At these challenging times, having doubts about whether it is worth starting your business now or waiting for better times is indeed normal. In this blog article, we focus on some advantages and opportunities Covid-19 brought to the entrepreneurship sector; in so doing, we did not mean to deny the damage the virus has caused.
The worldwide pandemic started in 2019 is now firmly established in the current world and has its influence over every aspect of human life. So far, the severe economic damage that appeared to be critical has eventually minimised, and the worldwide economy seems to adapt to changes brought by Coronavirus sufficiently. Moreover, as entrepreneurs have seized the opportunity to start businesses during the Covid-19 pandemic, it becomes evident that you can capitalise on every situation.
What are the benefits?
It is definitely that not every business can succeed during the recession — quite contrary. Our intention is not to romanticise the recession but to expose reasons why it could be good for some businesses to start a business right now.
Necessity brings invention
Coronavirus has caused a number of problems that need to be resolved. Innovation — is the key to the solution people need during the downturn.
The pandemic illustrates how creative humans are. Such adaptability fascinates and encourages more and more people to start businesses. Even though the idea you want to follow exists already, you can be innovative while delivering and developing your business.
Less competition
It’s kind of taking advantage out of disadvantage, but it is a fact that due to the sad story end of many businesses, there is less competition on the market. Whether you decide to make a good start for your idea or thinking of re-entering the market — it is the time.
Funding opportunities
During the recession, funding becomes more accessible as interest rates become lower. It may sound illogical, but it is an excellent time to look for funding.
Moreover, considering the current business environment, negotiating for lower cost and better conditions is more appropriate than ever.
What are promising industries?
Tech
Tech or contactless tech is the primary field for investing at the time of the Covid-19 pandemic. Rapidly spreading through airborne droplets virus affected human’s perception of communication and interaction. As many shops and catering places went trading online, more and more potential opportunities appear.
Whilst there are plenty of innovative technologies existing on the market, the long-standing virus contributes to the need creation. That need demands satisfying in the face of new businesses offering solutions to current problems — where ‘online’ is a keyword.
Crypto
It is not really fair to say that Covid-19 facilitated the rise of cryptocurrency businesses. Better to say, so far, the pandemic did not affect the crypto industry. The flow of time and tech progress strengthen cryptocurrency position by natural causes.
Being 100% online-based industry, cryptocurrency is promising more than ever now. However, if you decide to build a crypto business, it is crucial to evaluate the risks and consult professionals.
Going online
IT-business are still as relevant as they were during the past decades. Furthermore, Coronavirus compelled even no fans of technologies to use online services, thereby creating an absolute online necessity.
When everything moves online, it is more than enterprising to invest in the ‘online industry’. More likely, when the pandemic is over, the usage of machines continues to increase rather than decrease as humanity strives for comfort.
Our previous blog articles explain why Estonia is a good place for starting your business. In this article, however, we would also like to add a mark regarding Estonia being a perfect place for setting up your company during the pandemic.
e-Residency allows you to establish a company remotely that is indeed relevant at a time of the pandemic. Moreover, in Estonia, cryptocurrency is regulated by the law, providing security and legality for your potential business. Estonia fintech opportunities, as well as, the talent pool, will contribute to your business growth; just consider — how to benefit the situation.[/vc_column_text][/vc_column][/vc_row]
There are some legal nuances unique to crypto business that are not inherent in any other type of business. As with any other type of e-business, setting up banking for a virtual currency company is straightforward. The purpose of this blog post is to break down the issue and provide a solution.
Cryptocurrency businesses have yet to be legally regulated in many jurisdictions around the world. The cryptocurrency market in Estonia is strictly regulated by law. The government regulations in Estonia are credible, stable, and provide complete legality to crypto businesses.
Crypto entrepreneurs still face challenges when it comes to opening bank accounts. As no Estonian banks deal with high-risk businesses (crypto, gambling, gaming, CBD, adult, etc.), it is not possible to open an account at one of them. It is quite common for the owners of crypto businesses to run fraud operations and break the law by sponsoring terrorists, for example.
More and more cryptocurrency businesses continue to develop and emerge, despite traditional banking institutions’ slow adaptation to virtual currencies’ contemporary world reality. Getting a banking account is an important step for any crypto company since it is required to operate, serve customers, and receive payments.
Also, high-risk industries tend to be more complicated and costly to open and maintain compared to other businesses. Obtaining all the necessary documents and complying with all regulations is the most challenging part of the process.
When it comes to crypto businesses, which face a higher level of risk, risk assessment is also important, as it helps prevent unexpected problems. A risk assessment and a detailed market overview can be obtained by consulting professionals.
