Official Name: The Republic of Estonia
Tallinn
Estoniana
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Estonia
Estonia is a country in Northern Europe, located on the eastern coast of the Baltic Sea. The country has a rich history, culture, and economy, and has become an important player in the region.
History:
Estonia has a long and fascinating history that dates back to the Viking Age. It was under Danish, Swedish, and German rule for centuries, until it became a Soviet Republic in 1940. After the collapse of the Soviet Union, Estonia declared independence in 1991 and has since become a member of the European Union and NATO.
Culture:
Estonian culture is a unique blend of traditional and modern elements. The country has a rich folk music tradition, with singing being an important part of their national identity. The country also has a thriving contemporary arts scene, with many world-renowned artists hailing from Estonia. Estonian cuisine is also notable, with dishes such as black bread, pickled herring, and blood sausage being popular.
Economy:
Estonia has a strong and rapidly growing economy, with a focus on technology and innovation. The country is home to many successful startups and has been dubbed the “Silicon Valley of Europe”. Estonia has a low tax system and a business-friendly environment, which has attracted many foreign investors. The country is also a member of the Eurozone and has a high GDP per capita.
Politics:
Estonia is a parliamentary democracy with a president as the head of state. The country has a multi-party system, with the Reform Party and Center Party being the two largest parties. Estonia is a member of the European Union, NATO, the United Nations, and many other international organizations. The country has a strong commitment to human rights and is known for its progressive social policies.
In summary, Estonia is a fascinating country with a rich history, culture, and economy. The country has made significant progress since its independence in 1991, and has become a leader in technology and innovation. With a vibrant arts scene and a strong commitment to social justice, Estonia is a country worth visiting and learning more about.
Types of company registration
Private limited company (OÜ)
A private limited company is the most common type of company in Estonia. It is a legal entity with limited liability for its owners (shareholders) and can have one or more owners. The minimum share capital required to establish a private limited company is €2,500. It is required to have a management board and a supervisory board, and the company’s management structure must comply with Estonian law. The founders of the company must also provide a notarized memorandum of association and articles of association.
Public limited company (AS)
A public limited company is a legal entity with limited liability for its owners and is intended for larger businesses with a higher capital requirement. The minimum share capital required to establish a public limited company is €25,000. It must have a management board and a supervisory board, and the company’s management structure must comply with Estonian law.
General partnership (TÜ)
A general partnership is a business entity in which two or more persons operate a business together, share profits and losses, and are jointly and severally liable for the company’s debts. It does not have a legal personality separate from its owners.
Limited partnership (UÜ)
A limited partnership is a type of partnership in which there are two types of partners: general partners who have unlimited liability for the company’s debts, and limited partners who have limited liability to the extent of their capital contributions. Limited partnerships are not common in Estonia.
Sole proprietorship (FIE)
A sole proprietorship is an individual entrepreneur who operates a business alone and is fully liable for the company’s debts. It does not have a separate legal personality.
Branch office (filiaal)
A branch office is a part of a company located in Estonia that carries out business activities on behalf of the parent company. The branch office does not have a legal personality separate from the parent company.
Representative office (esindus)
A representative office is a type of non-commercial organization that represents the interests of a foreign company or organization in Estonia. It cannot engage in commercial activities.
Advantages of company registration in Estonia
E-Residency: Estonia offers an e-residency program, which allows non-residents to establish and manage an Estonian company online from anywhere in the world. This means that entrepreneurs can start and run a business in Estonia without physically being present in the country.
Easy Company Registration: Company registration in Estonia is quick and easy. It can be done entirely online, and the process usually takes just a few hours.
Low Taxes: Estonia has a flat corporate income tax rate of 20%, which is one of the lowest in the European Union. Additionally, there is no tax on reinvested profits, and dividends are only taxed when they are distributed.
Digital Business Environment: Estonia is known for its advanced digital infrastructure, which makes it easy for companies to conduct business online. This includes the ability to sign contracts digitally, file taxes online, and access government services electronically.
