Asset Management License
in Estonia

Why Choose Estonia for Asset Management

Estonia is one of the most stable and rapidly growing countries in Europe, with minimal government debt and a high credit rating. As a member of the European Union, Estonia provides access to internal EU trade and tax regulations, significantly simplifying business operations.

A company that obtains an asset management license in Estonia can offer a wide range of services, including portfolio management, investment advisory services, investment fund management, financial planning strategies, and asset custody for clients.

Key Requirements for Asset Management Licensing in Estonia

Company structure

• The company must be registered in Estonia.
• The board must consist of at least two members, with at least one being a resident of Estonia. 

Financial requirements

• A minimum share capital of €125,000 is required. All funds must be fully paid up and confirmed before submitting the license application.

Operational Readiness for Estonia license 

• A detailed business plan must be submitted.
• The company must demonstrate the availability of the necessary infrastructure, including IT systems.

Compliance and Risk Management

• A compliance officer must be appointed to ensure adherence to regulations.
• A policy for combating money laundering and terrorist financing must be implemented.

Asset Management Licensing Regulation in Estonia

To obtain an asset management license, entrepreneurs must submit the required data and documentation to the Estonian Financial Supervisory Authority (EFSA) in the prescribed format, as required by law. Specialized companies are allowed to register their business activities specifically for asset supervision in accordance with EU rules.

Procedure for obtaining an asset management license in Estonia

1. Before submitting an application, it is necessary to

• Select qualified personnel;
• Develop a business plan that includes key aspects of the business and strategy.

2. Submission of application to EFSA

• The application and payment of the regulatory fees are submitted to the EFSA.

3. EFSA conducts a review of the application to ensure compliance with the requirements of Estonia and the EU. Additional clarifications or information may be requested.
4. Approval and licensing for license asset management 

• After the successful completion of the review, EFSA issues the license.
• The process typically takes 3-6 months, depending on the complexity of the request and the completeness of the documents provided.

How to get an asset management license in Estonia

To obtain the asset management license in Estonia, the applicant must submit a set of documents confirming legal and financial compliance with the requirements for asset management Estonia, including:

• Articles of Association;
• Notarized copy of the Articles of Incorporation and documentation confirming the payment of the share capital;
• Business plan;
• Financial statements;
• Internal regulations;
• Data on the supervisory board, the auditor, and the managing director;
• List of shareholders of the company;
• Information about subsidiaries (companies where the applicant or its management holds more than 20% of shares or stakes);
• Confirmation of net capital value;
• Accounting rules;
• Payment to the Investor Protection Fund.

Cost of the Asset Management License in Estonia

The application fee for license Estonia is €1000.

Advantages of Obtaining an Asset Management License in Estonia

1. Estonia license gives access to the markets of the entire European Economic Area.
2. EFSA regulation increases client and investor trust.
3. Estonia offers a favorable tax system, stimulating business development:

• zero tax rate on undistributed profits;
• 20% dividend tax is only applied to distributed dividends;
• no tax on property purchases and a low land acquisition tax;
• exemption from VAT for companies with a turnover below €40,000;
• companies registered in Estonia are not subject to turnover tax on intra-EU transactions and avoid customs duties.

4. Estonia has a high level of digitalization.
5. The costs of obtaining and maintaining the license are significantly lower compared to other EU jurisdictions.

Why SBSB

At SBSB, we specialize in providing comprehensive legal and regulatory support to companies seeking to obtain an asset management license in Estonia. Our team of experienced professionals is highly knowledgeable about the nuances of establishing and operating companies in this jurisdiction, ensuring full compliance with both local and international regulations. We assist at every stage of the process — from company registration and regulatory compliance to operational setup. We guarantee that your company will meet all licensing requirements, we’ll develop necessary internal policies, and prepare for potential changes in legislation.

Contact us for tailored legal advice and solutions that ensure compliance and help your business thrive in the dynamic and growing asset management sector in Estonia.