Company Registration in Estonia
Being an EU member, Estonia adheres to a strong business potential for entrepreneurs globally. Although this nation suffers from a small market size, it opens its doors to other EU markets. Estonia is home to a number of startups serving diverse industries. This nation’s financial system supports most businesses, allowing for easy credit facilitation. From e-commerce, life sciences, IT, and electronics to retail, Estonia has a robust and thriving corporate framework. Starting a business in Estonia is straightforward for most overseas applicants. The nation is best known for its supporting business environment and favorable taxes. The article navigates bureaucratic implications for securing a company registration in Estonia.
Checklist for Securing Company Registration In Estonia
The journey to securing a company registration in Estonia starts with applying for the e-Residency card. Here’s how you can apply for the same.
Prepare your documents
Applying for an e-Residency has everything to do with the basic dossiers, which help reinforce the applicant’s identity. These documents include:
- Business Plan
- Travel document
- ID proof
- Digital passport photo
- Motivation Statement
Complete the application online.
Once you prepared the documentation, head to the government portal viz. Estonian Police and Border Guard Board website for application filing.
Pay the fee online
The successful filling will lead you to the payment page wherein you can submit the applicable fee.
Track your application
Post application submission, the portal will generate the reference number which you can use for application tracking. The authority may take 4 to 5 weeks to process the application. The decision concerning the application acceptance or rejection shall be shared with the applicant via a registered email ID.
Pick the e-residency card and kit
If approved, you can pick up the e-residency card and kit from the Estonian embassy in New Delhi,
Set up your card
The kit entails the ID software, which you must use to install on your system. The gathering of the e-Residency cards will help you initiate the formalities concerning the company registration process.
Structures for Company Registration in Estonia
There are various legal structures to choose from when it comes to company registration in Estonia. These include:
Sole proprietor (FIE)
It is a popular business form that can be managed and run by a single person. If you are a solopreneur, this structure could be the best option for you. However, it is worth noting that this structure does not support the concept of limited liability, meaning it can put the owner’s assets in peril during financial mayhem.
Private limited company (OÜ):
It is among the popular business forms, offering increased stability and limited liability. The members are not liable to address the company’s debt wholly as their liability is limited to their contribution.
Public limited company (AS):
This structure favors companies with an augmented operational footprint or sizeable market presence. It allows for public share trading, ensuring that businesses can raise funds for expansion or growth. It can accommodate any number of shareholders. The only downside of AS is that it faces increased regulations and financial scrutiny.
General partnership (TÜ):
This structure works fine for two or more individuals seeking to work together to accomplish a business goal. TU brings unlimited liabilities for members, putting their personal assets at stake. It can be easily set up without spending a fortune.
Limited partnership (UÜ):
Akin to the general partnership, Limited partnership (UÜ) is helmed by two types of partners viz. General partner and Limited partner. General partners attract unlimited liabilities but have more control over managerial affairs, unlike limited partners.
Commercial association (ühistu):
This type of company structure is ideal for those seeking to run a charitable entity.
Documents Required for Company Registration in Estonia
Some common paperwork required to legalize an entity in Estonia includes the following
- Extended registry card with the history.
- Extended registry card.
- Tax residency certificate.
- Company Ultimate Beneficiary owners list.
- Articles of association.
- Certificate on the absence of tax arrears.
- Registry card.
Note: the paperwork may vary depending on the type of structure being chosen.
How Can Indian Applicants Secure Company Registration in Estonia?
Whether you are an entrepreneur, consultant, digital nomad, or freelancer, securing company registration in Estonia as an Indian applicant requires following the given steps:
- Apply for e-Residency. You can apply for e-Residency via the Estonian Police and Border Guard Board website and pick up the card from the embassy in New Delhi.
- Select the company name: You can leverage the online portal to register and verify the company name.
- Secure a business place: Secure a legal Estonian address for business communication. This is the place where you will undertake operations, manage documents, and communicate with authorities.
- Register your company: Head to the company registration portal to legalize your entity under Estonian laws. This requires filing the online application and submitting the fee.
- Receive confirmation: Once the authority approves the request concerning company registration, they will send the confirmation notification via the e-Business Register.
- Open a bank account: Open a corporate bank in the Estonian bank that offers digitized banking services. This step is vital to legalize your entity.
Taxes to Consider Before Obtaining Company Registration in Estonia
Estonia fosters a transparent and stable tax system, making life easier for overseas businesses. It is among the few EU nations that are lauded for its supportive business environment and minimal bureaucratic hurdles.
The corporate tax rate has been capped at 20%, which is lower than most of the EU nations. Corporate income tax applies only when the profit is distributed, not earned.
The best part is that business owners are no longer required to address withholding taxes and capital gain taxes. Businesses have access to various exemptions, leading to increased profit margins.
Conclusion
It is evident that applying for Company Registration in Estonia is not a tedious process but it requires a cautious approach. e-Residency card is the basis of the registration process and hence securing it should be your utmost priority when going for company registration in Estonia. If you encounter any bureaucratic hurdle, connect with Adviso without thinking twice. Adviso is among the prestigious agencies in India. It is well-known for easing international business endeavors through unmatched expertise and knowledge about regulations.
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