Company in Estonia
 

COMPANY IN ESTONIA

KRM Advisor

 
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Estonian company registration

Quick Overview

Company in a day - account and VAT ID in a week
free your profit from taxes


Company

There are basically no limitations as to who can start a company in Estonia. No local shareholder or board member is required. Every adult can start a company by being the sole shareholder and board member.

Since every country has its own ways to get things done effectively - it is worth to have an experienced professional to assist you. Often people just do not know what they do not know.

Corporate IBAN account for SEPA (Single Euro Payment Area) and SWIFT payments

As a rule we can provide your company with an IBAN account within a few days.

It means you can start to receive and send out payments immediately.

E-commerce and merchant account

Above mentioned IBAN account has an"in built" merchant account module with very reasonable service fees. This can be easily linked to your webshop for collection of card (and other) payments.

Corporate bank account

Every company we create usually has a start account 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. As a rule local banks do not open/activate an 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 accounts in foreign banks and with few exceptions account opening has so far been successful. All required formalities can be done usually in Tallinn, when client is visiting Estonia.

For It companies it is often realistic to open bank account in Estonian bank even there is no business transactions in Estonia.

VAT ID

In case your company’s sales volume exceeds 16 000 EUR/year in the EU it must be registered for VAT purposes.  Professionally prepared VAT ID registration documents help you to avoid the delay of receiving the VAT ID and discussions with tax authorities.

Accounting

A Company with VAT ID must usually submit 3 different tax returns:

  1. Income and social tax returns
  2. VAT returns
  3. VIES declarations (intra EU community sales)

Most efficient way to cope with the declarations is to use our online accounting system which we will help you to set up. This enables you to issue sales invoices and have an overview over your company’s accounting. The online solution saves you time and money even when monthly tax returns are not required.

Taxes

In Estonia the company’s income is not taxed. Only certain costs, such as dividends, salaries and fringe benefits are taxed. Therefore, as long as the Estonian company has no taxable (out) payments there is no taxation at all.

Opening a company remotely

In most cases it is possible to start a company remotely, this is done based on specific representation rights given to us. Additionally, we are able to open a fully operational current account for your company remotely as well.

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Timeframe for setting up an Estonian company

  1. Exchange of information about required data, services and prices takes 1 - a few days
  2. Payment arrangements take 1 - 2 days
  3. Company creation by the order takes 1 - 2 days (0 days if a ready-made company)
  4. Transfer of the company in Estonia takes less than 1 day
  5. Filing changes in register takes 1-7 days

In the case of remote services, the procedure is prolonged by 2-3 weeks.

Why use KRM Advisor company formation services?

Getting familiar with all important aspects on how to do things in Estonia might take some time and effort. Some procedures in Estonia require knowledge of the Estonian language and even though all the necessary environments are in English and accessible with the e-residency card does not mean that this will be enough to do things properly. Not using professional assistance might save you money at first, but at a later stage you may be forced to spend more, as you cannot foresee certain problems that may arise.

Therefore one of the key factors to a smooth establishment and creating a preferred way to run a business in Estonia is to use professional assistance.

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Basic facts about Estonian company

  1. 100% foreign ownership and directorship allowed
  2. Minimum share capital of 2500 EUR (no obligation to deposit it)
  3. Company transfer in 1 day (ready-made company)
  4. Min. of 1 shareholder and 1 director (must be at least 18 years old)
  5. 0% corporate income tax on undistributed profit
  6. 14 - 20% corporate income tax upon profit distribution
  7. No withholding tax on profit distribution

Why to start

  • 100% Europe - 0% income tax
  • Excellent framework for business in the EU
  • Advanced digital public services
  • Low bureaucracy and clear rules
  • Low startup and maintenance costs
  • No withholding tax if dividends are paid

Required data and documents

  1. Company name (your own proposal or from our list)
  2. Company’s e-mail address (can be your personal)
  3. Activity of the company (just one is required)
  4. Name(s), address(es), email address(es) of shareholder(s).
  5. Name(s), address(es), email address(es) of of Management board member(s).
  6. Information about additional services you will be needing