[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]
Among other possible ways of starting a company, obtaining a shelf company in Estonia, attracts by the simplicity of entire process. ‘Buying a company’ on its own sounds like something hassle-free, right? Let’s look at this way of starting business more in-depth.
Existing companies are indeed advantageous to buy. Since they have already existed on the market for some time, ready-made companies are suitable investments. Before purchasing an Estonian company, every entrepreneur needs to be aware of nuances and familiarise himself with the company’s background to make sure everything required has been completed.
We want to cover these aspects along with the advantages of obtaining an existing company. But let’s go through basics first.
Characteristics
Ready-made companies are inactive corporate organisations that have passed state registration and have all the necessary details to implement their activities.
Be aware that ready-made companies do not have a VAT number and bank account as all corporate accounts must be closed by their previous owners. Shelf companies do not have any debts. Therefore, 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.
However, an existing company has a registration number, and, therefore, it allows a buyer to start doing business immediately. Moreover, ready-made companies have filled annual reports for the past year.
Another great addition — the possibility to change the name of the company during the re-registration.
Accordingly, ready-made companies must have a transparent history; in that way, purchasing a ready-made/shelf company should be a balanced decision to protect you from unreasonable risks.
Still, LKS Consult OÜ kindly notes that despite all the facts mentioned before, the purchase of a ready-made/shelf company does not simplify the paperwork, the process of obtaining a loan or opening an account with an Estonian bank. The time spent on re-registering a ready-made business will not differ from the time of setting up a company from scratch.
Advantages
Along with legal nuances, the process of buying a shelf company results in good additions.
Company with a history
A company with history will add credibility to your business. The number of years that the company has been on the market can provide advantages in the business projects you carry out. Some government agencies and financial institutions insist that a firm be registered for a certain period before tenders are allowed. If the company’s turnover is an important criterion, then we are happy to offer turnkey solutions.
Reputation
Besides, it is easier for the owners of a re-registered ready-made/shelf company to attract investments, since companies with history and turnover seem to be a more reliable investment. Also, building business relationships with banking institutions and suppliers usually comes first when buying a company of this type. The established reputation of an enterprise is undoubtedly essential when concluding deals, searching for new partners, and can also influence the decisions of potential investors or partners.
Trustworthiness
A ready-made/shelf company with a history in the business register will contribute to a more professional image and, therefore, appear worthy of service providers’ trust. According to research, clients prefer companies that can demonstrate longevity because they seem to be credible and instil confidence that the company owners have experience in the relevant field. A ready-made company will give the impression that it has existed for a long time and will give the client confidence that they can use your services.
All in all, Estonia is favourable place for doing business, and no matter how you decide to start your business — by obtaining a ready-made company, we are here to help.[/vc_column_text][/vc_column][/vc_row]
It was announced in December 2014 that Estonia had introduced a new concept called e-Residency, which has allowed online business owners to start their own companies. Let’s examine how an e-Residency can help you form a company.
The e-Residency program has many benefits, which includes easing the lives and businesses of freelancers, business owners, and international partners. It is possible to establish or expand a business in the European Union, make investments, or study there with an Estonian Electronic Residency.
THE CONCEPT
The Estonian government issues electronic residency cards so that Estonians can access e-government services and conduct business online. An e-Residency is available to non-citizens of Estonia who want to access Estonia’s e-services and the European Union, but do not have a permanent residence on its territory.
Several government ministries and institutions support Estonia’s e-Residency program in an effort to improve its digital infrastructure and business climate. Because Estonia is part of the EU, e-Residents can also access e-services across the whole continent.
The e-Resident ID-card does not confer Estonian citizenship and does not allow entry into the EU, although it looks like one. Tax exemptions are also offered for e-Residency.
Thanks to Estonian e-Residency, digital entrepreneurs can operate their businesses in the EU from anywhere in the world. The program has led to the creation of more than 14,000 Estonian startups from 170+ countries as of October 2020. A state fee of 100 to 120 euros is required with the application, which must be paid remotely. The e-Residency kit is issued personally to the applicant by a point of issue approved by the program. LKS Consult OÜ provides its clients with an e-Residence card as one of its services.
KEY FACTORS AFFECTING THE FORMATION OF COMPANIES WITH AN EC-RESIDENCE
The creation and management of businesses entirely online
Management and creation of global companies
Verification and signature of documents in digital format (contracts, annual reports)
Secure and encrypted transmission of signed documents
Online banking is available from a bank in Estonia
The general accessibility of information about Estonian companies on the Internet enables Estonia to maintain a transparent and reliable business environment on the Internet. Among the information available to the public are financial statements, owner information, and contact information.
