Staria PLC

02/12/2014

E-residency: explanations about the functioning of e-residency in Estonia

From December of this year foreigners are able to apply for the digital identity card of an e-resident of Estonia without an Estonian habitual residence. A digital identity card (digital-ID) allows to use Estonian public and private services, provide digital signatures to documents and encrypt files with a chip card similar to the Estonian ID card.

https://e-estonia.com/e-residents/want/

As an e-resident you can use and enjoy the same great digital services that allow Estonians to do anything and everything digitally – sign all documents, launch and manage companies, do the banking, encrypt files, etc.

24/11/2014

Has Your company planned expansion of it’s activities in Estonia ? Or is it necessary to protect Your corporate name in Estonia? Now there's a easy and affordable way!

Staria PLC is a reliable professional accounting and business service provider in Estonian market. We have operated in Tallinn since 2007 and we have in-depth knowledge of Estonian market. As of October 2014, Staria PLC is a member of the Estonian Chamber of Commerce and Industry (ECCI).

For a company starting business in Estonia we offer start-up package, which contains:

• establishment of a company YOUR NAME OÜ in Estonia
• www.YOURNAME.ee domain pre-booking
• a virtual office service

The price of the start-up package is €1900 (VAT 0%) includes all costs associated with the registration of the company, including taxes, fees, other costs and counseling.

In addition, we will help you with the tax planning and accounting management.

If you need help setting up a business or looking for a trustworthy accounting partner in Estonia, feel free to contact us and we will find the rights solutions to fit your needs.

24/11/2014

Staria PLC is a reliable professional accounting and business service provider in Estonian market. We have operated in Tallinn since 2007 and we have in-depth knowledge of Estonian market. As a committed partner we offer accounting services and services related to setting up business as well as ready-made companies.

As of October 2014, Staria PLC is a member of the Estonian Chamber of Commerce and Industry (ECCI). The ECCI has almost 3200 members and according to a study carried out by Credit Info Estonia, the net turnover of the ECCI members makes more than 41% of the net turnover of all Estonian companies and net profits equal 42% of all Estonian companies.

What we offer:
• Accounting in Estonia
• Tax consulting in Estonia
• Tax representation in Estonia
• Setting up a company in Estonia
• A ready-made company in Estonia
• Organising the management of the company
• Activity licence registration

If you need help setting up a business or looking for a trustworthy accounting partner in Estonia, feel free to contact us and we will find the rights solutions to fit your needs.

We are happy to have you on board in the very near future and look forward to a very productive realtionship.

You are more than welcome to send us a price inquiry for accounting services.

24/11/2014

As of October 2014, Staria PLC is a member of the Estonian Chamber of Commerce and Industry (ECCI). The ECCI has almost 3200 members and according to a study carried out by Credit Info Estonia, the net turnover of the ECCI members makes more than 41% of the net turnover of all Estonian companies and net profits equal 42% of all Estonian companies.

24/11/2014

Starting a business and management services

Starting a business can be a labour-intensive and time-consuming process. Experience and dedication to goals will contribute to efficient development of the company.

You may also use the services of Staria to start your business, if you feel that you lack relevant knowledge, skills or time. By signing a fixed-term contract we can assist you to achieve previously set objectives. This includes establishment of an organisation, recruitment and management of the staff, finding cooperation partners and operative management.

After reaching the goals we hand the company over to a new organisation or management. Where necessary, or if so requested by the owners, we may continue to perform the duties assigned by the management or to coordinate and supervise the operation.

24/11/2014

Company incorporation in Estonia


The most common form of a business presence in Estonia is a limited liability company (OÜ).

Starting a company from scratch allows you to develop everything from the start according to your own wishes. You have the possibility to create a non-standard solution.

For a company starting business in Estonia we offer start-up package, which contains establishment of a company (OÜ/PLC), registration in Estonian Tax and Customs Board, opening a bank account, consulting and accounting services for the first three months.

