Category: Business

Turnover of the Estonian Startups Increased by Half During the Last Year

[vc_row][vc_column][vc_column_text]startups EstoniaLast year was a success for startups in Estonia. Total sector turnover increased by 43%; companies attracted record investment, employment, and taxes paid. Seven companies were sold during the year, and another unicorn firm was established in Estonia, i.e. it is estimated by investors to be worth more than a billion dollars.

It was a particularly good year for Pipedrive, founded in Estonia, which develops sales management software, said Rangar Sass, a company co-founder. Pipedrive sold its majority stake in Vista Equity Partners at the end of the year, making it a unicorn.

All economic indicators confirm that the sector is becoming taken seriously by the industry. According to Startup Estonia’s chief executive Eva Peterson, the sector’s total turnover increased by almost 40% to €800 million. The amount of labour taxes rose by almost a quarter to €100 million.

According to the Ministry of Finance, the entire information technology sector and several other sectors were successful last year. Ministry of Finance analyst Madis Aben stated that demand for information and communication services and goods increased due to the specifics of the coronavirus crisis. “For several years now, the sale of software and especially export has been a strong supporter of the Estonian economy. Public administration, health, education – places with more work – also have a positive impact. Wages and employment declined in areas where there was less work”, Aben noted.

Our team can help with the development of your startup in Estonia and offer 4 options for establishing a company in Estonia.[/vc_column_text][/vc_column][/vc_row]

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Revolut Initiates Banking Services in Estonia

[vc_row][vc_column][vc_column_text]RevolutStill, the company has been granted a European banking licence does not yet offer a term deposit service. Revolut has submitted a European licence for banking services in Estonia on Monday. At present, the company has 40,000 clients in Estonia, Revolut representatives said in a press release.

In addition, customers can store their funds in a bank account and convert the currency in a mobile application. At present, Revolut does not offer a fixed-term contribution but is considering the possibility of providing this banking service, Ingrid Downaravciene ERR said. Revolut Bank CEO Virgilius Mirkes noted that new products and services would be launched in Estonia shortly.

Last year Revolut started banking activities in Poland and Lithuania, and last week in Latvia. Revolut Ltd – is a British financial technology company that offers banking services including debit card, currency exchange, stock exchange, cryptocurrency exchange and peer-to-peer payments. The company began operations in 2015.

Revolut is famous for exchanging money with no hidden fees, as well as buying cryptocurrency and spending money with detailed analytics. There are more than 15 million customers worldwide.

Our specialists will help you open an account for your company. We offer full support on all stages of developing your business, and offer a variety of services, including company formation in Estonia and accounting services in Estonia.[/vc_column_text][/vc_column][/vc_row]

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Estonian External Trade Returned to Pre-Crisis Level

[vc_row][vc_column][vc_column_text]According to the Department of Statistics, merchandise exports in April increased by 54% compared to the same month and imports by 51%. Both the low comparative base of the previous year and the increase in exports and imports of mineral products, electrical equipment and vehicles have had a significant impact on trade growth.

The increase in foreign trade was affected by the poor performance of last year’s trade and the rise in sales of mineral products, electrical equipment, and vehicles. Mineral exports increased by 185 per cent. According to the central bank, foreign trade turnover is growing for the second consecutive quarter and has already reached pre-crisis levels. Exports of goods are becoming increasingly diversified.

“We predicted that the volume of the commodity market should return to the level of 2019 by this time. Now we see an increase in activity everywhere, and in this sense, Estonian exports are even slightly ahead of forecasts. The Bank of Estonia’s economist Mari Rell noted that it keeps up with imports – businessmen are actively replenishing their warehouses”. In addition to solid growth in merchandise exports, services exports, particularly in info-technology, have also grown over a long period.

According to Luminor’s chief economist, Tindu Palma, Estonia was the fastest-growing exporting country in Europe in the first quarter after Slovakia. He noted that export growth in April had depended not so much on the increase in material prices and the increase in sales. “The entire European economy will also perform well in the coming months. We see that confidence in the export of services is also improving, so next month we can expect a good performance of Estonian exports,” said Luminor’s chief economist Tynu Palm. Palm added that the growth in trade shows that Estonia’s economy will grow faster this year than initially anticipated.

We offer 4 options for establishing a company in Estonia.[/vc_column_text][/vc_column][/vc_row]

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Cryptocurrency Funds: Types and Returns

[vc_row][vc_column][vc_column_text]The boom around cryptocurrencies and their fantastic returns in 2016-2017 was a crucial factor in the emergence of investment funds in the crypto sector. Then, investment in cryptocurrency against the backdrop of low returns on traditional assets looked very attractive. This was facilitated by the emerging market, relatively weak competition, a plethora of inexperienced start-up investors and the opportunity to earn hundreds and thousands of per cent per year.

