Since December is the most magical time of the year, our team has prepared a special offer for all of our clients. Due to the upcoming holidays, during this month we are providing several discounts for the services you order.
(This offer is available until 31st of December of 2021)
[vc_row][vc_column][vc_column_text]Ready-made companies are inactive corporate organisations that have passed the state registration and have all the necessary details for the implementation of their activities. Purchasing of a ready-made/shelf company should be a balanced decision in order to protect you from unreasonable risks.
LKS Consult OÜ offers ready-made companies for sale. It is important to mention that all listed Estonian shelf companies have submitted annual reports and have a transparent history.
Purchase of an Estonian shelf company can be an excellent solution to optimise your business in the European Single Market. LKS Consult OÜ highlights the following advantages of Estonian jurisdiction when purchasing a ready-made/shelf company:
Choosing a suitable way of transferring the company
By visit
By power of attorney
With an e-Residency card
Providing us with all the necessary information for document preparation
Once documents are ready, the transfer of the company will be set by the notary
The company will be transferred within 5 business days
More information
It is possible to change a company name.
Companies do not have any debts.
All companies have filed annual reports for the previous year.
In order to buy a company as soon as possible and reduce your stay in Estonia to one day, we will need to have all the necessary information and prepare the documents in advance.
Before coming to Estonia to buy a company, please send the following information:
Intended date of your visit
Owners/Beneficiaries of a Company
Name of a Company Director
After receiving the necessary information, we will make an appointment with a notary and will prepare all necessary documents.
Risks of obtaining a ready-made company with a crypto-licence
Under certain circumstances, the licence is issued for a specific project with a particular owner/director/KYC/AML officer. The identities, risk assessments and KYC/AML documents are carefully checked while obtaining the licence.
In that way, if a company with a crypto-licence changes an owner/director/KYC/AML officer, a regulator will study the project again. There is a risk that the permit will be revoked since it was issued for a different company with a specific activity.
The exact amount of time is usually spent on checking and verifying documents of new owners as it is spent on obtaining a new crypto-licence, which is about two months.
Cryptocurrency licence
The IT jurisdiction of Estonia is considered as the mildest of its kind with facilitated conditions for obtaining a cryptocurrency exchange licence for start-ups in the blockchain technology industry. In other words, a so-called crypto-licence is an official permission to conduct a regulated cryptocurrency business. Several new cryptocurrency and trading platforms are created every week, and a significant part of them had been licensed in Estonia, since the local order presupposes a quicker process of obtaining a crypto-licence than, for example, in the jurisdictions of other countries.
A team of experts from LKS Consult OÜ will accompany your project through all the necessary procedures in the preparation of documents and obtaining the legal permission from the authorities to launch your crypto-business. We also provide full support when registering Estonian companies.[/vc_column_text][/vc_column][/vc_row]
[vc_row][vc_column][vc_column_text]In the first quarter of 2021, Estonia’s gross domestic product (GDP) increased by 5.4% compared to the same quarter of the previous year. In current prices, GDP amounted to 6.9 billion euros in the first quarter, the Department of Statistics reported on Monday. Compared to the first quarter of last year, GDP, adjusted by the number of days worked, increased by 5 per cent and by 4.8 per cent compared to the last quarter of 2020.
According to analysts, almost half of the growth of the economy is due to the influence of taxes, especially the turnover tax (value added tax) and good excise revenues. “However, this does not mean exceptionally high tax receipts, but that the comparative base of the first quarter of last year was unusually low. Now we are back to the level of 2019,” explained Robert Muirsepp, the lead statistician of the Department of Statistics.
Trade, information and communication, as well as financial and insurance activities, had the most positive impact on economic growth. As with taxes, the positive impact of trade is visible against the backdrop of the recession that occurred at the same time last year. Coronavirus expenditures in the health sector and the energy sector in the colder winter also contributed to the growth of the economy.
Among the major industries, the manufacturing and construction sectors continued to have a negative impact on the economy, with coronavirus crisis a little later. Accommodation and food services were also in decline due to coronavirus restrictions.
