Регистрация компании в Эстонии. Налоговая система

Estonia is a country with the most favorable conditions to establish a business. A good investment climate, loyal legislation, and prospects of developing trade relations with the EU member states are the main factors that attract entrepreneurs to this country.

Key legal aspects of the company registration in Estonia

The main legal aspects of the company registration must be studied in detail before proceeding with this procedure.

1. Appointment of the director of the future organization. The business owner (non-resident of Estonia and the EU) or a hired employee may work as the company director.
2. According to the law, an entrepreneur must indicate the beneficial owner when starting a business in Estonia. The following documents are required: a Certificate of Beneficiaries (CV), information on welfare, and documented sources of funding (extracts, tax statements).
3. It must be borne in mind that the use of nominee services is legally prohibited in Estonia. Only real persons can act as beneficiaries.
4. A legal address is a prerequisite for opening a company on the territory of this state. It can be rented.
5. The minimum share capital is 2,500 Euros. However, it is allowed to pay it in gradually.

Taxation of companies in Estonia. What a non-resident must know.

Legal entities in Estonia pay the following types of compulsory fees:

1. Profit tax is defined by the presence/absence of distribution of profits. Retained earnings are subject to the 0% rate.
2.Once the profits are distributed among the shareholders, the tax rate is 20%.
3. Value Added Tax (VAT) is charged at 20%. The rate can be reduced to 9% or 0% in some cases.

Forms of legal entity incorporation in Estonia

There are two main forms of legal entity incorporation in Estonia:

OÜ is equal to an LLC in the Russian Federation. The initial capital must be at least 2,500 Euros.
AS stands for a Joint Stock Company. The authorized capital must be at least 25,000 Euros for this form of business.

Opening a bank account in Estonia

The following important issues must be taken into account when opening a bank account:

an account can be opened in Estonia only if the entrepreneur has local buyers/partners;
if the business is completely focused on the international market, then the account can be opened in banks of other states or through payment systems. In the latter case, the entrepreneur gains the following advantages: fast execution of transactions and low fees;
there is no foreign exchange control in Estonia. This means that cash can be withdrawn and transactions can be made in unlimited quantities.

Pros and cons of opening a company in Estonia for residents of the Russian Federation

There are following advantages of setting up a business in Estonia (by residents of Russia):

income tax can be paid at 0%;
founders and directors of the company can also be non-residents;
the authorized capital can be declared, but not put on the company's account;
the prospect of obtaining a visa for 12 months, and then for three more years;
the black list of jurisdictions (offshore companies) approved by the Tax Board, transactions with which were subject to income tax, has no longer been valid in Estonia since 2016;
acquisition of real estate and creation of a car park of the company without paying taxes.

The key disadvantages include the risk of being refused when opening a bank account (if the business is associated with cryptocurrency or there are plans to conduct business outside Estonia). After the registration, the company receives a set of documents, including a charter written exclusively in Estonian.

In case of any questions about registering a company in Estonia, please contact us at veritaslaw2009@gmail.com.