WHO BENEFITS FROM E-RESIDENCY?
Digital nomads can start and run paperless businesses while travelling
Freelancers now have access to the European Single Market
Become a startup founder and gain access to clients
As a digital entrepreneur, you can enter the European Single Market without unnecessary bureaucracy.
Digital entrepreneurs have a clear advantage with an e-Residency since they are not tied to any particular location. The ability to move abroad without having to re-establish your business is now possible with Internet access, which allows remote management of your business more than ever.
Due to the vastness of the European market, your business will have new opportunities. You can register an EU company without physically attending with an electronic resident card. Paying online is done through PayPal, so you do not need a local director to run your business.
The software on your computer now allows you to start an online business. It is possible to sign, authenticate, encrypt, and send documents digitally. It is also possible to make tax declarations online. With the European Single Market now open, you’ll be able to move your capital around the continent.
Take part in globalization now. Our service providers can better understand your needs by collaborating with e-Residents around the world. Your company will be able to grow at an unlimited rate as an e-Resident.
THE PROCESS
Applying for an Estonian digital identity can be done through the e-Residency in Estonia website. This form only asks for the very necessary information, with a few questions. An explanation of motivation and a digital photo must also be included in the submission. This is also the time when pick-up locations will be requested.
Review processes typically take 4–5 weeks to complete. If additional information is needed, an email will be sent to you while the background check is being conducted. After you have applied for and been approved, you will normally receive your e-Residency kit in two to five weeks.
e-Resident cards can be picked up to six weeks after you apply, and only you are allowed to pick them up. A selection can be made between the Estonian Embassy and the Estonian Consulate in the country. Upon receiving your card, you must pick it up within six months. Upon receiving your e-Resident card, you will be required to provide your fingerprints in order to authenticate and verify your identity. A kit for e-Residency cannot be provided to the other party by the Estonian embassy or consulate.
Estonia is in fact one of the most favourable countries for starting a business. Having a registered company in Estonia, among other things, is a ground for getting an Estonian residence permit. The procedure, however, demands responsibility involving some legal aspects and a lot of nuances.
LKS Consult OÜ would like to describe the process of applying for a residency, thereby, giving a thought-provoking opportunity to consider whether to apply for a residency as a foreign national having a company in Estonia.
Aliens can get a residence permit in Estonia on the following occasions:[/vc_column_text][/vc_column][/vc_row][vc_row css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2215px%22%7D%7D”][vc_column width=”1/2″][vc_column_text el_class=”padding”]
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2215px%22%7D%7D” el_class=”padding”]In this blog article, we will be looking into a residence permit for business activity exploring based on an Estonian company.
In Estonia, a residence permit can be issued for a period of 1 to 5 years. According to the official data of the Police and Border Guard Board, over a period of five years from the beginning of 2015 to the end of 2019, only 313 investors have received an Estonian temporary residence permit for entrepreneurial activity. Family members of a business person who has a residence permit are also entitled to obtain a residence permit in Estonia. Nevertheless, to date, Estonia is the most favourable Baltic state to obtain a residence permit.
First and foremost, it is an absolute necessity for an applicant to have an Estonia-based company that must be entered the Estonian Commercial Register, as well as to have a registered residence address in Estonia. The company should also be operating for at least 4 months.
In that case, there are several conditions for applying for a residence permit under The Estonian Residence Permit Program for Businessmen.
Under general conditions:
If you are a natural person, or FIE who has invested at least 16,000 EUR in Estonian business
If you are shareholder/owner/member of the Management Board of an Estonia Company, or OÜ and have invested at least 65,000 EUR in the company development
Please be aware that investments are funds spent on the activities and development of an Estonian company. When applying for a residence permit, it is necessary to submit a business plan, which reflects all funds invested in the development of an Estonian company, supported by invoices and contracts.
According to www.politsei.ee business plan must include the following:
Name and registry code of the company or the sole proprietor
Business idea – planned activities, potential clients and suppliers, plans of development, fixed assets available for the company, circulating capital, labour force being used
Financial forecasts for the next two financial years – projected income statement, balance sheet, cash flow forecast
Curriculum Vitae of the persons who perform managerial and supervisory functions
Motivation, why the settling of the applicant in Estonia is important for the enterprise.
As a major investor, if you have directly invested at least 1,000,000 EUR in an Estonian company that has entered the Estonian commercial register that invests mostly into the Estonian economy. All investments must be permanent which means they should not decrease over the time period of residency duration. A major investor in the meantime is not obliged to reside in Estonia.
