Estonia Company Formation

Setting Up a Limited Company in Estonia

First, you simply need to be eligible and register as an Estonian e-resident. There are some exceptions, such as individuals with a criminal record or citizenship of sanctioned countries, and the acceptance of applications is at the direct discretion of the Estonian Police and Border Guard Board. You will need to visit a pick-up point in person (usually your nearest Estonian embassy) for an identity check and to receive your digital kit. However, for most potential company directors, the procedure is simple and takes only a few weeks. After obtaining e-residency status in Estonia, you have full access to Estonia's commercial and business digital infrastructure, and then starting a business is easy and fast. Wherever you complete your application from, you will need to appoint a virtual office in Estonia to act as your local representative and provide a registered address if none of your shareholders reside in Estonia. You do not need to have an Estonian partner or director, and you will have 100% ownership of your business — World Company Setup simply acts as your representative and authorized local contact person. Then, your World Company Setup dashboard can be configured immediately, so you can start collecting invoices and managing the daily activities of your business.

Cost of Setting Up a Limited Company in Estonia

Thanks to Estonia's unique digital access via public-private key encryption, it is cheap to set up a private limited company as an e-resident. No legal fees or notary visits are required, which helps to make everything as easy as it is reasonable. This fee, like the e-Residency application fee and all costs related to receiving the digital kit, can be accounted for in your post-business formation as an out-of-pocket expense. You will also need to pay in the capital, but this is now a minimum of 1 Euro! Of course, it can be more, and contributions to capital can also be in the form of equipment, such as necessary IT.

Monthly Costs of an Estonian Limited Company

Of course, doing business always has a cost, and when it comes to knowledge workers (a category that defines the vast majority of e-resident OÜs), this usually means a software stack - both for carrying out your business and the tools you use, and also for conducting the necessary business administration. The good news for World Company Setup clients is that a great deal of functionality is aggregated directly on the platform itself. So, in addition to the compliance and customer services you receive, using World Company Setup means you don't have to pay for accounting or bookkeeping software or anything to make beautiful invoices or reports. Even if you need to issue stock or run payroll. The cost of World Company Setup depends on the level of activity in your business and the different services you integrate, and it can start low, and you can scale later as you grow. Of course, you may have other software costs and potentially fees like bank charges, especially if you operate internationally. From time to time, there are always capital expenditures, such as the technology and equipment you need to do your job. Get Information for Company Formation in Estonia

What are the Accounting Obligations for an Estonian Company?

One thing people might worry about when it comes to starting a business for the first time is the accounting obligations that come with it. If you have never before taken on the responsibility of acting as a company director, this can be daunting. It is important that you are aware of these obligations, as they are legal requirements, and your company filings ultimately form part of the Estonian commercial register. They may also differ in some respects from the way things are done in your home country. However, the current Estonian Accounting Act (in force since 2019) has many similarities with the International Financial Reporting Standards (IFRS) and is considered one of the most transparent and clear laws in the world - nothing is designed to catch you out, only to provide a public record of your compliant business operation and success. You will be required to prepare and submit annual reports and other declarations to document the financial situation, performance, and cash flow, and to record and log all transactions in the books (although these are in a relatively simplified form for a sole company). Finally, you will also need to stay informed of changes in accounting requirements, tax codes, and filing obligations published by the state from time to time.

Many e-residents do not have the inclination to keep the accounts of their business or to take on the responsibility of understanding and applying all aspects (and potential changes) of the Estonian Accounting Act. They prefer to focus their time and attention on their core business activities and to delegate the administration and compliance entirely to a reputable member of the e-Residency marketplace of providers. The combination of smart automation at World Company Setup with our friendly, competent people to help you navigate anything you might need to interact with is what our customers love. This also makes World Company Setup the highest-rated provider in the e-Residency marketplace for freelancers, solo entrepreneurs, and teams. Estonian e-Residency was created to support the smooth management and operation of location-independent private limited companies worldwide. World Company Setup is the easiest way to deliver this directly to your desktop or phone, wherever you are.