How To Get A Fully Registered Company In Estonia
Estonia companies have always been the first choice for internet entrepreneurs and e-
commerce enthusiasts due to the low cost and a wide range of payment options. The country has grown into a technology hub over the past decade thereby creating an enabling environment to online entrepreneurs. To register a company in Estonia, one may be required to undertake due diligence research or else fall into the unsuspecting online fraudsters.
More companies continue to thrive in this environmental so because it offers friendly tax brackets for entrepreneurs. Besides operating under the e-Residency program, this has also offered a significant contribution to the country's economy besides earning through growth and development of the digital society with boundless borders.
Acquiring an e-Resident ID in Estonia
Before registering a company in Estonia, you need to be an e-Resident. If not all the company members are not e-Residents of Estonia, the applications will only be approved. Still, they will not be registered until all the members acquire the e-Residency.
To acquire an e-Residency, you are required to visit the official e-Residency application website then make an application by inputting your personal information such as birth date, citizenship, and passport photos. It would take between 3 to 4 weeks for the applications to sail through.
Conducting a Company name search
The acquisition of a company name is first necessary. You need to go to the Estonia company registration page to the first check if the company name you intend to use is not registered or trademarked by another person. It would help if you strived to ensure that your company name is unique and way different from a registered company in Estonia. However, it is possible to get consent over the use of a registered name from the original owner.
Estonia is a technologically advanced state. It is easier to do a company name search over the website at no cost, thereby advantaging most of the interested applicants. In the event of an actual trademark name or other company that matches your proposed company name, you must provide an alternative name before proceeding to the next stage.
Company Information required for the registration
Estonia company register requires that you provide the details about the members of the company. Members of the company can either be a shareholder, a member of the board, or both. To some extent, it might be necessary to add whether a member represents certain aspects of the company
The address details of the company shall be required to include the email alongside the specification of the activities the company wishes to undertake. During the registration, the members shall provide their e-resident IDs in the absence of which they will need to add their birth date to help issue signatures to the right people. In the event of a company registration where all the members are E-resident citizens, averagely, the registration would take 48hours.
After verification that all the details provided are correct, then payments shall be prompted. The company registration prices vary based on the activities of the Company and the number of members in the company.
Opening A Bank Account
Once you register a company in Estonia, opening a bank account is paramount and must equally be an Estonian bank. It will help the company invoicing its customers, distributing the benefits, and payment of suppliers. To be able to open an account, you shall be required to provide a passport with a valid visa, documents containing legitimacy such as bank statements, and also licenses may be required as a proof of the business location and employee records.
One may open a traditional bank account or a digital banking provider. All traditional banks like LHV bank are said to offer more security and adhere to the deposit guarantee fund that covers the company for up to 100,000 Euros in the event of a bank going bankrupt. On the contrary, Digitech solutions such as Transfer ware offers accounts that are managed online.
Disadvantages of the Digitech companies may include limitation in loan applications, no interests earned from the money deposited in such accounts, and the accounts are mostly provided an electronic wallet that enables them to transact online.
Having an online account may however guarantee safety for your money but have no security deposit guarantee. The opening of such accounts may not require you to be in Estonia since this can be done online from anywhere around the world. The traditional banks require you to be in Estonia as they require a face to face interaction with their clients and charge 20 Euros per month for a business bank.
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VAT Number Application
The Estonia company register requires that to register for a vat number if the company offers digital products and services to European B2C customers and B2B clients from the first sale, and the revenues are above 40,000 Euros per year. Also, if the company specializes in offering marketing, consulting, or development services whose revenues go beyond 40,000 Euros per year, you shall be required to register for VAT.
VAT rates vary depending on the type of services offered in that 20% is the standard rate for all products and services not listed in the 9% and 0% VAT rate category. For one to acquire a VAT ID, investigations into the company business will be made by the tax authorities to get sufficient explanation to enable them to make a decision.
After that, remittance of the monthly tax returns shall be required on the 10 th day of the next month and the 20 th day of the following month for both income tax return and vat return,respectively. Failure to remit attracts penalties and interest rates.
Why you may want to do business in Estonia
Besides offering a competitive tax and technological environment, Estonia continues to provide
proper business services at globally competitive prices. It includes and is not limited to
statutory compliance, accountancy services, banking, and even incorporation services. There
are no hidden costs in operating businesses around the country. You can freely outsource
services you may need by entering contracts and terminating the same when you need to.
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