The advantages of the private limited company:

simple and rapid registration;
a relatively low share capital requirement (2500 euros);
shareholders have no personal proprietary liability for the private limited company’s obligations.

Minimum share capital

The minimum share capital required to establish a limited liability company is EUR 2500 which shall be paid by shareholders with monetary or non-monetary contribution before a company registration with the Commercial register when the company bank account is opened.

From 01.01.2011 a private limited company can be established without contributing the share capital if the proposed area of activity does not require capital investments. The share capital of such a company will be formed by the liabilities of the founders amounting to the sum they promised to provide as share capital contribution. The Commercial Register will make a notice in the company's official extract, that the company is established without contribution.

Requirements for OÜ without contribution:

Shareholders may be only natural persons;
Articles of Association shall include the term, when the share capital is covered;
Until the contribution is made - the shareholders are personally liable for company's activities;
Until the contribution is made – is not possible to distribute dividends;
The maximum share capital of OÜ without contribution is 25 000 EUR

The establishment of a company includes the following procedures:

Checking the availability of a business name
Preparation of the incorporation documents
Setting a date for notary operations. All founders or their representatives and all board members shall have to participate in the notary operations.
The founders open an intitial account at a bank and deposit the share capital. The bank shall issue a certificate on the share capital deposit.
State fees shall be paid and we will submit the documents to the Commercial Register
If an authorised person is representing the founder, the letter of authority must be notarised. For a foreign company also authenticated by an apostille or legalised.

Preliminary information required:

Data of founders (name, address, registry code/identification code).
For a legal person also data of the representative (name, address, registry code/identification code).
Data of the board members (name, address, identification code and date of birth).
Business name
Amount of share capital and division between shareholders.
Location, address and postal code.
Means of communication (telephone, e-mail, homepage address).
One main field of activity.
Beginning and end of financial year.

What must be done before establishing a private limited company?

Before establishing, find the answers to the primary questions that will determine the most important rules governing your company’s everyday activity.

What will the company’s business name be?
What will your initial area of activity be?
Who are the partners and how large are the partner’s share capital contributions?
What will the private limited company’s place of business and the address of its location be?
How will the management of the private limited company take place?
To establish a private limited company, you will first need the personal information on the shareholders. The shareholders must also be in agreement on the items listed above.

The registration takes 5 business days from the submission of documents at Commercial Register.

Legal address

Please do note that it is necessary to indicate the legal address of the company. Therefore the registration at particular premises in Estonia is necessary as the initial step. For your convenience we may offer to use Staria OÜ legal address in Tallinn.

Procedure of incorporation

The initial step is to conclude the act of establishment of the company;
Temporary bank account is opened and an initial contribution for the subscribed shares is paid. The amount of the initial contributions must be at least EUR 2500;
The articles of association of the company are drawn up and approved by the notary and the necessary management bodies in the company are appointed;
The company is deemed to have been established upon registration thereof with the Commercial Register.

All the documents must be submitted to Commercial Register in Estonian language. According to local laws, the translation of documents can be made only by the certified translator.

Required Documents and Information

A: if the establisher is an individual:

Power of Attorney issued to us for establishing the new company- notarized;
Confirmation from persons Notary that the establishers person has a right to establish a company in Estonia. (no Business Prohibitions etc.) notarized;
Preferable name of the company;
Legal address:
Business activities;
Preferable bank;
Certificate from the bank which proves that the initial share capitals of EUR have been paid.

B: if the establisher is a legal person:

Current extract from the establishers Commercial register (as the prove that the founder of the Estonian company is registered company in foreign state and see as well its legal representative(s)) – original possible Apostille;
Power of Attorney issued to us for establishing the new company– notarized;
Memorandum of Association of the founder- notarized;
Preferable name of the company.
Business activities.
Preferable bank.
Certificate from the bank which proves that the initial share capitals of EUR 2500 have been paid.