Cryptocurrency funds are investment funds that invest their money entirely in cryptocurrencies or combine it with investments in other assets. Their goal is to maximize profits by managing their depositors’ coins or investing their funds in crypto projects and primary coin supply.

Large cryptocurrency funds with a high threshold of entry are necessary intermediaries for institutional investors to enter the crypto environment. Because of legislative constraints, particularly large investors in many countries cannot buy digital assets directly.

Smaller crypto funds, directed at retail investors, are suitable for those who want to make a profit but are not prepared to invest in cryptocurrency on their own. In such funds, specially trained managers and managers handle asset selection and trade. The depositor does not have to monitor the news, choose coins, worry about the course and balance of the portfolio – all for him, professional will do. Among the drawbacks of small crypto funds is that usually, money cannot be withdrawn before a certain date.

Types of cryptocurrency funds

By investor access, cryptocurrency funds are divided into:

Private — only qualified investors can buy their shares. These are the largest funds in the market, accumulating tens of billions of dollars.

Open — available to retail investors. Such funds are unregulated when the depositor simply buys the shares of the fund and regulates, or stock exchange (ETF), where the fund’s shares can be traded on the exchange.

ETF (Exchange-Traded Funds) is a crypto fund whose shares are traded on a stock exchange, which anyone can purchase. The fund itself buys crypto assets and then sells a share of the portfolio in security. This allows investors to invest in cryptocurrencies without buying them directly. To do so, they need to open a brokerage account. It is believed that the extension of ETF to cryptocurrencies would dramatically increase the number of investors in digital assets. Indeed, even those who have greater confidence in traditional investment instruments could invest in them since ETF is governed by securities law, and the fund is responsible for safeguarding coins.

By type of investment, funds can be divided into:

Venture capital — when the foundation invests money in blockchain and crypto companies. These are funds for large capital – not for a usual investor to enter them.

Hedge Funds — make profits from investments in digital assets.

Hedge funds also make money from increases in the price of crypto assets, but their shares are not traded on the stock exchange. Most often, regulated fund shares are available only to qualified investors, and the entry threshold starts at several hundred thousand dollars. For example, American hedge funds can only work with qualified investors with a capital of $5 million, and foundations in offshore jurisdictions can only work with investors with a capital of $100,000. Unlike ETF, hedge funds are much less regulated. They can be invested in almost any risky asset, including cryptocurrency.

Traditional hedge funds tend to follow active trading strategies in which they buy and sell cryptocurrencies in short periods in order to profit from fluctuations in their exchange rates.


The financial world slowly recognized cryptocurrency as a viable type of investment. The first cryptocurrency fund, Metastable Capital, was launched in 2014. But until 2017, they were not very popular – in four years, only a few dozen crypto funds were released on cryptography.

But 2017 was the year of cryptocurrency among retail investors. Millions of people around the world were buying cryptocurrencies, but inexperienced newcomers needed professional help. The first institutional investors also began to emerge.

LKS Consult OÜ offers “Creating a Cryptocurrency Fund” service. The team of experts of LKS Consult OÜ is happy to accompany your project in the necessary procedures for preparing documents and obtaining a license for an Alternative Investment Fund in Estonia. Our team offers full support on all stages of developing your business, and offer a variety of services, including accounting services in Estonia.[/vc_column_text][/vc_column][/vc_row]

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What to Know about Estonia

[vc_row][vc_column][vc_column_text]On the eastern coast of the Baltic Sea, Estonia is known as Estonia (Estonian: Eesti) or Eesti Vabariik (Estonian: Eesti Vabariik). The country’s eastern border is with Russia (324 km) and the southern border with Latvia (333 km). The northern maritime border with Finland lies in the Gulf of Finland; the northern and western maritime borders are the Baltic Sea and the North Sea.

Under the name «Estonia» (Esthonia), the country joined the League of Nations in 1921 after gaining its independence in 1918. The Estonian Soviet Socialist Republic, which joined the USSR in 1940, was renamed the Republic of Estonia after the collapse of the USSR in 1991.

OECD member since 9 December 2010 and member of the United Nations since 17 September 1991. Also, a Council of Europe member since 1993. In addition to being a member of the Schengen Area, Estonia is also a Eurozone member.

