JST Legal Alliance

Business in Estonia

Estonia is known as a bridge city between the Baltic and Nordic countries in Northern Europe; it has a border between the Baltic Sea and the Gulf of Finland. Estonia has more than 1,500 islands, and its different region spans rocky beaches, old-growth forest and several lakes
The economy of Estonia has become intensely competitive, which is supporting the large international corporations and as well as newly established companies. During the past few years, Estonia has developed its image as a world-leading leader in information technology, and the country provides the grants so profoundly in this category
The economy of Estonia has become intensely competitive, which is supporting the large international corporations and as well as newly established companies. During the past few years, Estonia has developed its image as a world-leading leader in information technology, and the country provides the grants so profoundly in this category
  • World-class social capital
    Estonia is known as a world-class social capital, and its qualified workforce is identified as a winning advantage for the entrepreneurs who have established the business in Estonia. Estonia is multicultural where the English language is spoken quite broadly in the country
  • Estonia currently offers one of the most profitable taxation systems
    Setting up a company in Estonia has been made incredibly easier than ever in such countries. Estonia is known, the first country in EU which has announced to offers e-residency, which intends that entrepreneurs of across the world can establish and operate the business remotely through e-residency
  • Estonia has introduced 0% tax rate on profits from legal entities, and companies are not subject to corporate income tax in Estonia; CIT is 0%.
    This applies only to the received and undistributed profits of the company if the shareholder's holders decide to distribute profits in the form of dividends, the company subject to 20% income tax
  • Official VAT in Estonia is 20% and 0% rate is for all goods and services related to International Business
    January 1, 2018 – the corporate income tax rate on annual profit-sharing was decreased from 20% to 14%, just in those circumstances where dividends are paid to legal persons. Official VAT in Estonia is 20% and 0% rate is for all goods and services related to International Business

Company Incorporation

The Commercial Code of Estonia governs business establishment in the country. Before beginning business activity in Estonia, it is important to determine what kind of legal entity to establish.

According to the commercial code, there are five forms of legal entities

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