Frequently asked questions
E-residency
Company registration
Licenses
Accounting and legal services
Opening an account
How to present an application for an e-residency card?
You can fill out an application online or in any embassy of Estonia in your country. For online application you need a scan of your Passport and a photo (a Passport photo). Should you be unable to present an application online yourself, or specialists may provide you with this service.
Why would I need an e-residency card?
E-residency card shall save your time and money. You can register a company in Estonian, sign documents electronically, present accounting reports and make changes to the company, and all that is possible online. You won't need to make power of attorney or personally come to Estonia, manage your business from any part of the world.
Where can I get an e-residency card?
When applying for the card you can choose any embassy where you can pick up you e-residency card.
Can you help me receive an e-residency card?
Of course, if you can't do it yourself, write to us an inquiry and our specialists in a short time will help you to may an appropriate application.
Does e-residency automatically grant Estonian citizenship?
No. E-residency is not citizenship. You have no right to turn for the consulate help of the Estonian state.
What documents are required for an application?
1) Copy of a foreign ID Document.

2) One digital photo in colour, with a minimal resolution of 1300 x 1600 pixels, with a total volume of 1 to 5 MB that may not be over 6 months old

Additionally you must present an explanation regarding the reason you wish to use the electronic ID, short description of your planned activity, CV and links to your social networks.
Certification of a power of attorney. Do I need an apostille?
Power of attorney for company registration must be certified by a notary. If a country where you prepare the power of attorney, is a member of the Hague convention, then you must legalize the document with an apostille.
Russia, Poland, Latvia, Lithuania and Ukraine have signed legal support agreements, so there is no need to add an apostille to documents from said countries.

Why do I need a contact person when registering?
In accordance with Estonian legislation if the company management board is located outside Estonia, then the contact person is an obligatory.
The services is not connected and may not be associated with owning shares of the company and is a purely administrative type of a contact person in nature.

Our company has the license for providing such a service: license number FIU000177
Financial services, Service of trust funds and companies.

The validity of the license may be confirmed on the registry official website at
https://mtr.mkm.ee/juriidiline_isik/105135/valjavoteEdit?tulemus=Tegevusluba
If mail or parcels will come to my company, will I be able to receive them?
If a letter or a parcel will arrive to the name of your company, then our employee shall notify you about it, and shall send you a photo or a scan of the letter to your e-mail. This services is included in the registration price for 1 year. Sending the mail to your address is not included in the price and is paid for separately in accordance with the prices of a courier service.
I have a company. Can I register a company as a legal person?
Of course, you can. We turn your attention to the fact, that should a legal person act as a founder of a company, than you are obligated to pay out the share capital in the amount of 2500 euros. Also, you will bear additional costs due to the need of translating documents connected to the founder company.
How much does it cost to maintain the company per year?
Every year you need to prolong the legal address and contact person service. If the company has no activity and has no VAT number, you must present a report once a year.
If the company is a taxpayer, then declarations are to be presented every month.
Can a company be set up with one founder acting through a power of attorney and the other through the e-residency card?
Unfortunately, such a variant is impossible. Either both must have an e-residency card, or both prepare powers of attorney certified by a notary with apostille.
I require documents of the company, where can I get them?
Once the company is registered you will receive the documents: certificate from the registry, articles of association of your company, we will send you the originals. If you need fresh documents with translations or apostille, please send us an inquiry.
How can I pay out the share capital?
The share capital (if the shareholder is a physical person) may be paid out when the company is established or later. The share capital is paid out to the account of the company by the physical person with the payment explanation "osakapitali sissemakse". Later you need to receive confirmation from the bank, signed by the bank employee, confirming that 2500 euros have been paid to the company bank account. This confirmation must be signed digitally if you want to make changes regarding the paid out capital through e-residency card, or on paper with a live signature, if you wish to make changes through the notary (may be done on the basis of a power of attorney).
Is a company seal required in Estonia?
In accordance with Estonian legislation a seal on the company documents is not necessary, within Estonia and EU can be used for more prestige of the company to increase importance. Many countries require the Document to be confirmed not only by the signature of the board member, but also by the seal and in such a case you should think about getting it.
Does my company need a VAT number?
There is no need to register a company for VAT once the company is established, as the obligation to pay VAT appears once the amount of taxable turnover in Estonia or EU exceeds 40 000 euros per year. With a turnover less than 40 000 EUR an application for VAT may also be sent voluntarily.
The standard VAT rate is 20%. Monthly accounting regarding value added tax is prepared and presented to the tax department no matter if the company is active or not. VAT number in Estonia is not issued automatically upon the company registration, you must present an application to the Tax department.
What is required for applying for VAT?
An application for VAT registration may be presented to the Tax department of Estonian in the even that the taxable turnover in Estonian or EU exceeded or shall 40 000 per year. To present an application you must also present confirmation documents, such as agreements, invoices, bank statements.
What is EORI number and what is it used for?
Form the 1 july 2009 all the countries of EU implemented a unified system of registering entrepreneurs – EORI (Economic Operators Registration and Identification System) for identifying entrepreneurs and carrying out customs procedures. When registering in the system those dealing with international trade get a unique identification EORI number (hereinafter EORI number), that is transferred to the central database of EORI.
An EORI number is obligatory for 1 july 2009 for those dealing with international trade when importing, sending goods via transit, exporting or other customs procedures with the purpose of identifying entrepreneurs on the territory of the European Union. The legal representative may apply for receipt of a EORI number by making a digital application within e-environment of the Tax department.
When company accounting should be presented?
In the event your company is not registered for VAT (has no VAT number), the every year an annual report must be presented.
If the company has a VAT number in Estonia, then two declarations are presented monthly – a KMD (VAT tax) declaration and a TSD (salary declaration, even if no salary is paid), if the company has intercommunity turnover, the VD declaration is also presented.
What do I need to present an annual report?
If the company during the whole year had no activity, has no bank account, then a null report is presented. For this a member of the board must provide his accountant with a document confirming that there was no activity.
If the company had activity, then the accountant must receive all the documentation connected to the activity of the company over the year, such as agreements, invoices, CMRs, bank printouts following which the accountant will make entries in the accounting. Every entry = every transaction on the company account (every income of outcome of funds).
The annual report is presente before 30 of june, so the documents should be provided to the accountant prior to that, at least several months in advance.
What will happen if no report is presented?
In accordance with article 60 of the Commerical code an employee of the commercial registry may issue a fine or start the process of deleting a company from the registry and also inform the Tax department during the procedure. A fine for not presenting an annual report in due time according to the commercial law can start from 200 euros.

