Advantages of company formation in Estonia

Our partners and potential clients often ask why foreign investors are interested in your country? Why do more and more businessmen from Russia, CIS countries or the Customs Union countries choose Estonia as the starting point for expanding their business to the European Union? What are the main advantages of Estonian jurisdiction?

There are many advantages of formation company in Estonia. Often, Estonian jurisdiction can be a great tool to optimize your business.

In addition to the opportunity for a Russian-speaking investor to get most of the services necessary for life and business in Russian, the advantages of registering or buying a company in Estonia are:

• Low taxation rates. Retained earnings are not taxed.
• The authorized capital starts from 2500 EUR, the purchase of a ready-made company can be made within one working day.
• There can be at least one owner and one board member. Owners and board members can be 100% foreigners.
• The company is easy to establish, change, transform and liquidate. Amendments to the commercial register can be made via the internet.
• Low maintenance costs, clear and simple Commercial code and accounting rules.
• Developed internet banking, the ability to manage the company’s accounts in Estonia from anywhere in the world. Possibility to obtain loans from local banks.
• Registration of business visas for a long stay in the territory of the member states of the Schengen Agreement.
• The possibility of obtaining both temporary and permanent residence permits in Estonia and the EU for the owners and management of the company and their families.
• The possibility of buying a vehicle for the company, the return of turnover tax, no transport tax and duty on the purchase of a car.
• The ability to establish a company or make a deal of purchase and sale of the company by attorney.

Estonia currently offers one of the most liberal and modern tax systems in the world, where the level of bureaucracy is reduced to a minimum. A company registered in Estonia is subject to the following taxes:

• Income tax for legal persons (tax on retained earnings) – 0 %
• Dividends tax (distributed income tax) – 21/79
• Income tax for private persons – 20 %
• Turnover tax KMKR / VAT – 20 %
• Social tax – 33 %
• Unemployment insurance tax (for employer) – 0,8 %
• Unemployment insurance tax (for employee) – 1,6 %

You can apply for registration or purchase of a ready-made company in Estonia by filling out the appropriate form on our website – we will contact you within one working day.

Additional information by telephone: +372 677 5544 or e-mail klienditugi@kalashnikov.ee

The most important amendments to the laws of the Republic of Estonia in early 2015

The lawyers ofKalashnikov Law Office remind you that at the beginning of 2015 there were some important amendments to the tax, social and financial legislation of Estonia that are worth paying attention to:

• The minimum wage increased from EUR 355 to EUR 390.
• The minimum hourly wage increased from EUR 2.13 to EUR 2.34.
• Since the beginning of 2015, the income tax rate is 20%.
• The tax-free minimum will grow from the current EUR 144 to EUR 154 per month, which will be equal to EUR 1848 per year.
• The unemployment insurance tax rate will decrease for both the employee (from 2 % to 1.6 %) and the employer (from 1.0 % to 0.8%).
• The minimum amount of child support will grow from EUR 177.5 to EUR 195