- Company registration in the United Arab Emirates
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Company registration in Europe
- Registering a company in Europe
- Company registration in Gibraltar
- Company registration in Cyprus
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- Company registration in Estonia
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Company registration in other regions
- Company registration in other regions
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Since its independence from the Soviet Union in 1991, Estonia has climbed the economic ladder and established itself as one of the most favorable corporate jurisdictions in Eastern Europe. Relatively low taxation and one of the world’s freest business and trade environments accompanied by a reputation of transparency and integrity make Estonia an attractive jurisdiction for a European business company. Organization for Economic Cooperation and Development (OECD) lists Estonia as one of its leading members due to its competitive tax codes. Estonia offers a corporate tax rate of 20% on distributed profits, which means that taxes are imposed on profits only and not on monthly or annual earnings. This flexibility allows corporations to decide when to pay taxes by deciding the time of profit distribution in the company or alternatively benefit from tax exemption if reinvesting the company’s profits whilst growing the business.
WHY ESTONIA? |
WHY NOT? |
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Estonia is well-known as a frontrunner for e-government solutions and cyber security, hosting high profile internet security centers such as NATO and the IT agency of the European Union. It is also the first country in the world that offers e-residency: a virtual and fully electronic identification process that can provide you with an electronic ID that allows you to digitally manage your Estonian business and legally sign documents electronically within the European Union. The program allows corporations to base and manage their business and finance in the country. An Estonian e-resident has access to the country’s advanced digital infrastructure and can form a company, open accounts in a growing number of European financial institutions, make and accept payments on various online platforms and file taxes electronically. Moreover, a start-up formed through e-residency is taxable under Estonian tax laws.
Estonia is also a very attractive country when it comes to property investment due to the flexibility of its property tax regulations. It is one of the only 3 countries in OECD with a properly defined property tax system. Under this system, only the land is taxable, and no taxes are imposed on the building or structure of the land.
Corporate Features of an Estonian Private Limited Liability Company (Osaühing)
GENERAL |
OSAÜHING |
Incorporation Time |
2 – 5 Business Days |
Local Registered Agent Required |
No |
Local Registered Address Required |
Yes |
Migration of Domicile Permitted |
Yes |
SHARE CAPITAL |
|
Minimum Share Capital |
EUR 2500 (For certain business activities like insurance and banking higher share capital requirements may be applicable) |
Minimum Paid Up |
No Minimum if company share capital is less than €25,000. NOTE: A company is not permitted to distribute profits if its share capital is not paid up |
Maximum Share Capital |
No Maximum |
Bearer Shares Allowed |
No |
SHAREHOLDERS |
|
Minimum number |
One |
Maximum number |
No Maximum |
Publicly accessible records |
No |
Corporate shareholder allowed |
Yes |
Annual General Meeting Required |
Yes |
DIRECTORS |
|
Minimum Number |
One |
Maximum Number |
No Maximum |
Local required |
No but strongly recommended (If more than half of the Board of Directors are not Estonian residents, the company must appoint a local representative) |
Publicly accessible records |
No |
Corporate directorship allowed |
No |
COMPANY OFFICIALS |
|
Secretary Required |
No |
Local Secretary Required |
No |
Other Officials Required |
No |
COMPANY ACCOUNTS |
|
Requirement to Prepare |
Yes |
Requirements to File Accounts |
Yes |
Audit Required |
Please see Note* below |
OTHER ANNUAL REQUIREMENTS |
|
Government Renewal Fee |
No |
Annual Return/Report |
Yes (Please see Note* below) |
Tax Return |
Yes |
Submission of Economic Substance Report |
No |
Note* All Estonian companies must submit an annual report in accordance with the Estonian Generally Accepted Accounting Principles (GAAP) or the International Reporting Standards (IFRS) at the Commercial Register within six months after the end of the financial year. If the standard financial year (which starts on 1st January and ends on 31st December) is followed then the last date for annual report submission is 30th June without penalty.
The report should consist of annual accounts and the management report, however the requirements for these reports depend on the size and turnover of the company. For financial reporting purposes, Estonian companies are classified under three categories as follows:
MICRO ENTERPRISE |
SMALL ENTERPRISE |
MEDIUM SIZE ENTERPRISE |
All the Following Criteria is met: |
Exceeds the limits of two of the following three criteria: |
Exceeds the limits of two of the following criteria: |
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OR Exceeds the limits of one of the following criteria:
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OR Exceeds the limits of one of the following criteria:
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Annual Report Requirements: |
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balance sheet and an income statement |
Management Report and full financial statements reviewed by an auditor |
Management Report and audited financial statements |
For further information on taxation in Estonia and establishing a company in the country, feel free to contact us. Our highly professional team can provide full guidance and can help you set up a corporate business in the country without your presence, assist you with your bank account opening, substance requirements and take on the administration and management of your company. With the help of our trained staff, you will be guided through the whole process and will be guaranteed reliability and honesty.
- 1 Choose your package
- 2Submit documents
- 3Get registration documents
- Start