Another condition is for conducting business at a start-up. The start-up company has global growth potential and offers an innovative product or service. In order to obtain a residence permit based on that condition, a start-up company must be evaluated by the expert committee. You should submit an application for the evaluation unless your start-up is an exception. According to www.politsei.ee these are:
Start-up company is pointed out in the directive of the Minister of the Interior as a start-up company that meets the conditions of the Aliens Act. A list can be found here.
The expert committee has already given an assessment to the start-up over the last five years. However, if needed, the Police and Border Guard Board may demand in the course of the procedure that the start-up request a new evaluation from the expert committee.
You can visit www.politsei.ee for more detailed information.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Obtaining a temporary residence permit is a responsible and time-consuming process. It can be granted for a period of up to 5 years but requires submission large number of documents and takes a couple of months to proceed. Still, obtaining a temporary residence permit for business is a completely legal and entitled to exist way.
LKS Consult OÜ is experienced in providing assistance in obtaining a residence permit by establishing a company in Estonia only. We would be happy to consult you both regarding a company registration and in the following obtaining of a residence permit by establishing business in Estonia.[/vc_column_text][/vc_column][/vc_row]
Over the years, Estonia is coming to the forefront of attention as the European entrepreneurial hub. As this happens for a good reason, our company is happy to shed some light on the advantages of the Estonian business ecosystem.
Which European country welcomes aspiring entrepreneurs? What country economy is the friendliest for doing business? — at a certain point, every entrepreneur faces a choice of where to start his business in the European Union.
Speaking of the Estonian business environment it would be hard not to emphasise the country’s advanced business infrastructure as well as the economic freedom the Estonian government gives to entrepreneurs.
The recent start-up “bloom” taking place in Estonia represents those very favourable conditions of the Estonian business environment. The sustainability of the market and friendly regulations attracts both smart people and smart money. As Estonia is a part of the EU, entrepreneurs could take advantage of EU funding and banking, which mean good chances for developing a business.
The most digitalised country
Do you know that Estonia hosts both European and NATO cybersecurity centres? It is not hard to guess that Estonian digital society can provide unlimited opportunities for entrepreneurs. One of the greatest examples expressing the progressivity of the country is the innovative e-Residency programme.
It’s human nature to keep looking for routes to make life way easier. In 2014 Estonia introduced an e-Residency programme.
Here’s a quick sum-up of what e-Residency is:
What?
Simply put, e-residency provides a digital ID to users; thereby, allows them to log into different online services in Estonia, such as online banks and government portals. The primary mission is to make it possible to set up and run an EU-based company 100% online. It is, therefore, enables entrepreneurs to run a business remotely.
Why?
Not everyone needs an e-residency. But it will be efficient in case you want to start and run a business in Estonia, where 99% of services are available online.
E-Residency will help those who are not Estonian citizens but want to invest in the Estonian market.
How?
Don’t follow a difficult path and join more than 80,000 people succeeding in company development with an e-residency. Apply on https://eresident.politsei.ee/.
Exploring the tax system
Another, we say, the most important aspect when choosing a location for a business is taxation. Estonia offers the world’s most favourable and transparent tax system without progressive taxes.
In Estonia, corporate income tax is 0% and there is no need to pay any corporate tax at all. It is necessary to pay taxes while distributing company profit — salary or dividends, to shareholders.
Some exceptions could take place depending on the specifics of the business, so we strongly recommend consulting LKS Consult OÜ business service provider to determine tax obligations.
More major additions
Apart from advanced infrastructure allowing to manage business remotely, and the opportunity to reduce taxation legally, Estonian legislation offers even more to facilitate business thriving.
Some other advantages of having a company in Estonia:
Founders and Board members may be non-residents of Estonia (there is no need to have a local Director).
There is no mandatory condition to pay a salary to the company’s director and there are no salary requirements.
There is no need to contribute the authorised capital when establishing a company.
In the case of 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.
Summing up, Estonia is a country with a good reputation within the European Union. Estonia welcomes startup companies by offering vast possibilities for doing business, and it will be a reasonable decision to become a part of the Estonian business environment.
LKS Consult OÜ kindly reminds everyone to weight the arguments carefully and are always happy to assist you in every matter regarding starting a company in Estonia.
The specialists of LKS Consult OÜ will be happy to assist you with company registration in Estonia.[/vc_column_text][/vc_column][/vc_row]
Are you interested in starting a business but not sure how to make the first steps? Building up a company could be hassle-free, especially in one of the world’s most economy-friendly country. In this blog article, we would like to introduce every possible way to start a company in Estonia.
