Benefits of Estonian business

Business in Estonia is simple and attractive. Estonia is known for its favourable business climate. Let’s have an overview of the Estonian business benefits:
• There is no corporate income tax on retained and reinvested profit, corporations only pay taxes on their distributed dividends
• There is an advanced digital infrastructure and a belief that almost anything can be done online with minimal bureaucracy
• The e-Residency program is already helping entrepreneurs to save money, allowing to lead their companies from all over the world. It also helps free up more time, so they can focus on their passion
• The low cost administration
• Greater ease of doing business
• Simple taxes also make it very attractive
• In addition, an Estonian company is an EU company, so your company will be based inside the world’s largest single market, while you administer it from anywhere in the world.

There are five forms of business entities in Estonia: private limited company (OÜ), public limited company (AS), general partnership (TÜ), limited partnership (UÜ), commercial association (ühistu). In addition to the possibility of establishing a business entity, it is possible for any natural person to conduct business as a sole proprietor. Foreign companies can also offer their goods or services by establishing a branch.

The private limited company (osaühing or OÜ in Estonian) is the most common form of business in Estonia.

The advantages of the private limited company:
• Simple and quick registration
• A relatively low share capital requirement – 2500 eur (no obligation to deposit it)
• Shareholders have no personal proprietary liability for the private limited company’s obligations
• Min. of 1 shareholder and 1 director (must be at least 18 y.o.)

Review compiled by:
Natalia Gorpinchenko | Accountex OÜ