Starting a business is no easy feat. Starting a company, however, is even more challenging. It takes time, effort, money and resources to create an independent entity that produces goods or services and sells them to the public. In order to start your own business and operate as an independent entity in your home country as well as other markets, you will need to set up a company first and foremost. Making the right decisions at every step of the way is essential if you want your company to succeed in the long run. Establishing a business in any country comes with its own fair share of challenges, especially if it’s not your home country. There are several aspects that you need to consider if you want to Estonia company formation :
Why Establish a Company in Estonia?
Estonia is a highly attractive place for setting up a business, thanks to its low corporate taxation, a flexible labor market and a strong e-residency program. Furthermore, its strategic location is a major advantage for companies that have a European focus. The country’s business environment is very attractive for several reasons including: – Strong economic growth: The Estonian economy is predicted to expand by 4% in 2019, as compared to an average of just 1% in the eurozone. – Low corporate tax rate: The corporate income tax rate in Estonia is just 15% which is quite low relative to the average in other EU countries. – Relatively easy to establish a company: While the registration process to set up a business in Estonia is not entirely straightforward, it is relatively simple compared to many other countries. – Low business corruption: Estonia has a very low level of corruption and is a member of the
EU’s anti-corruption initiative.
Step 1: Choosing a Company Type
The first decision you will have to make is whether to set up a branch, a branch of a foreign company or a limited company. The first three are common types of companies in Estonia that are established by individuals or legal entities. The latter is only established by individuals. Once you’ve decided on the most relevant company type to set up, you will need to choose the company’s name, the company type and the company’s legal address. You will also have to decide on the company’s directors and shareholders. If you are setting up a branch of a foreign company, you will also have to choose the parent company’s name and the name and address of the representative.
Step 2: Select a Registered Representative
If you are setting up a branch or a branch of a foreign company in Estonia, you will need to choose a registered representative. In this case, the registered representative is a person who is registered at the commercial register of the Estonian companie’ registry and is responsible for the branch or the branch of a foreign company.
Step 3: Finding the Right Location for your Company’s Office
When setting up a company in Estonia, you will need to decide where to locate the company’s office. The most important factor to consider when choosing a location for your company’s office is its accessibility.
Step 4: Final Steps to Establishing Your Company in Estonia
Once you have chosen the type of company that you want to set up, you will have to register your company at the commercial register of the Estonian companies registry.
Conclusion
Starting a business is challenging but it can also be extremely rewarding.
Before setting up a company, you must decide which type of company is best
suited for your business and correspondingly, what type of legal structure you
want your company to have. Make sure you have done your due diligence and
have chosen the best location for your company’s office so that you can be as
accessible as possible.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.