Starting a business could be challenging as it’s time-consuming and requires responsible efforts. We believe the process of company formation not to be critical, however, it’s all about finding the right approach. 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 doubts regarding the advantage of having business in Estonia — advanced fintech and business-friendly economy provide a number of opportunities. However, if there are still some left, take a look at this article introducing the main benefits of the Estonian market.
In the meantime, let’s get down to business, and consider ways of company registration in Estonia:
Company registration with an e-Residency card
Formation of a company by the power of attorney
Setting up a business by a visit
And last but not least by its sustainability:
An obtaining of a ready-made company
At this point, a reader can choose the way of most interest and just scroll down to its interpretation.
Company registration remotely with e-Residency
E-Residency is a state-issued digital identity providing access to Estonian e-government services and EU business environment for non-citizens. This innovative programme allows every willing to establish and manage an EU-based company 100% online.
Steps to undertake in order to set up a business using e-Residency:
As it is a requirement to have a legal address and a contact person in Estonia in order to start a company, the second option is to open a company by proxy. The process includes finding a legal address as well as an Estonian contact person, submission of all necessary documents in the Estonian language and paying the state fee of 145 EUR. Same as with an e-Resident card, it is not required for an entrepreneur to be present in Estonia when registering a business with a help of mediators.
Many businesses in Estonia delivering their services of opening a company by power of attorney. Our company is looking forward to being your company representative at an early stage. You find more information about the process and costs on our website.
Visiting Estonia to start a company
Coming to Estonia is the fastest way to register a company. That is a standard procedure requiring preparedness of documentation before attending a notary. Upon arrival, you need to possess all the information about your company and fill in the documents required by a notary, which services usually amount to 100 EUR. The state fee is 145 EUR, the same as with the formation of the company by proxy.
Be aware that it is possible to establish a company in one day only if a company has already got a legal address and a contact person in Estonia. That is likely to be achieved with recourse to the services of a company specialising in business development.
Before visiting Estonia in person, our company request the following information:[/vc_column_text][/vc_column][/vc_row][vc_row css=”%7B%22default%22%3A%7B%22margin-left%22%3A%2220px%22%7D%7D”][vc_column][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-top%22%3A%2220px%22%2C%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)” 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 Directors 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%2220px%22%7D%7D”][/us_iconbox][/vc_column][/vc_row][vc_row][vc_column][vc_column_text el_class=”padding”]By providing the above-mentioned information before arrival, you can speed up the process and start up a business in the best possible time.
Purchasing of an existing Estonian company
The last available option is obtaining a ready-made company. Such businesses are inactive corporate organisations that have passed the state registration and have all the necessary details for the implementation of their activities.
Purchasing a ready-made/shelf company should be a well-considered decision in order to protect oneself from unreasonable risks. Nonetheless, obtaining an already registered company has certain benefits. Among which:
Completed process of registration
Appearance of trustworthiness
Established reputation
IMPORTANT!The ready-made/shelf companies listed do not have bank accounts or VAT numbers. All corporate accounts have been closed by their previous owners.
So far, there are 4 possible ways to register a company in the Estonian market. LKS Consult OÜ is certain whatever option you are going for, the Estonian business environment welcomes your company and provide the most favourable conditions for growing your business. For our part, we ensure a smooth and promising start for your company.[/vc_column_text][/vc_column][/vc_row]
[vc_row css=”%7B%22default%22%3A%7B%22padding-bottom%22%3A%2240px%22%7D%7D”][vc_column][vc_column_text]Many entrepreneurs sooner or later have a question – in which country of the European Union to establish a company that would simplify doing business with European and international partners; reduce level of bureaucracy that hinders business development; be able to engage in company activities from anywhere in the world; and reduce taxation legally?
If you have already thought of such questions, the establishment of a company in Estoniawould help you solve the above-mentioned issues all at once.[/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]
Тhe main advantages of having a company in Estonia
The team of LKS Consult OÜ will be happy to provide all the necessary information and help with the establishment of a company in Estonia in the shortest possible time.[/vc_column_text][/vc_column][/vc_row][vc_row css=”%7B%22default%22%3A%7B%22padding-bottom%22%3A%2240px%22%7D%7D”][vc_column][vc_column_text]
Issues that non-residents should pay attention to when opening a company in Estonia
In Estonia, the corporate income tax is 0%. This benefits primarily those business owners who do not pay out profits, but re-invest it in the business.
Transparency of doing business. Since October 1, 2022, data on owners and board members of all Estonian companies are publicly available.
