Articles
Estonian limited company shareholders are now part of company certificates
On 13 April 2022, the Estonian parliament adopted a brand-new Commerical Register Act which came into force on 1 February 2023. In our previous blog posts, we explained how the new legislation affected share capital requirements and removed the role of contact person unless a foreign address is used. One of the aspects of the new law came into force on 1 September 2023. It makes shareholder lists part of the public company registration certificates. We suggest reviewing your shareholdings in the Estonian Business Register if your companies have had transactions with shares after registration. This article provides a comprehensive overview of the key changes and their implications.
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 and offers numerous benefits, including access to the European Union market.
One crucial aspect of running a business is having a reliable and efficient banking solution. This article 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
An overview of the adopted tax changes:
Starting from 1 July 2025, the standard VAT rate is 24 per cent. This means that all the VAT-included services you buy in Estonia will be 2% more expensive unless you can deduct outgoing VAT. This is possible when your company has an Estonian or EU VAT number.
Starting from 1 January 2025, the Estonian income tax is 22 per cent. This means that all the income you earn from employment or dividends will be 2% more expensive.
Starting 1 January 2025, the basic income tax exemption in Estonia remains capped at €654 per month (or €7,848 annually) for those who are not of pensionable age, and it is gradually reduced to zero once annual income exceeds €25,200. Residents of pensionable age, or those reaching it during the year, receive a fixed exemption of €776 per month (€9,312 annually), regardless of income level.
14% reduced income tax rate on “regular” dividends paid to legal person shareholders was stoped on January 1, 2025.
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. Read more
How to properly close an Estonian company
On 1 February 2023, a new Estonian Commercial Code came into force along with the Commercial Register Act. These laws regulate how Estonian limited companies (OÜ) can be dissolved and deleted.
The reforms introduced new flexibility, especially for e-resident founders who no longer need to appoint a local liquidator. Dormant companies that never began operations can now be deleted from the Business Register without going through the full liquidation process.
However, while this may sound simple on the surface, we strongly advise against attempting this process on your own.
