In this article, our colleague from Gurcan Partners Tallinn Office, Att. Ingmar Lääts will mention Company Formation in Estonia with all required steps and processes.
Company registration/formation (most commonly in the form of “osauhing”) in Estonia is straightforward and a digital ID can be done 100% online.
However, in practice, there are a few important things you need to consider before creating a company and also things to think about to be able to run the company smoothly afterwards. Please bear in mind that liquidating a company is far from as easy as creating it so you might want to take a few moments to be sure that an Estonian company is exactly for you.
Gurcan Partners is a professional law and consultancy firm, located in Tallinn. We provide tailor-made incorporation services in Estonia. You can make an online appointment below or contact us via email or phone.
SO BESIDES THE ACTUAL BUSINESS IDEA, CONCENTRATE ON THE FOLLOWING:
- How many people will be involved in the ownership/management of the company? If it is more than one, you need to think about the relationship between the parties and also consider an agreement between shareholders to outline at least the basic obligations, rules of exit etc.
- Check if the business name you want is available.
- Are there any special requirements in your business area? (For example special capital requirements or an activity license. If so, make sure you know how to apply for it.)
- Do you have a physical address in Estonia? If not, you need to acquire a contact person and an address service. We help our clients with a virtual office and seat agent services.
- How are you going to go about banking? Getting a regular bank account without a residence in Estonia can be tricky. Although it is possible to run your business without an Estonian bank account, it is still needed for share capital payment right now.
These rules will probably change in 2019 though as the legislator is considering amendments to the law which enable also the use of another EU bank or even fintech.
- Bookkeeping? Although relatively simple to do yourself when the business is small, it is useful to buy an accounting service to familiarize yourself with the practical side as well as tax rules. It is important to care about tax rules. In other cases, your company may be faced with tax fines and some restrictions.
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YOU WILL NEED TO HAVE AN ANSWER TO THE FOLLOWING QUESTIONS:
What will be the company’s business name? You could consult the e-Business Register to see if the name you have chosen is available.
What will your initial area of activity be? Please search system for EMTAK fields of activities.
Who are the shareholders?
How large are the partner’s share capital contributions? Total share capital must be at least 2500 EUR for a Private Limited Company.
What will be the legal address of the company? Your company needs to have an Estonian address.
How will the management of the private limited company take place?
Schedule a free initial consultation
In addition, It must be paid the state registration fee for company Formation in Estonia.
This can later be recognized as a business expense as the costs of establishing the Private Limited Company.
When it comes to the share capital, in Estonia a Private Limited Company can be established without contributing the share capital! The share capital, in this case, will be formed by the liabilities of the founders in the amount of the sum the founders promised to provide as a share capital contribution.
Our Professional Team in Estonia can register a private limited company for our clients and all required services related to Company Formation in Estonia.
Company Formation in Estonia
Att. Ingmar Lääts
All rights reserved. All rights of the Company Formation in Estonia article belong to Gurcan Partners International Law Firm. The author has no responsibility for the information in this article. This article is prepared just to inform.
Gurcan Partners Estonia
Tallinn Office: +372 60 26 570 (English)
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