Private consumption continued to decline throughout the year, with a decline of 3.3 per cent in the first quarter. Excluding the costs associated with tourism, consumption showed modest growth. As in previous periods, there was an increase in expenditures related to home lifestyles, communications, home furnishings and household goods. Expenditure on meals outside the home, leisure, transport, clothing and footwear continued to decrease. At the same time, spending on health increased, which was also supported by growth in the government sector.
In foreign trade, growth started late last year and continued in the same direction. Merchandise exports increased by 5 per cent and imports by 12 per cent. Imports and exports of wood products, electronics and motor vehicles contributed to the increase in trade. In services, computer services have had the most positive impact. External trade in tourism services continued to decline, but transport services are gradually recovering.
[vc_row][vc_column][vc_column_text]Starting a business is a responsible action; it also demands a professional approach. We believe the process of company formation not to be critical. However, it’s all about finding the right direction. Every successful business begins with accurate decisions and thrives in a beneficial business environment. And in this way, Estonia is one of the most favourable places for starting a company, offering nearly unlimited commercial opportunities for doing business.
There should be no doubt about the advantage of having business in Estonia — advanced fintech and a business-friendly economy provide many opportunities.
Advantages of having a company in Estonia:
0% company income tax (tax on retained earnings).
Founders and Board members may be non-residents of Estonia (there is no need to have a local Director).
Possibility of fully remote management of the company if the owner has an e-Resident card.
In doing business in Estonia, a Board member has the right to apply for a residence permit for up to 5 years.
Possibility to purchase transport and real estate in the ownership of an Estonian company without taxes.
Estonia has entered into the Convention for the Avoidance of Double Taxation with 59 countries.
Estonia has a transparent and straightforward tax system without progressive taxes
There are several ways of establishing a company in Estonia — with an e-Resident card, by visit, by power of the attorney. Each way differs from another and involves slightly different legal procedures. You can familiarise yourself with each option here. LKS Consult OÜ will help you set up a startup in Estonia and manage your business wherever you are using any way of business formation.
Purchasing an existing business, however, is a slightly different process. Obtaining such companies is a fast way to become a part of the Estonian business market.
An existing business is a pre-owned business that is put up for sale by its owners or state agents. Such companies have and come with commercial areas or/and rental agreements and all their possessions.
When buying an existing company, the owner gets an instant business tool. The turnkey company is already registered and is now available for purchase by the new owner. A ready-made/shelf company already has a registration number and, therefore, on its behalf, you can start a business immediately.
Before purchasing a ready-made/shelf company, the potential buyer will be provided with all relevant documents confirming the company’s history and that the current company has no debts or financial obligations.
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
Once all the initiation procedures are undergone and have your registered company, there are still many aspects to work on. Having a business means its constant development. Apart from ‘artistic’ parts such as gaining and maintaining reputation, PR, establishing connections, branding and looking for talents — business involves endless legal aspects.
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 in Estonia, and we are happy to help. Moreover, opening a business in Estonia enables a business person 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 like a rightful owner.[/vc_column_text][/vc_column][/vc_row]
[vc_row][vc_column][vc_column_text]The Tallinn City Assembly, at a meeting on 6 May, agreed to participate in the project “Support for the activities of the European Space Agency Business Incubator for the period 2022-2025″, confirming funding for these activities for the next four years up to EUR 50,000 annually.
According to the Chairman of the Innovation Commission of the Tallinn City Assembly, Andrés Colliste, the project may seem at first sight incomprehensible, as Estonia is not very well connected in the public consciousness with space research. ” Here I would like to recall that we have student satellites, and Tartu University has a professorship in space and defense technology,” noted Colliste.
“There are several significant aspects to this draft. First, space exploration and the application of space technology do not mean just space flight. In the study and use of near space, most of the work is done on the ground. The same is true of this project. Second, it is important that the Tallinn Center for Strategic Management will have an excellent experience of collaboration on innovation promotion with science parks and institutions in Tartu and Tallinn, universities and KredEx Foundation. But most importantly, such projects stimulate investment in high technologies and inspire young people with interest and inspiration to study natural and technological sciences,” added Collist.
