Setting up a business in Estonia
17 November 2009by Ina Dimireva -- last modified 17 November 2009
An overview of the process of starting a new business in Estonia.
Legal requirements
There are two possibilities for engaging in business: becoming a self-employed person (hereinafter, Self-Employed Person) or setting up a company. The registration of a company or Self-Employed Person is executed pursuant to the Commercial Code.
Many areas of activity are licensed and require application for an activity licence. The data on businesses engaged in areas of activity which require special licences, are entered into the register of economic activities.
In addition to the unhindered registering of a business, each business also needs an appropriate business strategy, and guaranteed financial backing.
Administrative procedures
Self-Employed Persons are registered at the Estonian Tax and Customs Board's local tax centre. Registration is free of charge and a personal ID must be presented. If the Self-Employed Person has registered themselves at the Estonian Tax and Customs Board as being a person liable to value added tax, then the person must also register themselves in the commercial register. In order to do so, a notarial petition must be submitted to the commercial register and the appropriate fee must be paid.
Person liable for the value- added tax registration form [ET]
The process of setting up a company is more complicated than the registration of a Self-Employed Person and depends on the type of company (public limited company, private limited company, etc). Further information about the procedure is available from Aktiva, the business portal. The Commercial Code also allows for an expedited procedure for the initial entries of a private limited company, a Self-Employed Person, a general partnership or a limited partnership, as well as amendment entries for Self-Employed Persons and companies. In the case of an expedited procedure, the registration application is reviewed on the next working day at the latest.
Licensed areas of activity are listed in the business portal Aktiva. Determining whether your company is subject to registration based on its area of activity can be determined by checking the Trading Act.
Which areas of activity require a licence? [ET] (Aktiva Internet portal)
Economic activities register [ET]
The holder of an Estonian ID-card can establish a company electronically via the company registration portal of the commercial register.
Business Owner's portal to the Commercial Register
Programmes
Enterprise Estonia offers new entrepreneurs a mentoring programme and aid in setting-up a business. In addition, entrepreneurship incubators have been founded, which offer assistance to new entrepreneurs by offering them premises, infrastructure and support services.
Personalised help and advice
Enterprise Estonia has several regional offices, which can be consulted to obtain information.
The Enterprise Europe Network provides businesses with information and advice through its local partners.
Enterprise Europe Network – contact points – Estonia
SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.
SOLVIT – contact points – Estonia
Source: European Commission
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