First of all, we should describe why the company in Estonia is a very good business solution.
- Estonia is one of the most digitally advanced societies. Estonia overcame bureaucracy with its technological solution — The e-residency program.
- Corporate income tax of 0% on retained and reinvested profits.
- Low state fees and company management costs
- If you are incorporating the company as a natural person, you can postpone the share capital contribution requirements.
- Low level of bureaucracy by access to online services – registering and managing the company online
- Stability – membership of the EU, NATO, OECD, Eurozone, and Schengen Area
- Great business environment — A study published in 2021 by Tax Foundation, ranked Estonia as having the best tax system in the OECD for the 8th year in a row.
Now we can move further. According to the Commercial Code of Estonia, there are five forms of business entities in Estonia:
- private limited company (OÜ/LLC)
- public limited company (AS)
- general partnership (TÜ)
- limited partnership (UÜ)
- commercial association (ühistu)
The most common forms of business in Estonia are a private limited company (OÜ) and a public limited company (AS).
Before establishing the company, your homework should be done:
- Choose the company’s business name
- Choose the contact person and obtain a legal address
If the management board of a company or a body substituting therefor is located in a foreign state, the company must designate a contact person. The address of the contact person shall be considered the address of the company in such a case.
- Choose the main field of activity
- Make clear the management board, shareholders and their share capital contributions;
You can register a company with an Estonian e-Residency card, with an Estonian, Belgian, Finnish, Portuguese ID card or with a Lithuanian mobile ID.
If you don’t have them the company should be incorporated through a notary by yourself or power of attorney.
Our Law firm can help you in all mentioned ways to register the company. Leadlex offers full support, so you will have a company as quickly as possible. We already helped more than 100 entrepreneurs to register their companies in Estonia.
We also offer solutions for more complex incorporation matters and corporate structures, such as setting up a public limited company where a shareholder is a legal entity or a company with the Estonian government licenses.
How much does it cost to open a company in Estonia?
Opening a company in Estonia on itself is affordable, as the state fee to open an OÜ (Estonian private limited liability company) for example is €265, if a company is registered using the e-Residency card.
Also, an OÜ can be funded with no initial monetary funds which significantly reduces the entry costs, however, starting one without share capital has its downsides. Also, if you are a non-resident, your company must at least have a resident contact person, which we can help you out with!
How quickly can you incorporate a company in Estonia using Power of Attorney?
Incorporate in Estonia can register your company as soon as we receive all the necessary documents. During the process, we will provide you with detailed instructions on how to formalise the required documents. Because of our expertise and network of resources, we can establish an Estonian private limited company within one working day. The timing and necessary steps to transfer control of that company to you depend on many circumstances, such as where you are located, and how quickly we can receive an appropriate certified power of attorney, among other factors.
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