Access to the European Union: Estonia is a member of the European Union, which provides companies registered in the country with access to the world’s largest single market. This can be particularly beneficial for companies looking to expand their operations into other EU countries.
Strong Startup Ecosystem: Estonia has a thriving startup ecosystem, with a number of successful companies such as Skype and TransferWise being founded in the country. This has led to a supportive environment for entrepreneurs, with access to funding, mentorship, and networking opportunities.
Business-Friendly Regulations: Estonia is known for its business-friendly regulatory environment. The country has a transparent legal system, a low level of corruption, and a flexible labor market.
“Our team can provide assistance if you need help registering a company in Estonia ”
Common questions
What is the process for registering a company in Estonia?
The process for registering a company in Estonia involves submitting the necessary documents to the Estonian Business Register and obtaining a registration number. This can be done online or in-person.
How long does it take to register a company in Estonia?
The registration process in Estonia is relatively quick and can take anywhere from a few hours to a few days, depending on whether the application is submitted online or in-person.
What are the documents required to register a company in Estonia?
The documents required for company registration in Estonia include a notarized copy of the company’s articles of association, identification documents of the shareholders and board members, and proof of payment of the share capital.
Can foreigners register a company in Estonia?
Yes, foreigners are allowed to register a company in Estonia.
How much does it cost to register a company in Estonia?
The cost of registering a company in Estonia varies depending on the type of company being registered and the method of registration. On average, the cost ranges from 200 to 400 euros.
What are the different types of companies that can be registered in Estonia?
The different types of companies that can be registered in Estonia include a private limited company, public limited company, general partnership, limited partnership, and sole proprietorship.
What is the minimum share capital required to register a company in Estonia?
The minimum share capital required to register a company in Estonia is 2,500 euros for a private limited company and 25,000 euros for a public limited company.
Can I register a company without a local address in Estonia?
No, a local address in Estonia is required for company registration.
Do I need to be physically present in Estonia to register a company?
No, it is possible to register a company in Estonia remotely.
How can I register a company in Estonia remotely?
Company registration in Estonia can be done remotely by using the online portal of the Estonian Business Register.
What are the tax implications of registering a company in Estonia?
Estonia has a favorable tax system for businesses, with a 20% corporate income tax rate and no taxation on retained earnings or dividends.
What are the requirements for accounting and bookkeeping in Estonia?
Companies in Estonia are required to keep accurate and up-to-date accounting records and must submit an annual report to the Estonian Business Register.
Can I use a foreign bank account for my Estonian company?
Yes, it is possible to use a foreign bank account for an Estonian company, but it is recommended to use a local bank for ease of operations.
What is the procedure for opening a bank account in Estonia for my company?
The procedure for opening a bank account in Estonia for a company involves providing the necessary documents and identification to the bank, including the company registration number.
Can I register a company with a foreign name in Estonia?
Yes, it is possible to register a company with a foreign name in Estonia.
How can I protect my intellectual property in Estonia?
Intellectual property in Estonia can be protected through patents, trademarks, and copyrights.
What are the laws regarding data protection in Estonia?
Estonia has strict data protection laws that are in line with the European Union’s General Data Protection Regulation (GDPR).
What are the laws regarding competition in Estonia?
Estonia has competition laws in place to prevent monopolies and protect consumers.
What are the laws regarding consumer protection in Estonia?
Consumer protection laws in Estonia protect consumers against unfair business practices and ensure that products and services are safe and of good quality.
What are the environmental laws in Estonia?
Estonia has strict environmental laws in place to protect its natural resources and ensure sustainable development.
What are the zoning laws in Estonia?
Zoning laws in Estonia regulate the use and development of land in different areas and protect public health and safety.
What are the laws regarding bankruptcy in Estonia?
