Is it mandatory to have an e-resident card to start a company in Estonia?
No, but the e-Residency card allows you to set up a company and manage it online with full authority
Without a card, a company can be set up through a power of attorney at a notary.
Do I need a VAT number?
A VAT number is needed in the following cases: if you trade in Estonia and your turnover exceeds 40,000 Euro per year; if you operate within the EU (most services can be carried out with a 0% rate)
Is it mandatory to pay salaries to a board member of an Estonian company?
There is no legal obligation to pay salaries to a member of the management board. The main volume of profit is usually distributed in the form of dividends, which is cheaper.
What is the income tax rate in Estonia?
Income tax for Estonian companies is 0%. The profit can simply be accumulated in the company’s account or can be reinvested in further activities. Taxes are paid only at the time of distribution of profits, until the tax arises in the account or in the cash desk of the company. Dividend tax is 20/80.
Can a non-resident be the sole owner and board member of an Estonian company?
Yes. A non-resident can solely own and manage a company in Estonia without the participation of an Estonian citizen and without being in Estonia.