BUSINESS (COMPANY) REGISTRATION IN ESTONIA

BUSINESS (COMPANY) REGISTRATION IN ESTONIA

Looking at the advantages of Estonia as a jurisdiction for doing business, questions arise, namely, how to do business in Estonia? In what organizational and legal form is it necessary to carry out the entrepreneurial activity? What is the price of opening a company in Tallinn or in other cities in Estonia?

How to do business in Estonia? But what are the advantages of registering an LLC or a sole proprietorship in Estonia?

To carry out activities as a sole proprietorship, it is necessary to register, it is possible to register either online through the established form, but you must have an e-residency, such registration takes only 1 working day, or register through a local notary, such a procedure takes about 5-7 days.

The advantages of running a business as a sole proprietorship are the ease of doing business and a simple registration procedure as a whole.

The disadvantages are that the individual entrepreneur is independently responsible for carrying out such activities, also if the annual income of the FOP is more than 40,000 euros, it is necessary to register as a value-added taxpayer, and the obligation to pay social tax every quarter of 495 euros regardless of income

In addition to carrying out activities in this form, it is possible to carry out activities in other organizational and legal forms:

A limited liability company (OU) is the most popular and simple form of entrepreneurial activity. Among the main features and requirements for activity: the size of the authorized capital is 2,500 euros, but it is possible to form authorized capital within 3 years. The founder can be both a legal entity and an individual from 1 to 10 people

Joint-stock company (JSC) – the minimum amount of authorized capital is 25,000 euros. In this case, the shareholders do not bear personal responsibility for the obligations of the joint-stock company. Requirements for the nominal value of the share – it must be worth at least 0.1 EUR. Shares must be registered and entered in the Central Securities Register of Estonia.

Partnership – there is no requirement regarding the authorized capital, it is defined in the partnership agreement, it can be a general partnership or a limited partnership established depending on the responsibility borne by the participants.

What are the stages of company registration in Estonia?

Since the most popular form of entrepreneurial activity is an LLC, the stages of LLC registration are:

Online registration has a couple of steps – filling out the prescribed application, filling out the template charter, and paying the registration fee of 145 euros.

Registration through a notary public:

1. Choosing an organizational and legal form (we recommend LLC)
2. Choosing a brand name should be unique
3. Open a savings account into which the authorized capital will be deposited
4. If the activity requires licensing or permits, contact the relevant authorities and obtain such a permit
5. Registration of legal address
6. Prepare founding documents, and have them notarized
7. Registration by a notary public
8. Registration of the company as a VAT and social insurance payer.

Is it possible to register a company online?

With e-residency, you can register a company online, it will take less than 1 working day

What is the cost of registering a company in Estonia?

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