Latest amendments adopted by the Parliament of Estonia removes the need for a local bank account
Yesterday, on the 5th of December, The Parliament of Estonia adopted new amendments in the Estonian Commercial Code, of which the most important amendment concerns the requirements of bank account opening for a company.
According to the current law it is required to open company’s account in one of the Estonian credit institution for share-capital contribution. It has created a significant difficulties in opening a bank account for companies managed by non-residents due to strict AML policy in local banks. The amendment has a direct impact on non-residents, especially to e-Residents who wish to manage their Estonian company from abroad.
Former practice has shown that companies operating in a cross-border context have opened payment accounts outside of Estonia and would find reasonable to use these accounts for company-related transactions in Estonia, for example share-capital contribution.
The amendment permits companies to make a share-capital contributions in addition to a credit insititution also in a payment institution operating within the European Economic Area. The amendment includes that the term "bank account" is replaced with "payment account".
This means that Estonian companies now can be 100% managed from abroad. It is worth to mention that Estonia is the only Member State in EU with so "forward-thinking" approach on how to manage business in 21st century. There are several financial institutions where it is possible to open account 100% remotely without a need to physically show up in the bank and just to “identify” yourself. In 21st century when there are more than one way how to identify a person remotely we have found this requirement bizarre and we are happy to see that one of EU Member States has taken serious steps to help people to manage their business remotely.
Among other amendments corporate entities are going to be exempt from state fee if they find necessary to change their contact e-mail address in the Business Register.
The amendments will enter into force on the 1st of January 2019.
We believe that 2019 will bring many international companies to Estonia and as always - we are here to help you with setup and management of the company.