The objective of the project is to receive, within the next four-year treaty period, eight startups dealing with space data and technology at the European Space Agency’s Estonian Business Incubator in Tallinn. The project will be managed by the Tallinn Center for Strategic Management, and the Tallinn Center for Strategies, while the City’s Deputy Mayor for Entrepreneurship and Innovation and the City Chancellor are authorized to negotiate and sign the project contracts and other necessary documents on behalf of the city.
LKS Consult OÜ is a team of specialists who will help you in a company formation and developing your business in Estonia. We will gladly provide you an overview of the business environment of Estonia in the shortest possible time. Please send your enquiry.
[vc_row][vc_column][vc_column_text el_class=”padding”]The e-Notary system is an environment that helps notaries in their everyday work and allows electronic communication between notaries and the state. The setting is established with notaries in mind, and it will enable them to do everything they need in their work; the system also allows making queries to 16 different registries. E-residents can use their Digi-IDs to perform an array of business services for their companies online from anywhere in the world. However, up until now, there were still some activities, which required e-residents to travel to Estonia and utilise the services of a notary registered there.
The e-Notary system could be used both by residents and e-Residency holders.
The e-Notary makes it possible to conveniently:
Keep a daily schedule of notarising activities and a personal calendar for users
Make reliable queries to state registries
Prepare agreements and digitally sign them
Register official activities (official acts and services)
Record deposits
Issue apostilles
Prepare invoices and state fee payment orders
Forward records to state registries
Purposes:
To be the means which allows making necessary actions in the notary’s office
To create a registry of notarised acts in a unified, high-security environment
To minimise duplicated entry of data, paperwork and printing for both notaries and registrars
To contribute to the development and enhancement of other systems
To make it simple for clients to deal with notaries – unlike before, the client doesn’t have to present a large number of paper documents to the notary anymore
Via the e-Notary system, the notaries themselves can also review the necessary data
How to use:
Log into the e-notary self-service portal at www.notar.ee using an ID card or an e-Residency digital-ID.
In the self-service portal, navigate to the verification page and choose a notary from the list of registered Estonian notaries, and select your desired time for an appointment.
Next, it is required to log in with Digi-ID and confirm that you are ready for the digital verification. It also notifies the notary in Estonia to initiate the verification process using the Veriff biometric facial recognition system.
Follow the instructions of Veriff.
Once you have been successfully identified, the notary will initiate a remote transaction by video link.
The notary will introduce the agreement and share it for review with all the parties.
Once approved, the notary will make it available for signing in the self-service portal.
Once all parties have digitally signed the contract, the notary closes the remote transaction and adds the notarial document to the portal.
You can access the transaction and any related invoice at any time afterwards.
LKS Consult OÜ is a team of specialists who will help you in a company formation and developing your business in Estonia. We will gladly provide you an overview of the business environment of Estonia in the shortest possible time. Please send your enquiry.[/vc_column_text][us_btn label=”Contact us” link=”url:https%3A%2F%2Fwww.estonia-company.ee%2Fcontacts%2F” align=”center” css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2220px%22%7D%7D”][/vc_column][/vc_row]
An investment fund (AIF) is a specially constituted entity whose assets can be invested in accordance with a predetermined investment policy. The purpose of an investment fund is to generate profits from the investment of its assets.
AIF is the most convenient structure for collective investment. Investors’ assets are attracted to their further use and placement in their interests following a predetermined investment policy under the company’s guidance that managed the fund.
An Alternative Investment Fund is the best solution for making collective venture capital investments and organizing investor funds in stocks, bonds, commodity indices, derivatives, currencies, cryptocurrencies, real estate, and other financial assets.[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto” css=”%7B%22default%22%3A%7B%22padding-bottom%22%3A%2240px%22%7D%7D” bg_type=”bg_color” bg_override=”full”][vc_column][vc_column_text el_class=”padding”]
Requirements
An investment fund in Estonia requires two structural units — the fund itself as a holder of property assets and the fund manager — the legal entity that manages one or more funds.