Since 1 January 2011, there is no obligation to employ an Estonian resident in the company’s governing body, unlike in other EU countries. The founders and board members of the company in Estonia may be non-residents of Estonia.
There is no obligation to pay the salary of a member of the company’s board (CEO) and, accordingly, to pay taxes on such salary.
Moreover, there is no obligation to contribute the share capital (2,500 euros) at the time of incorporation of the company.
As such, there is no obligation to report to the Estonian Tax Board if not salary is paid and no obligation to apply for VAT number.
Possibility to acquire a D-visa for a member of the company’s management board
A company registered in Estonia can take unlimited loans from its shareholder in the course of business activities
[icon name=”coins” style=”solid; color:#45b400; height:1.5em !important;width:auto; margin-right:20px” class=”” unprefixed_class=””]Lowest cost of company registration in the EU
[icon name=”euro-sign” style=”solid; color:#45b400; height:1.5em !important;width:auto; margin-right:20px” class=”” unprefixed_class=””]Low cost of service
[icon name=”piggy-bank” style=”solid;color:#45b400; width:auto;height:1.5em!important; margin-right:20px” class=”” unprefixed_class=””]No need to pay the authorized capital of the company
[icon name=”laptop” style=”solid;color:#45b400; width:auto;height:1.5em!important; margin-right:20px” class=”” unprefixed_class=””]Completely remote opening and management of the company
Savings on taxation. The main advantage of registering a company in Estonia is a zero tax on retained earnings. When distributing profits, the tax will be 20%. At the same time, Estonia is not considered an offshore company, which means that the company’s reputation will not be affected.
More funds to reinvest in the company. Since there is no need to pay profit tax annually if it is not distributed in the form of dividends, you have more money to reinvest in the business. This gives the Estonian firm an advantage over other jurisdictions.
Opportunity to work in the European market. Estonia is a member of the EU. Potential clients from Europe are more willing to cooperate with European companies.
Savings on time. After receiving the electronic resident card, you can manage the company from anywhere in the world. Documents and contracts are digitally signed, and annual reports are submitted electronically. Only large companies are required to undergo an audit.
Estonia’s e-residency is a unique programme of the Estonian government. Entrepreneurs who have received an e-resident card have access to all the country’s electronic services – they can manage the firm completely online, from signing contracts to paying taxes. But an e-resident card is not an analogue of an Estonian passport: it does not give the right to live in Estonia and does not grant tax status.[/vc_column_text][/vc_column][/vc_row][vc_row css=”%7B%22default%22%3A%7B%22padding-bottom%22%3A%2240px%22%7D%7D”][vc_column][vc_column_text]
Who should register a company in Estonia
The company’s registration in Estonia is an ideal solution for start-ups and small businesses that are not tied to a place. This is everyone who works in the digital world and is engaged in software development, IT consulting, online training, design, marketing, etc. Estonia’s advanced tax system, where taxation occurs only when distributing profits, will be your competitive advantage.
In some countries of Europe, startups do not even register as companies at first. Because they are not ready to take on the costs and hassles of running a company as long as they do not have customers and stable income.
In Estonia, all funds that you invest in the firm or spend in the course of its work are not subject to taxes. Renting an office in a co-working space, office equipment, expenses for meals, accommodation, and transportation on business trips are all justified business expenses that do not have to be taxed.
The Estonian tax system is designed to help start-ups. Only after the company becomes bigger, starts hiring employees and receives stable income, it will pay a tax.
Attractive taxation in Estonia can also be used by large businesses. Our experts will tell you whether an Estonian company is right for you.
Types of companies in Estonia
In Estonia, you can register your company as:[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto”][vc_column width=”1/2″][vc_column_text]
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Foreign nationals wishing to take full advantage of the Estonian tax system choose to register OÜ (or AS in the case of large businesses).
At OÜ, shareholders are not personally liable for the firm’s obligations. Minimum capital – 2,500 euros. If all the founders are individuals, and the amount of capital does not exceed 25 thousand euros, it is not necessary to make it at registration. The main thing is to pay the capital before the dividend is distributed.
Registration requires at least one shareholder and one director (individual). 100% foreign ownership is allowed. If the majority of the directors do not reside in Estonia, the company must provide the e-Business Register with the contact details of the local representative who will be responsible for further communication with the public authorities.
Annual reporting is submitted online to the e-Business Register. The audit is mandatory only for large firms. The size of the company is determined based on its total assets, income, and number of employees.[/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]
How to register a company in Estonia
To open a company in Estonia, you do not need to go anywhere. If you have already become an electronic resident of Estonia, you can register the company online. If not, it is enough to issue a power of attorney, and we will register a company for you remotely. Alternatively, you can come to Estonia in person, and we will accompany you at all stages of the registration process.
