise. The real beneficiary can be through direct or indirect control. Direct control is when a natural person has a shareholding of more than 25% in a company. Indirect control is when a company that is controlled by a natural person or several companies that are controlled by the same natural person owns more than 25% of the company. In principle, a situation is also possible where no natural person has a shareholding of more than 25% in the company. For example, it could be a private limited company with 4 shareholders with equal shares, all of whom have a 25% shareholding and the corresponding voting rights. Thus, within the meaning of the Money Act, none of them exercises control over the private limited company and such a legal person has no real beneficiary. The Manual for adding beneficial owners: [sociallocker] [pdf-embedder url=”http://virtualofficeinestonia.com/wp-content/uploads/2020/10/The-Manual-for-adding-beneficial-owners.pdf” title=”The Manual for adding beneficial owners”] [/sociallocker] A natural person is a resident if one of the following conditions is met: Taxation requirements also apply according to residency status. Corporate tax status is determined by where the turnover is generated, where the profits are distributed, and where the employee is resident in the country. [sonaar_audioplayer albums=”8609″ artwork_id=”” hide_artwork=”false” show_playlist=”false” show_track_market=”false” show_album_market=”false” hide_timeline=”false”][/sonaar_audioplayer] Estonia invites anyone in the world to apply for e-Residency, as long as: E-Residency is particularly well-suited for many freelancers, consultants, digital nomads, solo entrepreneurs and other digital entrepreneurs interested in establishing a digital services company they can manage from anywhere. 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. Disclaimer: You can provide various documents to prove your permanent residence, including a lease agreement signed for at least six months, an employment or service contract lasting for at least six months, proof of property ownership in Estonia, invoices in your name for utilities or fuel, evidence from a school or kindergarten if you have minor children, an annual report if you serve on an Estonian company’s board, transportation tickets with clear dates of stay, letters of explanation from people you live with, and other evidence showing your personal ties to Estonia. If you provide an employment contract, a certificate of studying in Estonia, or a certificate of being in Estonian military service, one certificate is enough. However, for other evidence, such as a lease agreement, additional evidence must also be provided along with the lease agreement. Like the ID card, it can be used to access secure e-services and digitally sign documents but has the added advantage of not requiring a card reader. The system is based on a special mobile SIM card, which the customer must request from the mobile phone operator. Private keys are stored on the mobile SIM card along with a small application delivering the authentication and signature functions. Note, an e-Residency digital ID card provides access to e-services, but it is not a valid form of physical identification and cannot be used as a travel document. e-Residency does not confer citizenship, tax residency, physical residency, or right of entry to Estonia or the European Union. There are no annual or maintenance fees for the e-Residency digital ID card. The e-Residency digital ID card is valid for (5) years. The state fee for renewal or replacement is the same. Digital identity card or Digi-ID is an ID card like a smart card, that you can use for authentication of the holder and giving digital signatures in an electronic environment. Also, encryption functionality is supported. You can apply for Digi-ID if you are: Video: A legal address is required for corporate entities and up to a decision for individual entities. Additionally, a contact person service is compulsory for companies or nonprofit associations whose board members reside outside of Estonia. Our company provides assistance with establishing companies or nonprofit associations in Estonia, as well as accounting services that are tailored to the volume of business and can include VAT, EORI, and IOSS services, among others. To obtain further information on our services, please refer to our e-shop. Each service contains a FAQ and detailed information on the inclusions of each product is available. The data of a legal person related to you can be viewed by entering the e-business register as a natural person with your ID card / mobile ID or Smart-ID (it is not possible to sign annual applications with smart ID) here: https://ariregister.rik.ee/eng The manual: 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: You can use e-Notary in: In the self-service you can: What is the address of the e-notary? You have the right to demand that a notary who has certified or confirmed the application for representation represent him or her in the administration of the court registry department, including forwarding documents (see also § 30 (2) – (21) and § 33 (1) of the Notaries Act). If you want the notary to certify the substance of the application, the certification fee also includes legal consultation, preparation of a draft application, and information on how much you have to pay the state fee. In addition, at the request of participants, a notary has the right and obligation to prepare and submit to the population register a notice of change of residence data and an application for an activity license, license, and registration specified in Annex 1 to the Notarial Regulations (see § 37 of the Notarial Regulations). Remote authentication enables the conduct of notarial acts via a video bridge created between the notary and the customer. Such authentication is equivalent to authentication at a notary’s office. Remote authentication is an opportunity, not an obligation. It is up to the notary to decide, whether a specific transaction can be carried out by using remote authentication. Subject to agreement with a notary, transactions using remote authentication can be carried out either at a place suited for the customer (e.g. at home) or at an Estonian embassy. Outside embassies remote authentication can be used to perform all notarial acts, except certification of contraction of marriage and divorce. At Estonian embassies, remote authentication can be used for carrying out transactions with shares of a private limited company, authenticating powers of attorney, submitting applications for marriage and divorce, and applications related to succession. Deletion and transfer of real rights and commercial pledges are also possible. Acts using remote authentication can be conducted in five Estonian embassies – Helsinki, Stockholm, Brussels, Riga and London. In order to conduct an act by using remote authentication and be given the relevant advice, one should first contact a notary’s office. The contact data of all notaries can be found at www.notar.ee/et/notarid/nimekiri. One can also carry out the required act via the self-service portal of the Chamber of Notaries at iseteenindus.notar.ee (EE). A Republic of Estonia ID card, digital ID, mobile ID or an e-Resident’s digital ID can be