The bankruptcy laws in Estonia are governed by the Bankruptcy Act. Under this law, companies that are unable to pay their debts can file for bankruptcy.
What are the laws regarding insolvency in Estonia?
The laws regarding insolvency in Estonia are governed by the Insolvency Act. This law sets out the procedures for insolvency proceedings and the rights and obligations of creditors and debtors.
What is the procedure for obtaining a license for a business in Estonia?
The procedure for obtaining a license for a business in Estonia varies depending on the type of business. Generally, businesses need to apply for a license from the relevant government agency and provide the necessary documentation and fees.
What are the laws regarding advertising in Estonia?
The advertising laws in Estonia are governed by the Advertising Act. This law sets out the requirements for advertising, including rules on advertising content, labeling, and advertising to children.
What are the laws regarding import/export in Estonia?
The import/export laws in Estonia are governed by the Customs Act. This law sets out the procedures and requirements for importing and exporting goods, including rules on customs declarations, tariffs, and customs inspections.
What are the laws regarding transportation in Estonia?
The transportation laws in Estonia are governed by the Transportation Act. This law sets out the requirements for transportation companies, including rules on licensing, safety standards, and insurance.
What are the laws regarding customs in Estonia?
The customs laws in Estonia are governed by the Customs Act. This law sets out the procedures and requirements for customs inspections, customs declarations, and import/export duties.
What are the laws regarding insurance in Estonia?
The insurance laws in Estonia are governed by the Insurance Activities Act. This law sets out the requirements for insurance companies, including rules on licensing, capital requirements, and consumer protection.
What are the laws regarding real estate in Estonia?
The real estate laws in Estonia are governed by the Property Act. This law sets out the requirements for property ownership, including rules on property registration, transfers, and mortgages.
What are the laws regarding taxation of foreign investors in Estonia?
The taxation laws in Estonia are governed by the Income Tax Act. Foreign investors are subject to the same tax rules as Estonian residents, including rules on income tax, social security contributions, and VAT.
What is the procedure for obtaining a building permit in Estonia?
The procedure for obtaining a building permit in Estonia varies depending on the type of building. Generally, applicants need to submit a building permit application and provide the necessary documentation and fees.
What are the laws regarding health and safety in Estonia?
The health and safety laws in Estonia are governed by the Occupational Health and Safety Act. This law sets out the requirements for employers to provide a safe working environment, including rules on hazard identification, safety training, and equipment.
What are the laws regarding trade unions in Estonia?
The trade union laws in Estonia are governed by the Trade Union Act. This law sets out the rights and obligations of trade unions, including rules on collective bargaining and industrial action.
What are the laws regarding social security in Estonia?
The social security laws in Estonia are governed by the Social Benefits for Disabled Persons Act. This law sets out the rights and obligations of employers and employees regarding disability benefits and social security contributions.
What are the laws regarding pensions in Estonia?
The pension laws in Estonia are governed by the State Pension Insurance Act. This law sets out the requirements for employees and employers regarding pension contributions and benefits.
What are the laws regarding visas in Estonia?
Estonia is a member of the Schengen area, and visitors from many countries do not require a visa for stays of up to 90 days. However, visitors from certain countries do require a visa.
What is the procedure for obtaining a visa for a business trip to Estonia?
Business travelers from countries that require a visa can obtain a Schengen visa from the nearest Estonian embassy or consulate. The visa application requires proof of business purpose, such as a letter from the host company in Estonia, and evidence of sufficient funds to cover the stay.
What are the laws regarding employment contracts in Estonia?
Employment contracts in Estonia must be in writing and should include details such as job duties, salary, working hours, and vacation time. The employment contract can be for a fixed or indefinite period, and changes to the terms of the contract require the agreement of both parties.
What are the laws regarding termination of employment in Estonia?
Employers in Estonia can terminate an employment contract for various reasons, including misconduct, redundancy, or if the employee is unable to work due to health reasons. However, the termination must be fair, and the employee has the right to challenge the decision in court.