Using this method, LKS Consult OÜ will find the most convenient and profitable solution for your crypto-company, saving you time and money. Our research identified the best bank/payment service provider to open an account for high-risk companies after comparing a large number of them.
Country
Onboarding time
Minimum deposit
Onboarding fee
Lithuania
From 7 business days
From 0
From 400 EUR
United Kingdom
From 1-2 business days
From 0
From 500 EUR
Dubai
From 3-5 business days
From 1,500 EUR
500 EUR
Puerto Rico
4-5 business days
From 0
750 USD
Dominica
From 2 business days
From 0
From 3,000 EUR
Offshore
From 5 business days
From 1,000 EUR
none
*In accordance with the bank’s specifications, the final terms may differ.
Besides consulting firms, LKS Consult OÜ offers other services as well. A third party will evaluate your case on a case-by-case basis with a more in-depth understanding of your circumstances. There are a number of variables to consider when choosing a service, including the onboarding fee, onboarding time, deposit, and other terms.
Well, it is required by the law. When doing business in Estonia, an entrepreneur undertakes to comply with local accounting standards. The company also needs to maintain accounting records so that creditors and business partners can be confident in the company’s financial position and accurate tax calculations.
What companies need to submit accounting reports?
All active companies and foreign branches registered in Estonia must submit reports. The accountability of every Estonian company must comply with government regulations.
What is an annual report in Estonia?
Annual reports are intended to give shareholders and other interested people information about the company’s activities and finances. The annual report’s mandatory components include the management report on the company’s activities, the balance sheet, the company’s profit and loss statement, and the company’s capital statement.
Does every company need to submit an annual report?
Yes. Each company registered in Estonia must submit an annual report. Even companies with no activity during the financial year.
What is the deadline for submitting an annual report in Estonia?
Annually, no later than 6 months after the end of the financial year (often – the calendar year, from 1 January to 31 December), an annual report should be prepared and submitted to the Commercial Register containing a comprehensive overview of the company’s performance for the previous financial year.
Does my company need a VAT number?
The obligation to register the VAT number with the company arises when the volume of sales in Estonia exceeds 40,000 EUR from the beginning of the calendar year. A company can also apply for VAT registration before this threshold is reached.
Do I need to register a company taxable if the turnover is less than EUR 40,000?
No. If the company’s turnover in Estonia has not exceeded 40,000 EUR, registration as a VAT payer is voluntary. A company can apply for VAT registration before the designated threshold is reached.
Total assets at the reporting date – 2,000,000 EUR
Personnel of the company – 50 people
Or, if at least one of the following indicators is exceeded:
Income/profit from sales – 12,000,000 EUR
Total amount of assets at the reporting date – 6,000,000 EUR
The number of personnel is 180 people
Do I have to pay taxes for employees outside Estonia?
No, you don’t. If the company has employees who are not tax residents of Estonia and work outside Estonia, the salary payments to these foreign employees are not taxed in Estonia, and we do not file tax returns for these employees. Foreign employees must declare their income on behalf of an Estonian company in the country in which they are taxable.
The price of accounting depends on VAT availability. The cost can also vary depending on the amount of the processed documents, employees, and other company’s responsibilities.[/vc_column_text][/vc_column][/vc_row]
Procedures for maintaining internal accounting should be developed at the beginning of the activity.
Internal accounting procedures should:
Describe the required chart of accounts with a description of the content of these accounts.
Regulate the procedure for documenting and recording transactions.
Establish circulation and storage of primary documents.
Regulate the maintenance of accounting registers.
Reflect income and expenses in the profit and loss statement.
Describe the inventory, assets, and liabilities of the company.
Determine the accounting policy, reporting procedure and other accounting.
Internal accounting rules are binding and individual for every company.
Balance sheet
Every Estonian company must prepare a starting balance sheet that lists the company’s assets, liabilities, and share capital before starting an economic activity.
Financial year report
The financial year of the company is 12 months. In most cases, the fiscal year is a calendar year(from January 1 to December 31). Still, a company charter or other document that regulates its activities may also set a different fiscal year following the accounting entity’s operating cycle.
Company management report
The management report provides an overview of the company’s operations and the circumstances that have played a decisive role in assessing the financial situation and business activities, significant events in the financial year, and the expected development directions in the next financial year.
Annual report
The annual report is mandatory for every company registered and operating in Estonia and must comply with government regulations. The annual report consists of an annual accounting report and a report on the activities of the company.
Audit
An audit or review of the annual financial statement aims to increase the reliability of your company’s financial information in the eyes of investors, shareholders, and the public.
