Estonia’s economy has boomed in recent years as it has pursued a liberal business agenda in preparation for EU membership, which was finally achieved in 2004. Foreign investment has flooded into this small Baltic state enabling it to create a relatively relaxed environment for the international business community.

However, Estonia is still developing and investors considering establishing a company in the country should tread carefully. It is particularly important here to seek professional advice on all legal, financial and tax matters.

For foreign investors seeking to open a business in Estonia, the regulatory environment offers one of the most liberal foreign trade regimes in the world, with virtually no tariff or non-tariff barriers. This approach has also been carried through into the wider regulatory arena:

  • The local currency, the Estonian Kroon (EEK), is pegged to the euro and is fully convertible on current account and capital account transactions.
  • Capital and earnings can be freely repatriated.
  • Estonia has no exchange controls or restrictions on foreign investment.
  • The amount of foreign capital that can be invested in an Estonian business enterprise is unlimited.
  • Companies can be in full foreign ownership.

However, tax regulations must be strictly adhered to and there are severe penalties for infringement. It is therefore essential to engage an English-speaking accountant for tax planning purposes if you are seriously considering Estonian company formation.

Depending on the taxation and on the legal requirements for each business structure, it is important to opt for the best type of company that suits the business purposes of a legal entity.

We have Shelf Companies available in Estonia under the two main forms of business entity:

  • Public Limited Company – Aktsiaselts (AS)
  • Private Limited Company – Osaühing (OÜ)

If you’re considering how to buy a Shelf Company in in Estonia then please contact us for expert advice and information.

A detailed Summary of Estonian Corporate Taxes can be found here.