Opening a business in Estonia in 2023: new rules
For foreign companies, starting a business in Estonia 2023 is now faster than before. Recently a world record was even set here for the fastest business registration - 15 minutes. And all because the government is making efforts to interest investors who want to receive quality services and actively work. Therefore, in 2023-2024 several changes will come into effect that will make registering a company in Estonia even easier.
Authorized capital
The minimum amount of share capital for a private limited company is €2,500. Since February 2023 it is reduced to 1 eurocents if the company has 1 shareholder. Not only that, when starting a business in Estonia instead of real money shareholders need only declare the required amount of share capital (except for crypto-business and other forms of activities that require state regulation). It should be taken into account that the authorized capital must be deposited before the shareholders receive income in the form of dividends.
Reducing the minimum charter capital requirements will relieve young companies from the burden, allowing them to manage money wisely, to put it into business development. As a result, it will increase profits, which contributes to the development of a startup.
Confirmation of payment of equity capital contributions
Now it is obligatory to notify the regulator about the payment of the share capital, and the Commercial Register must confirm this fact. According to the new laws, this must be done if the amount of the deposit is above €50,000. This reduces the burden on young companies, and also helps to solve problems associated with obtaining the necessary evidence from banks or other payment institutions, which arise in practice.
Possibility to reserve the company name
From 2024, it will be possible to reserve a company name well in advance of its registration in the Commercial Registry. Not only legal entities but also individuals will be able to do this. The name can be reserved for six months after paying a fee of €150.
The general requirements for the name remain unchanged:
- The legal form is clearly defined.
- The name must accurately indicate the areas of activity.
- The name must not contradict morals, contain swear words and similar words. No hint of belonging to the state or municipal bodies / institutions is allowed.
- The company name may not use a mark or combination of marks that are already registered as a trademark in Estonia.
Until the changes come into force (until 2024), the current procedure is valid. The owner can check the uniqueness of the name in advance by making a request to the Commercial Register. If it is already registered, it is possible to reapply free of charge with a new name. The brand / trade name may not match the real name of the company. The main requirement is that the intellectual property rights of other organizations must not be violated.
Other advantages of doing business in Estonia
- Low cost of company registration in Estonia compared to other EU countries.
- Possibility to register a business remotely without a personal visit to Tallinn with e-residency card.
- An alternative option is to issue a power of attorney to our company representatives to open a business.
- No corporate tax on income, unless it is distributed to shareholders.
- No need to officially hire a director and pay him a salary.
- Direct access to the EU market.
- Ability to use the names of nominal board members and founders if the real owner wants to keep his name secret.
- Fast company registration, if you submit the whole package of documents at once.
How to start a business quickly in Estonia
Contact IT-OFFSHORE to start a company in Estonia in 2023.