It is important to remember that a certified audit report does not relieve the Management Board from liability for the accounting report’s content.
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2220px%22%7D%7D”]The specialists of LKS Consult OÜ will be happy to assist you with accounting services for your Estonian company.[/vc_column_text][/vc_column][/vc_row]
Here’s a short guide introducing how company establishment by visit look like with Service .
Before visiting Estonia in person, please send the following information:
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column css=”%7B%22default%22%3A%7B%22margin-left%22%3A%220%22%2C%22margin-right%22%3A%220%22%2C%22padding-left%22%3A%220%22%2C%22padding-right%22%3A%220%22%7D%7D” width=”1/4″][vc_column_text][/vc_column_text][/vc_column][vc_column width=”3/4″][us_iconbox icon=”fal|calendar-alt” title=”Planned date of visit” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|star” title=”Desired company name” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|list-ol” title=”Type of activity of the company” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|file-user” title=”Data of the Owners/Beneficiaries of the company (passport photo, email, telephone, residence address, marital status)” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|clipboard-user” title=”Data of the Directors of the company (passport photo, email, phone number, residence address, marital status)” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][/vc_column][/vc_row][vc_row][vc_column][vc_column_text el_class=”padding”]
Appointment of the date and time of the visit to the notary. After receiving the necessary information, we will book an appointment with a notary and draw up a petition to establish a company.
Preparation of the necessary documentation in order to establish a company in Estonia, it will be necessary to visit Estonia for one day, as well as a legal address and a contact person. Our company takes care of this for you.
Client’s visit at our office on the appointed day of your arrival, we will meet at the office of LKS Consult OÜ .
Joint visit to a notary to sign a prepared petition Company formation by visit of the founder/s is the fastest way to establish a company in Estonia.
Service will help you to start your company by power of attorney. Here’s the sequence.
1. Requested information
It is necessary to send photos of passports of all company founders and information about the company to be established (desired name, type of activity, means of communication, and information about founder/s).
As soon as the requested information is provided, our lawyer will send you examples of powers of attorney in English, which will need to be certified by a notary in your country.
2. Sworn translations
After that, we will prepare a sworn translation of the power of attorney into the state language.
3. Notary and apostille
Next step is to certify all powers of attorney at a notary and apostille them (if necessary). In the process of certification of documents, it is important to take into account the format in which a power of attorney is issued and whether it needs to be additionally apostilled in your country.
4. Final sworn translations
After the powers of attorney have been drawn up, they will need to be translated into English by a sworn translator.
5. Transferring the powers of attorney
After certification and translation of all powers of attorney, they will need to be sent by courier to LKS Consult OÜ at Pärnu mnt 105, Tallinn, Estonia. The process of establishing a company takes about two weeks (the received powers of attorney must be translated into Estonian, and the notary who will establish the company, must familiarise themselves with the documents).[/vc_column_text][/vc_column][/vc_row]
Сompany registration involves various legal aspects regulated by the Estonian legislation. Among which is VAT registration being essential in some cases. In this article, we consider when you should register VAT for your company and how to do so.
The process
First and foremost, сompanies are obliged to register a VAT number in a case when sales in Estonia exceed 40,000 EUR from the beginning of the calendar year. If sales do not exceed 40,000 EUR in Estonia, VAT payers can be registered on a voluntary basis.
Please note that since exceeding the threshold of 40,000 EUR, you have three working days to register your company as taxable. Hence, the Estonian Tax and Customs Board will treat your company as taxable from the moment of reaching the threshold.
It is also possible to apply for VAT before the threshold value is reached. In that case, if you feel that your company is likely to reach the threshold of 40,000 EUR, it is wise to start the process beforehand.
When VAT is registered, as a VAT payer, you must pay it to the Estonian Tax and Customs Board and submit monthly VAT returns. It refers to the months during which there was nothing to declare.
As we already mentioned, you can voluntarily register your company for VAT if you don’t exceed 40,000 EUR of annual sales. You need to prove to the Estonian Tax and Customs Board that you intend to start and run your business in Estonia. Usually, the authority asks for your business plan.
Authorities may also refuse VAT registration if your company has no visible activity located in Estonia. The consideration of your application usually takes up to 5 days. Once approved, you will receive your company’s VAT number. The Estonian VAT number starts with a prefix EE which is followed by nine digits: EE123456789.
Numbers
The general VAT rate is 20% in case your OÜ provides services to clients. It also could be reduced in some particular cases. For example, if your company deals with providing accommodation services, book sales of books, or medical services/products. If you serve customers in third countries or another EU country, 0% VAT is applied.
