Company in Estonia
Growing number of entrepreneurs is choosing to open company abroad. It is becoming more common to open company in Estonia by foreign entrepreneurs.
The Republic of Estonia is a parliamentary republic in Northern Europe situated on the Baltic Sea. It boarders Latvia from the south, Russia from the east and Finland through the Gulf of Finland. The capital city of Estonia is Tallinn, and its currency is the Euro.
Opening a company in Estonia is attractive for foreign investors. Estonia has been a member of the European Union since 2004. Therefore, there are no specific requirements or difficulties to establish a company in Estonia. Accordingly, opening a company in Estonia for Polish citizens can be finalized without problems.
Company registration in Estonia is done online, and the country tempts foreign entrepreneurs with low costs and taxes.
Open a business in Estonia
Establishing a company in the Republic of Estonia can be completed in two ways. The most convenient way for a company formation in Estonia is for the Client to have an Estonian e-Residency card. Then, a company registration in Estonia will be established directly on behalf of the client. If the Client does not have an Estonian e-Residency card, the establishment of a company in Estonia can finalized indirectly through an Estonian partner, and then the shares are transferred to the Client on the basis of a power of attorney.
Opening a company in Estonia requires owning an Estonian address. A company without an address will not be registered. However, this is not an unavoidable issue, because if the customer does not have an address at which the company may be registered, there are companies which are registering virtual addresses which are honoured without problems. The process can fully be arranged online.
Taxes in Estonia
As of taxes in Estonia, the country’s tax system has been structured in a simple way to attract investors. There is no double taxation of the same amount in Estonia. In addition, income tax is paid only when the income is distributed. Thus, a company in Estonia does not pay taxes as long as the money is kept in the company (e.g. to invest in its development). In comparison, most countries including Poland, taxation of money is carried out at the time of receiving income, where the tax is paid when the dividend is paid to the shareholders (i.e. the income is distributed in the case of expanses for the representation of a company not related to conducting business).
Ready made company in Estonia
The purchase of companies in Estonia is not widely practiced. The purchase of a ready made company is an unprofitable solution due to the face that the registration of the company may be completed quite quickly.