Basic Information


Capital — Tallinn
Language of the State — Estonian
Currency — Euro (€)
Population —  1 330 068 (January 2021)
Territory — 45,227 km2

This places Estonia 129th in the world and 29th in Europe in terms of population as well as the lowest among the Baltic nations in terms of economy.

Climate — humid continental
Time Zone — UTC +02:00; summer — +03:00
Calling code — +372
Internet TLD — .ee

Brief history

Estonia became the Governorate of Estonia in 1721 after Sweden and the Russian Empire fought the Great Northern War. It was bordered to the south by the Livonian Governorate and to the east by the Saint Petersburg Governorate.

On 24 February 1918, the Soviet Union disintegrated and the Republic of Estonia was proclaimed. As a result of the Estonian War of Independence, Estonia gained its independence. A peace treaty on mutual recognition was signed between Soviet Russia and Estonia on 2 February 1920.

A new Constitution was adopted by the Republic of Estonia on 15 June 1920. Estonia is a parliament republic, according to the Constitution. The League of Nations admitted Estonia on 22 September 1921.

Estonia’s first president, Konstantin Päts, ruled the country from 1938 to 1940.

The Soviet Union incorporated Estonia on 6 August 1940. The territory of Estonia was occupied by Nazi Germany between 7 July 1941 and 24 November 1944.

As a result of the collapse of the Soviet Union, Estonia once again confirmed its independence on 20 August 1991.

After becoming a member of the Organisation for Economic Cooperation and Development on 9 December 2010, Estonia became the first post-Soviet country to do so. Estonia adopted the euro on 1 January 2011.


North-eastern Europe is home to Estonia. On the north, it is surrounded by the Gulf of Finland, on the west by the Baltic Sea, on the south by Latvia, and on the east by Russia. Besides the Narva River and the Peipus lakes, Estonia has a land border with Latvia and Russia along the Pskov region. There are 3,794 kilometers of coastline.

With a total area of 4,200 square kilometers, Estonia has 2,355 islands in the Baltic Sea. In square kilometers. The largest are Saaremaa (2,673 km2) and Hiiumaa (1,023 km2) and Muhu (206 km2), Vormsi (93 km2) and KihnU (16.4 km2). Even though the islands cover a large area, their population is less than 5% of the country’s total.

More than 1,100 lakes cover about 5% of Estonia’s territory, nearly all of them originating from ice. Small rivers are abundant in Estonia.


Estonia has a total of 3,923 protected natural objects. There are 231 nature reserves, 157 landscape reserves, 6 national parks, 59 conservation areas that are old or undeveloped, 512 parks and stands, 319 preserves, 1,553 permanent habitats, 23 local government protected natural objects, and 1,066 individual protected natural objects, covering 23% of the national territory as a whole.


There are almost 35% of all Estonian species or subspecies at the border of their zones of distribution due to Estonia’s proximity to the vegetation-geographical provinces of Eastern and Central Europe.

Various climates have brought relics of different climatic periods to Estonia, which are referred to as stranded species.

A major reason for the spread of weeds is agriculture and freight traffic.  It is estimated that there are more than 2,500 species of algae and 680 species of lichen found on lower plants in Estonia. Estonia has 1,441 species of vascular plants and 1,538 subspecies of those species, according to the latest data.


It is estimated that there are about 60 species of mammals in the wild. The number of moose, roe, hares, and boars is very high. Raccoon dogs and noble deers were introduced in the 1950s and 1960s.  In the largest forests in many parts of Estonia, you can find a brown bear and a lynx.

Besides foxes and martens, badgers and squirrels live in the forests. Weasels, stoats, and ferrets are the most common species, along with European minks and otters near the ponds. A hedgehog, long-tailed shrew, and mole are some of the most common.

Diverse species of birds make up the majority of the species. The species count in Estonia is 331, including 207 species nesting permanently (c. 60 live year-round). It is common for many birds to migrate in mass during the spring and autumn to summer nesting grounds or tropical countries to spend the winter. There are 3 species of lizard and 2 species of snake, including common viper, in Estonian forests.

In freshwater and coastal waters, there are more than 70 fish species. Fisheries play an important role in many of them.


North and west are bound by the Baltic Sea; Estonia is located in the temperate zone. Climate is heavily influenced by Atlantic cyclones, and the sea nearby always keeps the air moist. Gulf Stream influences the climate of the Mediterranean, making it warmer in winter than in mainland Eurasia.

Traditionally, summer is the most popular time of year for holidays. During the summer, Estonia has an average air temperature of +20°C.

The Baltic Sea is the main factor influencing temperature formation in Estonia’s inland regions. There is a much greatertemperature difference between coastal and central areas in winter.

