Why do I need to use a service provider?
Starting a business in another country can be overwhelming and challenging even for an experienced entrepreneur. For someone looking to be self-employed or whose business is just kicking off, familiarising themselves with foreign laws and complying with the requirements means time is taken away from focusing on the actual work. To give you more time and liberty to focus on what is important to you, a service provider can ease the process of incorporating your business as well as make sure all runs smoothly on the administrative side.
Do I need a legal address/virtual office in Estonia?
All Estonian companies must have an Estonian address, but there is no requirement to have an actual office in Estonia. Our company provides a registered address as well as virtual office services (if requested). The latter includes secretarial services, e.g. call handling. In case of a virtual office you will receive a unique Estonian landline number and handling of inbound calls is done according to your instructions. Mail forwarding electronically is provided to all clients who order the registered address service.
Do I need e-Residency in order to register an Estonian company?
No, you do not have to be an e-resident. However, kindly note that in case you do have an Estonian e-Residency card, we will be able to establish the company directly and remotely on your name. Estonian e-Residency also provides an opportunity to administer the company from anywhere in the world, digitally sign documents and contracts, declare Estonian taxes online and use online banking. The average processing time for e-Residency is one month, but it may vary based on demand and pickup location. We are glad to provide assistance with the e-Residency application.
Who can be a shareholder and board member of an Estonian company?
According to Estonian laws a shareholder can be either a legal entity or a private person. The legal entity who is the shareholder need not to be registered in Estonia. The board member can only be a private person.
Please note that e-Residency is available only for private persons – a legal entity can incorporate the company only on the basis of Power of Attorney or at the time when the legal entity’s representative visits Estonia.
What is the minimum share capital of a private limited liability company?
The minimum share capital of a private limited company is EUR 2,500 and the maximum share capital is not limited. In case of incorporating a company with a share capital up to EUR 25,000 there is no need to contribute the share capital during the incorporation process. Contribution is due when you, for example, decide to distribute dividends or change the share capital. Thus, until the complete payment of contributions by all the shareholders, the private limited company shall neither increase nor decrease the share capital and shall not make any disbursements to the shareholders. Until the shareholder has completely paid the contribution, he/she/it shall be liable to the company for the obligations of the company in the amount of the outstanding contribution (i.e. in case of minimum share capital, the amount is EUR 2,500), unless the obligation of the company can be performed on the account of assets of the company.
What are the accounting costs for an Estonian company?
The monthly fee for our accounting services will be approx. EUR 63 (excl. VAT, if applicable). Fees for accounting entries (entering all documents and registering bank entries) are not included in the proposal, therefore these will be added to the monthly payment. The fee for every entry is EUR 0.68 (excl. VAT, if applicable). Our proposal is based on the assumption that the company will not be registered for VAT purposes in Estonia and will not hire any employees.
The monthly fee for accounting services in case you have a company that is operating with cryptocurrencies and digital assets is EUR 195 (excl. VAT, if applicable). This includes monitoring the cryptocurrency transactions, inserting transactions to our accounting system and our regular accounting advice.
Are there any requirements or restrictions that need to be taken into account when choosing a name for my company.
The key questions when choosing a business name are as follows:
• the business name of a company must be clearly distinguishable from other business names entered in the Commercial Register;
• the business name of a self-employed person must be clearly distinguished from other business names entered in the Commercial Register;
• one self-employed person may have several business names if he/she has several companies registered in the Commercial Register;
• the name of a non-profit company and foundation must be clearly different from the names of other non-profit companies and foundations entered in the Commercial Register;
• the business name shall not be misleading with regard to the legal form, area of activity or scope of activity of the undertaking;
• the business name shall not be contrary to good morals.
How long does it take to register a company?
If you are an e-Resident of Estonia and have an e-Residency card then we will be able to register a company for you within one business day. If you are not an e-Resident of Estonia, then we will register a company for you via a Power of Attorney which takes up to 5 business days.