The best jurisdiction for remote business management in EU
Estonia is the leading country in the field of information technology which is significantly adapted to everyday lives of Estonian physical and legal residents. Country is demonstrating outstanding results in most macroeconomic categories. Estonia has GDP growth for the last 10 years; inflation hasn’t been higher than 4,7% in last 10 years; public debt is at EU’s lowest 9%. Estonia is popular with advanced legislation towards blockchain regulation. It is one of the first EU countries which has developed licenses for cryptocurrency exchanges and virtual currency e-wallet services.
With advanced e-governance and modern legislation, Estonia has become one of the top jurisdictions in EU for remote business management.
General requirements for Estonian companies:
Share capital: EUR 2500. Share capital does not have to be contributed during company incorporation. It can be contributed during 1 year after incorporation of the company.
Share capital can be contributed from Payment Service Provider institution which operates under license issued in EEA.
No need for registered address in Estonia if company is managed from abroad. Company must appoint licensed contact person in Estonia who will be responsible for communication on behalf of the company.
Corporate income tax is levied only on distributed profit which allows company to reinvest their profit in development of the company (new equipment, share purchase, office premises, etc.) with 0% corporate tax rate.
Company formation in Estonia
There are 3 ways how to incorporate a company in Estonia:
Company incorporation with e-Residency card
Company incorporation with Power of Attorney
Company incorporation at the notary office in Tallinn
1. Company formation with e-Residency card
e-Residency card is a unique digital identity granted by Estonian government. It grants Estonian personal ID number to holder of the e-ID card and allows person to access Estonian state of the art e-governance portals.Estonia is the first country in the world which grants such digital identity to persons who are not Estonian residents. It has proven to be extremely useful for people who are managing their EU business remotely - such as freelancers, digital nomads, startup companies and digital entrepreneurs. Company incorporation with e-Residency card is the fastest and most convenient way to incorporate a company if owner and director is the same physical person. The main benefits for company incorporation with e-Residency are:
Remote company incorporation process.
Remote company management. Holder of e-Residency card is able to sign and submit all business - related documents to Estonian authorities.
e-Residency card valid in other EU Member States for e-signature.
e-Residency card costs EUR 100 and timescale to receive the card is up to 30 business days.
You can apply for e-Residency online here.
Costs for company formation in Estonia with e-Residency card
2. Company formation with Power of Attorney
Company incorporation in Estonia with PoA is useful option when owner / director of the company does not have e-Residency card and is not ready to wait 30 business days to receive it. Company still can be incorporated 100 % remotely. Main benefits are:
Remote company incorporation process.
Company can be incorporated during delivery time of e-Residency card.
Company incorporated within 3 business days once apostilled PoA is delivered to GATE TO BALTICS.
Possible also when creating a subsidiary in Estonia and shareholder is a corporate entity.
Please note that Power of attorney must be apostilled and translated in to English. In certain cases, it is faster to receive e-Residency card than to apostille and translate power of attorney. We always recommend to contact us to determine which method is the best for your business.
TOTAL costs will depend on corporate structure and price of apostille + translation services in specific jurisdiction. Additionally, to the expenses illustrated above, there will be notary fee applied. For specific quote, please contact us.
3. Company formation at the notary office in Tallinn
Company incorporation at the notary office is fast and convenient way how to incorporate a company if owner or member of the board are planning to travel to Tallinn. This option is also useful for companies who wish to establish a subsidiary in Estonia and would like to explore real estate properties in Tallinn or meet with business partners from Estonia. Main benefits are:
Chance to explore Tallinn.
Fast company incorporation process. No need to wait for e-Residency card or apostilled / translated PoA.
Possibility to go to local banks and apply for bank account opening
Please note that in cases of subsidiaries, corporate documents of parent company still need to be translated and apostilled.