Set up estonian company
Advantages of setting up a company in Estonia
The Estonian taxation system and economic policy are favourable for business. Tax preferences have been created and the process of registration and management of the company has been simplified as much as possible. The Estonian banking system has good credit ratings, developed IT infrastructure and convenient internet banking. Estonia has simplified procedures for opening a company, bank account and obtaining an EORI number. Estonia is focused on non-residents and you will be able to receive financial service in Russian, Estonian and English. To date, Estonia has signed the Double Taxation Convention with 59 countries.
Registration of companies in Estonia
Any foreigner, whether EU resident or non-resident, can open a company in Estonia. This also applies to citizens of Russia, Ukraine and other countries of the former Soviet Union – an Estonian legal entity is available to all foreigners. Estonian companies are very popular with our compatriots. There are a number of reasons:
- Cost: from 1500 euros;
- Registration time: 5 days;
- Formal and legal possibility to reduce the tax burden;
- Convenient remote control of the company;
- Prompt registration of the legal entity;
- Full opportunity to work in the European market.
Setting up a company in Estonia is an excellent solution for opening offshore for businesses of different scale and in different spheres of activity. Jurisdiction is particularly popular with freelancers who provide services via the Internet, as well as with classic businesses targeting the EU and North America.
Documents for registration a company in Estonia
To register a company you need to provide:
- Copies of passports of all founders;
- 3 names of the future company (in case one of them does not pass);
- Confirmation of your home address (can be confirmed by utility bill) and mobile phone;
- Description of your main activity.
On the basis of these data we will prepare the registration package of documents, which includes the founding agreement, the charter and the application for registration of the company. There are no minimum number of board members in Estonia. Therefore, as we have already specified above, you can be the sole founder and at the same time be the only member of the board.
Taxation
In case of withdrawal of profit from the company (distribution of dividends), it is required to pay taxes. In 2017, Estonia’s tax system underwent significant changes and income tax is now calculated at 14/86 and 20/80. Both bets are not expressed in percentages and operate simultaneously. Such a system often enters a stupor, so let’s look at the example. In Estonia there is no clear rate of income tax, expressed as a percentage, for example, 15 or 20 percent. Instead, the country has a policy – the more the company withdraws (distributes) profits, the lower the tax next year.