Compulsory deletion of the company from the commercial registry is a long process that may take several years. If from the last reports it is clear that the company had actual activity has (or had) assets and profit, has a tax debt, then the Tax department official will not allow for the company to be deleted and will initiate control procedures.
Should be noted, that having a fine may prevent a non resident from crossing the Estonian border or the borders of EU. A fine will also be a problem with receiving financing or donations from credits institutions and may be an obstacle when registering a new company in Estonia.

What options are available for closing down the company?
In Estonia there is no such thing as closing a company, but there is a procedure called liquidation of a company.
The liquidation process starts with making the corresponding decision by the company owners, which requires a duly drawn up and signed protocol. The company liquidator is named, which must be a resident of Estonia. A liquidator has identical rights to the management board member and a similar responsibility. The protocol is submitted to the commercial registry of Estonia through a notary, after which the company states is change to "in the process of liquidation".

After the data was submitted to the commercial registry the liquidator uploads a notification on the state portal Ametlikud Teadaanded regarding the company liquidation. On the basis of this notification the creditors of the company present their claims against the company. The notification lasts for 4 months, during this period no other actions connected to liquidation are carried out.
After the 4 month period the final balance is made and the assets distribution plans is drawn up after the claims of the creditors were satisfied. If there is knowledge about the creditor (reflected in the accounting) then his claims are satisfied no matter if he presented his claims during the above mentioned period. If it is revealed that the company assets and funds are not enough to satisfy all the claims, the liquidator initiates the bankruptcy procedure.
The satisfactions of creditors claims is made on the basis of the distribution plan. Remaining funds are distributed among company owners proportionally to their participation in the company. Then the company accounts are closed.
Once all the mentioned procedures are carried out an application to the registry for the final deletion of the company is made, with the final balance and assets distribution plan attached.
Due to the existing legal limitation no less than 6 months must pass from the moment the notification was made on the Ametlikud Teadaanded portal and no less than three months are given to the owners to review and dispute the final balance and assets distribution plan.

The overall term of company liquidation is no less than 9 months.
Does my company need an audit?
Audit is obligatory for a company, regarding who at least two of the given below factors are true according to the company accounting:

• income from sales is over 4 000 000 euros;
• company assets at the balance date are 2 000 000 euros;
• the average amount of employees is 50 people;

or the audit is obligatory for a company, regarding who at least one of the given below factors are true according to the company accounting:

• income from sales is over 12 000 000 euros;
• company assets at the balance date are 6 000 000 euros;
• the average amount of employees is 180 people.

Also there is such a thing as an audit review.
The review is obligatory for a company regarding who at least two of the given below factors are exceeded according to the company accounting:

• income from sales is over 1 600 000 euros;
• company assets at the balance date are 800 000 euros;
• the average amount of employees is 24 people.

