The European single market enables a free movement of goods, services, workers and capital. Its principles of equal treatment and non-discrimination provide citizens and legal persons access to a borderless society. Businesses wish to avoid border controls in all individual member states. As such, access to this internal market is a valuable asset to many businesses in need of a one-point of entry into a trade union. A company incorporated and registered in Estonia provides access to the European single market and therefore all TFEU (Treaty on the Functioning of the European Union) principles are warranted.
Access to the European single market is one advantage of company formation in Estonia. It is nonetheless not the only advantage. The domestic technological infrastructure and e-services include the e-residence program. This e-residence program provides its participants with an electronic identity and digital signature. Blockchain technology protects the Keyless Signature Infrastructure and thus opens the path for protected business registration, electronic tax and customs declarations, digital signatures, and online banking with local banks. This efficient and effective system gains interest of the global community with specific international needs.
The Estonian Commercial Code discusses company formation. Foreigners can establish a Private Limited Company (OÜ) or the Public Limited Company (AS). Company formation starts with the choice of the business name and registration of the company. If a license is needed for the business activities, one should be obtained with the Register of Economic Activities. The next steps are to register the company for VAT and the employees in the employee registry at the Tax Office. Official trading is possible when the company information is entered on the Commercial Register. An application to the Commercial Register includes the incorporation documents and contact information of the business and owners.
Although the procedure to become an Estonian e-resident and incorporate a local company seems straightforward, there are several prerequisites one should address. The foundation of your company is crucial for the future business and its success. Therefore, professional preparation can avoid potential challenges. Together with Legal Floris LLC and Equation CS, Estonia company formation becomes an easy task.
Company formation is followed by bank account opening. Depending on the needs of the company, different national and international financial institutions and FinTech firms can provide the financial services needed. Alongside traditional banking services, Legal Floris LLC can help its clients with credit facilities, insurance products and other financial matters.