FAQ

Here you will find answers to frequently asked questions. If there is no answer for your question here, please contact us. You will find our contacts here.

Contents:

  1. What does a citizen of a foreign state have to take into account when opening a bank account in Estonia?
  2. Is establishing or purchasing a company a transaction for which I must come to Estonia to a notary myself?
  3. Is opening an Estonian company possible for a resident of a foreign state only if there is an Estonian resident among the shareholders or board members of his or her company?
  4. Does establishing a company in Estonia require the payment of the share capital?
  5. When will the obligation to pay VAT arise for my Estonian company?
  6. We are planning on establishing a retail sale company in Estonia. Do we need an activity licence in that case?
  7. When buying a company, can I change its name, share capital and articles of association??
  8. How can a non-resident open a bank account for his or her Estonian company?
  9. Does an e-resident have advantages ahead of other non-residents when opening a bank account in Estonia?
  10. What to do if a non-resident needs to start using the bank account after establishing an Estonian company but is unable to come to Estonia?

1. What does a citizen of a foreign state have to take into account when opening a bank account in Estonia?

If you purchase an already established company with a local bank account number, you have access to a bank account immediately.

In case of establishing a new company you have to take into consideration several visits to the bank to receive a bank account number in a local bank. In such a case you can order the enterprise representation service from 1Office, which will save your time.

2. Is establishing or purchasing a company a transaction for which I must come to Estonia to a notary myself?

No, there is no such requirement. Residents of a foreign country may also be shareholders and board members of a company registered in Estonia.

If there are no European Union residents on the board, then the board must designate an Estonian citizen or a company registered in Estonia, who will be given the right to accept official documents in the company’s name.

1Office brokers a contact person service suitable for this.

3. Is opening an Estonian company possible for a resident of a foreign state only if there is an Estonian resident among the shareholders or board members of his or her company?

No, there is no such requirement. Residents of a foreign country may also be shareholders and board members of a company registered in Estonia.

If there are no European Union residents on the board, then the board must designate an Estonian citizen or a company registered in Estonia, who will be given the right to accept official documents in the company’s name. 1Office brokers a contact person service suitable for this.

4. Does establishing a company in Estonia require the payment of the share capital?

When establishing a company as a private person you can decide whether you will pay the share capital (min 2500 euros) immediately or later. If a shareholder of the company is a company, then the share capital must be paid on establishment.

5. When will the obligation to pay VAT arise for my Estonian company?

A company must be registered as a VAT payer when the company’s taxable annual turnover exceeds 16 000 euros. The VAT payer’s number can also be applied for if the taxable annual turnover is below 16 000 euros.

If a citizen of a foreign country is on the board of the company then it is very likely that he will be invited for an interview at the Estonian Tax and Customs Board before giving the value added tax number. The member of the board will be asked about the company’s activity at the meeting and he must submit documents evidencing the company’s economic activity.

The interview will take place in Estonia and participation in it is necessary for receiving the value added tax number. 1Office’s expert specialist may assist the entrepreneur at this meeting.

6. We are planning on establishing a retail sale company in Estonia. Do we need an activity licence in that case?

A licence needs to be applied for to sell alcohol, tobacco, medicinal products, petrol and other regulated products or the activity must be registered on the register of economic activities.

We offer assistance with applying for licences as well as registering activity. An Estonian resident and an e-resident can sign the registration documents digitally or send on paper.

7. When buying a company, can I change its name, share capital and articles of association?

Yes, you can change the name, share capital and articles of association of a ready-made company at the notary’s when concluding the purchase agreement.

An Estonian resident and an e-resident can prepare and submit all changes concerning the company via Internet.

8. How can a non-resident open a bank account for his or her Estonian company?

In Estonia you are allowed to open a local business bank account only once the company has been registered on the commercial register. To open a bank account a board member or the board members must be present at the bank. Whether one or more members of the board need to attend depends on the board’s right of representation.

At the bank you must fill in the company’s commercial activity form. The bank will conduct a background check for a non-resident. The bank is foremost interested in whether your company has or will in the near future develop commercial activity in Estonia. If the company does not have or is not planning commercial activity in Estonia, the bank may refuse to open a bank account.

9. Does an e-resident have advantages ahead of other non-residents when opening a bank account in Estonia?

There are unfortunately no advantages when it comes to opening a business bank account. Once the bank accepts your application and opens a bank account for your company, as an e-resident you will have the opportunity to use your e-residency card for online banking. If you do not have an e-residency card you will be given a pin calculator, which will also give you access to online banking.

10. What to do if a non-resident needs to start using the bank account after establishing an Estonian company but is unable to come to Estonia?

In such a case you can turn to 1Office. We can submit an application to open a bank account by representing you. Whether the bank will thereafter accept your application depends largely on your aims in relation to the company registered in Estonia.

 

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