used to log in to the portal and to sign documents to be authenticated. SmartID and European Union member state’s eID card can also be used to log in to the portal, but they can not be used to sign any documents. If the intention is to carry out the act by using remote authentication in an Estonian embassy, one of the five embassies can be selected in the self-service portal, by also indicating the desired dates. Based on the data submitted in the application the self-service portal proposes the available times that suit both the notary and the embassy. The times are proposed in accordance with the time zone in which the embassy is located. The registration of the activities of an unlicensed small fund manager is regulated by § 453 of the Investment Funds Act (IFS). Accordingly, in order to register the activities, the applicant must submit a written application to the Financial Supervision Authority and the following information and documents specified in IFS: In addition to the above, the following must also be submitted: Non-residents not registered in the commercial register in Estonia and operating in Estonia through a permanent establishment or non-residents not having a permanent establishment but being employers in Estonia have to register with the Estonian Tax and Customs Board. Likewise, non-resident employees and recipients of payments not having an Estonian personal identification code have to be registered with the Estonian Tax and Customs Board. Closer look: https://www.emta.ee/en/business-client/registration-business/non-residents-e-residents/registration-non-resident You will not have access to Estonian health insurance, social support, and the right to use many other public services without having your data in the register. So, when moving, always update your address in the register as well. Things to bring when registering your place of residence: If you own an Estonian ID card, you can register your place of residence online via the citizen portal eesti.ee. Estonian law allows for the physical person the cancellation of the order within 14 days after the order is submitted if there is a reasonable basis and in the case of sales of goods. This requirement does not apply to the service already provided. Note that your application must be made before the service duration has ended and you should not have unpaid bills. It is not possible to terminate the Contract prematurely. Disputes are resolved by way of negotiations. Upon not reaching an agreement the dispute is resolved in the jurisdiction of the service provider. The litigation is based on the Estonian Law of Obligations Act (VÕS) in general and on transactions made through a computer network more narrowly ( § 62 1 ). However, if your problem remains unsolved, please contact the ID Help Centre through the form here. The more precisely you describe your problem and the emergence of the situation, the more personalized assistance we can provide. All answers with easy steps and instructions that could help to resolve your problem will be sent to you in writing! If our FAQ and overall manuals that you have been studying don’t give the solution for your problem, please contact directly the official government team. Other possibilities are visiting a Public Notary in Estonia or using a power of attorney. These are more expensive options, different service and translation fees are added. If you are an alien living in Estonia the options are: Additional data: https://www.id.ee/en/article/smart-id The best suited businesses for e-Residency are paperless companies that can be run completely online independent of location, for example consulting or freelance services in IT and communications, professional and scientific activities, and administrative and support service activities. We are increasingly seeing e-residents setting up small to medium eCommerce and dropshipping businesses, as well as larger companies manufacturing and/or selling physical goods wanting to set up a subsidiary in Europe. Just like showing identification when completing a credit card transaction at a store, you indicate your digital ID for verification over the internet so companies are certain you are you. The ID card has technical support. If starting to use the card online seems difficult or daunting, they are there to assist you, here: https://www.id.ee/en/id-card On their website, you can find how-to videos, support articles, step-by-step solution finders, and the contacts of the support team. Video: For an example of the videos, check out how to create a digitally signed document on your computer! Manual for logging in to the business registry: All offered payment gateway extensions can be used to process manual renewal payments. Customers can choose a different payment method for each renewal payment. It’s better to set up automatic payments. If there is a problem with logging in to the customer area, let us know and the payment link will be sent. After we receive the payment we will manually extend your subscription. This requires, for example, cooperation partners in Estonia, the partnership must also be verifiable (contracts, sales invoices, letters of confirmation), etc. Also, to open an account with an Estonian bank, a board member of the company shall be present in the opening process. But wait a moment, why you need a bank account in Estonia? You can open a bank account in your selected country, in your home country, or use our partners. Just establish a company in Estonia, get your papers legislated, and open a bank account where you want and can do it. 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: If you need help submitting your e-Residency application, consult with the FAQ below or contact the Estonian Police and Border Guard Board. In order to track your application status, please log in to the application environment. Please note that the e-Residency project team does not have access to the application environment. All inquiries related to application process, should be directed to the Estonian Police and Border Guard Board. The address will be indicated in the decision on the establishment of the company, the Articles of Association, as well as in the registration card. The software guarantees that only real addresses are added. A step-by-step guide is added to your order confirmation. The following solutions are accepted for this purpose: Estonian e-residency card, Estonian ID card, Dokobit, or Docusign solutions. Manual how to use e-residency and ID card. You must submit a notice of residence to the city or rural municipality government of your place of residence. A notice of residence can be submitted: Printable and digitally fillable form of notice of residence is available on the homepage of the Ministry of the Interior. Entering additional addresses in the population register If you use several residences permanently, you must select one which is going to be entered as the residential address with legal effect (main residence) to the population register. Other residences can be submitted to the population register as additional addresses. You have an obligation pursuant to law to make sure your residence address in the Population Register is correct When you are changing your residence in Estonia, relocating to a foreign country, or relocating from a foreign country to Estonia, you need to submit a notice of residence to register a new place of residence in the Population Register. Application form for a visa can be pre-filled online. If the visa application is submitted to other Member State representing Estonia in issuing short-stay visas, kindly fill in the Schengen visa application form of the respective Member State. 