Be the founder of your company
Estonian residents can create an Estonian company very easily - it takes approximately 1 day. However for non-residents the foundation of a company can be a complex challenge.
Foundation documents have to be certified by an authenticating notary in Estonian. A professional translator might be needed. Some notaries work also in English.
Even though an individual may start a company without paying the share capital, the capital must nevertheless be paid within 2 years. If you establish a company without paying the share capital a record of this fact remains in the company’s commercial registry documents until the share capital is fully paid in and the respective registration procedure has been carried out. This could mean additional time and expense later.
If any of the founders is a legal entity, the new company must have a start-up account opened in a bank, and the share capital has to be paid in full. Furthermore, a statement of the bank confirming the receipt of the full amount of the share capital has to be provided to the commercial register along with the rest of the documents.
After your company has been entered in the commercial register it is necessary to complete the bank compliance formalities both for the company as well as for the persons authorised to use the internet banking system. The company will probably have to conclude an agreement for using on-line tax services and have the user rights assigned to the selected accountant for lodging tax returns.
With a population smaller than the city of Manhattan, Estonia is a country in Northeast Europe that is quickly becoming a hot spot for start-up tech companies. Estonia is so committed to building a strong IT infrastructure that it passed a law in 2000 to make Internet access a fundamental human right. Work continues to bring Web access to rural areas.
Advantages to an Estonian company include:
- no corpotrate income tax (if the money is not paid out),
- low bureaucracy, and
- low startup costs.
Three Ways to Found a Company in Estonia
To launch a company in Estonia, partner with a business that has experience taking advantage of all the tax breaks and progressive legislation that make the country an attractive home base.
- Pick a ready-made company from a list that already has the paperwork in place, paid in sharecapital, working bank account with an Internet banking contract. This type of company can be up and running within a few hours.
- The second way to get a company in Estonia is to order a “tailor-made” company; you will get a ready made company with paid in sharecapital, working bank account with an Internet banking contract plus your own business name and business activity.
- Third, for non-Estonia residents who want to establish a company in Estonia, you must get your company establishing documents (establishing contract or decision, petition to the commercial register) certified by an Estonian notary, open a start-up account in the bank, pay in the sharecapital and after registration change the start-up account to current account.
Get Started Today
The basic start-up package includes everything you need to get started as an Estonian company.