Advantages of company registration in Estonia.
We get many requests for business incorporation in Estonia. Why do CIS businessmen increasingly choose Estonia to expand their business to the European Union? What are the benefits of the Estonian jurisdiction?
This article offers a detailed overview of the advantages of company registration in Estonia, peculiarities of operating Estonian companies and tips on who may benefit from incorporating a company in Estonia.
Business registration in Estonia. What are the major benefits?
A member of the EU, Estonia offers excellent conditions to foreign investors. Here is why one should consider doing business in Estonia:
- Quick and easy registration. There are two ways of registering a company in Estonia — via e-residence or a power of attorney. With all required documents submitted, the company will be registered and appear on the Estonian commercial registry within 1 week. At company registration, there is no need to contribute the authorized capital which starts at EUR 2500 for local LLCs (OÜ). The authorized capital is declarative, meaning there is no requirement for actual payment thereof.
- Low tax rates in Estonia. Undistributed profits are not taxable. Estonia offers one of the most liberal and modern taxation systems in the world, with red tape reduced to minimum.
- VAT number assignment. Estonia is a great solution for companies that trade within the EU and are looking to optimize tax expenditures when delivering goods from and to the EU. With an Estonian company whose annual turnover does not exceed EUR 40,000, you need not register as a VAT payer. On the other hand, you can reduce the turnover tax if you obtain the VAT number.
- Double taxation treaties signed by Estonia. Estonia currently has 57 double taxation treaties signed. Those help diminish the tax rate in the country of income source.
- Effective investments in Estonia. Estonia treats foreign investors the same way it does local ones. The country has attracted many overseas investors and well-known major companies such as Ericsson, ABB, Kuehne + Nagel, StoraEnso, Symantec, Stoneridge, Vopak EOS and Deutsche Post DHL.
- Digitalization in Estonia. Estonia is a highly digitalized country, and this applies to the taxation and financial systems as well. Any person may obtain an electronic residence (the Estonian variant of the digital signature). Thanks to this, all accounts and tax returns are submitted exclusively online. Convenient, isn’t it?
Estonia offers a wide variety of benefits for company registration, including general simplicity and low cost of the process and the option to manage the company remotely.
SBSB has an extensive portfolio of successful business registrations in the Estonia and will be happy to provide top quality advice on all aspects of business incorporation in Estonia. Besides, our lawyers are highly experienced in registering companies not only in Estonia but in a number of other countries worldwide. Join our Telegram chat to get a free online consultation.