Estonian company formation: Estonian Gain customers and momentum by grasping new business opportunities in Europe and starting your cross-border business online.
- A fully operational legal entity registered in the Estonian Commercial Register to carry out your European and international business.
- A wizard-based online registration process covers all the details, from choosing the right name to making the initial equity down payment.
- Company structure that fits your business needs: a limited liability company.
- A physical company address and P.O. Box registered in Estonia.
Optimal business structure
Estonian company focuses on the most optimal business structure to fit your needs and optimize the setup process and cost efficiency of your company.
- The most optimal structure for your business pre-selected and explained.
- A limited liability type of company is fully responsible for its liabilities and debts, keeping your personal assets and business risks separated.
- Company structure is flexible enough to adjust to your business needs in the future.
- Compliance with Estonian and EU regulations guaranteed.
- Owned and managed by one individual person. An excellent match for freelancers, remote workers, independent consultants, educators, etc. who sell their digital services internationally.
Remote administration
Estonian company delivers all the tools and services needed to access and remotely manage your cross-border business operations. What’s more, we do it in a secure, cost-efficient, and hassle-free way.
- Secure online access to company data (legal facts, accounting, banking, taxes, etc.), allowing you to operate the company from anywhere in the world without the need for a regular physical presence in Estonia.
- Direct control of your transactions and assets using the EE digital identity card.
- No middlemen, no remote board of directors, no hidden costs.
- LeapIN guarantees compliance with local Estonian rules and regulations.
- Easy and cost efficient to maintain
Bank account and payment card
Convenient account setup
Quick setup of an international bank account for cross-border transactions.
- Convenient and cosy account setup process.
- IBAN number as a standard way of sending and receiving payments within EU zone and internationally, in a cheap and simple manner.
- Integrated bank and e-residency face-to-face approval process
- Bank operations are powered by our partner bank
Access to global payments
Increase revenues by integrating your business with international payment providers.
- Collect payments from a wider range of customers.
- Increase your revenues throughEstonian company by integrating your sales to Google Play, PayPal etc.
Secure online banking
Enjoy trusted online banking channels powered by our partner bank.
- Secure access via mobile or web browser
- Direct access to your company assets, payments and bank reports
- User friendly online bank account management
- Balance, invoices, transactions etc. integrated toEstonian company solution
Fully functional MasterCard
A fully functional MasterCard is issued by our partner bank to all Estonian company .
- MasterCard for online payments, purchases, and drawing cash from ATMs when paying for company expenses
- NB! No company credit limit initially provided
Money kept safe
Your money is deposited safely at our partner bank with the Estonian state-backed guarantee of 100 000 EUR on all deposits
Currency risk managed
Manage your banking and keep your assets in euros to minimize the possible currency risks.
Accounting and taxes
Fair and simple taxes
We assume you are honest and will pay your fair share of taxes in one of the simplest tax systems in the world.
- Benefit from 0% corporate income tax as long as you keep your earned profit in the company or reinvest it in the growth of your business.
- Estonian company will file your taxes and make sure your company is compliant with Estonian tax laws.
- Once you take money out of your company by paying dividends, a 20% income tax rate applies.
- If you take cash out of the company by paying yourself a salary, relevant taxes apply.
- We provide you with a solution to pay dividends or salary to your individual bank account (powered by our partner bank)
Accounting made easy
Estonian company includes a hassle-free and seamless accounting solution allowing you to focus on running your business.
- Estonian company will take care of your company’s accounting and tax reporting
- No need to have prior experience or knowledge of accounting practices
- No need to invest in or rent a standalone accounting software
- Easily issue and send customer invoices.
- Monitor your income in real time
- Capture and report expenses remotely
- All the accounting and tax reporting functions run as seamless background services
- Paper documents, mail, and invoices digitized and stored online
- Should you still have questions or concerns our accounting professionals will help
All-in-one solution
End-to-end solution
Estonian company brings together the complete set of functionality and tools to run your business remotely from day one.
- One central solution online, combined with our competencies and support, supported by relevant 3rd party service providers.
- An accounting solution integrated and guarded by accounting professionals.
- Core banking operations seamlessly integrated.
- Tax reporting and company administration running as background processes.
- Full compliance with Estonian and EU regulations.
Single point of contact
We operate as a single point of contact for everyday company management issues and solution-related questions.
- Estonian company support covers all questions and issues concerning the 3rd party services integrated with our solution.
- If it is beyond our reach, we will route the issue to the right address.
- There is 24/7 support to assist you via email.
- The dedicated staff behind our support and service development team will assist you with a high level of commitment.
Easy. No worries.
You don’t need to be an accountant or a lawyer to run a company with us. LeapIN will take care of all the paperwork and annoying bureaucracy.
- Estonian company is designed with the user in mind.
- You are shielded from unnecessary complexity and processes run in the background.
- Estonian company will only prompt you when your input is needed. Meanwhile, you can grow your business and trust us to handle the administrative hassle for you.
- No need to navigate Estonian laws and regulations.
