The Estonian private limited liability company (OÜ) is the most common form of business as its shareholders have no personal liability for the company’s obligations. At the same time, the minimum authorised share capital is required to be at least 2500 EUR.

Estonian legislation does not set up requirements for the number founders and Board members. They can be both Estonian residents or non-residents. The founders of the Estonian company invest their capital in the company’s share capital and receive dividends according to the number of shares they own. The members of the Board are not entitled to receive dividends, but are selected to manage the Estonian company.

Corporate profits are not taxed (tax rate 0%) unless or until the profits are distributed as dividends; all undistributed corporate profits are tax-exempt.

The VAT rate on the export of goods is 0%. If the annual taxable turnover exceeds 16 000 EUR you will need to register at the Tax and Customs Board as a VAT payer. Thus, the Estonian company gets the features of a classic offshore company, but at the same time, is registered in a European country.

The benefits of this offshore zone are as follows:

• Zero tax rate. The tax rate is 0% unless or until the profits are distributed as dividends.
• Only one shareholder is required who can also be a sole director. He/she can be resident of any country, which means that CIS citizens are free to own and operate Estonian companies.
• One of the most profitable tax systems. They can be used for trading with EU partners, as a holding company or for tax optimisation.
• Servicing an account in Estonian bank is cheaper than in other European banks. For example, the maintenance cost is only 2 euro / month, and is totally completely free for new businesses. To open an account, a company is required to do business in Estonia.
• Vehicle registration at the Estonian company and its export outside the European Union for temporary importation.
• No transportation taxes.
• Double Taxation avoidance treaties with more than 56 countries, including Denmark, Germany, Great Britain, Ukraine, Moldova,
  Belarus, Finland, Lithuania, Latvia, Sweden, Poland, and other countries.
• You can use the label “made in EU”.

• How to buy a tax-free company in Estonia?

   

  AFORTIS Group provides services of company incorporation, including OU forms. Our professionals will help you with company formation or purchase a shelf company.

  Registering an Estonian company is perfect for people who have a digital ID card in Estonia, and these are mostly citizens or residents of Estonia. With this ID card, you can form and register a company electronically within 1 day. A non-citizen and non-resident of Estonia can also sign documents with an electronic signature by applying to the Estonian Embassy in their country. Those who do not have an Estonian ID can sign the constituent documents of an Estonian company in the presence of a notary in Estonia or in any other country.

  Non-residents can register an Estonian company remotely with power of attorney or by scheduling an appointment in Estonia. We will prepare the documents and accompany you to the notary, to open a temporary bank account and make an authorised capital payment of 2500 EUR, prepare documents for the VAT payer status after registering the company (if necessary) and help open a permanent account. All business trip will take 3-4 days.

  In case you choose a remote company formation, we will send you a power of attorney, which you will need to certify in your country. The company formation is carried out based on the original power of attorney. In this case, the company’s capital is not paid, since it is impossible to open a temporary or permanent company account remotely.

  For more information, please contact our specialists.

  What is required to register a company in Estonia?

  • Company name or name from the list of shelf companies
  • Planned business activities
  • The amount of share capital (at least EUR 2500)
  • Scan copy of passport of the Founder and Director
  • Home address of the Founder and Director
  • E-mail address and mobile phone number of the Founder and Director

  What you get

  • Certificate of registration
  • Memorandum of Association
  • Articles of Association
  • B-card (extract from Register)
  • The Agreement on use of legal address

• Estonian companies are perfect for:

  • import/export of goods
  • tax optimisation
  • asset management
  • intellectual property protection such as patents, copyrights, etc.
  • residence Permit in Europe