Estonia is an attractive European jurisdiction where companies have a formal option to avoid paying taxes on retained earnings. In addition, the founder of an Estonian company is not obliged to contribute capital, which makes the procedure of opening cheaper and easier.
Advantages of formation estonian company
Estonia’s huge advantage for foreigners is that most services can be obtained online. This is especially convenient if you do not live in Estonia. And on this the advantages of Estonia do not end, there are other low maintenance costs for the company. Full integration into EU legal systems (possibility to get VAT number, do EORI, etc.); The euro is the official currency of the country; Possibility to open a company by any composition of founders. The latter is especially important, because if for the Irish partnership you would need a second founder, then in Estonia it becomes easier. You can set up a Estonian company alone. Nominal service in Estonia is prohibited. It is also possible to register a legal entity on a group of persons, for example, your business partners or family. Registration of a company in Estonia for a family is practiced by foreigners who plan to apply for a long-term residence permit in the future on the basis of the company, and subsequently obtain a residence permit (residence permit).
Years of Experience
The main feature of setting up a company in Estonia
Estonia is one of the few countries in Europe where still willingly and relatively easily give a residence permit on the basis of the firm. For example, in the Czech Republic, where previously there was a similar situation, the possibility of obtaining a residence permit on the basis of a firm remained, but the process itself became significantly more complicated. And against this background, Estonian firms look more advantageous.
Very Low Rates on Taxation
99.9% Success Rate Guarantee
Flexible with your Repayments
How much it costs to open a company in Estonia
The cost of opening depends on the organizational and legal form, as well as the way you decide to go when registering a new legal entity.
Cost of the company: from 1500 euros;
Registration time: 5-7 working days.
You can open a company in Estonia without intermediaries, that is, completely independently. In this case, the exact cost is impossible to calculate in advance or even to assume. Although the Estonian Government has taken a number of steps in recent years to facilitate the registration of new legal entities, the process still requires work with a specialist.
The calculation takes a period of 3 years, and if the amount of the distributed profit does not fall from year to year, an overall reduction of the tax burden relative to the previous period can be expected. For example, if in the first year the distributed profit was 100,000 euros, then the 20/80 tax would be 25,000 euros. If in the second year the distributed profit again amounted to 100,000 euros, then not only the 20/80 rate but also 14/86 applies, resulting in a tax of 22,090. Where 1/3 of the amount is considered the lowest rate and 2/3 the highest. In addition to income tax, companies are obliged to pay VAT. This is relevant only if the company is a VAT payer. In some cases it is advantageous. For example, if the business is engaged in the export and import of goods. The value added tax rate varies by product category and varies from 0 to 20 per cent.