249
Companies registered in Estonia
301
Regular
clients

27 reasons for registering a company in estonia

Below is a list of advantages that make Estonian companies compare favourably with companies in other countries:

  1. Only in Estonia, the corporate income tax is 0%. It is a great benefit to entrepreneurs who use their earnings not for making payments to natural persons but for reinvesting them into the development of their business.
  2. Since 1 January 2011, companies are no longer required to have a local resident in their managing body as it is done, for example, in Finland, Lithuania and other European countries. This means that non-residents of Estonia and the EU can freely act as founders and members of the management board.
  3. There is no requirement to pay any remuneration to members of the management board (directors) and, consequently, no minimal rates apply.
  4. There is no requirement to make any actual contributions to the share capital (min. 2,500 euros) at the time of registering a company. All you need to do is just to declare the share capital.
  5. You do not have to submit any reports to the Estonian Tax and Customs Board if no salary or remuneration is paid and the company does not have a VAT identification number.
  6. You will be able to obtain a business visa for one year (and then for three years).
  7. Banking services are reliable and accessible and are based predominantly on the capital of Scandinavian countries: Sweden, Norway, Finland and Denmark.
  8. An Estonian company may receive unlimited loans from its shareholders which allows it to withdraw the earned profit in the form of annual dividend payments without any taxes.
  9. Since 2016, there isn’t any official black list of (offshore) jurisdictions approved by the Customs and Tax Board transactions with which used to be taxable with income tax.
  10. If a company actually carries out its business activities, it is possible to apply for a temporary residence permit for a member of the management board or a shareholder.
  11. An Estonian company can acquire ownership of immovable property without any taxes.
  12. It is possible to buy a car for the company without paying the VAT or have a VAT refund (10-20%).
  13. There is no transportation tax on cars for both natural and legal persons.
  14. Companies resident in Estonia avoid double taxation by benefitting from tax agreements with a wide range of countries: Austria, Armenia, Belgium, Belarus, Britain, Hungary, Germany, Holland, Denmark, Ireland, Island, Spain, Italy, Canada, Kazakhstan, China, Latvia, Lithuania, Luxembourg, Malta, Moldova, the Netherlands, Norway, Portugal, Poland, Romania, Slovakia, Slovenia, the USA, Turkey, Ukraine, Finland, France, Croatia, the Czech Republic, Switzerland, Sweden… There is some hope that soon Russia will also be on that list.
  15. Estonia has a very transparent and straightforward taxation system.
  16. Estonia boasts a strategic geographical location close to Russia, Finland, Sweden and Latvia.
  17. The annual minimum costs of running a company are very low (about 250 euros a year).
  18. The costs of maintaining the company’s bank account are also very low (compared to the usual costs in Russia); an account can be opened free of charge; Internet banking is available in Russian and English.
  19. Because the Estonian jurisdiction is held in high esteem, there will be no problems with opening an account in any European bank.
  20. Only a small number of activities have to be licensed in Estonia; the majority of permits are granted on the basis of notification.
  21. When trading on the Internet and in many other cases, you will be able to register your domain name in the European domain zones (eu, ee, es, etc.).
  22. There is no red tape – none at all.
  23. Such arrangements are very convenient for creative and IT businesses that do not require your physical presence and target international markets. It is an ideal option for freelancers who are not tied to a specific place of residence.
  24. If you pay yourself a salary and all the relevant taxes, you are entitled to free medical care.  If your life is in danger during your stay in another European country, you will be entitled to free first aid in public health facilities of that country.*
  25. When you pay taxes, you accumulate funds on your pension account and in the future you can expect a pension from the Republic of Estonia.
  26. Potential customers from Europe are much more willing to enter into agreements with an EU company than a company from Russia or the CIS countries.
  27. An Estonian company may register intellectual property (patents and trademarks) in a faster and cheaper way

 

You will find the prices for registering a company in Estonia here.