Types of companies in Estonia
- Limited liability company (Osaühing – OU)
- Responsibility
- Minimum capital
- Min. number of shareholders
- Generally, recommended for
- Limited liability company (Osaühing – OU)
- Limited
- No
1
SMEs
- Public limited company (Aktsiaselts – AS)
- Limited
- 25,000 €
1
Big companies
- Sole proprietorship (Fuusilisest isikust ettevotja – FIE)
- Unlimited
- No
1
Sole trader
- General partnership (Taïsühing – TU)
- Unlimited
- No
2
- Generally, recommended for
Corporate tax rate in Estonia
The corporation tax rate is at 20% in Estonia. Moreover companies don’t pay any taxes on profit reinvested in the company.
The rate is 14% on declared regular dividends.
Questions
Why should I incorporate my company in Estonia?
- Debts remain low. Public accounts are in surplus.
- Political economy is flexible.
- Estonia belongs to the euro area and to the OECD.
- All of the administrative procedures are accessible online.
- The country is very close to become self-sufficient in energy thanks to reserves of oil shale.
- Estonia is closely related to Scandinavian countries, in terms of trade, finance and culture.
Which difficulties can be encountered in Estonia?
- The economy is small and depends on external shocks.
- Poverty remains rooted in the country. Income inequalities are very important in Eastern regions which are primarily Russian-speaking.
- A decrease in the available workforce, it is hard to find qualified employees.
- There is a lack of land connexions toward the rest of European Union.
Which are the cultural specificities of the world of work in Estonia?
- Avoid physical contact, you have to keep a large distance between you and your partner.
- Eye contact is very important.
- Hierarchical relationship is strict. You have to call your co-worker with their titles and surnames.