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 foreign or Estonian taxation. An Estonian company established by an e-resident is an Estonian tax resident. The Estonian e-residency does not automatically exempt from taxation elsewhere. Tax residency is the place where you actually have to pay the taxes. For example, if you are an Estonian citizen, but have lived more than 183 days per year in Finland, then you become a tax resident in Finland and have to pay the taxes there. Generally, a company’s tax residency is in the country where the company is established. So, if the company is based in Estonia, then by law the tax residency is in Estonia. There are exceptions to this rule that will change the tax residency of your company, which we will discuss later in this article. When talking about tax residency or even e-Residency, it is essential to emphasize that neither is an actual residency. So, if you receive your e-Residency card, then this doesn’t make you a resident nor a tax resident of Estonia – it is a common false perception. E-Residency is not related to a visa or a resident permit and doesn’t enable you to travel to Estonia. An e-Residency card is a digital identity that allows you to run a business in Estonia from a distance and fully online. Citizenship only applies to a private person and is determined by your passport. The tax residency on the other hand is not the same as citizenship and is determined by tax laws. The tax residency status can be in the same country as your citizenship, but it also might be different or change in time. However, our address service can serve as a preliminary step in this process. The recommended order for address registration is as follows: the address, followed by the company, then the business, and finally, a residence in Estonia for at least 6 months per year. One viable option for foreign nationals seeking registration in the population register is to purchase real estate in Estonia and reside in the country for at least 6 months. Subsequently, they may submit an application to the local government in the region where they reside in order to initiate the registration process. 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. The obligation to keep and collect data of the beneficial owner, which entered into force on 1 September 2018, arises from Chapter 9 of the Money Laundering and Terrorist Financing Prevention Act. By law, private legal entities have an obligation to maintain and collect relevant, accurate and up-to-date information on beneficial owners, as well as information on ownership or other means of exercising control. Until now, the obligation to identify the beneficial owner has been incumbent on credit and financial institutions, notaries and other obligated persons when establishing a business relationship or concluding transactions. Pursuant to the provisions of the Money Laundering and Terrorist Financing Act, which entered into force on 1 September 2018, legal persons in private law are required to disclose their actual beneficiaries through the commercial register. To this end, the shareholders of the company must disclose the details of the beneficial owners to the management board. The management board then submits this information via the company portal or a notary. Data on beneficial owners must be provided: companies, foundations and non-profit associations (excluding housing and building associations and foundations). There is no obligation for self-employed persons to provide data. In order to publish the data of these beneficiaries, the authorized person must enter the enterprise portal, click on the link “Actual beneficiaries not specified” on the home page and specify the person (s) from the available selection or enter the data: name, personal identification code, country, role. Information must be disclosed for natural persons whose direct or indirect participation or other control in the enterprise exceeds 25 per cent. The deadline for submitting data is 30 October 2018, but the possibility to submit remains open on a permanent basis. The Ministry of Finance has pointed out in the data submission guide below that the provisions on penalties for non-submission of data of actual beneficiaries will not enter into force before January 2019. If the data changes in the future, the updated data must be submitted to the register by the management board of the association within 30 days. In the future, the accuracy of the data of the actual beneficiaries must also be confirmed in the company’s annual report, if they have not changed. 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: 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. No. Your status as an e-resident does not grant permission to live in Estonia or within the EU. You will not receive benefits related to EU residency by becoming an e-resident. Among them is the sale of a company or non-profit organization. 1. The act to be performed by remote authentication and the corresponding time must be agreed with the notary in advance, either via the self-service of the website of notar.ee or directly. 2. To perform an act by remote authentication, the client is required to have and use a computer with a webcam and a microphone, an ID card with a card reader, or Mobile-ID for digital signing. 3. Remote authentication only functions in the Google Chrome web browser, and the internet connection speed must enable video calls. 4. To perform an act, it is required to log into the self-service of the website of notar.ee. For more detailed information about how the notarial acts can be performed by remote authentication, please visit the website of the Estonian Chamber of Notaries. This process involves the allocation of a unique code to your legal entity, which facilitates identification and tracking within financial transactions. The price is the annual payment. The LEI code application process can be conveniently carried out remotely, provided that you possess an e-residency card. Alternatively, we can obtain the LEI code on your behalf through a Power of Attorney arrangement, which grants us legal authorization to act on your behalf. By entrusting us with the task of obtaining an LEI code, you can rest assured that the process will be carried out efficiently and effectively, with all necessary legal and regulatory requirements met. Our team of experts possesses the requisite knowledge and expertise to ensure that the LEI code obtained is both accurate and compliant with applicable regulations. Only the paid-in share capital can be returned. The authorized capital and the funds remaining in the bank account can be returned to the owner 4 months after the start of the liquidation process. These steps include the following: By adhering to these mandatory steps, entities can ensure that their liquidation process is carried out in compliance with legal requirements and regulations, ultimately minimizing any potential legal implications or consequences. 