Estonia has significantly warmer average annual temperatures than continental climates located at the same latitude to the east.


The Estonian Republic is divided into 15 regions. In total, there are 33 towns in the country. Tallinn is the country’s capital and has approximately 400,000 residents (about a third of the country’s population). There are about 100,000 people living in Tartu, the second most populous city. There are about 50,000 people living in Narva, the third city.

Government system

A democratic parliamentary republic with the people as the ultimate authority, Estonia is an independent democratic republic with a Constitution adopted in 1992.

A unicameral parliament governed by 101 deputies is known as the Riigikogu, which is elected by direct and equal elections. The country’s 18-year-old citizens can vote in four-year parliamentary elections.

Estonian parliament building, Tallinn. Source: secret ballot, the members of the Riigikogu or the electoral college elect the president of the country every five years for a maximum of two consecutive terms.

The government has executive power. Whenever a parliamentary coalition or a winning parliamentary party won an election, the Prime Minister leads the government. Cabinet of Ministers are appointed by the president following the approval of the Prime Minister’s nomination.

The Chancellor of Justice oversees how the Constitution and the law are implemented by the public authorities, anindependent official appointed by parliament on the president’s nomination. Another independent body, the State Control Authority, is in charge of budget and property management for the State.

It is the Supreme Court that has the highest judicial authority. It is the district courts that decide appeals; the county courts, the city and administrative courts, as well as the prosecutorial authorities – the Public Prosecutor’s Office and the district procurators – decide cases in the first instance.

Essentially, local governments are responsible for organizing and managing all aspects of local life. They operate autonomously, have their own budget, and are authorized to levy certain local taxes and fees (e.g. advertising, street closures, pets, entertainment, parking fees).


In addition to being a member of the European Union, Estonia has a highly developed economy. Estonia has one of the highest levels of development among post-communist countries.

The minimum wage for the year 2021 will be 584 euros, with an hourly rate of 3,48 euros.

Independence period

Since Estonia gained independence, its economy has been restructured and oriented towards Western Europe according to market principles. Instead of using the Soviet ruble as its currency, Estonia introduced its own krone on 20 June 1992.

As a result of foreign aid, loans, and loans worth more than $285 million, as well as the receipt of over $100 million from the prewar republic, Estonia’s economic transformation was successful between 1991 and 1993. During the USSR accession in 1940, Estonia’s foreign banks froze its funds.

In 2000, the country established a market economy, which subsequently caused it to lose its status as a developing country. WTO membership was granted to Estonia in 1999. Finnish, Swedish, German, and Russian companies are the main trading partners of the country. Negative trade balances remain the most serious problem. Since 2004, Estonia has been a member of the European Union.

On 1 January 2011, the Estonian government implemented its updated June 2009 plan for the transition to the euro.

Business environment

As a result of Estonia’s independence, four companies have reached more than $1 billion in capitalization (unicorns): Skype, Bolt, TransferWise, Playtech. Following Estonia’s decision to invest in e-services since independence, several reforms have been implemented in the last 30 years. Estonia has also become an attractive country for startups, due to its business environment, education level, innovation environment, and e-services sector.

It is internationally recognized that Estonia is an e-country. In the world, there is no comparable digital society to that built by Estonians. Every year, more and more people are attracted to the Estonian digital ecosystem because of its uniqueness. The Estonian market offers a range of career opportunities that attract entrepreneurs and professionals from around the world to invest and start a business.

It has taken Estonia a few decades to build a digital society as a small Northern European nation. Despite having less than 2 million people, the country leads the way in IT and is considered 99% digitalised. Over the years, Estonia has become more and more popular as a prominent European entrepreneurial hub due to its unlimited tech opportunities.

Foreign policy

Estonia has been a member of the European Union since May 2004 and the Eurozone since January 2011. Estonia was the first post-Soviet country to adopt a single currency and abandon its independent monetary policy, as well as one of the three former socialist republics to integrate into the European market and Schengen area. Consequently, EU law takes precedence over domestic law when a country is a member of the EU.

Also, Estonia joined NATO on 29 March 2004. Afghanistan and Iraq are NATO missions Estonia participates in.

Membership in the Council of Europe has been in place since 13 May 1993. The UN, OECD, OSCE, and WTO are among the organizations Estonia belongs to.


Cultures from different parts of the world meet in Estonia. Estonian culture is related to Latvian, Finnish, Lithuanian, Russian north-west Russia, Belarusian, Swedish, and German cultures.

