FAQ
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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.
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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 euros per year or if you operate within the EU (the supply of most goods and services can be provided with a 0% rate)
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Is it mandatory to pay a salary to a board member of an Estonian company?
There is no legal obligation to pay a salary to a member of the management board. The profit is usually distributed in the form of dividends, which is cheaper.
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What is the income tax rate in Estonia?
Corporate income tax for Estonian companies is 0%. The profit can simply be retained in the company’s account or reinvested. As long as the money remains in the company bank account or in the cash register, there is no tax to be paid on profit. Taxes are paid only on profit distribution. Dividend tax is 20/80.
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Can a non-resident be the sole owner and board member of an Estonian company?
Yes. A non-resident can solely own and run a company in Estonia without the participation of an Estonian citizen and without being in Estonia.