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. 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: For physical persons, an address provides a means to receive letters, small packages, and other physical mail. Additionally, for individuals seeking to launch their own businesses, it is mandatory to have an address for establishing a company in Estonia. For juridical persons utilizing a professional address can increase the credibility and professionalism of a business and make it more approachable to potential clients. It also provides a location for official correspondence and legal documentation, making it easier for companies to stay on top of important matters. In addition to these benefits, an address can also help companies comply with legal requirements. For example, certain types of businesses may need to have a physical address in order to obtain necessary licenses and permits. By having a registered address, companies can avoid potential legal issues and ensure that they are operating in accordance with the law. Overall, whether you are a physical or juridical person, utilizing an address can provide numerous benefits for both personal and professional use. From receiving physical mail to establishing a professional presence, an address is a crucial component of any successful business or personal venture. Please take a closer look at our respective service: 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. Addresses may be added and changed as the activity expands. Juhkentali 8, Tallinn 10132 Tornimäe 7, Tallinn 10145 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: During the final phase of the application submission process in the Register, bank account, and reference number information is provided. There is also an option to pay instantly using bank links. It should be noted that failure to pay the state fee will result in the application not being processed. Should any obstacles arise during the payment process, we offer a specialized service free of charge to assist with payment. 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: If the company already exists, the decision of the shareholder or shareholders to change the address and/or contact person must also be included in the change statement to the business register additionally. If the address given in the articles of association changes within the administrative unit, the articles of association must also be amended. You can compile them yourself, use the automatic forms in the business register or order them from us. To do this, you need to order a document service. It is possible to add a new address, such as the one we provide, to an existing company as well. Instructions on how to add or change an address will be included in your order confirmation, which can be downloaded for your convenience. If you encounter any difficulties locating the instructions, please let us know, and we will resend them manually. Please note that the aforementioned instructions apply if the establisher of the company or the owner/s has an Estonian e-residency card or other accepted digital ID solution. If this is not the case, a Power of Attorney or the presence of the individual at an Estonian Public Notary is required. Our company is dedicated to helping our clients navigate these requirements, and we are available to provide assistance with all necessary steps. Please take a closer look at our respective service: 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. The address will be indicated in the decision on the establishment of the company, the Articles of Association, as well as in the registration card. The software guarantees that only real addresses are added. A step-by-step guide is added to your order confirmation. However, our address service can serve as a preliminary step in this process. The recommended order for address registration is as follows: the address, followed by the company, then the business, and finally, a residence in Estonia for at least 6 months per year. One viable option for foreign nationals seeking registration in the population register is to purchase real estate in Estonia and reside in the country for at least 6 months. Subsequently, they may submit an application to the local government in the region where they reside in order to initiate the registration process. 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. In fact, having a legal address and a contact person residing in Estonia are prerequisites for the establishment of an Estonian company, particularly when the board members are based outside of Estonia. These requirements are compulsory in order to comply with Estonian business laws and regulations. It is possible for multiple companies to share the same legal address. However, we take measures to ensure that each customer’s mail is handled separately and confidentially. As of 2023, we have two available addresses, which can be viewed in our FAQ section. 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. Disclaimer: 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. 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: 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: 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: All information, founding documents, statutes, annual reports, court decisions, etc. are publicly available from the e-environment of the business registry. Additional info: 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. 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. A stronger connection with Estonia is needed. Establishing a company is a very suitable solution for this. We can help with that. As well as with a contact person and a legal address service. These services will assist you in meeting the necessary requirements and ensuring compliance with the regulations of Estonia’s company registration process. For physical persons, an address provides a means to receive letters, small packages, and other physical mail. Additionally, for individuals seeking to launch their own businesses, it is mandatory to have an address for establishing a company in Estonia. For juridical persons utilizing a professional address can increase the credibility and professionalism of a business and make it more approachable to potential clients. It also provides a location for official correspondence and legal documentation, making it easier for companies to stay on top of important matters. In addition to these benefits, an address can also help companies comply with legal requirements. For example, certain types of businesses may need to have a physical address in order to obtain necessary licenses and permits. By having a registered address, companies can avoid potential legal issues and ensure that they are operating in accordance with the law. Overall, whether you are a physical or juridical person, utilizing an address can provide numerous benefits for both personal and professional use. From receiving physical mail to establishing a professional presence, an address is a crucial component of any successful business or personal venture. Please take a closer look at our respective service: 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. 