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Guide to starting a Business in Estonia

Staff Reporter | 3:15 PM |


Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Estonia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Check online the uniqueness of the proposed company name1 dayno charge
2Deposit the initial capital in a bank1 dayno charge
3Submit online the registration application to the Commercial Register1 dayEUR 140.60 regular registration or EUR 185.34 expedited registration
4Register for VAT at the National Tax Board3 daysno charge
5Register with the Central Sick Fund of Estonia1 dayno charge