Articles
How many companies submitted accounts on time?
June 30 was the deadline for submitting annual accounts (annual report) for all Estonian companies whose financial year ended on 31 December 2022. Approximately 290 000 companies had to submit their annual report in June, which is roughly 95% of Estonian companies. 162 689 companies submitted accounts by the 30 June deadline.
This means that only 56% of annual accounts were submitted on time. Let’s look more into this issue, including what the Estonian government said about this figure and its plans. You may want to read this if you are an Estonian company owner who did not manage to submit accounts on time.
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Opening a Bank Account in Estonia
Estonia has become a hotspot for entrepreneurs and digital nomads with its e-Residency program. This program allows non-residents to establish and manage an Estonian company online, offering numerous benefits, including access to the European Union market.
One crucial aspect of running a business is having a reliable and efficient banking solution. In this article, we will dive into the various banking options available for Estonian e-resident-owned and managed companies.
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Estonian VAT and income tax rates increased
In the early hours of 20 June, the Estonian parliament voted to raise several taxes. The previously agreed coalition agreement signed by the Reform Party, Social Democrats and Eesti 200 foresaw increasing income tax and VAT to cover the budget deficit. A major part of the deficit was related to the Reform Party’s expensive campaign promise to raise tax-free personal allowance to 700 euros for taxpayers from all income brackets.
Here is what was passed on the second and final vote in the parliament on the 20 June night session. The tax raise for the 2024 tax year was already very close to the legally required 6-month advance notice to taxpayers.
Estonian company registration certificates available online
Historically, well before Unicount and e-Residency came to town, non-residents having Estonian companies had to collect certified copies of registration certificates either from the Estonian Business Register by physically visiting it, or by visiting both Business Register and a notary. Estonian notaries would certify with their stamp that the Business Register stamped certificate was legit and sometimes even add an apostille if the certification of the Estonian notary was not good enough in the intended country of use.
In most cases, founders did not bother to come to Estonia for all that and had to pay their virtual office service providers to collect those stamped documents while paying hundreds of euros in fees. Not anymore.
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Why You Should Start a Company in Estonia
Establishing your first company can create a lot of uncertainty for first-time founders due to the bureaucratic requirements, complicated tax regulations, and hidden costs associated with having a company.
But not in Estonia.
This digital nation provides an easy online registration of limited liability companies. The small country offers entrepreneurs a fast track to register a company in one day, eliminating the hassle of filing paperwork and unexpected costs.
This article will explore the advantages of starting your company in Estonia and how you can benefit from the digital nation’s offer for establishing and running a company online.
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Estonian tax rates 2024-2025
On Wednesday 12 April, the Estonian parliament voted in favour of the new coalition government. One of the concerning items in the coalition agreement is changing Estonian tax rates to increase state revenue and thereby reduce government deficit spending. It is good to know though that Estonia currently is at the low end of tax-to-GDP ratio in the EU and has the lowest debt-to-GDP ratio. This has made Estonia a great place to build your global business.
Here is what we can read from the coalition agreement published on 8 April. It is important to note that none of it has been adopted by the Estonian parliament and a lot can change in the political process.
How Unicount accounting service works
Unicount is the simplest way to start an Estonian company. After registering a company in five minutes or less you will probably need either an accounting service or at least annual accounts preparation at the end of each financial year. Luckily, since January 2023 Unicount has offered these services to our virtual office clients through the Client Dashboard.
Unicount accounting services are designed to match the needs of e-resident founders, provided online in multiple languages and with clear manuals for the most frequently asked questions. In this article, we explain how accounting service works.
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How to close an Estonian company
On 1 February 2023, a new Estonian Commercial Code came into force along with an entirely new law called Commercial Register Act. These laws regulate how Estonian limited companies can be dissolved and deleted.
Generally, the changes add more flexibility for the e-resident founders who have decided to close their Estonian company. E-residents can now liquidate their company without a need to appoint a resident liquidator. Dormant companies that have not started activities can be closed without the cumbersome liquidation process simply by applying for deletion from the Business Register.
Estonian company share capital after 1 February 2023
On 1 February 2023, a new Estonian Commercial Code came into force. This law regulates the share capital requirements of Estonian limited companies.
The minimum required share capital of 2500 euros was deleted and the clause that allowed you to postpone your share capital deposit when registering a company was also removed. In this article, I will explain the details and provide some suggestions to the founders who had an Estonian company registered before 1 February.
Generally, the changes add a lot of flexibility for the e-resident founders even though one controversial aspect is detected by e-Residency experts. Not worrying about depositing and registering share capital of 2500 euros makes it much easier to start a limited company for residents and e-residents alike.