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: During the final phase of the application submission process in the Register, bank account, and reference number information is provided. There is also an option to pay instantly using bank links. It should be noted that failure to pay the state fee will result in the application not being processed. Should any obstacles arise during the payment process, we offer a specialized service free of charge to assist with payment. 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: If the company already exists, the decision of the shareholder or shareholders to change the address and/or contact person must also be included in the change statement to the business register additionally. If the address given in the articles of association changes within the administrative unit, the articles of association must also be amended. You can compile them yourself, use the automatic forms in the business register or order them from us. To do this, you need to order a document service. 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. 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. In fact, having a legal address and a contact person residing in Estonia are prerequisites for the establishment of an Estonian company, particularly when the board members are based outside of Estonia. These requirements are compulsory in order to comply with Estonian business laws and regulations. Also a contract. Please review your order confirmation carefully. Digitally sign the agreement and send it back to us. Then we can move forward together. Check out our corresponding service: A natural person is a resident if one of the following conditions is met: Taxation requirements also apply according to residency status. Corporate tax status is determined by where the turnover is generated, where the profits are distributed, and where the employee is resident in the country. [sonaar_audioplayer albums=”8609″ artwork_id=”” hide_artwork=”false” show_playlist=”false” show_track_market=”false” show_album_market=”false” hide_timeline=”false”][/sonaar_audioplayer] A business account is a good alternative if you don’t want to own a company. Taxes are calculated and paid automatically. When using an entrepreneur account, the person cannot be a VAT liable person or operate as a self-employed person (FIE) in the same or similar area of activity. If a customer is currently registered with the Unemployment Insurance Fund as unemployed and opens an entrepreneur account through the bank, this information will reach the Unemployment Insurance Fund and the customer’s unemployed status will end, regardless of whether the customer has received any funds on the entrepreneur account. MOSS stands for Mini One Stop Shop and is part of the VAT, but it only concerns digital goods or services. For example, services covered under the MOSS scheme include website hosting, a supply of software, access to databases, downloading apps or music, online gaming and distance teaching. When selling digital goods and services, the regular rule is that the place of turnover is where your customer is located. So normally if you sell physical goods to a certain country, then at some point you have to get a VAT number in that country. But MOSS simplifies the process for digital goods and services which means you don’t have to get a VAT number in many different countries. For example, if an Estonian company sells digital services to different private persons all over the EU, then the company’s invoices will have an Estonian VAT number, but a client’s home country VAT rate. Meaning that your company will pay all the other countries’ VAT to the Estonian tax office who will then spread the VAT itself between those countries where the customers purchased your digital goods or services. Therefore, MOSS will save you a lot of time and money in the end. MOSS scheme can be used only if the company is VAT liable. In Estonia, you have to declare MOSS in a special quarterly declaration. So, it is not part of the regular monthly VAT declaration, but additional reporting. You still have to submit monthly VAT declarations, even if most of the goods or services you sell, are covered with MOSS. It is very important that you fully understand what selling digital goods and services means when it comes to MOSS. You will have to set up a very good system to gather all the information about your clients, the countries where they’re from, and the VAT rates of the countries where your customers completed the purchases, as this will greatly help from the tax reporting point of view. As the name says, double taxation stands for paying the same taxes in different countries. Double taxation can be avoided, if the country where your company is established, and where you as a private person live, have signed a double tax treaty agreement. See the list of the countries that have double tax treaty agreements with Estonia. If the countries have not signed the treaty, then the double taxation can’t be avoided. For example, Estonia doesn’t have a double tax treaty with Russia, which means that the company may need to pay corporate income tax in Estonia as well as in Russia. In the previous section, we already mentioned that income taxes for a natural person and a company are two separate things. If a company pays out dividends, then this is taxed with the corporate income tax. However, in most of the countries, private persons have to pay personal income tax from the received dividends. This is not considered as double taxation, because these are two separate taxes. There is no tax ID in Estonia. An 8-digit company registration code and your 11-digit personal identity code (isikukood) should be enough for all institutions and services in Estonia. 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. 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. 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. Non-residents not registered in the commercial register in Estonia and operating in Estonia through a permanent establishment or non-residents not having a permanent establishment but being employers in Estonia have to register with the Estonian Tax and Customs Board. Likewise, non-resident employees and recipients of payments not having an Estonian personal identification code have to be registered with the Estonian Tax and Customs Board. Closer look: https://www.emta.ee/en/business-client/registration-business/non-residents-e-residents/registration-non-resident 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: Permanent establishment is something that people are usually not aware of, but it is important to consider as it can determine where you have to pay the taxes. Permanent establishment occurs in a different country than where your company is registered, and in a location where the business management and selling goods or services happens. So, if you permanently manage your business from another country, then you have the risk of having a permanent establishment there. For example, if you have an Estonian company, but manage your business in Finland, then this might result in a permanent establishment in Finland and means that taxation will be according to the Finnish tax rules. Besides management location and permanently selling in some country, a permanent