An Estonian-registered company is a wonderful business instrument for an investor who wants to enter European markets at a low cost and with maximum benefits. This post-Soviet state has totally adapted to the European lifestyle and lost all of its Soviet past unlike many other parts of the former Soviet Union. We invite you to consider the opportunity to apply for our packaged service ‘A company in Estonia and a corporate account with a British Payment Service Provider’.
Why a non-resident of Estonia should register a company in the country
Estonia is very friendly to foreign investors. A non-resident can set up a company there via the Internet by acquiring an e-residency card. This is a digital card that does not make the holder a legal resident in Estonia but it opens a number of opportunities in the country anyway. For instance, an e-residency card holder receives access to the Government Internet portals. He or she can submit tax returns and other reports online and sign various documents including business contracts by use of an electronic signature.
Below please find an incomplete list of advantages that the registration of a company in Estonia will bring:
- If the company profits are not distributed to the stockholders, the profit tax equals zero in Estonia;
- Estonia is off all the black list of uncooperative jurisdictions and thus local companies enjoy a spotless reputation in the international business arena;
- The country has signed over fifty double taxation avoidance agreements, which allows using an Estonian-registered company for tax planning purposes;
- A foreign entrepreneur who invests at least 65,000 euros into business in Estonia will qualify for a legal residence permit in the country;
- The best part of document submission and processing is performed in the electronic form, which minimizes corruption and bureaucracy;
- The minimum charter capital for a company in Estonia is 25,000 euros but depositing the capital can be postponed.
In Estonia, a corporation can acquire a crypto business license. Besides, the company can purchase real estate in the country without having to pay any extra taxes. As Estonia is a European state, the goods produced there can carry a ‘made in Europe’ mark.
Forms of company ownership in Estonia
MTÜ is an abbreviation used for non-commercial or not-for-profit companies. Normally, charitable funds, unions, and associations have this form of ownership in Estonia. The areas of entrepreneurship where the company can be engaged shall be specified in the By-laws. The amounts of money required for office rent, payment of salaries, purchase of office equipment, and other goals are determined at the general meeting. The company shall file financial reports.
AS is the acronym used for a joint-stock company. This is a company whose ownership is divided into shares. This is a convenient form of company ownership for large corporations that have many shareholders. The AS shall have a Board of Directors consisting of at least three members. The shareholders’ meeting shall be held once a year. The charter capital can be made up of money or property.
OÜ is the abbreviation used for a limited liability company that is an optimal ownership form for a small- or a medium-size business. OÜ is the most popular type of company that is set up by non-residents in Estonia. The number of company co-owners shall not exceed ten. The company shall have a director who is entitled to sign documents and open bank accounts on behalf of the company.
How to register an OÜ in Estonia
You have to suggest a unique company name and decide on the number of company owners to register an LLC in Estonia. Then you have to collect the required application documents to be submitted to the Company Register. The documents include passport copies for the directors and shareholders, proofs of their residential addresses, and corporate documents such as Memorandum and Articles of Association and so on. When submitting the documents for company registration, you will have to pay a state duty. LLCs are registered within five to ten days in Estonia.
A corporate account with a British PSP for you Estonian OÜ
An Estonian-registered company can set up a bank account or an account with a payment system almost in any country of the world. We suggest that you should open an account with a reliable UK Payment Service Provider (PSP). It is easier and faster to set up a corporate account with a PSP than with a traditional bank. Normally, PSPs are less demanding to their prospective clients in comparison to banks.
The headquarters of the payment system that we are advertising here are located in London, UK. The company offers the following range of services to its clients:
- Money transfers to personal and corporate accounts;
- Cryptocurrency operations;
- Multicurrency transactions;
- Trade financing and credits;
- Escrow accounts.
In addition to that, the PSP offers assistance in website design, marketing, audit, and online security.
The account owner can follow all the transactions and control the account via the Internet banking application. Client support is provided in several languages. Accounts can be opened remotely and the whole process does not take more than seven business days. The domiciliation of the payment system in Great Britain guarantees its reliability.
The British PSP key tariffs
Opening a corporate account with the PSP will cost you 800 EUR if you are a non-resident of the EU. The commission is 0.5% of the money kept with the payment system if the sum does not exceed 100,000 EUR and it is 1% if the amount is larger. Closing the account will cost you 130 EUR. The transactions within the system are made free of charge. There are commissions on transactions made to other accounts and these depend on the transaction destination and currency. The account maintenance fee is 200 EUR.
How to open a corporate account with the British PSP
To open an account with the UK payment system you will have to supply the required documents and fill out an application form. The documents include the company owners’ passport copies, proofs of their residential addresses, the company registration certificate, proofs of business activities, a brief description of the spheres of business activities, the information about the turnover, clients, counteragents, payment schemes, and so on.
If you are interested in acquiring our packaged service ‘A company in Estonia and a corporate account with a British Payment Service Provider’, please contact us via email (see the address above the article), or use the live chat.
What forms of company ownership are available in Estonia?
Non-profit organizations should choose the MTÜ company type. Large corporations with multiple owners will be advised to opt for the AS (joint-stock company) form of company ownership. Limited Liability Companies (OÜ) will suit small- and medium-size business owners.
Can a crypto company be registered in Estonia?
Yes, it can even though a crypto business license is required for that. Cryptocurrency exchanges and other crypto industry companies usually acquire such licenses in Estonia. The crypto license allows exchanging fiat moneys into crypto moneys and back, keeping clients crypto, transfering crypto moneys between e-wallets, and so on.
What are the benefits of setting up a corporate account with the British payment system?
The British PSP that we have brought to your attention above is not a depository institution and thus it does not have to comply with the CRS requirements and automatically exchange its clients’ fiscal information. Besides, it allows making multicurrency transactions, controlling the account remotely, using invoicing possibilities, internet acquiring and so on.