Apostille may be required in documents, issued by foreign authorities (Commercial registers) of countries, with whom Estonia does not have the Legal Help Agreement, therefore is possible, that the Apostille is not required.

What must be done after founding a private limited company?
Depending on the company’s area of activity and size, a varying number of additional steps must be taken. First you will have to open a bank account for the private limited company, where the company’s share capital is to be deposited. You will already have transferred this sum to the court’s deposit account or the bank’s e-start-up account when you established the company. It is not possible to open a bank account without the company’s Commercial Register code.

If you will be operating in an area of activity subject to special requirements, you will have to apply for an activity licence.
If your annual turnover exceeds 16 000 euros, you will have to register as a VAT payer with the Tax and Customs Board.
If you hire employees, you will have to register them with the Tax and Customs Board.
If you hire employees, you will have to notify the Labour Inspectorate that the private limited company has started operating.

24/11/2014

Implementation of new projects

Staria has been the starting point for many companies from different fields of activity.

When necessary, we can enter into a confidentiality agreement for each new project, and then map the risks, threats, advantages and outlook of intended business operations.

We prepare an overview of skills, knowledge, staff, premises and finances necessary to implement the project.
After providing profitable and viable prerequisites for business activities we start implementing the activities according to the business plan.

24/11/2014

Short overview of Estonian taxes

CORPORATE INCOME TAX
Estonian resident companies and permanent establishments of the foreign entities (including branches) are subject to income tax only in respect of all distributed profits (both actual and deemed), including:
• corporate profits distributed in the tax period;
• gifts, donations and representation expenses;
• expenses and payments not related to business.
Fringe benefits are taxable at the level of employer. The employer pays income tax and social tax on fringe benefits.
All distributions are subject to income tax at the rate of 21% of the amount of taxable payment. The transfer of assets of the permanent establishment to its head office or to other companies is also treated like a distribution. As of 1 January 2009, dividends paid to non-residents are no longer subject to withholding tax at the general rate of 21%, irrespective of participation in the share capital of the distributing Estonian company. However, various withholding taxes may still apply to other payments to non-residents if they do not have a permanent establishment in Estonia or unless the tax treaties otherwise provide.
As the tax period of corporate entities is a month, the income tax shall be returned and paid monthly by the 10th day of the following month.

PERSONAL INCOME TAX
Residents pay tax on their worldwide income. Taxable income includes, in particular, income from employment (salaries, wages, bonuses and other remuneration); business income; interest, royalties, rental income; capital gains; pensions and scholarships (except scholarships financed from state budget or paid on the basis of law). Taxable income does not include dividends paid by Estonian or foreign companies when the underlying profits have already been taxed.
Non-residents pay tax only on their income received from Estonian sources. Income taxable in Estonia includes:
• income from work under a labour contract or contractor's agreement in Estonia;
• income from a business carried on in Estonia;
• interest income received from Estonia (only if it is substantially higher than that on similar debt claims);
• royalties;
• income from the lease of assets located in Estonia;
• gains from disposal of assets located in Estonia;
• directors' fees paid by Estonian enterprises;
• income of a sportsman or an artist from his or her activities in Estonia
• pensions and scholarships.
The tax rate for 2014 is 21% of the taxable income.

VAT
VAT is charged on supplies of goods and services in the course of business activities and self-supply of goods and services.
A taxable person is an individual engaged in business who is registered as taxable person. A taxable person shall add of the amount of VAT to the taxable value of the goods transferred or services provided, calculate the amount of VAT due to pay, pay VAT, preserve documents, maintain records and issue invoices in accordance with requirements.
The threshold for obligatory registration as a taxable person is EUR 16,000. The threshold for taxable person with limited liability in case of acquisition of goods is EUR 10,000. There is no threshold in case of acquisition of services.
The taxable period is one calendar month and VAT returns shall be submitted to the tax authority by the 20th day of the month following the taxable period.
The standard rate of VAT is 20%; the reduced rate is 9% and 0% in some cases.