First, come up with a unique name for the company. Make at least two choices in case one of the proposed names is already taken. Choose names that are easy to read, remember, and reflect the essence of the company’s activities.
When registering, you need to declare the share capital (at least 2,500 EUR). It can be deposited later, in cash or in kind. At the time of distribution of dividends by the company, the share capital must have already been paid in.
Determine the type of activity that you specify when registering. Keep in mind that the company will be able to work in other areas, you need to specify the main one.
Documents and information required for company registration in Estonia:[/vc_column_text][vc_row_inner css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2220px%22%7D%7D”][vc_column_inner width=”1/2″][us_iconbox icon=”fal|passport” title=”Notarised copy of the foreign passport” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”30px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22text-align%22%3A%22left%22%2C%22margin-bottom%22%3A%2215px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|file-invoice” title=”Proof of residential address (utility bill)” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”30px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22text-align%22%3A%22left%22%2C%22margin-bottom%22%3A%2215px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|file-chart-line” title=”Business plan” title_size=”Business plan” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”30px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22text-align%22%3A%22left%22%2C%22margin-bottom%22%3A%2220px%22%7D%7D”][/us_iconbox][/vc_column_inner][vc_column_inner width=”1/2″][us_iconbox icon=”fal|at” title=”Owner’s email address and public emailaddress of the company” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”30px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22text-align%22%3A%22left%22%2C%22margin-bottom%22%3A%2215px%22%7D%7D”][/us_iconbox][us_iconbox icon=”fal|user-tie” title=”Information about the managing director” title_tag=”p” color=”custom” icon_color=”#45b400″ size=”30px” iconpos=”left” alignment=”left” css=”%7B%22default%22%3A%7B%22text-align%22%3A%22left%22%7D%7D”][/us_iconbox][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row height=”auto” columns_type=”” columns_reverse=”” ignore_columns_stacking=”” css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2220px%22%2C%22padding-bottom%22%3A%2240px%22%7D%7D”][vc_column][vc_column_text]After receiving the documents and information, we will register a company for you in Estonia.
Additional services provided by Service :
Asistance in choosing the right type of company
Advice on opportunities for work, company structure and its obligations
Consultation on tax optimization of business
Assistance in registering the name and articles of association of the company
Provision of a local representative and legal address on the territory of Estonia
Receipt of VAT-number and EORI-code (for trading firms)
Opening a bank account in Estonia, in foreign banks or in the payment system
Full service to Estonian firms: accounting, auditing, submission of annual reports
The main advantages of registering a business in Estonia
The main advantage of registering a business in Estonia is the absence of a tax on retained earnings. This feature of the legislation makes it possible to increase and reinvest capital, and it opens up new opportunities to optimize the tax burden and develop the business.
Simple and fast company registration process. On average, the company is registered in less than 3 hours.
The establishment of a company in Estonia does not imply an obligation to distribute the profits received.
One of the main advantages of the company in Estonia is income tax. If a company receives income from its economic activities and is registered in Estonia, it is not obliged to pay income tax on its profits if it re-invests profits in its business development.
Low company registration costs. Minimum share capital is EUR 2,500, but it can be deferred.
The owner of the company may be a non-resident of the country (natural or legal person).
A company in Estonia may be owned and operated by the same person.
There are no requirements for the amount of wages and terms of employment.
Simple reporting and clear documentation algorithm.
The registration of a company in Estonia makes it possible for a non-resident to obtain the status of a taxpayer of the European Union and to issue VAT and EORI numbers.
The possibility “to become an electronic citizen” – i.e., by registering a company in Estonia and obtaining an e-residence (resident card) one can after registration manage the company remotely, to sign documents with an electronic signature, to have access to all public services and registers in Estonia, while not being a citizen of Estonia.
Registration of the company in Estonia to non-residents opens new prospects for holders of long-term work D-visa. This is often a suitable way to apply for a residence permit in Estonia in the future.
Estonia is located in the European Economic Area and is a member of the European Union. In Estonia, all the laws adopted in the EU are applied and this makes it simpler to expand to the EU market.
Opening a company in Estonia is beneficial to business, for which it is important to quickly and economically register intellectual property, obtain European trademarks and patents.
The legal and judicial system in Estonia is transparent and understandable, which makes it possible to feel the security of business.
