Estonian company registration - quick view

Company in a day - VAT ID in a week - Bank account activating in 10 - 20 days

0% corporate income tax


 

Company
There are practically no limitations who can start a company in Estonia. No local shareholder or board member required. You can also avoid contribution of minimum share capital (2500 EUR). The easiest way to start is to use professional assistance.

IBAN for SEPA (Single Euro Payment Area) payments

As a rule we can provide your company with an IBAN account with a payment service provider within few days. Your physical presence is not needed to open and access that account. For SEPA payments it works as a usual bank account. For SWIFT payments you need to use payment service provider's name as receiver or payer.

Bank account
Every company we create has a start account usually in Swedbank. However - due to recent changes related to the KYC (Know Your Client) procedures - it is not possible to activate a bank account without providing proper data about related persons and planned business transactions. Activating or opening a bank account is no longer guaranteed and as a rule local banks do not open/activate bank account if your Estonian company has no business activities in Estonia at all. As a practical solution we are assisting our clients to open bank account in foreign bank(s) and with few exceptions account opening has been successful. All required formalities can be done in Tallinn, when client is visiting Estonia.

VAT ID
From the end of 2016 Estonian tax authorities changed their practice related to VAT ID registration. Since then negative answers are very rare and caused mainly because of insufficient data provided to the tax authorities about the planned business.

Accounting
Most of our clients use (our) online accounting system to issue their sales invoices. This makes the communication between the accountant and the client very easy and effective. In case of VAT ID tax returns the accounting must be done on a monthly basis. Otherwise it is usually enough to do it once per year with the annual report.

Taxes
In Estonia the company income is not taxed (except VAT, if there is any). Only certain costs (dividend, salary, fringe benefit) are taxed. It means as long as the Estonian company has no taxable (out) payments there is no taxation at all.

Opening a company and a bank account remotely
It is possible to start a company remotely either by a certified POA (Power of Attorney) and petition or by using the e-residency card. Opening a bank account remotely is possible but not in all banks. 
 

 


Read also:

Buy ready made company

Have a registered address

Open/activate bank account/internetbanking

Register VAT ID

Start online accounting system


KRM Advisor

Our team has offered company formation and accounting services since 1991. We have created ca 5000 companies and provided accounting services for more than 500 companies.


Basic facts about Estonian company

 
  1. 100% foreign ownership and directorship allowed
  2. Minimum share capital 2500 EUR (no need to deposit it into bank account)
  3. Company transfer in 1 day (ready-made company)
  4. Minimum 1 shareholder and 1 director (can be any person 18 year and older)
  5. 0% corporate income tax on undistributed profit
  6. 20% corporate income tax only upon distribution
  7. No withholding tax on profit distribution

What data and documents we need to start

 
  1. The name of the company or a name from the list of ready-made companies
  2. Company main activity
  3. E-mail address of the company
  4. Shareholders/directors passport copies, home addresses and e-mail addresses

Why to start

 
  • 100% Europe - 0% income tax
  • Excellent framework for business in EU
  • Advanced digital public services
  • Low bureaucracy and clear rules
  • Well-functioning banking system
  • Low startup and maintenance costs
  • No withholding tax if dividends paid
  • Easy exit