Industrialization, modernization, and rapid urban development strongly influenced Estonian culture during the 19th and 20th centuries. A marginalization of Baltic-German culture in Estonia began in the first decade of the 20th century. Architectural, literary, and musical works showed signs of national style and maturity, following world currents.

Derpt (now Tartu)’s Imperial Yuriyev University was restored in 1802 and played an important role in the development of Estonia’s culture. As a result of the French Revolution and the German romantic movement, the university became a conduit for Western European ideologies – ideals of freedom, equality, and brotherhood.

Tallinn and Tartu hosted the first independent exhibitions of Estonian art in 1909. As with music, there are signs of national style in Estonian architecture of that era along with adherence to world currents.

The Tartu University Library and the Tallinn National Library are the two largest libraries in Estonia with about 600. A list of Estonian theatres includes the Estonian Drama Theater, Linnatherater (City Theatre), Theatre Varnemuin in Tartu, Russian Theater of Estonia, Puppet Theatre, Rakvere Theatre, Theatre Endla in Pärnu, and Theatre Ugala in Viljandi. It is called the “Eesti concert” and is organized by the Estonian Concert Association. Tallinn is home to the Estonian Philharmonic and the National Opera Estonia.

Estonia made its debut at the 1920 Olympic Games in Antwerp, and three years later, the Olympic Committee was established. In the 1920s and 1930s, Estonian athletes for the years of 6 golden, 6 silver, 9 bronze medals — all gold medals in the account of wrestlers and weightlifters.

In the 1930s, the country’s chess team made significant progress, and Paul Keres was one of the world’s strongest players in the mid-20th century.

One of the world’s winter sports centres is Otepä, which hosted the 2010 and 2015 bi-at-lo events. Skiers Kristina Schmigoon and Andrus Veerpalou were among the leaders in their sport in the 1990s-2000s, the Olympic champions.

Motorists Markko Myrtin and Ott Tianak won the World Rally Championships.


An Olympic Committee was established three years after Estonia’s debut at the 1920 Antwerp Games. During the 1920s and 1930s, wrestlers and weightlifters won six gold medals, six silver medals, and nine bronze medals.

A world-class player during this period, Paul Keres, has significantly improved the country’s chess team since the 1930s.

Otepä, one of the world’s winter sports centers, held bi-at-lo events in 2010 and 2015. Olympic champions Kristina Schmigoon and Andrus Veerpalou were among the top skiers of their sport in the 1990s and 2000s.

In the World Rally Championships, Markko Myrtin and Ott Tianak won.


Paperless cabinet meetings have been held in Estonia since 2000, using a network of electronic internet documentation. A European Commission competition resulted in the transformation of the public sector into electronic documents. Almost 500 institutions have already exchanged electronic documents as a result of the project. The best in Europe, including all ministries, county offices, and almost all departments and inspectorates. Since 2000, it is possible to file tax returns electronically in Estonia.

A variety of services are available through LKS Consult OÜ, including company formation in Estonia and accounting services in Estonia.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]LKS Consult OÜ offers full support on all stages of developing your business, and offer a variety of services, including company formation in Estonia and accounting services in Estonia.[/vc_column_text][/vc_column][/vc_row]

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The Number of Deals of Estonian Investors with Stocks has Increased

[vc_row][vc_column][vc_column_text]The interest of Estonian investors in listed shares increased sharply during the pandemic, especially on the local Baltic Stock Exchange, where the number of Swedbank customers increased more than sixfold. In 2020, with the mediation of Swedbank, the turnover of shares listed in the Baltic States increased by 104.5 million euros and was 195.8 million euros.

Among the shares listed on the Baltic exchanges, Estonian investors last year were most likely to buy stocks of Tallink Grupp, Tallinna Kaubamaja, Šiauliu Pank and Tallinna Sadam.

“We were the first on the Baltic Stock Exchange to give up a commission for transactions because we were sure that it would increase the popularity of investment in stocks, but the real result for us was a pleasant surprise,” said Swedbank Markets broker Head Andres Suimets. “We are pleased to note that interest in investing in hard times year has increased. The number of investors trading on the local stock exchange has increased significantly, but foreign stock transactions have also increased significantly”.

Last year the amount of new securities accounts opened in Swedbank has significantly increased. “More than 10,000 securities accounts have been opened, which means that high growth has been generated not only by existing but also by completely new investment enthusiasts, who have revitaliSed the Tallinn Stock Exchange,” Suymats explained the reasons for the rapid increase in trading volumes.

In addition, Suymets notes that the driving force behind the opening of new accounts has been young investors-beginners in the past year. This shows that investment becomes part of a lifestyle at an increasingly younger age.