Fund manager
The fund manager manages the assets of a fund company or a contractual fund. It is important to note that one management company can manage several funds.
It is required to obtain a license to operate as a fund manager in a management company. Fund managers who want to manage euro funds and large-scale alternative investment funds also need to obtain a license.
In a small fund, a fund manager should apply for an operating licence as a small fund manager or register its activities with the Estonian Financial Supervision Authority (EFSA). This kind of manager can only manage non-public investment funds, meaning their business is primarily aimed at professional investors.
If a small unlicensed fund management company does not wish to apply for a licence as a small fund manager, they have to register their activities with EFSA. EFSA’s supervision over registered unlicensed small fund managers is limited to the registration and later data collection.
The decision by EFSA is usually made within two months of documents submission.[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto” css=”%7B%22default%22%3A%7B%22padding-bottom%22%3A%2240px%22%7D%7D”][vc_column][vc_column_text el_class=”padding”]
Fund types
There are several types of funds. The type of investment fund chosen depends on the activity, the target investors and the amount of capital raised/assets managed:
A joint-stock fund (aktsiaseltsfond) — a fund established as a joint-stock company, its property cannot be divided into structural elements (sub-funds)
participation in the fund in the form of ownership of shares
can be closed and open
limited scope for stock types and securities (no predominant shares, no debt receipts)
upon establishment — the management and deposit contract is signed. The charter is agreed with FIE
includes shareholders, board members and the council.
Contract fund (lepinguline fond) is a legal entity, the holder of property assets, which is formed from payments received by the sale of shares or other property or funds/property from investments and which belongs to the holder of the shares. The assets of the fund can be divided into structural elements, each of them must have a different investment policy (relevant if the fund consists of different types of property – real estate, securities, other assets).
An investment prospectus is obligatory
the fund cannot be reorganized into another fund
the shareholder can always demand the redemption fund
shares may contain different specific conditions (e.g. right of exchange, terms of ransom, voting rights, etc.)
upon establishment – the fund manager and the depository shall be specified. The charter shall be agreed with FIE
ruled by the meeting of the owners.
The limited partnership fund (usaldusfond) can manage its property or enter into a management agreement with the fund manager. Only a fund manager who is licensed to operate under the Investment funds act can act as a limited manager of a limited partnership fund or a general partner of a limited partnership fund that manages its assets.
The share in such a fund is freely alienated unless the agreement states otherwise. Equity holders should contribute to the fund.
The Estonian Real Estate Area provides fund managers with the possibility to organize the collection of investments and further management of collective assets within the framework of the simplified regulation of the manager of small alternative funds (small alternative fund manager). This regime makes it easy to create an investment fund in Estonia and allows partners to form flexible relations between themselves within the framework of the limited Partnership Agreement «LPA». The small alternative fund manager has the right to control several funds. Still, the total assets of the managed funds may not exceed €100 million, or in the case of investments of long duration (from 5 years or more) and no financial gain is used (credit arm), the total assets of the funds can reach 500 million euros.[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto” css=”%7B%22default%22%3A%7B%22padding-bottom%22%3A%2240px%22%7D%7D” bg_type=”bg_color” bg_override=”full”][vc_column][vc_column_text el_class=”padding”]
Registration process
As we already mentioned, cryptocurrency fund registration is not a difficult process. It consists of the following steps:
Registration of the alternative fund management company, the fund manager (AIFM). You can easily do it using your e-Resident card, or by the power of attorneys, or by a visit to Estonia
Registration of the fund’s management company with the Estonian Financial Supervisory Authority (EFSA)
AML license from the Financial Intelligence Unit (FIU), which usually takes up to 60 days
Registration of the fund. Once you succeeded with the first step, this process takes up to 5 days.
