Company Registration Online in Estonia

Examining the Complexities of Estonian Company Registration

Estonia is among the most digitally advanced countries in the world. The e-Residency program, established in 2014, seeks to help entrepreneurs and startups take advantage of the robust digital infrastructure. The country offers a plethora of thrilling opportunities for foreigners looking to do business. The level of bureaucracy is negligible, as evidenced by the fact that you can sign, send in, and verify all required documents online.

Still, launching a business in a foreign country is a huge undertaking, so for that reason, it’s best to proceed with caution. To help get you started, we are going to discuss a few important things you’ll need to know about Estonian business registration.

Why Do People Choose Estonia?

Since there are many types of people and businesses looking to start a business online in Estonia, we are going to divide this section into three parts. 

  1. Advantages for Start-Ups

The Estonian government wants to ensure that the country offers the best possible conditions for startups and growing companies. The benefits include:

  • Strat-up visa. It greatly simplifies traveling for the owner and the employees.
  • 0% company tax.  Profits that are retained or re-invested are exempt from taxation.
  • Easy registration process. It’s a huge deciding factor for people looking to launch a business online.
  • Digitized processes. Most processes can be carried out via the web.
  1. Advantages for Freelancers
  • Freelance workers can do business with clients from other countries in a swift and efficient fashion.
  • Quick incorporation. As a freelancer, you can start a company online in Estonia in a relatively short timeframe.
  • Affordable and safe banking. Freelance workers can quickly open bank accounts and generate an IBAN.
  1. Advantages for Businesses 

Estonia offers numerous benefits for all businesses.

  • Online-friendly. Almost every task can be carried out online and you can do your taxes online as well.
  • International payments. Any business can accept payments from clients all over the globe.
  • 0% company tax. Makes transfers of equity even more profitable.

How to Open a Business in Estonia?

Company registration in Estonia can be done in two ways. Let’s briefly look at them both:
Company Registration with e-Residency

  1. Fill in general information regarding your business and its shareholders.
  2. Select a maintenance plan that fits the needs of your business.
  3. Sing the paperwork via the web with the help of your e-Residency card.

On average, it takes about 1 to 3 work days in order to complete the process of registration. You will receive notifications via the e-mail.

Company Registration without e-Residency

  1. Fill in general information regarding your business and its shareholders.
  2. Select a maintenance plan that fits the needs of your business.
  3. Save the required documents to your hard drive and sign them.
  4. Have a conversation with your legal advisor or manager in order to review the paperwork and what it entails.
  5. Notarize the documents (must be in English) and send them via delivery service.

Here, the timeframe is slightly different: it usually takes anywhere from 7 to 15 business days in order to complete the process of registration without e-Residency.

What’s the Cost?

The state fee for company registration in Estonia is €190 (online) or €145 (through a notary). The fee can be later written off as a business expense, which is a nice bonus. The fees for notary services vary depending on the size of capital stock and the number of founders.

The capital stock of a private limited company (osaühing or OÜ) is on the lower side as well: over €2500. Remember that a business can be established with no capital stock if the area of activity doesn’t necessitate capital investments.

What’s the Tax Situation?

The companies are expected to pay the following taxes:

  • Income tax.
  • Value Added Tax (VAT).
  • Area of activity-specific taxes (for instance, a land tax).

As mentioned before, the Estonian government offers lax taxation options for the businesses that select this country as their base of operations.

How to Start Your Business the Right Way?

If you want to start a business online in Estonia and make sure that it’s profitable since day one, we’d definitely recommend turning to professionals that help launch businesses. At the time of writing, there exists a wide barrage of possible options when it comes to firms that can help you with company registration.

With web-based incorporation in Estonia, you can manage your profitable business from anywhere in the world. Companies that provide assistance in such incorporation usually offer an expert opinion on what’s best for your situation. Most companies can apply for a new company registration services and expect to enjoy the following benefits:

  • Fully Remote Services. You don’t have to travel to Estonia to get your business up and running.
  • Custom-Made Solutions. More often than not, there’s a broad range of services and pricing policies.
  • Quick Deployment. Up to 3 work days with an e-Residency and up to 15 days without it.