Benefits of company formation in Estonia
- It’s inexpensive. Obviously, everything in this world is relative. However, if one compares the cost of registering and servicing a company in Estonia with any other European jurisdiction, Estonia simply has no competitors in this regard;
- Remote registration procedure. You can register a company with the help of an e-residency card or prepare a power of attorney and send it by courier service to the Republic of Estonia;
- Special tax system. The company does not pay a corporate income tax unless it distributes it to its shareholders;
- The company is really very easy to administer.
- There is no need to formally employ a director and pay him a salary. There are no such requirements in Estonian legislation;
- There is no problem with VAT number;
- You do not have to pay your capital immediately;
- No problems in communicating with the accountant. Lack of an “offshore” reputation. The company in Estonia sounds solid.
- Broad framework of double taxation agreements
- For Estonian companies there is still room for opening accounts not only in payment systems but also in classical European banks;
- It is possible to obtain a residence permit (VND) in Estonia if certain conditions are met;
- A wide range of activities for which the Estonian company is ideally suited – product IT companies, outsourcing IT companies, SAAS services, classic export/import of goods and much more;
- The Estonian Tax Service aims to help good taxpayers to administer taxes correctly. The punitive function is used only in extreme cases of clear abuse by the taxpayer.
The most common way for estonia company formation in Estonia is through an electronic resident card.
It will take 4 to 6 weeks from the time the application is submitted and the necessary documents are provided to obtain the e-resident card. The declaration of the beneficiary is made remotely, without the need for additional documents.
The quicker way of not requiring a personal visit of the founder to Estonia is registration by a notary’s power of attorney. It is necessary to declare the beneficiary of the company within 1 month from the date of incorporation, then in parallel with the power of attorney it will be necessary to prepare a resolution on entering the proxy data of the beneficiary in the register.
The registration period of a company with the help of an electronic resident card is 1-2 business days.
The term of registration of a key-key company is 5-7 working days from the moment of delivery of the original power of attorney in Estonia.