[/vc_column_text][vc_row_inner][vc_column_inner][us_btn label=”Set up a company” link=”url:https%3A%2F%2Fwww.estonia-company.ee%2Fcompany-formation%2F|||” align=”center” css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2220px%22%7D%7D” el_class=”white”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_raw_html]JTNDaDIlMjBjbGFzcyUzRCUyMmRlY29yYXRlZCUyMHVwcGVyY2FzZSUyMiUyMHN0eWxlJTNEJTIydGV4dC1hbGlnbiUzQSUyMGNlbnRlciUzQiUyMiUzRSUzQ3NwYW4lMjBjbGFzcyUzRCUyMnNwJTIyJTNFRlJFUVVFTlRMWSUyMEFTS0VEJTIwUVVFU1RJT05TJTNDJTJGc3BhbiUzRSUzQyUyRmgyJTNF[/vc_raw_html][vc_tta_accordion scrolling=”0″ c_icon=”plus” c_position=”left” css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2220px%22%7D%7D”][vc_tta_section title=”How does establishing a company in Estonia benefit you?”][vc_column_text]
Retained earnings are not subject to company income tax.
Board members and founders need not reside in Estonia (there is no need for a local director).
In addition, there is no requirement to pay a salary to the company’s director.
When establishing a company, you do not have to contribute the authorized capital.
With an e-Resident card, it is possible to fully manage the company remotely.
A Board member can apply for a residence permit for up to five years if he or she is doing business in Estonia.
An Estonian company can purchase transport and real estate without paying taxes.
A total of 62 countries have signed the Convention for the Avoidance of Double Taxation with Estonia.
The Estonian tax system is transparent and clear, and there are no progressive taxes.
[/vc_column_text][/vc_tta_section][vc_tta_section title=”As a non-resident, what should I be aware of?”][vc_column_text]Consider these factors:
It is tax-free for corporations in Estonia. Businesses that reinvest profits rather than pay out profits benefit the most from this.
Doing business in a transparent manner. Data on Estonian companies’ owners and directors has been publicly available since October 1, 2022.
In contrast to other EU countries, Estonian residents are not required to serve on the company’s governing body since 1 January 2011. Estonian companies may have non-resident founders and directors.
The CEO of a company does not have to pay his or her salary and, accordingly, does not have to pay taxes.
At the time of incorporation, the share capital (2,500 euros) is not required.
If no salary is paid, no report to the Estonian Tax Board is required, and no VAT number is required.
The possibility of acquiring a D-visa for a member of the company’s management
During the course of business activities, an Estonian company can borrow unlimited amounts from its shareholders
A residence permit can be applied for by a member of the company’s management board or the owner in order to conduct the company’s actual business.
Tax-free purchase of real estate owned by Estonian companies.
Obtaining a company car with a VAT refund is possible
Cars owned by the company do not have to pay transport taxes
Several countries do not impose double taxation
An non progressive tax system that is transparent
Management costs start at 500 euros per year for a small business
[/vc_column_text][/vc_tta_section][vc_tta_section title=”Could you please explain the benefits to me in more detail?”][vc_column_text]
A reduction in taxation. Registration of a company in Estonia has the main advantage of zero taxes on retained earnings. There will be a 20% tax on profits when they are distributed. Moreover, Estonia is not regarded as an offshore company, so its reputation will remain intact.
The company can reinvest more funds. Profits that are not distributed as dividends do not have to be taxed annually, so you can reinvest them in the business. In comparison with other jurisdictions, Estonia has this advantage.
Working on the European market is an opportunity. The European Union includes Estonia. European companies are more likely to cooperate with potential clients from Europe.
Time savings. As soon as you receive the electronic resident card, you will be able to manage the company from anywhere in the world. Electronic signatures and annual reports are used for documents and contracts. Audits are only required for large companies.
[/vc_column_text][/vc_tta_section][vc_tta_section title=”E-residency: what is it?”][vc_column_text]In Estonia, the government offers a unique e-residency program. An e-resident card enables entrepreneurs to access all the country’s electronic services – from signing contracts to paying taxes, they can manage their firms online. E-resident cards are not equivalent to Estonian passports: they do not grant residency rights nor tax privileges.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Who should register an Estonian company?”][vc_column_text]Start-ups and small businesses without a fixed address will find Estonia’s registration to be an ideal solution. Software developers, IT consultants, online training providers, designers, marketers, and anyone involved in the digital world falls into this category. You will have a competitive advantage thanks to Estonia’s advanced tax system, which takes into account only the distribution of profits when taxation is applied.
A startup may not even register as a company in some European countries. As long as they do not have customers or a stable income, they are not ready to handle the costs of running a company.