What are the laws regarding severance pay in Estonia?
In Estonia, severance pay is not mandatory, but it can be included in the employment contract or collective agreement. The amount of severance pay is typically based on the employee’s length of service.
What are the laws regarding maternity leave in Estonia?
Female employees in Estonia are entitled to 140 days of maternity leave, which can begin up to 30 days before the expected due date. During this time, the employee receives maternity benefit, which is paid by the government and calculated based on the employee’s salary.
What are the laws regarding paternity leave in Estonia?
Male employees in Estonia are entitled to 10 days of paternity leave, which can be taken within 30 days of the child’s birth.
What are the laws regarding sick leave in Estonia?
In Estonia, employees are entitled to sick leave if they are unable to work due to illness or injury. The length of sick leave and the amount of sick pay depends on the length of service and is specified in the employment contract or collective agreement.
What are the laws regarding annual leave in Estonia?
Employees in Estonia are entitled to at least 28 calendar days of paid annual leave per year, and this can be increased by the employment contract or collective agreement.
What are the laws regarding public holidays in Estonia?
Estonia has 12 public holidays, and employees are entitled to a day off with pay for each of these holidays.
What are the requirements for hiring employees in Estonia?
Employers in Estonia must register with the Estonian Tax and Customs Board and obtain an employer registration number. Employers must also follow the requirements for employment contracts, working hours, and health and safety regulations.
Can I hire employees from other countries for my Estonian company?
Yes, it is possible to hire employees from other countries for an Estonian company. However, employers must follow the immigration and work permit regulations for non-EU citizens.
What is the process for obtaining a work permit for non-EU citizens in Estonia?
Employers in Estonia must apply for a work permit on behalf of the non-EU employee. The process involves obtaining a valid job offer, completing the application form, and providing supporting documents such as a valid passport, educational qualifications, and evidence of health insurance.
What are the requirements for registering for VAT in Estonia?
Any business in Estonia that sells goods or services and whose taxable turnover exceeds 40,000 euros per year must register for Value Added Tax (VAT). The registration can be done online through the Estonian Tax and Customs Board website.
What is the procedure for paying taxes in Estonia?
Taxes in Estonia can be paid online or in person at a bank. The Estonian Tax and Customs Board issues tax assessments which detail the amount of taxes owed, and businesses must file and pay taxes by the due date specified in the assessment.
What are the taxes that need to be paid by companies in Estonia?
Companies in Estonia are subject to several taxes, including corporate income tax, social tax, unemployment insurance tax, and land tax. In addition, some companies may be subject to VAT and excise taxes.
What is the corporate income tax rate in Estonia?
The corporate income tax rate in Estonia is a flat 20%. There is no distinction between domestic and foreign companies, and no withholding tax is imposed on dividends paid to non-residents.
Are there any tax incentives for companies in Estonia?
Yes, Estonia offers several tax incentives to businesses, including a tax exemption for retained earnings, accelerated depreciation for investments in fixed assets, and a reduced social tax rate for certain types of employees.
What are the accounting standards that need to be followed in Estonia?
Estonia has adopted the International Financial Reporting Standards (IFRS) as its accounting framework. Companies are required to prepare and submit financial statements in accordance with the IFRS.
Can I use accounting software for my Estonian company?
Yes, companies in Estonia can use accounting software to keep track of their financial records. However, it is important to ensure that the software complies with Estonian accounting standards.
What are the requirements for auditing in Estonia?
Companies in Estonia must have their annual financial statements audited by an independent auditor if they meet certain criteria, such as exceeding two of the following thresholds: total assets of 4 million euros, net turnover of 8 million euros, and an average of 50 employees.
What are the rules regarding shareholder meetings in Estonia?
Shareholder meetings in Estonia must be held at least once a year and notice of the meeting must be given at least two weeks in advance. Shareholders have the right to attend the meeting in person, by proxy, or by electronic means.
