VAT in Estonia: Changes in the Estonian Value Added Tax (VAT) Act from 1 January 2024

From 1 January 2024, the standard rate of VAT in Estonia is 22% instead of the previously applicable 20%.

Choosing the right tax rate must be based on the time of supply of products and services:

However, there are two transitional provisions (e.g. transactions related to long-term contracts), which you can read about following the link: https://www.emta.ee/en/business-client/taxes-and-payment/value-added-tax#from-01012024

VAT in Estonia: examples of VAT rate changes

Tax and Customs Board has brought out some examples of VAT rate change related situations, which you as a business owner might be facing:

  1. I have issued an advance invoice from my company to the client in December 2023 and the invoice payment was also done in December 2023. The products were delivered to the buyer in January 2024.

What should be the VAT rate in this case? As the supply was fully generated in 2023, then it is taxed at 20% VAT rate.

  1. I sold products in 2023 with 20% VAT, but the customer returned them in 2024.

When returning products, the invoice is credited just as it was issued, thus the credit invoice has a 20% VAT rate.

  1. I issued the invoice in 2023, products were delivered and the invoice was paid in January 2024.

No supply is created from issuing an invoice alone. If both the delivery and the payment take place in 2024, the transaction is taxed at the VAT rate of 22%, and the VAT rate indicated on the invoice must also be 22%.

More examples can be seen here: https://www.emta.ee/en/business-client/taxes-and-payment/value-added-tax#examples-01012024

In case you are interested in or already use our accounting services, please do not hesitate to contact us and send us directly any tax-related questions you have. 

Everything You Need to Know About Estonian Company Liquidation

In the dynamic landscape of business, understanding the full spectrum of your company's lifecycle is essential. This includes being well-informed about the processes of company liquidation and merger. While these might not be the most appealing subjects, having a comprehensive grasp of the processes, requirements, and associated costs is crucial for effective decision-making.

In this article, we will provide a detailed exploration of Estonian company liquidation, including the recent change allowing for simple applications for deletion in the case of dormant companies, as well as the intriguing option of company liquidation via merger, especially when merging with a shareholder who is a physical person. If you are interested, feel free to visit our liquidation service page for an overview of all services.

Understanding Estonian Company Liquidation

Company liquidation is a formal process that involves winding up a business entity. In Estonia, the Commercial Code outlines the steps and requirements for a seamless transition from active operations to dissolution. Whether your company has naturally reached the end of its journey or you're considering a strategic move, understanding this process is essential.

The Standard Estonian Company Liquidation Process

  1. Shareholder Resolution: The process begins with the company's shareholders drafting a resolution to initiate liquidation. This decision necessitates shareholder approval.
  2. Appointment of a Liquidator: A liquidator, either from the management board or an external professional, is appointed to oversee the liquidation process. It is mandatory that at least one appointed liquidator is an Estonian resident. In the usual liquidation process there are generally two liquidators: one from the board and the other a consultant/lawyer from our side.
  3. Public Notice: A notice regarding the liquidation is published in the official publication Ametlikud Teadaanded and potentially on the company's website.
  4. Inventory and Valuation: A comprehensive inventory of the company's assets and liabilities is conducted, followed by their valuation. This step provides clarity on the company's financial standing.
  5. Settlement with Creditors: All outstanding debts and obligations to creditors are settled within a specified period. Creditors are given the opportunity to submit their claims.
  6. Distribution of Assets: After settling liabilities, remaining assets are distributed among shareholders based on their ownership stakes.
  7. Tax Obligations: Settling all tax obligations, including income tax and VAT, is paramount prior to the completion of the liquidation process.
  8. Submission of Final Reports: The liquidator prepares a final report, incorporating the inventory, valuation, and financial statements. This report is then submitted to the Commercial Register.
  9. Application for Deletion: Following the submission of a liquidation report, an auditor's report (if required), and other necessary documents, the company can be deleted from the Commercial Register based on the relevant application.

Notably, our team of legal professionals has ingeniously streamlined the standard liquidation process, ensuring operational efficiency and minimising administrative complexities by understanding all accounting aspects beforehand and therefore ensuring the uninterrupted flow of the whole liquidation process.

The anticipated timeline for the comprehensive company liquidation ending with final deletion is 8 months for regular liquidation and 4 months for liquidation via merger.