LKS Consult OÜ assists in registering alternative investment funds in Estonia. We accompany and assist our clients in managing investment and financial structures from idea discussion until the project’s launch. Any collaboration usually starts with a consultation to discuss main principles and decide on the future company’s structure. During the next stage, we prepare a legal opinion on the subject of the fund’s activity and make a circulation map for registration. Preparations usually take up to 3 months. We also provide accounting services in Estonia.[/vc_column_text][/vc_column][/vc_row]
It is designed primarily to simplify everyday life for freelancers, business owners, international partners, and other non-residents who are connected to Estonia. Having an e-Residency in Estonia gives you access to the European Union, making it possible to start a business, expand your business, invest, and study there.
This national initiative aims to improve Estonia’s digital infrastructure and business environment as a result of efforts from numerous government ministries and institutions. The most important advantage of being an e-Resident of Estonia is that they have access to all the electronic services available throughout the European Union, not just in Estonia’s business environment.
With e-Residency, residents can access a wide variety of online services in Estonia, including banks and government portals. Creating and running an online company, based in the EU, is the primary motivation for applying. The opportunity for entrepreneurs to run their businesses remotely is now available to entrepreneurs across the globe.
It therefore makes it possible for foreigners to set up a company in Estonia through the online application process. The e-Residency programme facilitates entry into and investment into the Estonian market for non-Estonian citizens.
Many entrepreneurs have become successful in their business development in Estonia with an e-Residency, joining nearly 80,000 entrepreneurs already.
When it comes to attracting foreign entrepreneurs, e-Residency is crucial. By attracting talents and minds from around the world to Estonia, e-Residency has become the first digital nation for the world’s citizens.
TAXATION
Resident taxed in Estonia only on income received in Estonia is a non-resident taxed in Estonia only on income received in Estonia. An Estonian resident who does not earn any income in Estonia. A resident’s income or residency is taxed in the state where he or she resides or receives income, not in Estonia. Despite Estonia’s e-residency, other foreign countries are still subject to taxation.
Tax reductions and concessions from Estonia’s double taxation treaties can be used by non-residents to avoid double taxation. A residence certificate must be issued by the Estonian Tax and Customs Department after approval by a foreign tax administrator.
Estonian commercial associations founded by Estonians are registered in Estonia as Estonian commercial associations. Profits earned by an Estonian-based commercial association through a permanent place of business in a foreign country are not subject to Estonia’s income tax.
It is important to note, however, that a foreign state is not automatically exempted from its tax obligations when an Estonian commercial association has its primary place of business in that foreign state.
Even though a business based in Estonia is not subject to taxes in Estonia, it may still be required to file tax returns there. This form is used to declare income and social taxes, as well as the payment of contributory pensions and unemployment insurances, which is due on the tenth of the month following the month the payment was due. In the same form, various annexes specify the company’s tax obligations as well as the payee’s tax obligations.
Business registers need to be updated once a year with the gross per business year. A report that a business association submits to the Business Register can be accessed electronically by the Tax and Customs Department.
You should not wait to start your business in a small Nordic country. Join thousands of entrepreneurs who are doing so already. LKS Consult OÜ can provide assistance with company registration and tax advice as well.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text][/vc_column_text][/vc_column][/vc_row]
Estonia is a small country in Northern Europe that has built a digital society over a couple of decades. So far, the country with a population of less than 2 million is leading in the IT sector and is referred to as a 99% digitalized European country. Hence, unlimited tech opportunities have contributed to the fact that Estonia has drawn more and more attention as a prominent European entrepreneurial hub over the years.
or RIK (Estonian) is a government portal ruled by the Ministry of Justice. The main objective of RIK is to provide innovative services for public administration and law enforcement.
RIK develops and manages various registers and information systems. These include the Business Register, the e-notary, the Land Registry and information systems from other areas (court information system, e-files, etc.). About 50 registers are under the control of RIK. The Estonian Business Register has been in operation since 1 September 1995. The Estonian Business Register Internet portal is considered unique in Europe due to establishing a company quickly and conveniently. It is possible, for example, to register a limited liability company in a few hours using an ID card and even without leaving the house. In addition, the company portal allows not only searching companies but also modifying registration data and submitting annual reports electronically.
