Peculiarities of transferring IT business to Estonia
Transferring IT business to Estonia does not just open up access to the EU market. The country is focused on startups, so it offers various benefits to companies developing unique products or services. Among the advantages are high-speed Internet, effective digitalization of public services, minimum bureaucracy, and low taxes. The e-Residence program facilitates the process of running a business and opens the same access to digital infrastructure as Estonian residents.
Benefits of moving your IT business to Estonia
With the transfer of an IT business to Estonia, a company automatically enters one of the largest markets in the world, which provides high mobility and many perspectives. Other benefits include:
- Remote registration of the firm through the e-Residence program.
- Ability to manage the business from anywhere in the world.
- Minimal paperwork.
- Low business maintenance costs.
- Low taxes and the possibility of income tax deferral. At low income, you can even get a tax exemption.
- State authorities are accommodating and do not hinder your business growth.
Estonia became the first country in the world, which offers e-residency. To get it, you have to apply and pay the state fee. Within a month, you will have an appointment at the Estonian diplomatic corps, during which you will receive the card. E-residence allows you to bring your business to Estonia remotely, without having to come to the country, and physically run it there. The main thing is to meet all the requirements and follow the simple instructions.
How to bring IT business to Estonia
You can transfer IT business to Estonia in 2022 in different ways:
- Open a company in Estonia from scratch.
- Open a branch or a subsidiary.
First, you must find a representative who knows the local market very well, and who can help you with processing documents in Estonian. It is necessary to meet the following requirements:
- Have a legal address in the country.
- Appoint a representative as a contact person who will receive official documents.
- Open an account in an Estonian bank or another EU country.
- Pay taxes and submit reports on time.
Registering a company from scratch
There are many forms of business in Estonia, including sole proprietorships, private or public limited companies, and non-profit associations. The most suitable format for e-residents is a private limited company (OÜ or "osaühing" in Estonian). One can easily and quickly create it online by registering at the Registry of Companies. The requirement for the authorized capital is only €2,500.
Registration of a branch
A foreign company can open a branch in Estonia, by registering at the Registry of Companies. It will not be considered a separate legal entity, and it will not be subject to audit. It will be sufficient to file a report from the main office.
With the application, the parent company must submit:
- a certificate of its registration;
- memorandum of incorporation;
- articles of incorporation;
- a copy of the resolution appointing the director of the branch;
- notarized specimen signatures of the directors;
- a bank payment proving the full payment of the share capital.
The procedure takes about a month and can be completed at the notary's office.
Registration of a subsidiary
An IT company can establish a subsidiary in Estonia, which is an independent legal entity. It has accounting system and is subject to Estonian taxation rules. The most common form of registration of a subsidiary in Estonia is an LLC or an open joint-stock company.
Registering a business at the Registry of Companies in Estonia takes about a week.
How to transfer a company in the Baltics quickly
To quickly and easily transfer IT business to Estonia, contact IT-OFFSHORE experts.