Start a company in Estonia with substance: everything you need to know

Today Mundo presents an article for those who want to start a company in Estonia. Being one of the best jurisdictions in Europe to establish a business, this country brings great opportunities. Keep reading to find out what you need to access all these benefits.

Company registration: Estonia tax advantages 

Estonia is one of the best places in the world where we can follow our self-development path. When it comes to finances this is a very convenient jurisdiction because it has applied a corporate tax of 0%. This makes it the ideal place to establish a holding company for a family office that wants a position in Europe. Moreover, the benefits of a company in Estonia are huge. Under the BEPS and CRS requirements, companies must share information with their jurisdiction of residency. This means that your Estonia offshore company, if it has tax residency in Estonia, will have to report only to this country. Luckily, the payment of corporate tax can be postponed as long as you reinvest in your company.

When it comes to company registration, Estonia brings amazing advantages like the possibility to invest your earnings indefinitely in financial instruments, brokerage accounts, and precious metals. 

If you wonder where the trick is, it's simple: you have to pay 20% of taxes when you choose to distribute the earnings. Nonetheless, this is not a bad percentage at all, especially in Europe. It always helps if you have accountants that are fluent in the local requirements and legislation.

What do you need to open your company: Estonia

An Estonia company can be established at a similar price to any offshore jurisdiction if you base the process on a power of attorney. Keep in mind that the entity will need a member of the board (who can be the founder himself/herself) and for every additional member or owner, you have to pay an extra fee.

The good news is that you don't need to travel to start the company in Estonia thanks to the POA. The company can be established 100% remotely and Mundo’s experts provide the following services:

  • Consultation about company incorporation and bank account opening
  • Preparation of documents in the Estonian language
  • Translation of the power of attorney
  • Notary legal fees
  • Government fee
  • Receiving the documents including articles of incorporation (in Estonian) and register certificate (in English and Estonian).
  • The Mundo team will act as the local representative of your Estonia offshore company, which is necessary if more than half of the board members are foreigners. Our providers have the necessary qualifications and license to provide this service.

Why starting a business in Estonia is a good option 

  • 0% corporate tax as long as you reinvest your company's earnings. 
  • Founders or board members can be nonresidents and assigning a local director is not mandatory.
  • It's not mandatory to pay a salary to the director of your Estonia company. There are no salary requirements.
  • Establishing an initial authorized capital is not mandatory.
  • Possibility to manage your Estonia offshore company remotely by acquiring an E-residency status.
  • Board members can apply for a residency permit of five years if they are doing business in Estonia.
  • Possibility to acquire vehicles and real estate tax-free under the Estonia company.
  • Double taxation treaties with over 59 countries which, if used smartly, can help you reduce the tax burden.
  • Transparent system without progressive taxation.
  • Many European banks reject transactions from traditional offshore jurisdictions, but this does not happen with Estonia.
  • One of the best jurisdictions to start a cryptocurrency business. You can get a license relatively easily to sell, exchange and issue cryptocurrencies.
  • Remote incorporation is possible. 

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of TheCryptoArea. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.