For start-ups in the EU, fundamental freedoms and the internal market offer significant advantages in terms of legal certainty in establishing a company and mobility of goods, services and capital. The Baltic States of Lithuania, Latvia and Estonia, pretty much the last countries that come to mind, when he enumerates the now 28 EU members in the spirit. For entrepreneurs the chance may be: Lithuania, Latvia and Estonia start promoting massive investment from abroad - with low tax rates, subsidies and wages.

The corporate tax is 15% in Lithuania and Latvia. No tax will be charged in Estonia on undistributed earnings, are also tax losses not to take into account. Corporation tax levied only at the time of the distribution on the distributed profits, without profit reduced to take into account however commercial losses of the company. The avarage rate remains at 21% in Estonia.

Estonian Company Formation

Estonian Private Limited Company

The company has only a single shareholder and director, must have a local headquarters and deposit a min share capital EEK 40,000 ( EUR 2,550).

Estonian Public Limited Company

The company must have at least one shareholder and has a Board of directors or Managing Director who is determined by the Supervisory Board. A local headquarters, as well as a minimum capital EEK 400,000 ( EUR 25,560) is necessary.

The following documents are to prepare and to submit at the trade register:

• Social contract
• Articles of Association
• Application
• Certificate of the Bank of payment of sharecapital
• Certifying the payment of State fee
• Details of shareholders
• Estonian company address
• personal data of members of the management board – names, addresses

A free initial consultation should be the first step, because each company is individual. Contact via our contact form with our Office and request a quote for free.