A Beginner’s Guide to Estonia Company Registration

Estonia Company RegistrationEstonia is known for its business-friendly environment. It is a country that promotes innovation, technological development, and entrepreneurship. And you’ve come to the right place for everything about Estonia company registration.


A Strategic Location

With easy access to many of the other markets around the European Union zone, Estonia sits in an ideal location. Especially if you’re thinking about expanding your business to the rest of Europe in the future, the country offers plenty of avenues for you.


Registration Without Hassle

Company formation is easy, quick, and straightforward. In fact, if you have all the information and documents ready, the Estonia company registration process can be done within a week (or less).

Why is the Estonia company registration process so quick? Because most of it is done digitally, thereby removing the unnecessary paperwork and bureaucracy of the past. With our 3E Accounting experts gathering and preparing the documents for you, the incorporation can be a quick and easy one.


The E-Residency Program

The Estonia company registration process is even easier with the E-Residency program. This program lets non-residents establish and manage their business online. You don’t need to be physically present in Estonia to operate your business.

Once you are an E-Resident, you will be given a secure digital identity card that contains a unique digital signature and microchip. With this, you can securely authenticate your identity and access several services online. Once your Estonia company registration is complete, you can run and manage your business entirely online.

Company formation has never been easier. With a digital identity, you can even open a business bank account online, sign contracts, and other legal agreements. Under the E-Residency program, you can engage in cross-border business activities too. Become part of a growing international community today and ask our 3E Accounting experts how we can help.


What Is the Tax System in Estonia for Businesses?

Estonia’s tax system is known as the “Zero Tax Model”, sometimes called the “Estonian Model”. This tax model is one of the reasons why Estonia is such a business-friendly environment. Under this zero tax model, companies are not taxed on corporate profits at company level. Taxes only come in when profits are distributed to the shareholders as dividends.

The biggest advantage of this model is that as long as profits are reinvested, your business could avoid paying corporate tax on your profits. As for dividends, the tax rate imposed is 20%.

Other taxes that businesses need to deal with in Estonia are VAT and social tax. VAT taxes are set at a standard rate of 20%. Employers must also pay social taxes on employee wages to cover healthcare and social security funds. Capital gains taxes in Estonia are generally not imposed if certain conditions are met. Ask our 3E Accounting experts for more information.


What Are the Steps In the Estonia Company Registration Process?

Your business can be registered in Estonia in a few simple steps:

  • Choose Your Business Structure: The Private Limited Company structure is the most common type of business structure, but there are other options available. This includes Public Limited and Sole Proprietorship business structures.
  • Choosing Your Company Name: Select and reserve your business name with the e-Business Register in Estonia.
  • Gathering Your Documents: The documents you will need are the application form, Articles of Association, personal particulars of the shareholders and directors, and your registered office address. Your application must be submitted to the e-Business Register.
  • Open A Bank Account: You will need an ID card or your certificate of incorporation to open a business bank account.

If VAT is applicable for your business, you will need to register for that too. Our 3E Accounting professionals can guide you through the setup process.


Get In Touch and Get Started

The Estonia Company Registration process is where your future in Europe begins. Come chat with our experts and let the next step of your business begin now. For more information about setting up a business in Estonia and other jurisdictions, visit our website today.

Estonia Company Registration