Estonia's unique and favourable tax system is one of the most liberal in the whole world. The tax rate of re-invested profit in Estonia is 0% and since 2009 dividends paid to non-residents are also not taxed anymore. Overall, Estonia stands out for its simple tax system and low tax rates.
For making the Estonian company formation process faster and saving as much as possible with a favourable tax system, we provide you professional consultation and services that assist you in registering as well as managing the company. You can order a local address, a phone number and accounting and other virtual office services from us.
There is no need to visit Estonia in order to establish a company. Everything can be arranged remotely based on a Power of Attorney. We will prepare a special Power of Attorney for you for that purpose. The only thing you are required to do is to obtain a notarial and, if applicable, apostilled certification for that proxy and send it to us by courier.
According to the Estonian Commercial Code there are five forms of business entities: a private limited company, a public limited company, a general partnership, a limited partnership and a commercial association. The most popular type of legal entity being set up by foreigners in Estonia is a private limited company (in Estonian "Osaühing” or “OÜ").
A private limited company (hereinafter the "PLC") is a company that has the share capital divided into private limited company shares. A shareholder is not personally liable for the obligations of the company. The minimum share capital is EUR 2,500. The minimum nominal value of a share is EUR 1. If the founders are individuals and the share capital is less than EUR 25,000, then the founders can decide that the contribution must not be paid upon the establishing of the company.
PLC must have a management board. The management board may have one member (director) or several members. A member of the management board need not be a shareholder but must be an individual (not legal entity).
The Estonian company formation is fast and advantageous and enables to save on taxes. Being a member of the European Union and having an excellent geographical location near the Baltic Sea simplifies the organization of logistics and freight transport. Thanks to e-Residency and e-services you can establish a company and run it without visiting the country.