Estonia
Estonia is one of three Baltic States located on the east coast of the Baltic Sea. Estonia is a democratic republic with the largest city being the capital Tallinn.
Estonia joined the European Union in 2004 which subsequently lead to an increase in foreign investment. Prior to the global recession in 2008-096 Estonia had one of the fastest growing economies in the EU however since the recession the economy has contracted. Regardless of this fact Estonia is still a very sound proposition and a good platform for emerging new growth. Estonia has seen an increase in GDP since 2010 with an increase in of 3.3% in 2011.
Historically Estonia’s trade was tied to the Eastern Europe however since becoming an EU member and due to the fact that Estonia has a very liberal business agenda with little bureaucracy, it has refocused its trade from East to West and turned itself into a vital trading link between the CIS, Russian and Western Europe.
Advantages of Estonia:
- Good geographical links with excellent links to both Eastern and Western Europe
- Stable political environment with EU and NATO membership
- Estonia’s openness to business has been globally recognized. The Heritage Foundation ranked Estonia 14th in their Economic Freedom Index of 2011. The World Bank ranked Estonia 17th in its ‘Doing Business 2011’ report.
- OECD member
- Liberal, western business culture with English and Russian widely spoken
- Existing links with Russian and CIS markets and Western Europe enable companies to trade easily
- Highly developed banking system with most Estonian Banks being run by Swedish, Norwegian or Finnish banking institutions.
- Relatively low corporate tax rate of 22%
- A young, well educated, innovative and competitive labour force
- Estonia ranks highly with regards to economic freedom, democracy, press freedom, political freedom and education.
Estonia provides the perfect climate in which to incorporate a company. Please contact us if you require our Estonia Fact Sheet and Fee Schedule.
Summary of Requirements for an OU, Limited Liability Company:
| General Information |
| Type of Company |
Osauhing (OU), Limited Liability Company |
| Timescale to incorporate |
3 weeks |
| Corporate Taxation |
20% on distributed profits and dividends. However the tax system in Estonia does not require payment of Corporate Tax for undistributed profits – something which is unique to Estonia |
| Double Tax Treaty Access: |
Yes |
| Directors |
| Minimum No. Required |
1, Corporate Directors are permitted |
| Local Director Required |
No |
| Publicly accessible information |
No |
| Location of Meetings |
Anywhere |
| Additional Information |
A private limited company must have a management board which represents and directs the company. This may include 1 member (the director) or several members. If more than half the members are not Estonian residents then an address in Estonia must be provided where documents can be sent (the Registered Office Address can be used). |
| Shareholders |
| Minimum No. Required |
1, 100% foreign shareholders allowed |
| Publicly accessible information |
No |
| Location of Meetings |
Anywhere |
| Company Secretary |
| Required |
No |
| Local Secretary Required |
N/A |
| Registered Office Required |
N/A |
| Share Capital |
| Standard Currency |
Euro |
| Standard Authorised |
€2,500.00 |
| Minimum Paid Up Capital |
Not required |
| Additional Information |
If share capital exceeds €25,500.00 an OU must have a supervisory board with 3 members |
| Accounting & Compliance |
| Requirements to prepare Accounts |
Yes |
| Requirement for Audit |
Audit required if share capital exceeds €25,500.00.Audit required if any of the following are exceeded: Turnover exceeds €2 million, Total assets exceed €1 million, Number of employees exceeds 30 |
| Local Auditor Required |
Yes, if audit is required |
| Requirement to File Accounts |
Yes |
| Requirement to file Annual Return |
Yes |
| Additional Information |
| VAT |
20%. Any business with a turnover in excess of €15,000.00 is obliged to register with the VAT Authorities |
| Bank Account Opening |
A number of international banks are located in Estonia and account opening is possible without presence. |
Procedure to Incorporate:
The procedure to incorporate an OU in Estonia is quite straightforward.
We require the following in order to proceed:
- Completed application form
- A certified copy of each director and shareholder passport
- Two utility bills that are under 3 months old
Upon receipt of the above the following is completed:
- Company name approval
- Submittal of the application to the Commercial Register
Within approximately 10-15 working days the company will be incorporated
Fee Schedule:
Incorporation:
- All Government License Fees
- Certificate of Incorporation
- Share Certificates
- First Directors Minutes
- Filing of all documents with the Central Commercial Register
- Register of Directors
- Register of Shareholders
- Corporate document set with Apostille
- Courier fees
- Company Stamp
- Registered Office
|
€ 2,850.00 |
Bank Account Opening Fees:
- Estonian Bank Account Opening
- Cyprus Bank Account Opening Fee
|
€ 2,850.00
From € 250.00 |
Annual Renewal Fee:
- Registered Office
- Payment of Government Fees
- Maintenance of Register of Directors
- Maintenance of Register of Shareholders
|
€ 550.00 |
| Accountancy Fees: |
Quotations can be provided based upon the approximate number of monthly transactions and estimated turnover |
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