Company formation in Estonia
Estonia’s economy has boomed in recent years as it has pursued a liberal business agenda in preparation for EU membership which was achieved in 2004. Estonia is in Euro zone since 2011. Peculiar corporate tax system assigns limited companies to pay corporate income tax only when distributing profit, i.e the tax does not apply to accumulated undistributed profits.
Estonian company key features
- Shelf Companies available. Ask now.
- Income is taxed only upon distribution.
- EUR-zone convenience.
- Company is considered to be a resident since incorporation as it is taxed on worldwide income.-
- The minimum share capital for an OÜ (Ltd) is € 2,500
- Minimum 1 board member.
- Foreign board members (residing outside European Union) are to have Estonian “contact person” to represent the company at tax offices. EU board members are required to submit to the registrar a residential address, e-mail address and telephone number for communication with tax office
Popular Estonia company applications
ESTONIAN LIMITED LIABILITY COMPANY (OÜ) AS TRADING COMPANY
Estonian Limited Liability Company OÜ is conveniently used for trading purposes. Peculiar corporate tax system assigns limited companies to pay corporate income tax only when distributing profit, i.e the tax does not apply to accumulated undistributed profits.
Key advantages:
- Shelf companies available. Ask now.
- Income is taxed only upon distribution.
- EUR-zone convenience.
- Company is considered to be a resident since incorporation as it is taxed on worldwide income.
- Foreign board members (residing outside European Union) are to have Estonian “contact person” to represent the company at tax offices. EU board members are required to submit to the registrar a residential address, e-mail address and telephone number for communication with tax office
Contact us for trading company package. Or ask for alternative application.
Estonian company taxation
- CORPORATE INCOME TAX (CIT): The tax applies to an actual distribution of profits by the company, mainly to dividends that have been distributed. The tax payable is at the rate of 21/79 of the actual payment or 26,59%.
- INCOMING DIVIDENDS: Dividends are treated as regular income and is taxed upon distribution.
- CAPITAL GAINS TAX (CGT): Capital Gains are treated as regular income and is taxed upon distribution.
- WITHHOLDING TAX: As Corporate Tax applies only upon distribution of the profit, there is not separately charged Withholding Tax
- BILATERAL TAX TREATIES BILATERAL TAX TREATIES with 47 countries including Malta and UAE.
- VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for inland sales is 20%.
How do I proceed with company formatin in Estonia?
- Chose the structure that fits your business. Need help? Contact us.
- Contact us for Company Package Fees.
- Follow our Compliance Policy
