In recent years, a growing number of entrepreneurs from all around the world choose Estonia for registering their companies there. They use the Baltic country as a platform for entering the single market of the European Union. Below we discuss 10 main advantages that Estonia offers to international entrepreneurs and, consequently, 10 reasons why you should consider registering a company in the country.
Estonia does not charge any taxes on undistributed profits. This means that no tax is payable on the profit made by an Estonian company until the profit is distributed to the company owners in the form of dividends. This opportunity allows Estonian-based companies to accumulate capital and reinvest the profits into the company development without paying any corporate taxes.
Estonia ranks FIRST in the International Tax Competitiveness Index. The tax system and plain and transparent in the country indeed. The process of calculating and paying the taxes is simple and almost entirely automated. All the legislative acts related to taxation are written in plain language, which makes them easy to understand. The official website of the Tax Department contains all the information that taxpayers need. The fiscal officers are always friendly and ready to come to the rescue if you are in trouble.
The business climate is extremely comfortable in Estonia. The country ranks high in various international ratings: it ranks 7th in the Index of Economic Freedom and it ranks 18th in the Ease of Doing Business Index.
Unlike in other European countries, you don’t have to deposit registered capital when establishing a company in Estonia. This makes the process of registering a company inexpensive and free from bureaucratic barriers.
Since 2004, Estonia has been a member of the EU and the Customs Union as well. This means that you do not have to pay any customs duties when trading with EU partners from Estonia.
Since 2014, foreigners have been able to establish electronic residency (e-Residency) in Estonia. They can obtain an electronic signature that is accepted in Estonia and other European countries. The electronic signature allows using various governmental online services including the electronic Business Register. This means that you can easily register a company in Estonia online and proceed to manage your business electronically.
You can open a corporate account for your Estonian company with such payment systems as Wise, Paysera or Revolut without any trouble. This will greatly facilitate entering foreign markets in a fast manner.
Even though official documents are made in the Estonian language, you can always find an English-speaking person in any government agency in Estonia.
The process of registering a company in Estonia is exceptionally simple, transparent, and it involves very little bureaucracy. You can register a company in Estonia on a personal visit, via a trusted agent with a Power of Attorney, or with the help of the e-Residency opportunity. The process will take only a few days.
You do not have to involve a resident of Estonia in forming a company in the country. All company founders and directors can be non-residents of Estonia.
The list of advantages that Estonia offers to foreign entrepreneurs could be extended but we have cited the main of them above. If you are interested in registering a company in Estonia, please click this link to request professional support in the matter.
Even though Estonia is rather a small country, you can certainly find things to busy yourself with if you go there. The cities of Tallinn, Tartu, and Narva have many interesting historic sites. You will also enjoy working in the suburban parks and seeing the local lakes.
Despite the cool climate, tourists go to Estonia to rest on well-equipped Baltic beaches and take boat trips around the sea and the lakes. There is another factor that attracts foreign tourists to Estonia: the prices are quite affordable and the tourist infrastructure is advanced.
The official name of the country is the Republic of Estonia (Eesti Vabariik). It borders on Russia in the east and Latvia in the south. The Gulf of Riga and the Gulf of Finland wash the western and northern shores of Estonia.
Estonia is sometimes referred to as a ‘country of woods and lakes’. There are over a thousand lakes in Estonia and half of the country’s territory is covered with thick forests, mostly coniferous. The coastline is 3.7 thousand kilometers long.
The climate in Estonia is transitional from marine to continental. The western part of the country has a milder climate thanks to the Baltic Sea. Winters are warm there with the temperature +3 to +5 °C while it can be as cold as -8 °C in Narva. Summers are pretty much the same on the entire territory of Estonia: the temperature is about +17 or +18 °C and it rains often. The hottest month is July when the temperature can be as high as +25 to +27 °C on some days.
Tallinn is often referred to as a ‘Baltic pearl’. You will find a great number of historic buildings and monuments in the capital of Estonia that are in a perfect condition today. The Old Town consists of two parts: Toompea and Vana linn. Aristocrats used to live in the second of these areas. Most tourist attractions can be found in the Old Town: Tallinn Town Hall with a square in front of it, Church of the Holy Spirit, a Dominican Monastery Museum, ‘Fat Margareta’ Tower, etc. It is not going to take you too much time to walk through the Old Town.
Dome Cathedral is the oldest church in Tallinn. If you walk inside, you will find tombstones of many famous people buried there. You can also go up to the observation platform to catch a wonderful view of the Old Town from above and see Toompea Castle, a medieval fortification complex that looks as if it were recently built.
Two kilometers away from the city center, you will find a beautiful park with several museums. In the south of the park, there is Miia-Milla-Manda muuseum, a children’s museum where the exhibits can be touched.
Tartu is the second largest city in Estonia. Tourists visit it to see historic architectural monuments, drop by the Saint Antonius Guild yard where artists and craftsmen sell their works, and listen to street concerts. Besides, there is a Beer Museum in Tartu with thousands of exhibits.
Narva is the third largest city in the country and it is especially popular with auto tourists. There you will find a well-preserved castle, former residence of the Danish viceroy. Jousting tournaments, ancient dance festivals, and medieval cuisine masterclasses take place in Narva on a regular basis.
A visit to Estonia would certainly be worth the time and it would not cost you too much. If you decide to open a company in the country, you may thus acquire an extremely powerful business instrument.