It is allowed to include many board members in an Estonian company. And if you don’t prescribe the duties of the board members, everyone can act alone on behalf of the company
If a legal person is the founder of a registered firm, payment for a minimum statutory fund is required. The requirement does not apply to individuals
Information on board members and company shareholders is freely available in the Estonian Business Register
Advantages of company formation in Estonia
- Reliable and affordable banking services
- There is no obligation to pay the salary of a member of the board of a company and, accordingly, there is no minimum wage requirement.
- There is no need to actually contribute the authorized capital at the time of registration of the firm, it is enough to declare it.
- There are no reports as such to the Tax Department of Estonia in the absence of payroll and VAT number of the company
- Possibility to get an annual (and then three-year) business visa.
- A very transparent and understandable tax system.
- Possibility to buy immovable property in the ownership of an Estonian company without any tax.
- Possibility to buy a car in the ownership of the company without paying (or refunding) VAT 10-20%.
- Minimum annual cash cost of the company (from EUR 240/year).
- Minimum cash costs for servicing your company’s bank account, availability of internet-banking in Russian and English.
- Due to the high image of the Estonian jurisdiction – practically smooth opening of an account in any European bank.
- Only a few businesses are licensed, and most of the permits are merely notifying.
Establishment of company in Estonia
Term of opening a company in Estonia: 5 working days from the date of the notary’s application to the Business Register. The duration of the notarial application depends on the speed with which you provide the necessary information and documents.
- Restrictions on the founders and management of a firm: no injunction to engage in business or bankruptcy proceedings against them.
- The company may not have employees. However, the structure should consist of the owner and a member of the board. Board members and proprietors may coincide.
- The company name must differ by at least 3 digits from those already registered in Estonia.
- Payment of charter capital at the establishment of a company is obligatory if the Founder is a legal person.
- Accounting: For a taxpayer firm: monthly filing of VAT and annual report. For non-obligated firms: filing an annual report.