What are the rules regarding the board of directors in Estonia?
Companies in Estonia must have a board of directors, which is responsible for the management and strategic direction of the company. The board must have at least one member, who can be a resident or non-resident of Estonia, and must act in the best interests of the company and its shareholders.
Documents required to register a company
- The company’s articles of association, which include information about the company’s name, purpose, shareholders, and board of directors.
- Identification documents for all shareholders, which can include passports or national ID cards.
- Proof of payment of the share capital, which is a requirement for all limited liability companies (LLCs) in Estonia.
- A document confirming the appointment of the board of directors, which can be a resolution signed by the shareholders or a written agreement.
- A notarized power of attorney if any of the shareholders are represented by a proxy.
- An application form for registration of the company, which is submitted online to the Estonian Business Register.
- A document confirming the appointment of the company’s legal representative, who is responsible for representing the company in legal matters.
- A document confirming the registered office address of the company in Estonia.
- In some cases, additional documents may be required, such as a license for certain types of business activities.
The Major Banks in Estonia
Swedbank: Swedbank is the largest bank in Estonia and offers a wide range of banking services, including savings accounts, loans, and credit cards. They have a strong digital platform, making it easy to manage your finances online or through their mobile app.
SEB: SEB is another popular bank in Estonia that offers a range of banking services for individuals and businesses. They offer competitive interest rates on savings accounts and have a user-friendly online banking platform.
LHV: LHV is a digital bank in Estonia that has gained popularity in recent years. They offer a range of banking services, including debit cards, loans, and savings accounts, and have a user-friendly mobile app. They also offer a range of investment services, including stocks and bonds.
Coop Pank: Coop Pank is a local bank in Estonia that has a focus on providing banking services for rural communities. They offer a range of banking services, including savings accounts, loans, and credit cards, and have a user-friendly online platform.
“Our team can provide assistance if you need to open a bank account in Estonia ”
The top universities in Estonia
University of Tartu
- QS Ranking: 301-350
- Location: Tartu
- Website: www.ut.ee/en
- Major Courses: Law, Medicine, Business, Computer Science, Social Sciences, Humanities
Tallinn University of Technology (TalTech)
- QS Ranking: 601-650
- Location: Tallinn
- Website: www.taltech.ee/en
- Major Courses: Engineering, Business, Information Technology, Natural Sciences
Tallinn University
- QS Ranking: 801-1000
- Location: Tallinn
- Website: www.tlu.ee/en
- Major Courses: Education, Humanities, Social Sciences, Media, Law, Digital Technologies
Estonian University of Life Sciences
- QS Ranking: 1001+
- Location: Tartu
- Website: www.emu.ee/en
- Major Courses: Agriculture, Forestry, Veterinary Medicine, Environmental Sciences, Food Science, Rural Entrepreneurship
Estonian Academy of Arts
- QS Ranking: Not Ranked
- Location: Tallinn
- Website: www.artun.ee/en
- Major Courses: Fine Arts, Design, Architecture, Art History, Cultural Management
“If you need assistance registering for college or university, our team is here to help.”
Strange or unusual to visitors in Estonia
Sauna culture: Saunas are an important part of Estonian culture, and many people take saunas regularly. Visitors may find it unusual to be expected to be fully naked in the sauna, and to be hit with birch branches to improve circulation.
Silence in public spaces: Estonians tend to be quiet and reserved, and may not engage in small talk in public spaces. Visitors may find it unusual to be in a public space like a bus or tram and not hear people talking.
Unfamiliar cuisine: Estonian cuisine may be unfamiliar to visitors, and can include dishes like blood sausage, smoked fish, and sauerkraut. Some of these dishes may be an acquired taste for some visitors.
Use of public transportation: Public transportation in Estonia is widely used, and visitors may find it unusual to see people taking the bus or tram to work, school, or other activities.
