Who can register an Estonian company in 1Office Company Formation Portal?
The portal can be used by Estonians and Estonian e-residents with ID card. The portal is designed for company registration for private persons and companies with one founder.
Do I need to pay in the share capital while establishing a company?
According to the law the share capital for Estonian company is 2500-25 000 euros. You don’t have to deposit the share capital immediately. You can do this later at the bank.
How can I use ID card?
The instructions about ID card can be found in here.
Are there some additional expenses to cover after my company has been established? Monthly or quarterly?
There are no extra payments necessary to maintain your Estonian company. If you have a VAT number and/or you pay salaries, then you need to do your monthly accounting. Other than that you are only required to submit Annual Report once a year.
What does the starting fee mean?
In order to maintain the highest level of quality straight from the beginning with each client, we apply a starting fee to be able to give you our full attention.
Is it mandatory to do accounting every month?
If the company has the VAT number (mandatory for companies with EU turnover more than is 40 000€) or when the company pays salaries to employees, then monthly declarations need to be submitted.
If your company doesn’t have any monthly payments, purchases, invoices and no VAT number, then it is sufficient to do the whole accounting at least once a year, before submitting the annual report.
Who has to submit the annual report?
Submitting annual report is required for all companies registered in Estonia even if there is no activity during the financial year.
What happens if I don’t submit the annual report?
When the annual report is not submitted, then the Business Register may decide to delete the company.
When must a company be registered as a VAT payer?
The company needs to register as a VAT payer if annual turnover exceeds 40 000 euros. If the turnover is exceeded, the Tax and Customs Board issues a VAT number to you.
Can I apply for VAT number before my company’s turnover reaches 40 000 euros?
Yes. You are allowed to apply for the VAT number also before your company’s turnover reaches 40 000 euros. For this you have to submit an application and explain why you want to receive a VAT number. Whether the Tax and Customs Board will register your company depends on your business goals and reasoning.
My company is registered in Estonia, but also operates in foreign counties. Are there some tax risks I should consider?
If your Estonian company operates in another country the company may develop a permanent establishment in another country and tax liability may arise from it.
Which taxes do I have to pay?
Every persons and company’s tax obligations are different and depend on several circumstances. To find out which tax obligations or tax risks you have please book a tax consultation.
What is power of attorney?
A power of Attorney (PoA) is a legal document giving one person (attorney) the power to act for another person.
Can I use a post box address for a legal address?
No. Estonian Commercial Code does not enable registering a company at a post box address.
I am an e-Resident of Estonia. Do I still need a legal address for my company?
Yes. According to the Commercial Code every company registered in Estonia needs an Estonian address.
How can I change my Estonian company’s legal address?
If the board members of the company have access to digital signing it is possible to do this online.
It is also possible to change the legal address in notary’s office in Estonia yourself or authorize 1Office representative to do this for you based on PoA.