How to register a company in Estonia [update in 2023]
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Estonia is known for its business-friendly environment and modern digital infrastructure. This is a great destination for businesses looking to expand their operations in Europe. The country offers an easy and efficient process to register a company in Estonia, making it an attractive location for entrepreneurs and investors.
This article will provide an overview of the process for registering a company in Estonia and benefits of registering a company in Estonia.
How to register a company in Estonia?
The popularity of establishing a company in Estonia has grown steadily in recent years.
Regardless of whether you are a citizen or a foreigner seeking to incorporate a business in Estonia, the process is comparatively uncomplicated and stress-free.
To establish your business with ease and success, follow these five fundamental steps for registering a company in Estonia.
Step 1: Choose a business structure
Before registering a company in Estonia, you will need to choose the type of business structure you intend to set up.
There are three main types of business structures in Estonia:
Private limited company (OÜ): This is the most popular type of business structure in Estonia. It requires at least one shareholder and one board member.
Public limited company (AS): This type of business structure is suitable for larger businesses that want to raise capital through the stock market. It requires at least one shareholder and a management board.
Sole proprietorship (FIE): This is a popular option for small businesses or self-employed individuals. The owner is personally liable for the business and there is no minimum share capital required.
How to register a company in Estonia [update in 2023]
Step 2: Choose a company name
The name must not be identical or similar to an existing company name in Estonia. You can check the availability of a name by using the online name search tool provided by the Estonian Centre of Registers and Information Systems.
Step 3: Prepare the necessary documents
To register a company in Estonia, you will need to prepare the following documents:
Memorandum of association: This document outlines the company's purpose, name, registered address, share capital, and shareholder information.
Articles of association: This document outlines the company's internal rules and regulations, such as the roles and responsibilities of the board members and shareholders.
Shareholder agreement: This is an optional document outlining the terms and conditions of the shareholders' relationship, including how the shares are owned and how the company is managed.
Step 4: Register the company
Once you have chosen a business structure, company name, and prepared the necessary documents, you can register the company with the Estonian Centre of Registers and Information Systems.
The registration process can be done online through the e-Business Register or in person at a notary's office. The state fee for registering a company in Estonia is €265.
Step 5: Obtain the necessary licenses and permits
Depending on the nature of your business, you may need to obtain certain licenses and permits before you can start operating.
You can check the necessary licenses and permits by using the online Business Registration Portal provided by the Estonian Chamber of Commerce and Industry.
Benefits of registering a company in Estonia
Estonia is a small but dynamic country in the European Union with many advantages for entrepreneurs starting or expanding their business.
One of the main benefits of registering a company in Estonia is the favorable tax system, which allows companies to pay zero tax on retained earnings and only 20% tax on distributed profits.
This means that companies can reinvest their profits without paying any corporate income tax, which can boost their growth and competitiveness.
Another benefit of registering a company in Estonia is the ease of doing business, which is partly due to the advanced digital infrastructure and services that Estonia provides. It’s also known for its business-friendly environment with low bureaucracy.
For example, companies can use an Estonian e-Residency card to register and manage their business online from anywhere in the world.
They can also access a large and diverse market within the EU, as well as benefit from various trade agreements and regulations that facilitate cross-border transactions. As a result, Estonia provides access to the EU market and free movement of goods, services, and people.
Moreover, registering a company in Estonia can help entrepreneurs establish a legal presence in the EU, which can enable them to hire staff, submit VAT returns, provide health insurance to employees, and obtain an EU business license.
Additionally, registering a company in Estonia can enhance the reputation and credibility of the business, as Estonia is not considered an offshore jurisdiction but rather a transparent and innovative country that respects international standards and norms.
Transferring money with DNBC Financial Group for foreign companies
When it comes to doing business internationally , one of the most important considerations is how to transfer money across borders. DNBC Financial Group is an optimal solution.
DNBC Financial Group is a global financial service provider with a wide range of services to both individuals and businesses. DNBC Financial Group has a strong global presence, with offices and operations in many countries around the world.
One of the most popular options is to use the company's international wire transfer service . This service allows companies to transfer money to accounts in other countries quickly and securely.
With these services, companies can exchange one currency for another at competitive exchange rates. This can be especially useful for companies that need to make payments in a foreign currency.
By using DNBC Financial Group's foreign exchange services , companies can avoid the high fees and unfavorable exchange rates that are often associated with traditional banks.
Note: The content in this article is for general informative purposes only. You should conduct your own research or ask for specialist advice before making any financial decisions. All information in this article is current as of the date of publication, and DNBC Financial Group reserves the right to modify, add, or remove any information. We don’t provide any express or implied representations, warranties, or guarantees regarding the accuracy, completeness, or currency of the content within this publication.
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