How to Register Company in Estonia – A Comprehensive Overview
From its comprehensive digital infrastructure to low tax rates and skilled workforce, Estonia has it all to attract foreign business owners worldwide. You can register company in Estonia to experience a seamless and effortless business initiation in this part of Europe.
If you are not yet convinced, here are more reasons to choose Estonia to start a new business or for expansion. The country has a start-up-friendly ecosystem, a prosperous trade history, and a stable economy and politics.
Convinced to set up your business in Estonia, let’s learn how to do it the Estonian way.
The Company Structure & Name
As a business owner, you must meticulously research the details to register a company in Estonia. Besides that, your chosen company structure will affect your operating expenses and cash flow. The regulatory body governing business entities in Estonia is the Commercial Code.
The company structures available in Estonia are private limited company (OÜ), public limited company (AS), general partnership (TÜ), limited partnership (UÜ), commercial association (ühistu), sole proprietorship or a branch office.
Once you’ve figured out the company structure, you must choose a name for it. Business owners expanding their businesses to Estonia can retain their established company name. In both cases, the company name must comply with Estonia’s regulations.
You can check for name availability at Estonia’s e-business Register. Another requirement for your company is that it needs to have an extension name referring to the company structure. For example, if the company structure is a private limited company, the company name must have “osaühing” at the end of it. Otherwise, you may choose to put the abbreviation “OÜ”.
European Economic Area Director
You could register your Estonian company as a single owner or with other persons who are likely the shareholders. Although Estonia allows foreign investors to own the company, the Estonian government requires at least one director to reside in the European Economic Area (EEA).
Having an EEA director in your company will facilitate doing business within these markets and helps protect the interest of consumer and businesses. An EEA director can also be the contact person of your company if you choose to do so.
Register Company in Estonia – Online
As with most common company registration procedures, you must prepare the necessary documentation, such as the Memorandum of Articles (MoA) and Association of Articles (AA). These documents should contain the shareholders’ names, identification and signatories, their registered addresses, the company name and its registered office, and the share capital.
Besides this, you need a legal Estonian address to register your company. If you choose to register a private limited company, your share capital requirement is EUR 2,500. If you cannot pay up the share capital during the registration process, you can defer it but be sure to include this matter in your MoA and AA before registration. If you need help with how to do this, contact us.
Here’s an interesting take on all this. If you are neither working nor living in Estonia, you could be an e-Resident. Thus, if you can access Estonia’s e-Residency ID, you could remotely register a company in Estonia. However, if you cannot access the e-Residency ID, you must visit a notary public in Estonia to verify the necessary documentation.
Costs For Registering
It is true that when things go digital, there are reduced costs. If you register online, you must pay EUR265 for the state fees. There will be additional fees if you delegate the task to the notary.
Assistance To Register Company in Estonia
All in all, registering a company in Estonia is excellent. But bear in mind; there could be requirements that you need advice before going ahead with it. In this case, it is best that you engage with a business solution provider such as 3E Accounting to assist you.