As another factor that has traditionally contributed to the growth of investment in Estonia, Suymets points to the arrival of a new influential company on the stock exchange last autumn. The Lithuanian State Power Company listing, which Swedbank organised publicly in the Baltic States, demonstrated Ignitis Group’s strong belief in the local investor.

The most significant share issue in the Baltic history has also strengthened the position of the Baltic Stock Exchange in the international investment world, thus providing a solid basis for new companies to be listed.

The specialists of LKS Consult OÜ will be happy to assist with company registration in Estonia.[/vc_column_text][/vc_column][/vc_row]

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Estonian Companies are Optimistic about the Future

[vc_row][vc_column][vc_column_text]Estonia is a 99% digitalised country, and Estonian unicorns maintain the country’s image of a well-developed digital society.

Among hundreds of promising ideas, there are: a drone for the inspection of power lines and power pylons, a Tuul scooter with an electronic motor, a rapid drug test that determines the presence of illegal drugs in the blood with laboratory accuracy. These are the ideas of small startups located in the scientific town of “Technopol”.

There are particular funds that support technology development and new startups. Yana Budkovskaya is the head of Prototron, the fund that supports young talents for eight years now. Last year they invested more than 1 000 000 EUR.

Last year there were presented about 800 ideas looking for both fintech and mentor support.

“We help create our web page. Then in partnership with Fundwise, we have a hybrid platform where some teams can learn to make their first crowdfunding campaign do. In addition, all our founders of Tehnopol, Talltech, Swedbank, also a big partner of Tartu University, help with the specialists, experts and mentors. And all who still support us, is the city of Tallinn, and Samsung, and Amazon, and Microsoft, also participate as mentors,” lists Budkovskaya.


The maximum amount of money a startup can get is 35 000 EUR. Such an approach brings results. The four unicorns that are evaluated in more than 1 000 000 000 $ — Skype, Bolt, TransferWise, Playtech and Pipedrive.

Last year, Pipedrive was acquired by American investors for $1.5 billion. The secret of the company’s success lies in the unique platform for managing its business relations with clients. The Pipedrive sales agents turned out to be indispensable.

“He helps to organise his calendar. This is his first feature. It gives you a visual image from which you can trace at what stage in relation to your clients. You can keep a full client database. What you talked about, what deals you made. We also have an analyst,” explained by Pipedrive client-manager Victoria Babisashvili.


The foreign labour force compensates the shortage of “IT players” in the company. Still, the shortage of specialists is not entirely solved as in the entire IT sector of Estonia.

The new Minister of Entrepreneurship and Info-Technology is Andres Sutt (Reform Party), who described his immediate plans in the IT-sphere.

“5G is definitely one of the first steps. We have to hold a competition and find telecom companies that will develop the technology further. Everything about cybersecurity is also important. E-State must develop,” says Sutt.

In the Minister’s plans – development of Estonian “Siri”, that is artificial intelligence, a kind of assistant in the phone. Sutt also plans to create an e-services package for business. So that an entrepreneur can access all necessary registers, departments, licenses and documents through a single site or application, such an approach would open the door and speed up business communication with the State, the Minister believes. The country should also be open to foreign professionals, especially in the IT area.

“If we look at startups, in 2020, the number of new companies was about 1050, in 2019 – 650. So the number went up sharply. And if you look at how much they’ve been able to attract investment, you get 450 million euros. That’s a record. The previous achievement was established in 2018,” Sutt emphasises.

The Minister’s logic is that the presence of the necessary number of foreign experts allows business to expand, which in turn helps to reduce unemployment and create new jobs. At the same time, people’s desire to retrain is fundamental because infotech will soon take up a significant part of the economy.

Startups contributing to GDP

“If we look to the future, to “Green Turn”, to “Digital Turn”, then info-technology is not only a business of the IT-sector, it will be part of the business in every sector of the economy. Whether in industry or in services. I think these changes are huge,” said the Minister.

“Today, there are about 1,000 startups in Estonia. All startups forecast their growth. And startup communities like us also predict growth. And they want to see a tenfold increase by 2050. That means we want 10,000 startups. And if today’s GDP that comes from startups is about 3%, imagine if our startups are about a third of GDP. This is a very real future for Estonia. As long as we do not slow down,” Budkovskaya is optimistic.

The specialists of LKS Consult OÜ will be happy to assist with company registration in Estonia.[/vc_column_text][/vc_column][/vc_row]

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Open a Business in Estonia

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It is common nowadays to buy someone else’s business and adapt it to preferable realities — let’s consider the facts and opportunities of obtaining a shelf business.