Our clients have to provide us with all relevant accounting documents, visit the notary once (in their home country) and then let us take care of the rest. In case all the related persons have Estonian ID cards or E-residency cards, then the whole process can be done with just digitally signing the documents prepared by us. 

Digital Application for Deletion for Dormant Companies

A notable recent change in the Estonian company liquidation process concerns dormant companies. If a company is dormant, meaning it has had no economic activity whatsoever, it is now possible to make an application (either digital or legalised) to the Commercial Register with a request for deletion. This streamlined approach aims to simplify the process for such cases, minimising administrative burdens. After submitting the relevant application to the registry it will be necessary to wait for the tax office approval regarding the deletion. After the tax office has provided the relevant approval the company will be deleted. Generally this takes between 2 weeks to 2 months to complete.

Estonian Company Liquidation via Merger with a Sole Shareholder of the Company

An intriguing alternative to traditional liquidation is to do it via merger. You may follow our company liquidation service page for the short description of the process. This process involves merging the liquidating company with the sole shareholder of the company, effectively transferring its assets, liabilities to the physical person. This option offers several advantages:

The Process of Estonian Company Liquidation via Merger with the Sole Shareholder of the Company

1. Shareholder resolution: The company's management and shareholder decide to pursue liquidation via merger with the physical person shareholder.

2. Shareholder Agreement: A notarial agreement is formulated between the company and the physical person shareholder, detailing the terms and conditions of the merger. The agreement encompasses the transfer of assets, liabilities, and ongoing responsibilities.

3. Public Notice: A notice regarding the merger is published in the official publication Ametlikud Teadaanded.

3. Valuation and Asset Transfer: Company assets and liabilities are valued in accordance with prevailing industry standards. Preparation is made for transferring assets to the physical person shareholder's entity, alongside the assumption of liabilities.

4. Formation of Accounting Documents: Essential legal documents, encompassing the merger agreement and valuation reports, are prepared and submitted to relevant authorities. Outstanding company obligations, including debts and liabilities, are settled before finalizing the merger.

5. Dissolution of Original Company: Upon successful completion of the merger, the original company undergoes formal dissolution, effectively removing its entity from records. For this the final accounting documents as well as the deletion application is submitted to the Commercial Register. Read more about the dissolution of your Estonian company.

Estonian Company Liquidation Process Pricing and Costs

The expenses associated with liquidating a company or executing a merger in Estonia can vary based on factors like financial complexity, outstanding obligations, and professional involvement. Consulting with our experienced legal advisors is crucial for obtaining accurate cost estimates tailored to your unique situation.

We've also created straightforward packages for each liquidation option, drawing from our expertise. These packages are designed to match common scenarios and simplify the process. This means you'll have clear options that suit your situation, ensuring a smoother experience.

To Conclude Estonian Company Liquidation 

Estonian company liquidation and merger might appear complicated processes, yet with expert planning and support from local professionals, they can be managed effectively. By understanding the intricacies and costs of these processes, along with recent changes like simplified deletion applications for dormant companies, you are empowered to make strategic decisions about the future of your business. Collaborating with a reputable corporate service provider simplifies the procedures and ensures compliance with legal requirements, facilitating a seamless transition.

Please also see the FAQ regarding liquidation on our services website.

In case of any questions or inquiries about the liquidation, please feel free to send us an inquiry.

Frequently Asked Questions (FAQ) About Estonian Company Liquidation

1. What is company liquidation in Estonia? 

Company liquidation refers to the formal process of winding up a company's affairs and operations. It involves the orderly distribution of assets, settling of liabilities, and ultimately, the dissolution (deletion) of the company from the Commercial Register.

2. Why would a company opt for liquidation? 

Companies choose liquidation for various reasons, including financial distress, cessation of operations, compliance with regulatory requirements, or as a strategic decision to end the company's existence.

3. What are the different types of company liquidation in Estonia? 

There are two main types of liquidation: voluntary liquidation, initiated by the company's shareholders, and compulsory liquidation, initiated by external parties such as creditors or regulatory authorities.

When talking about voluntary liquidation in Estonia, there are different options:

1. Regular liquidation

2. Simplified deletion (suitable only for completely dormant companies)

3. Liquidation via merger (merging the company with the physical person shareholder)

4. How long does the company liquidation process typically take in Estonia? 

The duration of the liquidation process varies depending on factors such as the complexity of the company's financial affairs and the efficiency of the chosen process. Generally, the process can take several months to complete. Please see our liquidation options and timeframes.