Some legal nuances also depend on the type of service that is performed, which allocate where a specific service should be subject to VAT. You can find more detailed information on the Estonian Tax and Customs Board homepage.
All in all, the taxable period for VAT is one month, and you must declare and pay VAT to the Tax Authorities by the 20th day of the month following.
While submitting the application, you will be asked to pay a state fee and choose a pick-up location for your e-Resident card kit. The state fee is 100-120 EUR depending on the pick-up location.
Once submitted, check your email for confirmation and wait for your application’s approval, which usually takes between 4 and 8 weeks.
After receiving positive news, first of all, we congratulate you and kindly remind you to take your ID and pick up the kit strictly by yourself.
2. Take care of legal address and a contact person based in Estonia
It is an absolute requirement to have both in order to set up your company with an e-Resident card.
It is well-known that Estonia is a good place for business as it welcomes every entrepreneur. Estonian legislation proves this fact. Whilst it may sound not very pleasant by its complexity, company registration in Estonia doesn’t take piles of documents. Just make sure to have a legal address and a contact person in Estonia − and bear in mind, we are here to help with both virtual office and a contact person.
3. Choose the name, decide on Management Board, set up accountancy and figure out the taxation − give it a good start, fill up this form:
We promise to do our best so your business will have a great start.
4. Grow your business and enjoy multiple advantages of e-Residency!
e-Residency provides your company with freedom. Manage the process entirely online by submitting, signing and securing all the documents remotely. Make your company global without a hard effort but by taking the proper advantage.
LKS Consult OÜ offers full support on all stages of developing your business, starting from company formation in Estonia.[/vc_column_text][/vc_column][/vc_row]
[vc_row][vc_column][vc_column_text el_class=”padding”]LKS Consult OÜ is a team of specialists who will help you open and develop a business in Estonia. The company was established in 2016, and since then, we serve our mission to make a positive contribution to the Estonian business market. In that way, the team of LKS Consult OÜ is qualified to provide a wide range of company formation services.
Our company is also pleased to announce that we speak five languages. We are happy to answer your enquiries regarding an Estonia company registration in English, Latvian, Lithuanian, Russian, Estonian.
Core values
Innovation
Apart from ambition and striving for novation, innovative solutions require skilful implementation, full awareness of the environment, and the embodiment of an idea. Our team constantly strives for quality improvement of the services offered, providing a mutually beneficial and comfortable environment for clients, whose plans include opening a business and developing a company in Estonia.
Fast and efficient: the local digital environment has made Estonia the starting point for implementing bold business ideas for entrepreneurs from all over the world. It is vital for us to expand long-established corporate boundaries and provide new startup opportunities for our clients from every corner of the world.
We hope to bring new value to the business formation by basing our principles on Estonia’s limitless possibilities in an era of technological advancement and simple business solutions that are just one click away!
Individual approach
LKS Consult OÜ prides itself on the fact that clients have different ethnic identities and sees its mission as universal integration into the forefront of Estonian entrepreneurship.
We are well aware of both the needs of our clients and the capabilities of our company. We respond quickly to the industry’s volatility and a variety of challenges we face. We strictly adhere to professional ethics principles, as we are convinced that it is essential for efficient cooperation and service.
All of our services are tailored to customer demand and can be designed at an individual request. We constantly introduce improved services for our clients’ convenience, developing in line with the industry and following Estonian legislation amendments.
Dynamics
It is no secret that the situation in the world is constantly changing and requires us to make quick and deliberate decisions. Based on this, in LKS Consult OÜ we keep up with the times. We value our clients’ time; therefore, the founding, accounting, and legal services are provided as promptly as possible. In the face of variability, the dynamics of a firm determine its success. It is crucial for us to provide quality service in no time, and hence, as a rule, we respond within a few hours. In addition, we consider it our duty to keep our clients informed of amendments to the Estonian legislation.
Teamwork
We understand that our work’s effectiveness depends on the personal contribution of each member of the LKS Consult OÜ team. Therefore, our vision is based on mutual assistance and daily teamwork. We are inspired by interaction with our clients, partners and colleagues.
We understand our mission and implement corporate values in all aspects of our business. One of the fundamental foundations of our success lies in setting achievable goals, corporate responsibility for team decisions and getting things done.
But please don’t just take our word for it — we have lots of numbers here to speak for itself:
We process about 50+ new requests every day in 5 languages.
100+ regular client-companies are set for permanent accounting.
88% of customers are our regular clients.
Our average order number has increased by 60% in just 1 year.
