The local legislation does not involve the use of restrictions on minimum and maximum amounts of capital when registering a business.
It is formed within a range of a year and longer – up to the uncertain period. The founder of the company will be held liable within the declared amount of money.
In here, the Board member may register a company and maintain it and there are no requirements for residency. The powers of the employed manager are stipulated by the Labor Contract Law. Once again, there is no such thing as the offshore zone in Estonia. The country may act like this if certain conditions occur.
The country does not set out requirements to get work permits unless it refers to the visa Category D. For instance, a CIS country resident may get a work permit in 3 to 6 months. This issue is very quickly settled if an employee is recruited by assigning a Board member.
The company management does not predetermine the unconditional right to a presence in the country or within the territory of the Schengen zone.
An individual is required to open the visa Category C for this purpose which is the ground to stay within Estonia for 180 days within a year.
A business trip with “business” mark should be specified as the goal of the visit.
Specificity of the registering
Making an advance payment at the rate of 50 percent.
Choosing the existing company or registration of a new one.
Specifying of information on the owner and authorized representatives.
Delivering of existing documentation by DHL mail to any destination.
Stock capital is 2500 EUR.
Type of company — OÜ/AS.
Tax rate – from zero percent.
Membership – one director and more.
Company formation in Estonia is very simple and fast process.
The offshore zone in Estonia does not set requirements for work permits, but this does not apply to the procedure for visa Category D.
Benefits of registering the company
Zero taxation. Zero rate is valid until the company starts profit distribution for shareholders, for example, dividends.
No need for monthly reporting. If a business is not considered taxable, it reports annually.
Double tax agreements are concluded with Poland, Latvia, Lithuania, China, Turkey, Hungary, Romania, Slovenia, Slovakia, Belorussia, Ukraine, Armenia, Moldova, Great Britain, Kazakhstan, Croatia, Canada, USA, Malta, Germany, Netherlands, Portugal, Italy, Switzerland, Spain, Austria, France, Denmark, Belgium, Czech Republic, Luxembourg, Sweden, Iceland, Norway, Ireland, Finland, Isle of Man, and Jersey.
No audit. Auditing is required only if certain conditions arise.
If any criterion arises:
The balance-sheet is equal or more than 3.5 million Euro.
Staff number is 90 and over.
The Profit is 6 million Euro and higher.
Two of the following criteria:
The balance-sheet is equal or more than 1 million Euro.
The staff number of the company is equal to or more than 30 people.
The profit or sales amount is equal to 2 million Euro and higher.
A zero rate for income tax applicable for legal entities is available since 2000. A zero rate is valid until the profit distribution between founders or shareholders.
The corporate tax and income tax remain zero where the profit is not distributed in the end of the fiscal period. In this case, assets may be safely accumulated on the company’s settlement account. Reinvestment within the tax-free regime is possible.
If there are external credit obligations, only interest amount is taxed, but not the principal of the borrower. To prevent that a businessman spends his time to study legal bases in Estonia regarding the business registration, the Private Financial Services Company is willing to provide the qualified consulting to choose the best effective option.
We render assistance in a new company registration as a VAT taxpayer and we are ready to further report with declarations with no company owner involved.
This does not require personal visit of the tax service of the Board member. Our company acts as per the proxy signed by the owner of the company.
A business will be quickly registered in Estonia with no excess bureaucracy.
A business registered in Estonia and its management require report submission to three authorities at any time:
Tax department. The company submits reports on a monthly basis provided that the special VAT payer number is available. If the business is done in the European Union countries, the report on product turnover in the European Union is also required.
Commercial Registry. A declaration is submitted on financial activities for the previous year.
Department of Statistics. Companies submit statistical reports on a provided quarterly basis. The documents contain information on the type of activities carried out by the company, remuneration for managers and employees.
Thanks to good practices, experience gained, qualified theoretical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help to open and register the business activity in Estonia.