Business Types in Estonia
Which Business Types May Be Formed in Estonia?
Entrepreneurship is booming in Estonia. This country is quite stable, with a good economy, so lots of people are exploring business opportunities in the nation. Estonia is is currently enjoying a good level of prosperity. If you’re interested in forming a company in Estonia, even though you’re not a citizen of the country, you’ll be pleased to know that this is possible.
Estonian residents may open businesses in the country. However, those who are non residents also have the option of opening businesses, as long as they have the right paperwork in place. Entrepreneurs are recognizing that Estonia is a hotbed for exciting business opportunities.
Since economic activity at a firm is based on the type of company that it is, let’s examine the primary forms of businesses which may be registered within Estonia.
The main forms of companies include:
To help you learn about popular company types we’ve created a helpful quick guide.
|Sole entrepreneur||Private Ltd.||Public Limited Company, PLC|
|Size of business|
|Individual Entrepreneur,Family business||Small and Medium business||Large business|
|Not required||2 500 EUR||25 000 EUR|
|Non||The nominal value of a share1,0 EUR||The nominal value of a share0,1 EUR|
|Responsibility of founder|
|Personal property or||In the amount of share capital||In the amount of equity|
|Min 1 person||Min 1 person|
|–||–||Min 3 person|
|On a cash basis||On the principle of occurrence of the transaction||On the principle of occurrence of the transaction|
|Each month 33% of the minimum salary||Social tax is payable if a salary or other payments are allocated.||Social tax is payable if a salary or other payments are allocated.|
|When turnover reaching 16 000 EUR per year||When turnover reaching 16 000 EUR per year||When turnover reaching 16 000 EUR per year|
|On revenue||On the allocation of profit||On paid dividends|
All three business model options naturally have different requirements and responsibilities, and so it is important to get this clear. At Finbalt, we are happy to guide you through the options and help you select the best fit for your operations. For more information on rules related to forming a company, contact us today. At our company, we know the ropes and we’re ready to share our expertise with you.
DOCUMENTS AND BASIC CONCEPTS
Charter is Põhikiri in Estonian language. The set of rules established by the founders of the company. It regulates the activity of the company. For example, the Charter is necessary to highlight the activities of the company, information on authorized capital, information regarding the general meeting of the owners of the company etc.
The Register Card is B-kaart in Estonian language. The extract from the Commercial Register of Estonia. It reflects information about the company. in particular, the companies name, registration code, legal address, directions, details of board members, date of establishment, the share capital, the information about the changes made in the Commercial Register.
The founder of the company. The commercial or private person . Both resident and registered in Estonia and residing in another state.
The authorized capital.
Limited Liability Partnership: minimum of 2 500 EUR.
Joint-stock company: no less than 25 000 EUR.
Sole propietorship: no capital.
Authorized capital can be both cash and other property contribution.
Board of the company. Founder appoints the board members. Their activities governed by the Commercial Low and the Companies Charter. A Companies Director is not required.
Powers of the Board members. Management of Company activities on behalf of the firm: opening accounts of the company, make contracts and deals for the company.
The Commercial Register of Estonia. State department contained information about the companies.
LICENSES AND OPERATION PERMITS
Some specific types of businesses need to obtain an operation permit or license by the Register of
- Organization of air, marine (except the activity combined with small swimming facilities operation), railway (except the internal transport of the enterprise) and international transport.
- Geological works. Development of mineral resources.
- Manufacturing, buying and selling of products (or containing) precious metals and stones.
- Manufacturing, using and sale of weapons, its parts, ammunition and explosives. Conducting of pyrotechnical works. Weapons Repair.
- Cultivating of plants containing narcotic, potent or poisonous substances. Manufacture and sale of drugs, potent, radioactive or toxic substances. Acquisition and storage of radioactive substances.
- All kinds of medical activity.
- Manufacturing and sale of medicaments.
- Export – import of alcohol, tobacco and tobacco products, manufacturing and wholesale as well retail sale of alcohol.
- Stamping or printing money, securities and funds postage.
- Creating and organizing of public communication networks.
- Creating of higher, secondary, special and professional educational institutions.
- Organization of security.
- Organization of private detective agencies and services.
- Restoration of measuring instruments.
- Manufacturing and sale of microbes, plants and animals that received from engineering genetics.
- Insurance activities.
- Building design, examination and supervision. Construction activity on the contracting agreements.
- Surveying and mapping work.
- Carrying out of the environmental impact assessments.
- Treating with toxic waste.
- Exchange activity.
- Transmission and production of programs through radio and television network.
- The organization of gambling.
- Duplication, reproduction of the State flag or coat of arms.
- Tourim activity.
- Ship agency.
- Organization of lotteries.
- Land development on the basis of the land return, sale-purchase or agreement.
- Assessment of the land.
- The activities in the securities market.
- The municipal veterinary activities.
- Private veterinary activities.
- Trading and the import of fuel and lubricants (importation, mandatory evacuation, wholesale and retail trade, warehousing).
- Construction-geological and geological studies.
- Carrying out the experiments on animals.
- Classification of personal protective equipment and assessment of their quality, the classification of machinery and equipment.
- Speech Therapy Practice.
- Preservation of cultural monuments (archaeological, architectural, religious, technical and historical) their restoration, renovation projects, drawing up and carrying out these works
- Classification of goods and measuring of the goods volume during custom declaration.
The requirements for obtaining the permit or license for each business operation may vary.
When you choose Finbalt Consulting OÜ today, our specialists will give you expert direction which helps you to make smart choices about which business type to set up. In addition, we’ll assist with preparation of all mandatory documents. Our services will make it easier to submit documents which adhere to government laws.