Investments or expenditures made by the firm are not subject to tax in Estonia. It is not necessary to pay taxes on business expenses such as renting an office, purchasing office equipment, and spending money on meals, accommodations, and transportation.
Start-ups in Estonia benefit from the Estonian tax system. The company will only pay taxes once it has grown, hired employees, and earned a stable income.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What types of companies exist?”][vc_column_text]Your company can be registered as follows in Estonia:
A public limited liability company (AS)
Non-profit association (MTÜ)
A private limited liability company (OÜ)
Self-employed entrepreneur (FIE)
General partnership (TÜ)
To fully benefit from the Estonian tax system, foreign nationals register as OÜs (or ASs for large businesses).
The firm’s obligations are not personal to shareholders at OÜ. The minimum capital requirement is 2,500 euros.Individual founders and capital amounts below 25 thousand euros do not need to register if they are all individuals. Before the dividend is distributed, the capital must be paid.
An individual shareholder and an individual director are required for registration. The ownership of 100% of the company can be foreign. The e-Business Register must receive the contact details of the local representative who will communicate with the public authorities if the majority of directors do not reside in Estonia.[/vc_column_text][/vc_tta_section][vc_tta_section title=”In Estonia, how do you register a company?”][vc_column_text]Estonian companies can be opened without leaving the country. When you become an electronic resident of Estonia, you can register your company online. If not, we can register a company for you remotely if you give us a power of attorney.Our registration team will accompany you at all stages of the registration process if you come to Estonia in person.
You should start by naming the company something unique. In the event that one of the proposed names has already been taken, make at least two choices. Name your company in a way that is easy to read, memorable, and reflects its core purpose.
A minimum of 2,500 euros must be declared when registering a company. In cash or in kind, it can be deposited later. A company must have already paid in its share capital before distributing dividends.
When registering, you need to specify what type of activity you will be performing. You should specify the main area of work for the company, even though they might be able to work in other areas as well.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Is there a list of required documents?”][vc_column_text]
Passport copy notarized
A utility bill showing the address of the residence
Plan of action
Email addresses of the owner and the company’s public email address
The managing director’s information
[/vc_column_text][/vc_tta_section][vc_tta_section title=”Estonia is a good place to register a company. What are the advantages?”][vc_column_text]
In Estonia, there is no tax on retained earnings, which is the main advantage of registering a business. With this feature of the legislation, capital can be increased and reinvested, and the tax burden can be optimized and business opportunities can be expanded.
Fast and simple company registration process. It usually takes less than three hours to register a company.
It is not mandatory to distribute profits received by a company established in Estonia.
Estonian companies have the advantage of low income taxes. A company registered in Estonia that reinvests profits in its business development does not have to pay income tax on its profits if it receives income from its economic activities.
Registration costs for companies are low. It is possible to defer the payment of the minimum share capital, which is EUR 2,500.
Owners of the company may be natural persons or legal entities residing outside the country.
It is possible for the same person to own and operate a company in Estonia.
In terms of wages and employment terms, there are no requirements.
Documentation algorithm that is simple and straightforward.
Estonia allows non-residents to become EU taxpayers and issue VAT and EORI numbers by registering a company.
In order to become an electronic citizen, one needs to register a company in Estonia and get an e-residence (resident card). Once the company is registered, one can manage it remotely, sign documents electronically, and access all public services and registers in Estonia without being a citizen.
For holders of long-term work D-visas, the registration of the company in Estonia opens up new prospects. If you plan to apply for a residence permit in Estonia in the future, this is often the most suitable way to do so.
In addition to being a member of the European Union, Estonia is also part of the European Economic Area. It is easier to expand to the EU market in Estonia since all the laws adopted in the EU are applied.
Businesses have many benefits from opening a company in Estonia, including quick and inexpensive intellectual property registration, trademark registration, and patent registration.
It is possible to feel secure about doing business in Estonia because the legal and judicial system is transparent and understandable.
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.
Existing companies are indeed advantageous to buy. Since they have already existed on the market for some time, ready-made companies are suitable investments. Before purchasing an Estonian company, every entrepreneur needs to be aware of nuances and familiarise himself with the company’s background to make sure everything required has been completed.
In this blog article, we will be looking into a residence permit for business activity exploring based on an Estonian company.
Which European country welcomes aspiring entrepreneurs? What country economy is the friendliest for doing business? — at a certain point, every entrepreneur faces a choice of where to start his business in the European Union.
Starting a business could be challenging as it’s time-consuming and requires responsible efforts. We believe the process of company formation not to be critical, however, it’s all about finding the right approach. 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.