SOCIAL TAX
Employers registered in Estonia (including permanent establishments of the foreign entities) must pay social tax on all payments made to employees, except on those specifically exempted by law. In case of an individual engaged in business and registered as such with the Tax Authorities, social tax liability lies with the individual. Fringe benefits and the income tax thereof are also included in the taxable base. Currently only employers and individuals engaged in business are liable to make social tax contributions. Employees are not required to pay social tax.
The rate of social tax is 33% (20% for social security and 13% for health insurance).

OTHER TAXES
Land tax is levied on the taxable value of all land (other than that which is specifically exempt) based on an official valuation. The owners of the land are liable to land tax. The annual land tax rate varies between 0.1% and 2.5% of the assessed value of the land. The council of the local authority is authorised to establish the rate of land tax.
Excise duties are levied on to***co, alcoholic beverages, fuel, electricity and packages.
Heavy goods vehicle tax is paid for the following classes of vehicles which are intended for the carriage of goods: lorries with a maximum authorised weight or gross laden weight of not less than 12 tons; road trains composed of trucks and trailers with a maximum authorised weight or gross laden weight of not less than 12 tons.
Gambling tax is imposed on amounts received from operating games of skill, totalizator, betting and lotteries. Tax is charged also on gambling tables and machines used for games of chance located on licensed premises.

PAYING TAXES
The tax authority for state taxes is the Tax and Customs Board.
Non-residents can choose for themselves a tax representative. The tax representative of a non-resident is a person to whom the Tax and Customs Board has issued a corresponding activity licence and whom a non-resident may authorise to represent itself for the performance of the obligations arising in Estonia.
Licensed tax representatives of non-residents.
Taxable persons are taxpayers, withholding agents, other persons responsible for the tax liability of a taxpayer or withholding agent pursuant to law or a contract.
Monthly reporting to the Tax and Customs Board:
• Income tax, social tax, unemployment insurance premiums and funded pension payments have to be withheld, paid, declared and transferred to the Tax and Customs Board by the 10th of every month, following the month of payment.
• A VAT return is filed and the VAT is payable by the 20th of the month following the period of taxation.
• By the 10th of every month, a payer is required to submit a notification file on recipients of dividends or payments made to shareholders of proceeds from liquidations, payments upon capital reductions and redemption or return of participation, to the regional tax centre of the Estonian Tax and Customs Board only in case there was a payment the month before.

Key dates for taxpayers in 2014.

All the taxes in Estonia can be declared via E-tax/e-customs, which is an electronic service desk of the Estonian Tax and Customs Board. E-tax/e-customs works 24 hours a day and 7 days a week. Via E-tax/e-customs it is possible to:
• Submit declarations and notices
• Perform customs operations
• Be aware of one's tax operations
• Securely communicate with the Tax and Customs Board

24/11/2014

Tax system in Estonia

The Estonian tax system consists of national taxes and local taxes collected by local governments in their jurisdiction. National taxes include income tax, social tax, land tax, gambling tax, value-added tax, duty and excise taxes and heavy goods vehicle tax. Local governments have the authority to impose local taxes, but effectively only a few have introduced local taxes, in particular: boat tax, advertisement tax, tax for closing of streets, motor vehicle tax, tax on keeping domestic animals, amusement tax, and parking fees.

Estonia does not impose any gift, inheritance or estate taxes. Various transactions may be subject to payment of state fees (stamp duties).

Additional information about corporate income tax, personal income tax, social tax, VAT, paying taxes, ohter taxes and Customs:

Enterprise Estonia
Estonian Tax and Customs Board
Ministry of Finance

The information and materials have been composed by and used by courtesy of Enterprise Estonia, Estonian Tax and Customs Board and Ministry of Finance.

24/11/2014

Advantages of doing business in Estonia

General information about the business environment in Estonia.