5. What is the role of a liquidator? 

A liquidator is responsible for overseeing the entire liquidation process. Their duties include valuing assets, settling debts, distributing assets to stakeholders, preparing reports, and ensuring compliance with legal requirements. Our appointed liquidators will get necessary information from the company representatives and shareholders and work with them closely in order to ensure a smooth liquidation process.

6. What is the role of the shareholders in liquidation? 

Shareholders play a crucial role in initiating the liquidation process by passing a resolution to wind up the company. They may also be entitled to receive a share of the company's remaining assets after settling liabilities. In case of liquidation via merger with a shareholder, the shareholder takes on all the company's assets and liabilities.

7. What happens to the company's assets and liabilities during liquidation? 

Assets are valued and sold, with the proceeds used to settle the company's liabilities. Any remaining assets are then distributed among shareholders according to their ownership stakes. In case of liquidation via merger with a shareholder, the shareholder takes on all the company's assets and liabilities.

8. Can a company continue operations during liquidation in Estonia? 

In most cases, a company ceases its regular operations during the liquidation process. However, some limited operations may be necessary to facilitate the liquidation itself. Our liquidation process will generally start only after the company has ceased its operations and ended all relationships, as well as closed the bank accounts.

9. What are the Estonian tax implications of company liquidation? 

Liquidation can have tax implications, including income tax and VAT. All tax obligations should be settled before the process is completed. You will be guided in detail by the accountant during the process.

10. What is the significance of public notices during company liquidation in Estonia? 

Public notices about the liquidation are published in the Estonian Official Publications to inform creditors, stakeholders, and the public about the company's status (so that they can make their claims, if needed). It's a crucial step to ensure transparency and compliance with legal requirements. In Estonia public notices are published in Ametlikud Teadaanded.

11. Can an Estonian dormant company go through liquidation? 

Yes, even dormant companies can undergo a regular liquidation process.

However, there is a simplified deletion process (without liquidation) for dormant companies in Estonia. It is done by signing an application (either digitally or legalised) to the Commercial Register and getting Tax Office approval for deletion of the company.

12. What is the difference between company liquidation and bankruptcy in Estonia? 

Liquidation is the process of winding up a company's operations, whereas bankruptcy typically applies to individuals and companies who are unable to repay their debts. Bankruptcy involves a legal declaration of insolvency.

13. Can a company liquidation process in Estonia be reversed once initiated? 

In certain cases, it might be possible to reverse a liquidation process if shareholders decide to continue the company's operations. However, reversing the process can be legally complex and requires an application to the court. In case you require a reversal of liquidation, please contact our legal advisors.

14. How can professional corporate service providers assist with the company liquidation process in Estonia? 

Experienced corporate service providers can guide you through the intricate process, ensuring compliance with legal requirements, accurate valuations, and a smoother overall transition. The timely filings in the liquidation process are essential to ensure the success of the liquidation and our advisors are able to keep track of all necessary filings and deadlines.

15. Are there any alternatives to company liquidation in Estonia? 

Yes, we also offer purchasing your company fully with the intention of liquidating it later. Meaning, that you will be free of your company from the moment of sales. There are certain requirements to be met before the sales, however this can be in some cases the most suitable option for some clients. Look for further information on company purchase fully.

Remember, every company's situation is unique, and seeking professional advice is essential for making well-informed decisions regarding company liquidation.

Exploring Local Substance and Physical Presence for a Company in Estonia

At Wisor Group OÜ, we understand the importance of developing a substantial presence in Estonia that extends beyond the obligatory legal requirements. As a response to this, we are introducing our Local Substance and Physical Presence service – a versatile solution that surpasses mere compliance, enabling a genuine relationship with Estonia. Read more about e-Residency in Estonia

A Service Beyond Requirements for a company in Estonia

While our Virtual Office and Contact Person services cater to your legal obligations, our Local Substance and Physical Presence service offers an extra layer of engagement. Unlike mandatory requirements, this service is not an obligatory part of the company setup process. However, its potential benefits can significantly augment your company's connection to Estonia.

Unveiling the Service for a company in Estonia

Our Local Substance and Physical Presence service in Estonia entails a range of provisions designed to fortify your business's foothold in Estonia. This includes the establishment of a dedicated landline, an essential communication tool for seamless interaction. Additionally, we extend the option of secretary services, ensuring your calls are answered professionally, enhancing your company's accessibility.