- Estonian company will adjust to changes in the local legal environment in a timely manner to stay compliant.
Do you accept customers from all countries?
You can accept customers worldwide, but there are limitations due to our internal anti-money laundering policies. Unfortunately, you shouldn’t currently support the following countries:
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Afghanistan
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Bosnia and Herzegovina
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Guyana
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Iran (Islamic Republic of)
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Iraq
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Lao (People’s Democratic Republic)
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Myanmar
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North Korea
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Panama
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Papua New Guinea
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Somalia
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Syrian Arab Republic
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Uganda
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Yemen
How much control do I have over my business and Company accounting processes?
You have full control over your company setup, banking, business records and tax reports via secure authentication and digital signing.
There aren’t any middlemen here – you run your business, and we take care of the necessary administrative tasks.
Which costs am I allowed to claim as business expenses?
Estonian companies can deduct all costs from purchases directly related to the company’s actual business operations, such as:
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Expenses covered by your customers
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Fees of subcontractors
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Professional and support services
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Marketing costs
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Hardware and software
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Communication costs (not mobile phone bills)
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Business trips
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Participation in business-related events
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Business-related professional training
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Bank and transaction fees
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Office costs and supplies (restrictions apply)
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Business lunches & gifts (taxable)
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Salary (taxable)
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Relevant taxes (salary taxes, dividend taxes, fringe benefits etc.)
When and how do I need to provide my expense documents?
Please collect and submit documents relevant to your company’s expenses whenever they occur, or at least once per month. Even if there is only a single document to submit. This way we can process them in a timely manner, monitor your company’s status, and execute the monthly reporting for the public authorities.
All you need to do is upload/send PDF copies of expense and cost documents to us, and we’ll take care of the rest.
What does it cost to set up a company?
When you’re starting your company, you’ll incur the following costs:
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State fee for e-Residency: €100, plus travel costs to collect your e-resident ID-card at the location you select
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State fee for company registration in Estonia: €190
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State service fee for company online registration in Estonian Business Registry: €25 (excluding VAT)
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Accounting first monthly fee: €49 + VAT
And there are other optional costs you might incur:
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Opening an LHV business bank account: €100 for LeapIN customers, as well as travel costs involved to have a compulsory face-to-face meeting in Estonia (applicable from the 1st of November 2018)
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Opening a TransferWise business account: Free of charge
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Opening a Holvi business account: Free of charge
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Issuing and delivering your bank debit card: Free of charge
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Monthly fee for your LHV business debit card: €2
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Monthly fee for your LHV account: €10 for LeapIN customers (applicable from the 1st of November 2018)
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Monthly fee for your Holvi account: From €9 – €98 a month
The fees mentioned above are subject to change in future.
How long does it take to open up my company and start the business?
This depends on whether you have e-Residency already or not. Receiving the e-Residency card takes 3-4 weeks in most cases. Once you have the card, registering the company takes about 24 hours.
Once you’ve set up your company, we recommend applying for an LHV bank account for your business. We’ll prepare the necessary documents and receiving the bank’s pre-approval usually takes 10-14 days. Once the bank has made a positive decision, you can book a trip to Tallinn to verify yourself in the bank’s office.
If you cannot travel to Estonia yet and are planning to open an account with TransferWise or Holvi, it will take 1-5 business days for them to process your application and open an account for you. Once they’ve opened the account, you can start with your business transactions immediately.
Do I need to travel to set up a company?
You can complete the entire company setup process online using your digital ID (e-Residency) and our website.
However, you do need to travel to Estonia in order to set up a standard business bank account (with LHV) for your company.
So far, our customers have seemed to prefer to set up a company immediately, and plan a trip to Estonia for the banking procedures in some weeks or months time when a suitable time slot appears in their calendar.
Payment service provider accounts such as Transferwise Borderless and Holvi can be set up remotely online, without the need to visit Estonia.
What form of entity is an OÜ (private limited company)?
In Estonia there are two options for a limited liability company:
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“AS” (in Estonian “aktsiaselts”, can be treated as a public limited company)
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“OÜ” (in Estonian “osaühing” or private limited company).
For a small company, it is recommended to use an “OÜ” for simplicity. Currently, there’s no special format for a single owner company. There are plans to introduce a new format for this purpose (called SUP) in the EU including Estonia, but it won’t happen within the next 1-2 years.
Do I need to have a local director?
No, there’s no requirement to have a local European director for a company you register in Estonia. You can be both the single owner, and the single management board member, for that legal entity – with full control of the company.
However, if you live and run your Estonian company outside of Estonia, your company is required to appoint a local contact person (an individual or a qualified legal entity present in Estonia).
The contact person operates as a messenger and has to be available onsite if local authorities or business partners have a need to contact your company and cannot reach you in person. The contact person would receive any official messages (documents) and forward them to you.
Please note though, the contact person cannot make decisions nor take any commitments on behalf of your company. You are still in charge.
REF :If you wanna be e-residence and opening a company contact to https://www.xolo.io/