53% of customers run successful startups in Estonia and abroad.
93% of customers are satisfied with the service provided.
50% of services on our website were listed upon customers’ request.
98% of our online knowledge base is tailored to customers’ needs.
35% of satisfied customers refer us to their peers.
We offer flexible visiting hours.
We are currently engaged in projects from 100+ countries.
We guarantee a prompt up-to-60-minute quote from a company representative.
We are the only service provider in Estonian who offers a legal address in a premium skyscraper in the heart of Tallinn.
As a team of the Service , we always feel excited about upcoming collaborations and new clients joining our contribution to the Estonian business environment. Please be aware that we will help you register a company in Estonia in the shortest period possible and assist you with every legal aspect arising when you decide to open your company in Estonia.[/vc_column_text][/vc_column][/vc_row]
Having a virtual office in Estonia allows you to work from wherever you want. Moreover, as it is a must to have an Estonian business address prior to registering a company, we are happy to introduce our services.
Following the Estonian legislation, it is compulsory to have a legal address on the country’s territory to register a company. So that, if necessary, state institutions could send information letters to this particular address.
At this point, we clarify that having a virtual office in Estonia for the business purposes is absolutely legal. Virtual offices are regulated by the Estonian government, and only companies with proper licenses approved by the authorities, can offer the following service.
The main difference between a virtual address and a physical address is that a legal address is simply a registered address and a company mailbox. Let’s imagine your company needs a physical/real office with further receipt of invoices in the name of a company or a company with activity in Estonia. In that case, the specialists of the LKS Consult OÜ will be happy to help rent or purchase business premises for a physical office in Estonia.
When ordering this service from our company, all clients of LKS Consult OÜ will be informed about the mail delivery. With prior agreement, we will receive and store incoming post, scan and forward it to you.
Let’s consider the advantages:
Full legality
Low cost
Less concerns regarding practical
Professional impression
Remote business management
It is important to note that the founder or founders draw up the legal address in the e-Business Register. The address will be indicated in the decision on the establishment of the company, the Articles of Association, and the registration card. The software guarantees that only real addresses are added. A step-by-step guide is added to your order confirmation.
So, in that way, the official Estonian Commercial Register (e-Business Register) will contain all the data about your company, including the legal address. If desired, the official data can be saved as a PDF document, or, if necessary, the contract concluded with us on ordering the Virtual Office Service will serve as a certificate. You will be required to confirm the legal address in some exceptional cases, which you can download from the Commercial Register.
Also, be aware that If you decide to change information regarding your business address in Estonia, you must pay a state fee of 18 EUR to the Estonian Ministry of Finance. It could happen if the legal address has changed or the company no longer has the right to use it.
LKS Consult OÜ offers its clients to register the company’s legal address in the most prestigious business centre of Tallinn. Your future virtual office will be located at Tornimäe 7 in a premium skyscraper in the heart of the city. If necessary, we can prepare a utility bill, a crucial document for launching e-commerce on Amazon and opening an account with some banks in Europe.[/vc_column_text][/vc_column][/vc_row]
The worldwide pandemic started in 2019 is now firmly established in the current world and has its influence over every aspect of human life. So far, the severe economic damage that appeared to be critical has eventually minimised, and the worldwide economy seems to adapt to changes brought by Coronavirus sufficiently. Moreover, as entrepreneurs have seized the opportunity to start businesses during the Covid-19 pandemic, it becomes evident that you can capitalise on every situation.
[/vc_column_text][/vc_column][vc_column width=”3/4″][us_iconbox icon=”fal|calendar-alt” title=”Planned date of visit” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|star” title=”Desired company name” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|list-ol” title=”Type of activity of the company” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|file-user” title=”Data of the Owners/Beneficiaries of the company (passport photo, email, telephone, residence address, marital status)” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|clipboard-user” title=”Data of the Directors of the company (passport photo, email, phone number, residence address, marital status)” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”20px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22margin-bottom%22%3A%2210px%22%7D%7D”][/us_iconbox][/vc_column][/vc_row][vc_row][vc_column][vc_column_text el_class=”padding”]
It is necessary to send photos of passports of all company founders and information about the company to be established (desired name, type of activity, means of communication, and information about founder/s).
First and foremost, сompanies are obliged to register a VAT number in a case when sales in Estonia exceed 40,000 EUR from the beginning of the calendar year. If sales do not exceed 40,000 EUR in Estonia, VAT payers can be registered on a voluntary basis.
You can enjoy the benefits of e-Residency once you have obtained your Estonian digital ID − 
LKS Consult OÜ is a team of specialists who will help you open and develop a 