The Estonian statistics show that last year were entered in the commercial register over 130,000 private limited liability companies, which is arguably the most chosen form of company by which investors prefer to operate in Estonia.
The first step in order to register a limited liability company in Estonia consists in choosing the name for the business. The name must be in Estonian language or Latin and can not contain characters that are not in the Estonian alphabet. The name must be different from the names of firms that have entered in the register of companies.
The shareholders must then register the office and the business address of the company in order to receive the mail business. Title companies can be at home, as long as you live in a multi-apartment house, in the context of quiet activity which does not disturb the neighbors.
In order to register a limited liability company in Estonia, the investors must also deposit the minimum share capital. The share capital may be in cash or real estate, movable assets, property rights and other goods in the limit provided by the law.
The shareholders must also draw up the Articles of Association and the Memorandum of Association in which it is described the company’s objective, domain of activity, the shares owned by each shareholder and other important information which establishes the company’s activity.
An important phase in order to register a limited liability company in Estonia consists in the registration with the Commercial Register. This task can be fulfilled online and there must be paid in advance certain fees. There are certain documents which must be enclosed: the Memorandum of Association, the Articles of Association, the certificate issued by the bank for the deposit of the share capital, personal identification data for the shareholders, a notarized expression of each member of the member board, information about the main activity of the company, other relevant documents or information provided by the law.
By this registration, the company is automatically registered with the National Social Insurance Board. In this sense, the compulsory scheme for health insurance obliges the employer to pay a social tax of 33% of the taxable amount, calculated in accordance to the wage earned by each employee.
The company must also register with the Register of Economic Activities when the company’s activity is directed to certain operations provided by the law.
Another aspect of the registration of a limited liability company in Estonia is the compliance for VAT payment. Thus, any company with an annual turnover exceeding EUR 16,000, excluding import of goods, must register for VAT purpose.
For any other information our team of company formation specialists from Estonia will be at your service with a professional advices and consultancy.