Estonia is gaining more and more popularity as the most favourable jurisdiction for starting a business, and that’s for specific reasons. ‘Friendly’ taxation and legislation attract people and are good enough motives to start a company in this North European county. Following up on the idea, we discover even more bonuses offered by the Estonian business sector. As we consider purchasing existing businesses, this blog article mainly explores the subsidiary advantages of having a company in Estonia. These are primarily intersected with a friendly business environment well-established here, in Estonia.

We kindly note that this article does not focus on a traditional way of purchasing a ready-made company. That way of starting a business is indeed efficient and worth it, but first, you need to consider that in this case, the process takes the same amount of time and money to be implemented as when building up a company from scratch. Once obtained, shelf companies need to undergo a re-registration procedure to be in the ownership of a new owner. LKS Consult OÜ can assist you in this matter and offer a ready-made company.

Purchasing an existing business, however, is a slightly different process. Obtaining such businesses is a fast way to become a part of the Estonian business market.

An existing business is a pre-owned business that put up for sale by its owners or state agents. Such businesses have and come with commercial areas or/and rental agreements and all their possessions.

Main advantages of business takeover:

  • Quick process
  • Low set-up cost
  • No hassle
  • Reputation
  • Trustworthiness
  • Good for foreigners (not so well familiar with local legislation)
  • Ability to adjust

LKS Consult OÜ offers business takeover service — professionals of our company will assist you in finding the right business and accompanying the whole administration process. We note that professional legal help enables us to carry out the process entirely online. In order to obtain a business, you need to register a company, and we are happy to help. Moreover, such way of opening business in Estonia enables businessman to obtain a residence permit.

Once purchased and all formalities are undergone, the business is subject to change of a new owner’s choice — that is what makes this way of investing stand out among other methods. You can get a business you want in the shortest possible time online and feel as a rightful owner.[/vc_column_text][/vc_column][/vc_row]


Who is a Contact Person, and Why You Need One

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In this blog article, we consider under which circumstances having a contact person is required by the Estonian legislation.

As of January 15, 2018, the Estonian Commercial Code stipulates that all companies that do not have a Republic of Estonia resident to sit on the Board of Directors must designate a contact person.

Moreover, if you decide to open your company using e-Residency, you need to have a legal address and contact person beforehand.

The contact person can only be represented by:
Who is a Contact Person, and Why You Need One

  • a Notary Office,
  • a Law Office,
  • a Certified Audit Office or
  • a company that has the necessary license to provide contact person services.

A contact person is responsible for accepting procedural and other documents from the Republic of Estonia’s administrative authorities and sending these documents to the addressee. A contact person’s primary function is intermediary, aiming to provide a continuous communication channel between government bodies and the Company’s Management. Upon receipt of procedural documents or other official statements by the contact person, the relevant procedural documentation is deemed to have been delivered to the Board of the company.

A digital signature or a notarised agreement is required for the appointment of a contact person. A corresponding statement must be submitted to a Board of Directors to remove the authority from a contact person, which in turn undertakes that a new contact person will be designated and registered. A Management Board ensures that the data entered in the Commercial Register is correct. If a company has not entered a new contact person in the register (even if it has this obligation since the Board is located abroad), RIK has the right to impose a fine on the company.

The registrar sets a deadline for a contact person’s appointment, which must be at least one month, but not more than three months. If a contact person has not been designated thus far, the registrar may decide to forcibly dissolve a company or remove a branch of a foreign company from the register. It is possible if a company has not complied with the requirement to appoint a contact person even after receiving a corresponding ruling from the authorities.

Please also be aware that FIE does need to have a contact person, but must have a legal address.

Our team offers full support when registering Estonian companies. Service  is a licensed service provider of a contact person and a legal address in Tallinn.[/vc_column_text][/vc_column][/vc_row]

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How to Close Your Company in Estonia

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Termination of a company is indeed a less pleasant activity than a company establishment. Closing your business legally, however, is as important as a competent starting of your business.

Things do not always go according to the plan, and it’s completely OK. If a business doesn’t meet the hopes and expectations, or the circumstances demand the same, it is essential to initiate your company dissolution.

According to the Estonian legislation, an Estonian company’s activity cannot be suspended or paused — the company can either be active, in a state of liquidation or permanently liquidated. That’s why we strongly advise not to leave a company on its own when plans didn’t work out. It is important to act responsibly with a legal provider’s help to wrap this up and focus on new beginnings.

