If you want to start a Company in Estonia, you need not run from pillar to post. All information can be found online and you can initiate a business or open a branch without much delay. Documentation work is quick and registration is completed to allocate commercial code.
Persons or companies from other countries can register with Commercial Register for operating a branch or for a permanent business in Estonia. Registration can be done in person or online for setting up business in Estonia and all trade activities are ruled by commercial coding.
Category of business
There are four categories of trading business that can be adopted in Estonia:
• Sole Proprietorship
• Limited Company
• Public Limited Company
Branches of foreign companies have to additionally register with local tax authorities and the medical insurance fund. All documents must be made in Estonian language and an authorised lawyer has to certify translations.
Limited companies must have at least one resident director and share capital needs to be paid as per the government directives. For a public limited company, share capital will be much higher than a limited company.
Public and private limited companies will have shareholders, but they are not personally responsible for the accountability of the company. In Partnership Company, partners are jointly responsible for liabilities of partnership.
An application which is notarised must be submitted to the Commercial Register, and you have to show your ID proof. Registration does not carry any cost, but prescribed government fee has to be paid. Registration process depends on the type of business and applications are checked by next working day, and a commercial code is allocated. Registration procedure is simple and quick, and it is easy for anyone to start and operate a company in Estonia.
Online registration is also possible for an Estonian ID card holder through Commercial registration Portal.
Companies and proprietors who have already registered with the Commercial Register need not register again with the Tax and Custom Board, but it is obligatory on the part of proprietors or companies to pay the social tax as per the government rules. Non-residents with employers in Estonia and not registered with Commercial Register will have to register with tax authorities and pay the social tax in advance.
Many business activities require a licence to operate, and you should apply and obtain a licence for those activities. Special licences are required for the following business segments:
• Public utilities
• Ports and dams
• Railways and airports
• Alcohol and tobacco
Banking compliance has to meet by all organisations in Estonia by giving relevant information about the company and its operations.
As per European law, single point of contact is a must to help and support outsiders desiring to set up business in any European countries, and Estonian website will provide information like hiring professional services, details for getting finance, legal advice and so on, to initiate any business in Estonia.
Author’s Bio –
Gagan works with one of the best company registration services providers, and they have helped many of their clients in starting new companies and getting the operations rolling. If you are planning to start business in Estonia, please visit their website.