establishment might occur if you sign agreements with the clients and negotiate about the prices in some other country than where your company is established. Other aspects can also create a permanent establishment for your company in a foreign country. As taxes are case sensitive, then a tax advisor has to evaluate and analyse the nature of your company’s business and see whether there is a risk for a permanent establishment occurring somewhere else. So, if the permanent establishment happens, then your tax residency might change, and you have to start paying taxes in that foreign country. In that case, you will be notified about the tax obligations by this country’s government. For example, the Finnish tax office might see that you’re conducting your business in Finland and therefore lets you know that, as you have a permanent establishment in Finland, you have to pay the taxes in Finland and according to their rules. All the above means that once a permanent establishment occurs, then Estonian regular taxation rules do not apply to your company anymore. So, at the end of the year, you have to pay taxes according to the laws of the country where you have the permanent establishment. It is important to evaluate all the risks that you have regarding the permanent establishment when starting a business. As mentioned earlier, permanent establishment mainly takes place if you manage the business or sell goods or services permanently in a different country from where your company is established, but there are also many other aspects to consider. So, it is recommended to get a tax consultation before starting a company in Estonia, just to save you money and nerves in the future and avoid arguments with tax offices about where you are obligated to pay the 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. You must submit a notice of residence to the city or rural municipality government of your place of residence. A notice of residence can be submitted: Printable and digitally fillable form of notice of residence is available on the homepage of the Ministry of the Interior. Entering additional addresses in the population register If you use several residences permanently, you must select one which is going to be entered as the residential address with legal effect (main residence) to the population register. Other residences can be submitted to the population register as additional addresses. You have an obligation pursuant to law to make sure your residence address in the Population Register is correct When you are changing your residence in Estonia, relocating to a foreign country, or relocating from a foreign country to Estonia, you need to submit a notice of residence to register a new place of residence in the Population Register. In case your company has made profit, it is possible to pay dividend to the shareholders. Shareholders receive dividends proportionately to the share of the company that they own. NB! Before the company is allowed to pay dividend, the company’s share capital needs to be paid into the company bank account. After you have made the share capital payment, please inform your e-Residency hub accountant, so we could formulate the changes in the company registration documents Dividends are taxed with 20% corporate income tax. Example: A company decides to spend €100,000 of its accumulated profit to make a dividend payment. This sum is divided in the following manner: In the case described above, the €80,000 which is received by the company’s shareholders, may be considered their income in the country where they are tax residents. It may therefore be taxed with a personal income tax in their country of residence. Please check with a tax advisor in your country of residence to find out if this applies to you. 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 foreign or Estonian taxation. An Estonian company established by an e-resident is an Estonian tax resident. The Estonian e-residency does not automatically exempt from taxation elsewhere. Tax residency is the place where you actually have to pay the taxes. For example, if you are an Estonian citizen, but have lived more than 183 days per year in Finland, then you become a tax resident in Finland and have to pay the taxes there. Generally, a company’s tax residency is in the country where the company is established. So, if the company is based in Estonia, then by law the tax residency is in Estonia. There are exceptions to this rule that will change the tax residency of your company, which we will discuss later in this article. When talking about tax residency or even e-Residency, it is essential to emphasize that neither is an actual residency. So, if you receive your e-Residency card, then this doesn’t make you a resident nor a tax resident of Estonia – it is a common false perception. E-Residency is not related to a visa or a resident permit and doesn’t enable you to travel to Estonia. An e-Residency card is a digital identity that allows you to run a business in Estonia from a distance and fully online. Citizenship only applies to a private person and is determined by your passport. The tax residency on the other hand is not the same as citizenship and is determined by tax laws. The tax residency status can be in the same country as your citizenship, but it also might be different or change in time. The only income that is sourced within Estonia is subject to taxation in Estonia. In cases where there is no activity or income sourced from Estonia, taxes must be paid in the jurisdiction where the service is provided, activity is conducted or income is derived from. It is important to note that e-residency alone does not have any bearing on taxation in Estonia or any other jurisdiction. Furthermore, e-residency does not automatically provide an exemption from taxation in other jurisdictions. It should also be noted that an Estonian company established by an e-resident is deemed an Estonian tax resident. 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. 0% There is no corporate income tax on retained and reinvested profits. Tax on distributed profits is 14-20%. Distributed profits include: 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. Anno 2023. If you are unable to use the above-mentioned authentication methods, we recommend you apply for Estonia’s e-Residency. E-Residency offers foreigners secure access to Estonia’s e-services. Holders of the e-resident’s Digi-ID card can digitally sign documents and use the Digi-ID to sign in to all portals and information systems that recognize the Estonian ID card. You can apply for an Estonian e-resident’s Digi-ID electronically at https://eresident.politsei.ee/. 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. 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: 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: 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? 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: 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. 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: 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.
Accounting (10)
The Estonian Commercial Code states that it needs to be raised.
4
0
Regarding the Estonian accounting law we accept the source documents in Estonian and English language.
