Your European COO
Running Europe, So You Don’t Have To
As a seasoned COO and reputable lawyer, I specialize in assisting entrepreneurs and founders looking to expand their services into the European market, particularly in Estonia. I provide comprehensive support on navigating the intricacies of Estonian law, hiring, and banking, acting as your trusted partner throughout the entire process. Let’s work together to ensure your successful entry into this vibrant market!
Why Establish a Company in Estonia?
Estonia is widely recognized as one of the most business-friendly countries in the world. With its fully digital governance, transparent tax system, and seamless EU market access, Estonia offers numerous advantages for entrepreneurs looking to establish and grow their businesses.
1. Fully Digital Governance – A 24/7 Business Environment
Estonia is a global leader in digital infrastructure, offering paperless bureaucracy and remote management solutions through its e-Residency program.
• E-Residency: Entrepreneurs worldwide can register and run an Estonian company entirely online without ever visiting the country.
• Fast Incorporation: A company can be registered within hours via Estonia’s e-Business Register.
• Digital Signatures: All contracts, tax declarations, and business operations can be handled electronically.
• Remote Business Management: All corporate procedures, including board meetings, share transfers, and regulatory filings, can be completed from anywhere in the world.
2. Favorable Corporate Tax System
Estonia’s corporate tax system is designed to support business reinvestment and long-term growth.
• 0% Corporate Tax on Retained Profits – As long as profits are kept in the company, they are not taxed.
• 20% Corporate Tax on Distributed Profits – Only when dividends are paid out is a 20% tax applied.
• 14% Lower Tax Rate on Regular Distributions – If dividends are paid consistently, the tax rate is reduced to 14%, with an additional 7% personal income tax for non-resident shareholders. • No Withholding Tax on Reinvested Profits – Unlike other EU countries, Estonia does not impose additional withholding taxes on retained earnings.
• 100% Digital Tax Filing – Estonia’s tax system is fully digital, allowing businesses to submit their tax declarations online in just a few minutes. This system makes Estonia one of the most tax-efficient jurisdictions for businesses aiming to reinvest earnings and scale efficiently.
3. Estonia’s VAT System
As an EU member state, Estonia applies a Value-Added Tax (VAT) system aligned with European regulations.
• Standard VAT Rate: 22% – This rate applies to most goods and services sold in Estonia.
• Mandatory VAT Registration – Businesses with an annual turnover exceeding €40,000 must register for VAT. • Reduced VAT Rates: o 9% VAT on books, newspapers, and some pharmaceuticals. o 0% VAT on intra-community trade (B2B transactions within the EU), export sales, and certain international transport services.
• EU VAT Number – Estonian businesses registered for VAT receive a valid EU VAT number, enabling seamless trade within the EU.
• Reverse Charge Mechanism – VAT does not have to be paid upfront on most EU cross-border transactions, improving cash flow for international businesses. For businesses engaging in EU-wide trade, Estonia’s VAT system offers significant flexibility and financial advantages.
4. Full Access to the EU Single Market
Registering a company in Estonia gives businesses access to the entire European Union, providing numerous benefits:
• Seamless Trade with 27 EU Countries – Businesses registered in Estonia can sell goods and services without additional trade barriers across the EU.
• Easy Access to European Financial Services – Opening corporate bank accounts and using EU-based payment gateways is straightforward and efficient. • Euro as the Official Currency – Businesses avoid exchange rate risks when trading within the Eurozone.
• EU VAT Compliance – Businesses can take advantage of intra-community VAT exemptions, making B2B sales within the EU more cost-effective. This makes Estonia an ideal strategic location for companies looking to expand their operations across Europe.
5. Ease of Doing Business
Minimal Bureaucracy & Fast Setup Estonia consistently ranks among the top countries in the world for ease of doing business, thanks to its streamlined regulations and digital infrastructure.
• Company Registration in a Few Hours – Estonia’s online e-Business Register allows for fast and hassle-free incorporation.
• No Residency Requirements – Entrepreneurs from anywhere in the world can fully own and operate an Estonian company remotely.
• Minimal Compliance & Reporting – Companies face low administrative burdens, making business operations smoother.
• Transparent Legal Framework – Estonia’s legal system follows clear, predictable, and EU-aligned regulations that support businesses.
6. Strong Banking and Financial System
Estonia offers a highly developed banking ecosystem with access to both traditional and fintech solutions.
• Corporate Bank Accounts – Businesses can open accounts with Estonian banks or global fintech providers like Wise, Payoneer, and Revolut.
• SEPA & SWIFT Integration – Enables fast and low-cost payments across Europe and worldwide.
• Crypto-Friendly Regulation – Estonia has one of Europe’s most developed regulatory frameworks for blockchain and cryptocurrency businesses.
• No Currency Restrictions – Companies can transact in multiple currencies without strict exchange controls.
7. Access to a Highly Skilled Workforce & Competitive Costs
Estonia offers a business-friendly labor market with highly educated professionals and competitive operational costs.
• Multilingual Talent Pool – Most Estonians speak English fluently, making it easy for international entrepreneurs to hire locally.
• Thriving Tech & Startup Ecosystem – Estonia is home to many successful tech startups, including Skype, Wise, and Bolt. • Lower Business Costs – Office rent, salaries, and operational expenses are lower than in Western Europe, making Estonia an affordable business hub.
8. Business Exit Strategies
Simple & Efficient Liquidation If a business owner decides to close their company, Estonia offers a transparent and straightforward liquidation process.
• Liquidation Can Be Managed Remotely – Entrepreneurs can deregister a company entirely online without physical presence.
• Clear Tax & Legal Obligations – The system ensures no hidden liabilities, allowing for a smooth business exit.
• Fast & Cost-Effective Process – Unlike in other countries, company liquidation in Estonia is efficient and predictable. This makes Estonia not only a great place to start a business but also an ideal location for a structured and hassle-free exit strategy.
Services
200 eurot
300 eurot
1200 eurot
Client Testimonials
Satisfied Clients
Nordica Law provided exceptional legal services for our startup. Their expertise in European law and business setup was invaluable to our success. We highly recommend their services.