It contains legal and statistical data about all Estonian companies, non-profit associations, foundations, state and local governmental agencies and self-employed persons. The data of registry cards, the information about tax arrears and the simple data is available at no charge.
Possibilities:
Reviewing of a company’s B-card data, general data and tax arrears data
Making queries
Real-time monitoring of data and records
Confirming and verifying Estonian businesspeople’ business identities
Viewing annual reports, statutes, personal and commercial pledge data, etc.
New service available now.
Contractual customers can visualize all data of the e-Business Register. The visualization shows the relations between legal persons as an image.
The portal allows entrepreneurs to contact the registry offices of ships and helps the central Business Register carry out its functions. Using this portal, entrepreneurs can apply for membership, a list of board members with information about them and relevant changes, contact information, relevant changes and annual reports.
Every citizen can log into the Company Registration Portal and use the portal. Estonian residents can connect to the portal using an ID card, a mobile ID or an Internet bank. People in Portugal, Finland and Belgium can connect to the portal using an ID card, and Lithuanians can connect to the portal using a mobile ID.
Possibilities:
Registering a new company
Changing the data of a company
Notifying about the field of activities of a company
It is an online service linking 24 national business registers of Europe. The information system provides services in English, thus being accessible to the majority of interested persons. The service offers the possibility of searching companies, information about companies and their profiles.
Moreover, some countries provide additional information on companies, such as annual reports, company charters, balance sheets, income and expenditure reports, extracts from the Trade Register and annual income information. In order to benefit from this service, it is necessary to conclude a contract with the service provider in the country concerned.
Please don’t wait and join thousands of entrepreneurs basing their businesses in a small North European country. LKS Consult OÜ will be glad to assist you in registering and developing your company.[/vc_column_text][/vc_column][/vc_row]
[vc_row][vc_column][vc_column_text]Zego’s commercial transport insurance startup received an investment of $150 million, bringing the company’s value to $1.1 billion, writes Postimees.
The London-based startup company plans to use the proceeds to expand into Europe and beyond and to double its workforce to over 500 employees. The company also plans to invest in technology and recently acquired telematics company Drivit. Zego’s business idea is to offer hourly insurance to commercial vehicles, such as Uber drivers or Bolt drivers, so that they do not have to conclude expensive annual insurance contracts. Still, they can include insurance when they provide a service. To date, the company has offered 17 million insurance policies for more than 200,000 cars in five countries.
“It is clear that the way vehicles are used is certainly changing, and it is becoming increasingly obvious that the traditional rigid insurance model is no longer suitable”, said in a press release the co-founder and CEO of Zego Sten Saar.
The Zego C-Series round was led by DST Global, a Hong Kong-based venture capital company founded by mail.ru founder Yuri Milner and Russian oligarch Alisher Usmanov. Their investments include Facebook, Twitter, Tswhaapp, Snapchat, Airbnb, Spotify, Alibaba, Xiaomi, Zynga, Groupon and Robinhood. Another important player was the American venture capital company General Catalyst, which also invested in Airbnb and Snapchat. General Catalyst co-founder and managing partner Joel Cutler will also serve on Zego’s board of directors.
“We very much believe in this new generation of insurance companies, and Zego is one of the most interesting and dynamic startups we have ever seen. They found that the transition from ownership to use is a huge opportunity in the insurance market”, said Cutler.
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]
Ready-made companies are inactive corporate organisations that have passed the state registration and have all the necessary details for the implementation of their activities. Purchasing of a ready-made/shelf company should be a balanced decision in order to protect you from unreasonable risks.
Starting a business is a responsible action; it also demands a professional approach. We believe the process of company formation not to be critical. However, it’s all about finding the right direction. Every successful business begins with accurate decisions and thrives in a beneficial business environment. And in this way, Estonia is one of the most favourable places for starting a company, offering nearly unlimited commercial opportunities for doing business.
or RIK (Estonian) is a government portal ruled by the Ministry of Justice. The main objective of RIK is to provide innovative services for public administration and law enforcement.
Zego’s commercial transport insurance startup received an investment of $150 million, bringing the company’s value to $1.1 billion, writes Postimees.