Why businesses choose an Estonian entity: EU Market Access
An Estonian entity provides frictionless EU market access, a single market of 450m people and €18tn economic output.
With a unique tax system, online administration, and the ability to incorporate in Estonia remotely, Estonia optimises for time and capital.
The number of global businesses, startups, and freelancers who choose an Estonian entity (Osaühing or OÜ) grows rapidly, here are the benefits and critical considerations before you incorporate in Estonia:
Seamless EU Market Access
An Estonian entity is EU-compliant, allowing it to trade freely across the single market of 450 million consumers and EUR 18 trillion annual output.
Estonian laws and procedures are harmonised with other EU countries, reducing complexity when you trade across borders.
Estonia has double taxation treaties with EU countries that simplify corporate tax management.
Frictionless Eurozone Trading
Estonia has been a member of the Eurozone, the official currency of 21 EU member states, since 2011. This eliminates currency exchange costs.
As one of the largest currencies in the world, the Euro offers reduced volatility compared to smaller currencies, making earnings the earnings of an Estonian entity smoother.
Company administration and accounting are simplified, especially for digital business models where postings are made automatically.
Advanced Digital Infrastructure
Estonia has advanced digital infrastructure, including the ability to incorporate in Estonia remotely using the e-Residency card.
State, commercial, and financial services are digital-first, in multiple languages, making company administration efficient.
Electronic identity and digital contracts are standard, allowing you to reduce paperwork and manage your Estonian entity securely.
Unique Tax System
Estonia’s tax system is unique in Europe, and consistently ranks #1 in the International Tax Competitiveness Index.
Corporate income tax is payable only when profits are distributed and 0% at all other times. An Estonian company is incentivised to re-invest and determines when its tax arises based on realised profits.
Estonia’s tax system has a flat structure and online filings, which makes compliance easy and efficient.
Affordable Company Management
Estonia is one of the most affordable jurisdictions in Europe. An Estonian entity (Osaühing (OÜ)) can have a minimum share capital of just €0.01 per shareholder.
Costs to incorporate in Estonia are low, approximately EUR 415 in state fees for eResidency and the business register.
Ongoing administration is also affordable, from EUR 1,000 for accountancy and representation.
How TrustBooks Helps Your Estonian Entity
TrustBooks provides accounting, taxation and consulting services for corporations and investors operating an Estonian entity. Our professional staff have extensive experience to help you incorporate in Estonia, and your company effectively.
Ready to get started? Contact TrustBooks today for a free consultation.
