Frequently asked questions

General

Who can be the founder of Estonian company?

Estonian (limited liability) company can be founded by one or several persons who can be a natural person(s) or a legal person(s). Mixture of both is allowed as well.

Who can be the member of Estonian company´s management board and how many members must the management board have?

A natural person with active legal capacity (i.e. an adult) may be appointed as member of the management board. Minimum 1 person management is allowed thought often there are more members.

What are the requirements for Estonian limited liability company´s business name?

Estonian limited liability company may only have one business name, which shall be clearly distinguishable from other business names entered in the E-Business Register.

What is the minimum share capital requirement for Estonian company?

Minimum share capital required by law for Estonian (limited liability) company is 2500€.

Is the share capital payment compulsory upon company establishment?

No. Share capital payment upon company establishment is compulsory only in following cases: if one or more founders are legal person(s), also if the planned share capital is larger than 25 000€. Other than that share capital payment can be made at a later stage.

Does Estonian company need a registered address in Estonia?

Yes, every Estonian company should have a registered address in Estonia which should be actual physical address. Hence registration of a P.O.box address as official address is not allowed.

What areas of activities are allowed for the Estonian company?

Estonian companies may operate in all areas of activity which are not prohibited by law. Certain areas of activity require a licence or submission of a notice of economic activity.

When can I start activities with my Estonian companies?

After the company has been transferred to your name/management changed and relevant registry changes made in the Estonian E-business registry.

Who is authorized contact person?

An authorized person appointed by the company´s management, entitled to receive procedural documents and declarations of intent addressed to the company. Delivery of such document to the contact person = delivery of the document to the company.

When is contact person service compulsory?

In case company´s management board is located outside Estonia, appointing a contact person is compulsory! Only certain persons stated by the law can act as contact person.

Do the companies sold by CorporateLegal OÜ have any previous history?

No, all companies sold by us are established upon request from our clients and have no previous history.

Estonian company remotely

Is it possible to start/run Estonian company online?

Yes, it can be done via Estonian e-residency . Read more about Estonian e-residency here.

What is Estonian e-residency?

Estonian e-residency is a government issued digital identity, offered to physical persons (only), enabling access to Estonia`s digital business environment and to e-services of public institutions. You can apply for e-residency here.

What benefits Estonian e-residency gives?

Estonian e-residency enables accessing different e-services, including submission of company formation/registry change applications, tax reports etc. online.

Does Estonian e-residency grant the right to live and work in Estonia?

No, Estonian e-residency does not grant such right which should be applied separately via other channels.

What is POA based remote service?

By notarized & apostilled power of attorney (POA), you enable us to act on your/company´s behalf and represent you/your company by different public institutions or private persons.

What are benefits of POA based remote service?

It saves your money & frees your time (as there is no need for personal visit to Tallinn for different company related legal operations, which we will take care for you, acting under the POA).

Accounting & taxes

Do i have to start submitting monthly tax declarations right after my Estonian company has been registered and started activities?

No, there is no such immediate obligation unless you have started business activities (hire employees, buy/sell goods or provide services).

If my company has not started business activities, do i still have to submit any tax declarations?

Yes, there is an obligation to submit annual year report once a year, latest by June 30 of the next year.

When do i have to register my company for VAT (value added tax)?

Once your company's yearly turnover exceeds 40 000 €, you must register your company as VAT obligatory person. It is also possible to register for VAT before the 40 000 eur turnover is reached. Decision about registering your company for VAT will solely be made by the Tax authorities.

What is VAT ID and what benefits it gives to my Estonian company?

Upon registering your company for VAT, unique VAT ID will be issued to the company, which enables 0-VAT transactions. Read more

When do i have to start submitting monthly tax declarations for my Estonian company?

Once you have registered your Estonian company as VAT obligatory person, monthly tax reporting should be done.

If my Estonian company is active and has employees, which tax declarations do i have to submit?

Please read here