2
0
An annual report is the company’s financial statement of the past financial year.
Basic annual report
3
0
The law establishes what data must be present on the invoice so that it complies with the Estonian Accounting Legislation.
2
0
In most cases, the financial year is the same as the calendar year in which case the deadline is the last day of June.
3
0
1
0
No, you don’t.
2
0
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.
1
0
2
0
Address service (7)
As a physical or juridical person, the utilization of an address is essential for various reasons.
3
1
This will be provided upon order or subscription renewal.
3
1
We have two addresses that we offer, both are in the city center, in prime locations, in Tallinn, European Union.
7
1
When changing company data in the business register, a state fee must be paid for the actions.
3
1
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.
3
0
When establishing a company in the Estonian Business Register e-environment, it is the responsibility of the establisher or establishers to add the address, which will appear on the company foundation decision, articles of association, and the registry card.
4
0
Of course.
2
0
Annual report (4)
An annual report is the company’s financial statement of the past financial year.
Basic annual report
3
0
In most cases, the financial year is the same as the calendar year in which case the deadline is the last day of June.
3
0
1
0
Upon order and payment services are activated in 24 hours.
2
0
Apostille (2)
Apostille proves the authenticity of the document.
0
0
An unofficial document is not certified by a Notary.
1
0
Background check (2)
To clarify, this is not a background check related to obtaining an Estonian e-residency.
1
0
Upon receipt of your order and payment, we request that you provide us with the necessary data to proceed with the background check.
4
0
Company formation (13)
All individuals with an Estonian personal identification code (including e-residents) can open an entrepreneur account.
2
0
The Estonian Business Law provides two bases for this.
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0
A) An annual report must be submitted
B) The company’s business name, registry code and location
C) Activities
D) Changing registry data (company address, management board members, etc.)
E) A person’s address
F) The list of shareholders
G) Equity capital level
H) The Tax and Customs Board
2
0
The following forms of identification are permissible:
4
0
1
1
Can be done without but this is our preferred option.
1
0
If a company or non profit association is established remotely, no documents will be received on paper immediately.
Apostilled Documents
0
0
If the intended activity of the company is not related to Estonia, you will not be able to open a bank account in Estonia.
0
0
When establishing a company in the Estonian Business Register e-environment, it is the responsibility of the establisher or establishers to add the address, which will appear on the company foundation decision, articles of association, and the registry card.
4
0
Upon order and payment services are activated in 24 hours.
2
0
2
0
0
0
Certainly.
1
0
Company liquitation (11)
0
0
The Estonian Commercial Code states that it needs to be raised.
4
0
0
0
0
0
0
0
Upon order and payment services are activated in 24 hours.
2
0
The usual liquidation process lasts at least half a year.
0
0
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.
1
0
0
0
2
0
1
1
Contact person (1)
To be considered a permanent resident in Estonia, you must live in the country for at least 186 days each year due to personal or professional reasons.
3
0
EORI number (3)
The Economic Operators Registration and Identification System, commonly referred to as EORI, is a registration system that is mandatory for companies engaged in importing or exporting goods from or to non-EU countries within the EU.
2
1
The following forms of identification are permissible:
4
0
An authorization is a collection of rights within the limits of which a representative may act on behalf of the principal.
0
0
Estonian SIM card (3)
It is imperative to activate the SIM Card roaming before sending it abroad.
3
0
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.
2
1
The process of charging, or adding credit to an account, is a straightforward and convenient procedure.
2
0
Formation of a nonprofit association (7)
The following forms of identification are permissible:
4
0
According to the Non-Profit and Foundations Act, there must be at least two founders.
0
0
If a company or non profit association is established remotely, no documents will be received on paper immediately.
Apostilled Documents
0
0
Upon order and payment services are activated in 24 hours.
2
0
This can be done additionally.
3
0
Basically, yes, if the activity is related to the goals of the association.
1
0
The foundation cannot be established remotely.
0
0
General (42)
Unfortunately, the e-Residency status alone does not include the provision of a physical address in Estonia.
3
0
Estonia is NO. 1 most entrepreneurial country in Europe (World Economic Forum) with the world’s most digitally advanced society
2
0
0
0
0
0
0
0
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.
0
0
0
0
To be considered a permanent resident in Estonia, you must live in the country for at least 186 days each year due to personal or professional reasons.
3
0
Estonian Mobile ID allows people to use a mobile phone as a form of a secure digital ID.
0
0
E-Residency enables digital entrepreneurs to start and manage an EU-based company online:
0
0
ID-card and Digi-ID are the easiest, most convenient and most secure methods of using Internet banking and other e-services in Estonia.
You need the following to use the ID-card and Digi-ID electronic services:
0
0
The availability of services is contingent upon the selected package.
1
0
0
0
0
0
A Public Notary in Estonia is an intermediary between a physical or juridical person and the Estonian Business Registry.
0
0
0
0
0
0
0
0
If you want to live and work in Estonia, you must submit your permanent local address to the Population Register of Estonia.
