You are self-employed, entrepreneur, business owner and you want to set up your company in Estonia, information is essential to follow a good management and develop your business safely.
Have you created your business model for how you want to start your business in Estonia.
Would you like to outsource your activity in Estonia only by creating a branch, or create a new independent structure, to develop your activity on site or elsewhere.
How is the tax system in Estonia, if I hire employees how will it be? What are the amounts of social charges?
How much does it cost me to set up my company in Estonia. The good management of your business starts from the idea until the materialization then the launch and the development.
Let's learn together some things to know about managing an Estonian company.
In a few words, very simple, we will provide you with this essential information for any good Estonian company manager.
These are the different questions to ask?
New Company in Estonia
Let's start from the principle, that you want to create a new structure in Latvia, one which will develop in Estonia, but also outside Estonia.
What are the steps to set up an OR company in Estonia, limited liability company in Estonia?
- Reservation of the company name with the commercial register;
- Signature of a domiciliation or rental contract for the space corresponding to the head office of the Estonian company;
- Drafting and signing of the articles of association of the company (which most often takes the form of an LLC called Or in Estonia
- Opening of the capital deposit account and payment of the share capital
- Business registration in Estonia
Signing of powers of attorney in favor of the persons who will carry out the formalities before the commercial register. If you go through a firm such as Fidulink, to carry out your procedures without moving.
We offer a remote pack allowing you to focus on the essentials: developing your Estonian business, without worrying about the administrative paperwork of setting up your business in Estonia. We have a French speaking team, fully available.
Here is the link of our basic Estonia company creation pack without travel
https://marketplace-fidulink.com/accueil/345-basic-pack-ou-estonie-e-residence.html
For a completely remote bank account opening in Estonia or in Europe, you must add the opening of a bank account without traveling to Estonia:
https://marketplace-fidulink.com/accueil/319-compte-bancaire-societe-sans-deplacement-.html
Is it possible to create a company in Estonia without having to travel?
Foreigners who wish to set up an Estonian company do not need to be present in Estonia to carry out these formalities: they can indeed set up their business remotely, by means of powers of attorney by working in collaboration with an incorporation firm, firm accounting…
The founders can, for example, sign the documents (declarations, etc.) in front of a notary who stamps and apostilles them (certification outside your country of residence) from their country of residence and then send them to our agent responsible for carrying out the formalities which will translate them and present them to the Trade Register.
Developing your business in Estonia essential information
What are the 4 essential pieces of information about Ou in Estonia?
- Formation time On average 7-10 days
- Minimum capital to be deposited: 2 euros must be paid up at least by half and the remainder within the year.
- Number of directors: only 1 minimum required
- Minimum number of shareholders
1 minimum required
Taxation to know in Estonia:
How is the tax system in Romania made up? You are concerned by 3 types of taxes:
Income tax:
Income tax in Estonia is exempt for certain types of companies:
Exemptions from payment of income tax:
Micro-enterprises
Public institutions involved in a particular activity
Religious organizations
Educational institutions and professionals
Owner associations
A standard rate of income tax in Estonia is 16%.
- Owner association
- Religious associations
- Public institutions by activity
- Micro-enterprises (Less than 1 annual turnover)
This tax will apply to foreign companies with a local subsidiary that generate business in Estonia or an independent Romanian company.
Micro-business tax rates
Cannot be subject to income tax before having:
- Two employees minimum
- A minimum capital of 45 RON
- Paid social and employer contributions
- If you have one or more employees in Estonia, your micro enterprise will only owe 1% of the overall revenue
- A micro-enterprise in Estonia without employees 3%
on the overall recipe
Employer and salary charges from January 1, 2018
| Social charges | Employer's contribution | Salary share |
| State social insurance (CAS) - pension | 0% | 25% |
| Social health insurance | 0% | 10% |
| Unemployment fund | 0% | 0% |
| Contribution for the payment of sick leave and compensation | 0% | - |
| Insurance for accidents at work and occupational diseases * | 0% | - |
| Labor insurance contribution | 2,25% | - |
| Commission of the Territorial Labor Inspectorate ** | 0,25% | - |
| Total social charges | 2,25% | 35% |
The Romanian minimum wage (Romanian minimum wage) was 1.450 RON per month (approximately 320 EUR) gross in 2017. It rose to 1.900 RON (approximately 410 EUR) on January 1, 2018.
Let's talk about the Estonian VAT rate for your Estonian business?
The normal rate is 19%
The reduced rates are:
- 9% for catering services, accommodation services, medical equipment, etc.
- 5% for art, press, cinema, places and cultural events.
- 9% on hotel accommodation, food and beverage services, farm supplies, medical equipment, food services (less for alcoholic beverages), etc.
- 5% on newspapers, magazines, zoos, cinemas, cultural events, etc.
Do you know if you can invoice with or without VAT
European VAT threshold for the distance selling regime -
VAT sales threshold in Estonia
| Member state | VAT threshold WHAT |
|---|---|
| Romania | 118 RON (000 €) |
For all requests concerning the creation of a company in Estonia with our full support, please contact us by email contact@fidulink.com or visit our website: www.fidulink.com