Flexible Office Space in Estonia

One of the standout features of this service is the provision of office space. This office space can serve as a tangible embodiment of your company's commitment to Estonia. It is noteworthy that we facilitate easy and swift termination terms for the office space, offering flexibility that aligns with your evolving needs.

Diverse Applications for a company in Estonia

The Local Substance and Physical Presence service holds particular relevance for various scenarios.Some clients opt for this service to fulfil banking requirements, fostering a tangible local presence for smoother interactions with financial institutions. Others find it beneficial for tax purposes, underlining their commitment to Estonian operations. Read more about company registration in Estonia

FAQ about Local Substance and Physical Presence for a company in Estonia

1. What is the Local Substance and Physical Presence service for a company in Estonia? 

The Local Substance and Physical Presence service is provided in Estonia by Wisor Group OÜ that goes beyond legal obligations, allowing companies to establish a genuine and tangible connection with Estonia.

2. Is this service mandatory for company registration in Estonia? 

No, the Local Substance and Physical Presence service is not mandatory. It's an optional service designed to enhance a company's connection to Estonia.

3. What does the service entail for a company in Estonia?

This service includes provisions such as the setup of a dedicated landline, secretary services upon request (including call answering), and access to office space in Estonia with

flexible termination terms.

4. How does the service enhance a company's presence in Estonia? 

By providing a landline and office space in Estonia, the service creates a tangible local presence, enhancing accessibility and communication capabilities.

5. Is this service primarily for tax and banking purposes? 

While this service is often beneficial for tax and banking considerations, its purpose is broader. It aims to establish a genuine and substantial connection to Estonia, reflecting the company's commitment to Estonia. Read more about taxation in Estonia.

6. Can companies use this service solely for the purpose of having an Estonian bank account? 

While some companies may use this service for banking purposes, it is not the sole purpose. The service aims to create a credible local presence, which contributes to the company's overall engagement with Estonia.

7. How does the Estonian Local Substance and Physical Presence service benefit the company in Estonia? 

This service benefits businesses by providing them with tools to establish a stronger connection with Estonia, thereby enhancing their reputation, accessibility, and potential for successful interactions with local entities.

8. Who is this service in Estonia suitable for? 

This service is suitable for businesses looking to solidify their presence in Estonia, build credibility, enhance communication capabilities, and navigate tax and banking requirements more efficiently.

9. Can companies choose specific components of the service? 

Yes, companies can tailor the service to their needs. For instance, they can opt for specific elements like the landline setup, secretary services, or office space based on their requirements.

10. How can Estonian companies avail the Local Substance and Physical Presence service? 

Companies interested in this service can reach out to us to discuss their needs and customise the service according to their preferences.

11. Is this service available for both local and foreign companies? 

Yes, both local Estonian companies and foreign companies looking to establish a stronger presence in Estonia can benefit from this service.

12. Is professional advice available for utilising this service effectively in Estonia? 

Yes, our experts can provide guidance on how to make the most of the Local Substance and Physical Presence service, ensuring that it aligns with your business goals and needs.

Navigating Company Registration in Estonia: Tailored Solutions for Your Business

When embarking on the process of establishing a business in Estonia, it's crucial to understand the details of company registration in Estonia. At Wisor Group we offer a range of comprehensive solutions designed to simplify the process and align with your unique business requirements. 

Option 1: Direct Company Registration in Estonia via Notary with Power of Attorney (POA)

For those seeking a personalised approach, we offer a tailored path to direct company registration in Estonia. This process involves the careful arrangement of registering the company directly in the client's name through the notary. Our team adeptly handles the administrative intricacies, allowing you to focus on your business aspirations.

The Process:

1. Personalised Initiation: Our expert consultants initiate the process in line with your business goals and preferences and gather all relevant information from you to get started. 

2. Tailored Solutions: With precision, we guide you through the necessary legal steps, ensuring compliance with the Estonian laws. We also check the company name availability for you.

3. Notary and POA: By issuing a Power of Attorney (POA), you authorise us to act on your behalf in front of the Estonian notary for establishing a company, thus simplifying the entire procedure. However, it is also possible to visit the notary personally with our advisor to set up the business. 

4. Company Registration: The company registration takes place under your name, with your unique vision at its core.

Please follow this link for a more detailed guide of the process and required KYC

Option 2: Company Registration in Estonia for E-Residents

Estonia's pioneering e-residency program has transformed the business landscape, providing a gateway for international entrepreneurs to establish a presence in the European Union. At Wisor Group, our expertise lies in helping e-residents navigate this process with precision.