Winter weather: The winter weather in Estonia can be quite cold and snowy, which may be unusual for visitors from warmer climates. Visitors may need to adjust to the cold weather by wearing layers and appropriate clothing.
“Tips for Newcomers: Adjusting to Life in Estonia ”
Learn the language: Estonian is the official language of Estonia, and although many people speak English, it’s helpful to learn some Estonian phrases to communicate with locals and understand signs and labels. There are many language schools and online resources available to help you learn Estonian.
Embrace the culture: Estonia has a unique culture that is worth exploring. Attend local festivals and events, try traditional Estonian cuisine, and visit museums and historical sites to learn about the country’s history.
Be prepared for the weather: Estonia has a northern climate with long, cold winters and short summers. Be sure to bring warm clothing and invest in a good pair of winter boots to stay comfortable during the winter months.
Get a residence permit: If you plan to stay in Estonia for longer than 90 days, you will need to obtain a residence permit. There are different types of permits available, depending on your situation, so it’s important to research which one you need and apply in advance.
Use public transportation: Estonia has a well-developed public transportation system, including buses, trams, and trains. Using public transportation can save you money and allow you to explore different parts of the country.
Connect with locals: Estonians tend to be quiet and reserved, but they are also friendly and helpful. Join local clubs or organizations, take classes, or volunteer to meet new people and make connections.
Take advantage of technology: Estonia is a highly digital country, with many services available online. Use technology to pay bills, book appointments, and communicate with friends and family.
Stay positive: Moving to a new country can be challenging, but staying positive and open-minded can help you adjust more quickly. Remember to be patient and flexible, and take time to explore all that Estonia has to offer.
Top recruitment agencies in Estonia
CV-Online Estonia – www.cv.ee
Workland – www.workland.ee
Addecco Estonia – www.adecco.ee
Tööpakkumised.net – www.toopakkumised.net
PARE – www.pare.ee
Manpower Estonia – www.manpower.ee
Personalieksperdid – www.personalieksperdid.ee
Jobbatical – www.jobbatical.com
Optima Recruitment Europe – www.optimarecruitment.eu
Nordic Jobs Worldwide – www.nordicjobsworldwide.com
Necessary phone numbers in Estonia
Emergency Services – 112 (Police, Fire, Ambulance)
Police Department – 110
Health Advice Line – 1220
Poison Control Center – 16662
Roadside Assistance – 1888
Tallinn Airport – +372 605 8888
Tallinn Bus Station – +372 611 8000
Information about Public Transport – +372 1247
Eesti Energia Customer Service – +372 777 1545
Eesti Post Customer Service – +372 661 6616
The best way to immigrate to Estonia
Work permit: If you have a job offer from an Estonian employer, you can apply for a work permit. The employer must prove that they cannot find a suitable candidate from Estonia or the European Union before hiring a non-EU citizen. The work permit is usually valid for up to two years and can be extended.
Business visa: If you plan to start a business in Estonia, you can apply for a business visa. You must provide a detailed business plan and demonstrate that you have sufficient financial resources to support yourself and your business.
Study visa: If you are accepted to a recognized educational institution in Estonia, you can apply for a study visa. You must provide proof of enrollment and financial resources to support yourself during your studies.
Family reunification: If you have a family member who is a citizen or resident of Estonia, you can apply for a family reunification visa. The family member must provide financial support and demonstrate that they can accommodate you during your stay.
Investment visa: If you make a significant investment in Estonia, you may be eligible for an investment visa. The investment must be at least €65,000 in a company or €50,000 in a startup, and you must provide a detailed investment plan.
International Language Center in Estonia
- International House Tallinn – www.ihworld.com/ih-tallinn
- Language School Tallinn – www.languageschool.ee
- Estonian Language School – www.estonianlanguageschool.ee
- Keeltekool – www.keeltekool.ee/en
- Tartu International School of Languages and Cultures – www.tartu.ee/en/international-school-of-
- languages-and-cultures