The most traditional way to liquidate a company in Estonia is a voluntary dissolution. Another potential option is to transfer a company to a new owner, simply put, to sell. Once you’ve decided not to run your company anymore, it is also possible to merge your company with another company, or in the case of a single shareholder, with an individual’s assets.

Any possible way of a company liquidation takes effort and should be approached with responsibility. Please be aware that the termination of a company is a long legal process that is nearly impossible to realise without legal support.

In this blog article, we’ll be looking into the most common ways of closing your company in Estonia.[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto” bg_type=”bg_color” bg_override=”full”][vc_column][vc_column_text]

Voluntary dissolution

If you decide to stop your company’s activity, the team of LKS Consult OÜ recommends this option for terminating a business. This means voluntary dissolution of your company by a resolution of its shareholders. At least 2/3 of the shareholders have to approve the termination. At this point, owners should designate a legal liquidator who must be a resident of Estonia.

After the final decision was made, the company must stop its activity — only actions towards termination could take place.

Next, the management board and the authorised liquidator must submit a formal request for the company termination to the Commercial Register. After that, the notice of liquidation will be published in the public domain, followed by a notice to all known creditors.

Please be aware that a member of the management board must have an Estonian e-Residence card.

During the first three months after the liquidation decision, the initial balance sheet is drawn up, as well as the final annual report. All documentation must be approved by the competent authority and submitted to the Commercial Register.

Within the following months, shareholders deal with selling assets and collecting collect debts.

About four months after the publication of the notice of liquidation and satisfaction of all creditors’ claims, the final accounting report and the plan for the distribution of assets of the remaining property are submitted to the shareholders for consideration.

As the final step of closing your business, you must submit an application to delete your company from the Commercial Register.

The entire process, on average, takes 6–9 months and might be extended depending on the time of consideration by the local authorities.

More useful information.

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Selling a company

The first thing to do when planning to sell a company is to find a potential buyer. When the buyer is found, you need to visit the notary and submit all required documents. Beforehand make sure that:

  • Annual reports are prepared
  • Accounting is in order
  • Corporate taxes are paid

Finding a buyer and managing legal procedures is rather complicated. It is very common and smart for entrepreneurs to use the services of legal providers.

Such companies re-register the company to its employee. The re-registered company will have an altered owner, board members, address, phone number and email.

Re-registration of a company occurs in two ways – by power of attorney or by a personal visit of all company representatives to Estonia. By law, the procedure for re-registering a company should take up to 5 business days after visiting a notary.

When choosing a company transfer by power of attorney, you need to prepare the required documents and send them to the provider of your choice. The consulting company will prepare an example of power of attorney based on the information you have provided. After that, the example needs to be sworn translated and certified at a notary. Once your provider receives the certified power of attorney, a company transfer process will take about 2 weeks.

Re-registration of a company by a visit is a quick way to exit your company and can limit your stay in Estonia to one day. The owner of a company needs to prepare the necessary documents regarding a company’s activity and send them to a service provider upon arrival. Once the documents are all good and received, the provider makes an appointment with you and a joint appointment at a notary to sign a prepared petition.[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto” bg_type=”bg_color” bg_override=”full”][vc_column][vc_column_text]


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  • restorePossibility to restore accounting for the period
  • [icon name=”file-alt” style=”solid” class=”” unprefixed_class=”” style=”height:1.5em !important; margin-right:20px; color:#45b400; width:auto”]Filing of the liquidation report

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  • [icon name=”user-tie” style=”solid” class=”” unprefixed_class=”” style=”height:1.5em;width:auto; margin-right:20px; color:#45b400″]Assistance in appointing the company’s liquidator
  • Fully Remote Closure

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To conclude

As it follows from this post, company liquidation is a time-consuming process.

The procedure of termination involves legal aspects and requires accuracy along with the familiarity of Estonian legislation. Whilst it is recommendable to act legally and dissolve a company according to the government rules; we also advise considering consulting legal provides. This facilitates the procedure significantly and reduces your involvement to a minimum.

You don’t want to spend your time and efforts on something that you refer to as a turned page, right?

We are here to close this case for you. The specialists of LKS Consult OÜ have a vast positive experience in both company liquidation by voluntary dissolution and transferring. Our team of professionals provides accounting services in Estonia.

We will help you complete a company termination procedure as soon as possible in full compliance with the law and fully remotely. More about the services and cost, please find here.[/vc_column_text][us_btn label=”ORDER NOW” link=”|||” align=”center” css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2220px%22%7D%7D”][/vc_column][/vc_row][vc_row][vc_column][us_page_block id=”12049″][/vc_column][/vc_row]

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