The Process:

1. E-Residency Advantages: Our experts guide you through the e-residency application process, unlocking access to Estonia's digital ecosystem. The application can be submitted by you online and you can receive the e-residency card itself at the Estonian embassy or in Estonia. 

2. Precise Setup: We assist in setting up your company online, ensuring every detail aligns with your requirements. In addition to our advisory services related to the registration, we also offer guidance for utilising your e-residency card for digital signatures, especially if you are new to this process.

3. Digital Presence: With our support, your business takes root in Estonia's digital landscape, enhancing your global reach.

Please follow this link for a more detailed guide of the process and required KYC

Both of the above options allow you to set up your company here in Estonia remotely. Nevertheless, we always welcome our clients to visit us in beautiful Tallinn to meet us and discuss your further plans with your Estonian company. 

Company Registration in Estonia with Wisor Group

Virtual Office and Contact Person Services: Ensuring Compliance and Accessibility

In accordance with the Estonian legal requirements, every company established within the country is obligated to fulfil specific criteria. Among these prerequisites, having a registered office address and a contact person who is a licensed service provider in Estonia stands as a cornerstone of compliance and accessibility. With current regulatory updates it is now also allowed to have a foreign legal address for your Estonian company, however in this case mandatory appointment of contact person is necessary. We will explain the Virtual Office Service topic in more detail below or you can review the services provided by Wisor Group.

Contact Person: Bridging Communication

As stipulated by Estonian law, having a contact person who is a licensed service provider, advocate, notary, attorney at law or notary office in Estonia, is essential in case of a non-resident managed company and in case the company does not hold an Estonian legal address. Contact person serves as a bridge between the company and regulatory bodies playing an important role in receiving official communication and documents on behalf of the company. This communication pathway promotes transparency and guarantees the accessibility and accountability of your company whenever the need arises.

Legal Address: Establishing Presence or not? 

Typically Estonian companies have Estonian legal addresses, but as mentioned above, Estonian companies now have the option to use a foreign legal address. This means the company doesn't have to rely solely on an Estonian address and can also receive mail at the foreign address. Having a foreign address requires appointing a contact person, as mentioned earlier.

Choosing a foreign address has its pros and cons. While it reduces the need for a physical presence in Estonia, it might also raise questions about taxes and regulations. It's important to think carefully before making this decision.

Alternatively, you can opt for our virtual office services. Our services include a valid registered address where we handle, forward, and store your company's mail. This is a more practical solution compared to using post boxes as addresses. It's important to note that post boxes are not permissible as legal addresses, further emphasising the need for tangible presence.

Having a proper registered address is crucial for your company's official documents and communication. It establishes your company's presence and ensures compliance with Estonia's rules.

Wisor Group offers different options for fulfilling these legal requirements. Depending on your needs, we offer either contact person and/or legal address services with necessary mail forwarding. Our virtual office and contact person services effectively fulfil these legal requirements with accuracy.

Our Flexibility for Complex Structures

We are well-prepared to manage complex company setups, including registering companies with foreign corporate shareholders, dealing with multiple corporate and individual shareholders and accommodating numerous board members. Our service is always tailored to meet your distinct requirements. Our advisors will guide you through the legal requirements for complex structures and provide the necessary advisory for the setup. 

Share Capital

In accordance with Estonian laws, companies are required to have a minimum share capital of €0,01. However, as the shareholder's liability is still €2500, we advise you to state the same amount as the share capital. Our advisors will assist you in determining the appropriate share capital amount and guide you with the required contribution to the designated bank account.

Remote services

If you're interested in establishing your company in Estonia, but find yourself short on time to travel or prefer not to delve into legal intricacies, there's an option to remotely set up your company with our expert assistance. This can be achieved through either a power of attorney or using e-residency.

Opting for the power of attorney route entails visiting a local notary to sign a representation document designated to a Wisor Group legal advisor, who will oversee your company registration. This legal advisor will represent you during the notary process, ultimately securing the setup of your company.

On the other hand, e-residency offers a streamlined process. Our advisors can craft the application for company registration within the online commercial register. Once the application is ready, our team will guide you through digitally signing the petition. This efficient process typically leads to the registration of your company on the very same day.

