Company Formation Estonia- A Practical Guide
Starting a company here is easy and cheap: you can do it in person or online. All you need is half an hour of your time. Estonia's e-Business Register lets you register your new company online is not more than a couple of minutes, while never having to travel to the county to reach out to the notary or a government office. To register your company in Estonia, you need an Estonian e-Residency card, Lithuanian mobile ID, Belgian, Portuguese ID card or Finnish.
Company Types in Estonia - Company Formation Estonia
Osaühing (Oü - private limited company). At least one member is necessary in order to start the Private Limited Company in Estonia with 40.000 EEK as minimum capital divided into shares. These shares of the private limited company model cannot be free traded likes public limited liability company. The commitment of each shareholder is deciding the liability of each member.
A Public limited liability company in Estonia is the most popular form for SMEs which can provide a minimum share capital of at least 40.000 EEK. The shares of such a company can be freely traded to the public by registering it at the Stock Market.
At least two individuals or corporate bodies can be united under the same economic purposes after they consent to an arrangement. This form of Estonian business is called General Partnership. For this business, no minimum capital is necessary and all the partners have full liability and take all the management decisions. The profits have to be divided equally between the partners.
For the Limited Liability Partnership model, the liability either be limited or unlimited. Much the same as in the case of the general partnership, there is no requirement for minimum capital. Just the general partner can be a manager of this type of entity.
In Estonia, it is also possible to open a company where the owner doesn't require to have a minimum share capital and its liability is unlimited on the business’s debts & profits. This is the Sole Proprietorship. Our consultants can guide you to launch a company in Estonia, regardless of the chance that you choose to register an LLC or a sole trader.
The Private Limited Liability Company is the most chosen form of company formation in Estonia. The procedure for this company model isn't troublesome, due to an online platform established by the Estonian state.
An investor may also choose to open a Shelf Company in Estonia, as the business is already registered and, by a power of attorney, the new owner can immediately begin operation.
Company Formation Requirements in Estonia
● Both foreign and local entrepreneurs who want to set up their business in Estonia should conform to the Company Law. According to the legislation, the following requirements should be fulfilled:
● Choose an Appropriate Business Name, Which Must Be Unique, and Reserve It With the Trade Register.
● Provide the Passport and Other Personal Information to the Companies Registrar.
● Have the Company's Articles of Association Drafted and Notarized Before Filing Them for Registration
● Obtain a Legal Address for the Company
● Open the Company Bank Account for the Share Capital to Be Deposited.
Our Company Formation Estonia representatives can help in preparing all the documents related to setting up a business in this nation. If you require legal advice, we can connect you with our experienced Estonian consultants to offer a range of legal services.