Business in Estonia – it’s a challenge Business in Estonia can be a real challenge. According to the EU competitiveness report on Estonia the economy has recovered from the recent international crisis but many challenges remain. Labour productivity is 38% below the EU average and the country lacks skilled labour, especially in engineering. The market is small, competition is fierce and consumers are price sensitive which leads to immense pricing pressure by consumers as they have more control over the market situation. Nevertheless, Estonia offers great opportunities for nonresidents to run a business. The business environment offers a great taxation system, excellent internet banking and low maintenance costs.
Estonian company for foreign business activity The Estonian business environment offers great opportunities for start-ups and foreign business activity. Most important advantages are: •
Unique taxation system – The Estonian tax system has a flat income tax and de-facto no corporate tax.
No income tax – A company doesn’t have to pay income tax as long as you do not distribute it. It gives better opportunities to reinvest into your company and there is no need to find costs to reduce on taxation.
No withholding tax on dividends - Profit distributions are taxed only once, so if profits are taxed at the subsidiary level no more tax is applied when the profit is distributed.
Selling services outside Estonia doesn’t require VAT ID – If your business has no sales in Estonia and you pay no wages, you only need to do your accounting once a year by submitting the company’s annual report.
Establishing a business in Estonia is easy – You can basically set up a company in Estonia within 1 day when being a resident. For non-residents it’s a bit more challenging and requires more bureaucracy. As a solution most non-residents buy a ready-made company, which is a completely safe procedure when using an experienced consulting company.
Estonia offers a great business environment for non-residents with a unique taxation system and a very favourable start-up policy. KRM Advisor is a trustworthy partner to start your business in Estonia. We have created ca 5000 companies and made over 30'000 filings in the
Commercial register. Skype Technologies OĂœ, Ernst & Young Eesti AS and Swissotel Eesti OĂœ are just a few that have started their successful businesses with the help of our services.