Registration of business in Estonia is a
hot topic today.

This small state has developed a
remarkable investment climate and decent jurisdiction, which facilitates
convenient and reliable management for both local and international business.
The Estonian company is suitable for almost any type of activity.

Of course, the main factor that foreign
investors pay attention to is the corporate tax rate, which is levied
exclusively on the amount of distributed profit (when dividends are paid).

In addition, you receive a registered
company in the European Union, which opens up new business opportunities for
both small businesses and large international companies.

The advantages of registering a company
in Estonia include the ability to register citizenship.

After 7 months of active work of the
company, the investor can apply to the specialized state bodies of Estonia in
order to obtain a residence permit.

THE MAIN ADVANTAGES FOR ESTABLISHING A
COMPANY IN ESTONIA ARE:

• Business
  registration takes place in Europe;
• The
  tax rate on undistributed profit of the company will be – 0%.
• A
  company in Estonia can be registered remotely (on the basis of a power of
  attorney).

THERE ARE TWO MAIN TYPES OF COMPANIES THAT
CAN BE REGISTERED IN ESTONIA:

1. The private limited company or LLP –
OÜ / Osaühing.
Suites best for entrepreneurs of medium and small businesses. The number of shareholders
is from 1 to 10.

• minimal
  authorized capital – 2500 €. It is possible to register a company and
  without the formation of authorized capital. If shareholders plan pay
  dividends, there is a need to make a mandatory deposit;
• legal
  address directly on the territory of the country;
• one
  founder is enough (residents, non-residents, individuals and legal
  entities);
• an
  annual accounting report, as well as an activity report;

2. Joint-stock company – AS/
Aktsiaselts.

• the
  authorized capital is formed during the registration of the company – not
  less than 25000 €;
• legal
  address directly on the territory of the country;
• one
  founder is enough (legal entities and individuals, residents and
  non-residents of the country);
• constituent
  documents –statute, memorandum of association;
• an
  annual accounting report, as well as an activity report.

TAXATION IN ESTONIA

The tax legislation of Estonia is very
profitable and, what is very important, it is transparent.
As already mentioned above, Estonia levies corporate income tax on the
company’s distributed profits (instead of the annual corporate tax).
Undistributed profits are not taxed until profits are paid to shareholders.

The distribution of profits can be
direct (for example, dividends, share buy-out or profit distribution by means
of capital reduction) or hidden (including non-entrepreneurial expenses and
payments, as well as gifts and donations).

For companies registered in Estonia,
engaged in the supply of goods or the provision of services (with some
exceptions), there is also an obligation to pay value added tax (VAT). The
standard rate of VAT in Estonia is 20%, but there are also preferential rates
of 9% and 0%.

A company registered in Estonia is a
subject to compulsory registration by a VAT payer upon reaching an annual
turnover of EUR 16 000 (from 2018 the turnover is increased to EUR 40 000).

By establishing your company in Estonia,
you will receive a relatively inexpensive format of maintaining a fairly
convenient business tool that does not obligate you to pay profit tax.

Every country has its own nuances and
issues in the process of business registration, that only specialists can
comprehend.

Provide SBSB your first and main stage
in creating a business – the registration of a company.