Or the review is obligatory for a company regarding who at least one of the given below factors are exceeded according to the company accounting:

• income from sales is over 4 800 000 euros;
• company assets at the balance date are 2 400 000 euros;
• the average amount of employees is 72 people.
I want to register a trademark, how do I do that?
In order to register a trademark a high quality image of the logo will be required and also a detailed description of you activities in order to choose protection classes.
You will have to decide in what countries do you need the trademark protection. This may be just Estonia, Europe and other world countries. The price will depend on the number of classes and number of countries.
Can I sell a company using the e-resident card?
Selling or gifting the share of a company is only made through a notary. You can sell the company either with personal presence or by the means of a power of attorney. With an e-residency card you can implement changes to the registry data of the company and to the composition of the management.
What licenses do I need?
If your business activity is connected to cryptoactivity (cryptocurrency exchange service or e-wallet service), you require cryptocurrency service license.
Second license "currency exchange, operating as a financial institution" will be required if you offer a service that includes direct exchange of one cryptocurrency to another.
Why would I need a license "currency exchange", if it entails exchange of fiat to fiat?
This license is necessary if your business includes an opportunity to directly exchange of one fiat currency to another fiat currency. Such service is not connected to the cryptocurrency directly, but is a common addition for exchange operation in the field of cryptobusiness.
What documents must I provide to receive licenses?
In order to receive licenses, you need to provide the following documents:

1) Official confirmation that a persona lacks prior criminal record in the country of his citizenship. Said confirmation must be provided by all shareholders, final beneficiaries, management board members and also a person that is named in the company as a person responsible for preventing money laundering
2) A CV describing education and work experience of a person, that will be responsible in the company for money laundering prevention (AML officer). Said person must when necessary present information to the Estonian money laundering prevention bureau
3)Rented office in Estonia
4) At least one of the management board members must be in Estonia
5) Share capital of the company must be paid out in the amount of 12 000 EUR (only monetary contribution)
6) Good business reputation
7) The list of payment accounts opened by the company, with account's unique number and bank name

What is the possibility I will be called for an interview to Estonia?
Every case is unique and depends on the decision of a state official that is responsible for the proceedings regarding issue of licenses. Citizenship and living location have no influence on the decision to call someone to an interview.
How quickly can licenses be received?
Licensing procedure takes up to 60 days. The term may be extended to 120 days if state authorities as for additional information.
For what period is the license issued?
The license is termless, but if you will not start operating within 6 months, the license may be revoked.
What will the ask me on the interview?
Our employee if necessary will prepare you to the possible questions at the interview and will also accompany you as a translator.
Main moments that can be asked about at the interview:
- business description;
- information about personal experience and education;
- measures and implementation of rules directed to money laundering prevention.
AML officer. Who is it? Must he be a resident of Estonia?
AML officer is a person responsible for ensuring that the company obeys the money laundering prevention norms, performs risk analysis and in due time informs the state authorities about discovered risks.
Under the active legal norms AML officer may not be a resident of Estonia, but should be noted, that during the licensing procedure he may be called to Estonian for an interview. An interview may only take place with personal presence and can't be make over telephone and in the form of video conference or through the representative.
What documents are required in order to open an account?
First of all, no matter what bank you choose, you will require the following company documents: a printout from the registry and articles of association. A printout may be in English, articles of association are always in Estonia, so most likely you will require a translation into English.
Also we note, that bank want to see documents confirming your activities, that you have partners and agreement, invoices with them, rented office or storehouse in Estonia. They will also for a printout from your personal account and a company account (if you have on), your CV with work experience and detailed description of the business.
Can I open an account in my country for an Estonian company?
Yes, of course. You can open an account of your Estonian company in any country of the European Union.
They do not open an account for me, as I have no activity, but how can I be active without an account?
First of all in order to do business we suggest opening an account in a payment system, that do not present as many requirements as the banks do. As such you have started to do business, make payments with the payments system. Then you present a printout from the payment system confirming your company activities.
Can I open an account in an Estonian bank?
In order to open an account in an Estonian bank it is obligatory to show connection with the country and your activity on the territory of the country. You will be asked to provide documents confirming this, such as: agreements with partners, office rent, storehouse, employees, agreements of intentions and so on.
If you still have questions, please contact our specialist
Svetlana
Client manager
+372 5669 9907
assistant@dklexgroup.com
+372 5669 9907
info@dklexgroup.com
Tartu maantee 56-2, 10115, Tallinn, Estonia

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Licenses
  • FIU000177 Service of trust Funds and companies
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