Expert Guidance for Seamless Company Registration in Estonia

At Wisor Group, our focus is on providing customised solutions that match the changing business environment. Whether you choose direct company registration or utilise the e-residency program, our advisors ensure your transition into the Estonian business environment is smooth, compliant, and aligned with your vision. 

FAQ about Company Registration in Estonia

1. What are the types of companies that can be registered in Estonia? 

Estonia offers various types of companies, including private limited companies (OÜ), public limited companies (AS), sole proprietors (FIE), and partnerships amongst foundations (SA) and non-profit organisations(MTÜ). 

2. What kind of company type should I choose? 

In case you are looking to set up a small or medium sized business (either a 1-man company or with multiple partners) we advise you to set up an OSAÜHING (private limited company) in Estonia. In case you are looking to go public, you should think about setting up a AKTSIASELTS (public limited company) and in case you are looking for a foundation or an NGO, we advise for SIHTASUTUS or MITTETULUNDUSÜHING, which are considered non profit foundations/organisations. Wisor Group can assist you in choosing a suitable company type and setting it up compliantly. Please see ordering forms for E-resident company, Company in your name and NGOs. Should you need anything else, please contact us through our general inquiry form. 

3. What is the minimum share capital required for company registration in Estonia? 

The minimum share capital requirement for private limited companies (OÜ) is €0.01. However, as the shareholder's liability is still €2500, we advise to state that amount as the share capital. 

4. Can foreigners or non-residents register a company in Estonia? 

Yes, non-residents and foreigners can register a company in Estonia. There are no limitations as to who can set up a company in Estonia. Many also prefer setting up the business through the e-residency, however it is not a mandatory requirement to set up a company in Estonia. 

5. What is e-residency, and how does it relate to company registration? 

E-residency is a digital identification program offered by the Estonian government, allowing non-residents to access Estonian services and establish a company online, as well as to sign agreements and other documents digitally. 

6. Do I need physical presence in Estonia to register a company? 

No, physical presence is not always required. Furthermore, Estonian companies can also have foreign legal addresses (in this case Estonian contact person must be appointed). Wisor Group can help you decide whether you would require a physical presence and we can provide you with all the necessary, such as legal address with mail handling in Estonia, contact person services and also local substance services.  

7. What is a contact person, and why is it required? 

Having a contact person who is a licensed service provider, advocate, notary, attorney at law or notary office in Estonia, is essential in case of a non-resident managed company and in case the company does not hold an Estonian legal address. 

8. What is a legal address, and why is it required? 

A legal address is the physical address of the company's registered office. It's necessary for receiving official documents and communication from authorities.

9. Can I use a foreign legal address for my Estonian company? 

Yes, as of a recent change in law, Estonian companies can now use a foreign legal address. However, appointing a contact person within Estonia is mandatory when choosing a foreign legal address.

10. What are the steps involved in registering a company in Estonia? 

The steps include choosing a company type, preparing necessary documents, selecting a legal address and contact person, determining share capital, submitting an application, and registering the company with the Commercial Register.

11. Can I register an Estonian company without an e-residency card? 

Yes, you can. That is what the majority of the people do when opening Estonian companies.

12. Can I set up my company in Estonia remotely? 

Yes, it is possible to set up the company in Estonia remotely, this is generally done via Power of Attorney (POA). Wisor Group legal advisors will represent you in the notary for the company setup and ensure that the company is registered properly in your name. Alternatively, it is possible to set up a company in Estonia remotely via e-residency. 

13. What is the timeline for company registration in Estonia? 

The company registration process can take up to 5 business days after signing everything at the notary. E-residency company setup takes usually 1 day after all parties have signed the petition online. These timeframes are indicative and apply in cases when all documentation is ready by the client by the time of the registration application. 

14. What taxes and obligations do registered companies have in Estonia?

 Estonian companies do not have corporate income tax on revenue. Estonian companies are taxed for profits only in case dividends (profits taken out) are paid. In this case the 20% corporate income tax rate applies. Estonian companies are also subject to 20% VAT and different salary taxes in case of employees. 

15. Can I register a company with complex structures, such as multiple shareholders or board members? 

Yes, company registration in Estonia can accommodate various complex structures, including multiple shareholders, board members, and even foreign corporate shareholders. Our professional advisors can guide you through the process.

16. How can professional corporate service providers assist with company registration in Estonia? 

Experienced service providers can offer guidance on legal requirements, document preparation, contact person and legal address services, share capital determination, and navigating complex company structures.