Estonia´s advantages

• Location
The geopolitical location of Estonia, its compactness, logistical abilities, and thousands of years of experience in communicating towards the northern, the western and the eastern direction give us a unique position.
We belong to the North and form a part of one of the most valuable regions of Europe, the core of which is Scandinavia. This is also expressed in our sense of aesthetics, our appearance and temper.
Common logic would say that we don’t have an attractive sales market. The practice, however, has proven that Estonia has a considerable development and production platform for International knowledge-based companies (such as Skype, Ericsson, ABB etc.).
As a border state of the European Union, we also have a highly developed logistic infrastructure that successfully enables to move goods, knowledge and people on the eastern-western direction.

• Ease of doing business
Estonia has an investment-friendly taxation system, and transparent and functioning legislation. We aim at liberal economic policy where private property is sacred and untouchable and all entrepreneurs are treated equally.
As we have modest market volumes, there is no direct need for artificial protection of our own market participants. Therefore all new investors and external partners are just as welcome here as the entrepreneurs who have operated here for years.
Economic freedom, ease of doing business rating, per capita investments, the record-low national debt, belonging to the euro zone, low corruption index – all these factors show that there is something about Estonia that is worth taking a closer look at. We are like the Switzerland of the North, only our taxation system is considerably more up-to-date and user-friendly.

• People
Estonia is inhabited by smart people of equally high level of education and good communication skills. Starting from the 17th century, Estonia has been one of the most outstanding countries for its average level of education in Central and Eastern Europe.
We understand what we are told and we can talk back. Estonia is one of the few countries with no historical relations to England where clearly over 50% of the population understand English.
Estonia is one of the most sparsely populated countries in the world. Estonians are poised, honest and hard-working people who do not speak much but keep their promises. This originates from our persistent culture that has slowly developed over the ten thousand years we have inhabited this land. Estonia also has the world’s largest collection of folk songs.
Time has proven that thanks to our forward-looking nature, we are able to adjust to all changes fast and efficiently – we are the world champions of adjustment.

• Infosphere
Estonia is characterised by information and communication technology that functions on the grass-roots level and connects the people with the state. We are a country meant for people where systems serve the interest of people and make our lives fast, convenient and safe.
It is not just about the Internet but our way of thinking. We can use (information) technology in order to create a convenient infrastructure that matches the slightly introverted nature of our people. Skype is a good alternative to talking to the neighbour when there is a snow blizzard outside. ID-card enables to perform bank and state operations even if the closest bank or state authority is kilometres away.
In Estonia, broadband internet is a human right not a privilege.
It is no wonder that Estonia is one of the most powerful start-up countries, that we host both the cyber security centre of NATO and the IT-agency of the European Union and that more than 90% of the people complete their income tax return over the internet.

The information and materials have been composed by and used by courtesy of Enterprise Estonia and Estonian Tax and Customs Board.

24/11/2014

Setting up a company in Estonia

In Estonia we offer services related to setting up businesses as well as ready-made companies.

Setting up a company in Estonia

We help our clients with the setting up of private limited companies (OÜ/PLC) in Estonia. For a company starting business in Estonia we offer start-up package, which contains establishment of a company (OÜ/PLC), registration in Estonian Tax and Customs Board, opening a bank account, consulting and accounting services for the first three months. The price of the start-up package starting from €700 (VAT 0%). Further details and activities required from the new owner shall be given to the new owner.

A ready-made company in Estonia

When you concider of buying a ready-made company in Estonia, we can also mediate comapnies that have already been in operation in Estonia.

For new customers our accounting service is provided on very favourable terms during the first months of operation.

It is easy and carefree to start business by using the services provided by Staria. We are a reliable partner for our customers in Estonia

24/11/2014

Finding business partners

You can find investors, new outlets, and cooperation partners via Staria. Our customer base and network is extensive and several companies have been given a boost with our help.

Contact us and let us first map your needs. You can find a business partner in full confidentiality, by using our existing network, or you may place a public advertisement in our advertising section.