1
0
Since we offer services, not commodities, it is generally not possible. Exceptionally, for example, if a service has not yet been provided, cancellation of the order is possible.
0
0
Answers to all the most frequently asked questions about the electronic use of ID card and Mobile ID on the id.ee.
0
0
Can be done without but this is our preferred option.
1
0
Smart-ID personal identification can be used today in Estonia, Latvia, and Lithuania. Anno 2023.
0
0
0
0
Your e-Residency digital ID card is an electronic personal identification used to identify yourself over the Internet securely.
0
0
Customers can log into the client area and pay to renew their subscriptions.
0
0
If the intended activity of the company is not related to Estonia, you will not be able to open a bank account in Estonia.
0
0
An authorization is a collection of rights within the limits of which a representative may act on behalf of the principal.
0
0
The e-Residency application environment is administered by the Estonian Police and Border Guard Board. PBGB is also responsible for processing e-Residency applications and making decisions.
2
0
When establishing a company, the legal address is drawn up by the founder or founders in the e-Business Register.
0
0
The contract is signed digitally.
3
0
0
0
1
0
An e-resident is a non-resident according to Estonian tax legislation. Only income derived in Estonia is taxed in Estonia.
NB!
0
0
To explain tax residency and citizenship, we first need to consider that there are two separate parties involved: a private and a legal person. This means that your company is a legal person, and you alone are the private person.
0
1
It should be noted that immediate registration in the population register is not possible for foreign nationals.
1
1
0
0
0
0
2
0
0
0
Some transactions can also be carried out through an e-notary.
0
0
LEI code (1)
As part of our services, we are authorized to obtain a Legal Entity Identifier (LEI) code on your behalf.
1
0
Liquidation (4)
0
0
There exist mandatory steps that must be undertaken in accordance with the law, pertaining to the liquidation of a company.
2
0
The usual liquidation process lasts at least half a year.
0
0
0
0
Package ONE (14)
As a physical or juridical person, the utilization of an address is essential for various reasons.
3
1
This will be provided upon order or subscription renewal.
3
1
We have two addresses that we offer, both are in the city center, in prime locations, in Tallinn, European Union.
7
1
The following forms of identification are permissible:
4
0
When changing company data in the business register, a state fee must be paid for the actions.
3
1
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.
3
0
1
0
When establishing a company in the Estonian Business Register e-environment, it is the responsibility of the establisher or establishers to add the address, which will appear on the company foundation decision, articles of association, and the registry card.
4
0
Upon order and payment services are activated in 24 hours.
2
0
When establishing a company, the legal address is drawn up by the founder or founders in the e-Business Register.
0
0
It should be noted that immediate registration in the population register is not possible for foreign nationals.
1
1
Of course.
2
0
Certainly.
1
0
As a provider of address services to multiple customers, we cannot guarantee that each address is unique.
2
0
Package THREE (7)
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.
0
0
This will be provided upon order or subscription renewal.
3
1
The following forms of identification are permissible:
4
0
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.
3
0
If a company or non profit association is established remotely, no documents will be received on paper immediately.
Apostilled Documents
0
0
Upon order and payment services are activated in 24 hours.
2
0
Of course.
2
0
Package TWO (10)
Unfortunately, the e-Residency status alone does not include the provision of a physical address in Estonia.
3
0
As a physical or juridical person, the utilization of an address is essential for various reasons.
3
1
This will be provided upon order or subscription renewal.
3
1
The following forms of identification are permissible:
4
0
When changing company data in the business register, a state fee must be paid for the actions.
3
1
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.
3
0
1
0
Upon order and payment services are activated in 24 hours.
2
0
Of course.
2
0
Certainly.
1
0
Proof of address (1)
The corresponding document will be sent to you together with the order confirmation. Via e-mail.
0
0
Taxis in Estonia (20)
0
0
All individuals with an Estonian personal identification code (including e-residents) can open an entrepreneur account.
2
0
0
0
0
0
0
0
0
0
1
1
0
0
0
0
0
0
0
0
0
0
0
0
An e-resident is a non-resident according to Estonian tax legislation. Only income derived in Estonia is taxed in Estonia.
NB!
0
0
To explain tax residency and citizenship, we first need to consider that there are two separate parties involved: a private and a legal person. This means that your company is a legal person, and you alone are the private person.
0
1
As per Estonian tax legislation, an e-resident is considered a non-resident for tax purposes.
0
0
No, you don’t.
2
0
0
0
As a non-resident, you can sign in to the Estonian Tax and Customs Board’s self-service environment and use the e-services if you have:
Estonia’s e-Residency
0
0
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.
4
0
Trademark registration (1)
The following forms of identification are permissible:
4
0
VAT number (6)
The VAT registration obligation in Estonia arises from the moment when the company’s sales turnover exceeds 40 000 EUR per calendar year.
1
0
1
0
The following forms of identification are permissible:
4
0
Depends on Tax and Customs official evaluation. It will be monitored case by case.
1
0
An authorization is a collection of rights within the limits of which a representative may act on behalf of the principal.
0
0
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.
4
0