Unique Corporate Taxation System of Estonia
Advantages of using Estonia as your Jurisdiction of choice:
- Estonia has been a member of the EU since 2004.
- State services are provided online (including tax office and customs)
- Companies are not taxed on their profits unless the said profits are redistributed to the shareholders or by other means. Retained profits and profits reinvested into the company are not taxed.
- Dividend taxation is significantly simplified for Estonian residents and Estonian companies both.
- Companies in Estonia have the right to receive a VAT payer status
- Directors do not need to be Resident
- Estonia took 9th Place in the Index of Economic Freedom in 2016
- Members of the board of Directors of newly established company have the right to advocate for Estonian citizenship.
Fee Schedule for Company Formation in Estonia*
*Fees are applicable if the company is registered with shareholder. The number of shareholders is entirely flexible but the fees will vary depending on the number of shareholders.
What documents will you receive upon incorporation?
- Notarised Memorandum of Association
- Certificate of Incorporation
- Extract from the register
- Bank agreement
What do you need to form a company there?
Give us a call, or drop us an email and we would be glad to elaborate all the requirements for you.
Taxation and Statutory Requirements at a glance
The profits are taxed at a rate of 20% once they are distributed, there is a broad definition of what “distributed” means in this context. VAT number is only required if the Estonian company is active in Estonia or EU and turnover in Estonia is at 16 000 euro minimum
Registered company in Estonia is required in the course of 6 months after the end of the financial year, which is the same as calendar year, to provide the financial account.
A company registered in Estonia is required to file financial accounts after the end of the financial year, within 6 months after the end of the financial year or before the end of the calendar year – whichever comes first.
The most popular type of Estonian company is a limited liability company (Osaühing OÜ).
For limited liability companies the minimum share capital is 2500 euro. There is no requirement for the capital to be paid-up.
Limited liability company in Estonia must have at least one shareholder. There is no requirement for shareholders to be Estonian residents.
There is no requirement for information on beneficiary to be filed in Companies Registry. Although when you buy shares of the private company, the local notary public will ask for that information.