With a total population of approximately 1.3 million and one of the most competitive tax systems in Western Europe, Estonia and mainly its capital, Tallinn, is rapidly becoming a strong player in the European entrepreneurial environment. Foreign investors looking to open a retail business in Estonia have to follow the same procedures involving the registration of any other type of company in the country.
Registration procedure for a retail company in Estonia
The most common type of business entity in Estonia is the private limited company. These companies cannot sell their shares to the general public and they require a minimum share capital of EUR 2,500. In order to register such a company in this country, the following steps have to be taken:
• Selecting and verifying the company name with the Commercial Register in Estonia;
• Filling an electronic request to the Commercial Register, for owners of Portuguese, Estonian, Belgian and Finnish ID-cards or Lithuanian mobile-IDs, or the foundation document verification verified by a notary who will forward them to the Commercial Register;
• Registering the company as a VAT payer with the Estonian Tax and Customs Board;
• Registering the employees in the employee registry with the Estonian Tax and Customs Board;
• Issuance of the specific license related to the retail industry. Our Estonian company formation advisors can offer details on this matter.
We advise on using the private limited company in Estonia for this type of activity.
The retail industry in Estonia
The retail industry is considered the economic growth source since it has registered a steady growth in Estonia in the last couple of review period years. A special increase has been observed mainly in the Estonian internet retailing businesses, as the online retailing has become the new norm in the country. A company formation expert in Estonia can provide more details on this particular sector.
The Estonian Ministry of Finance is predicting an average annual GDP increase of 2% to 3% in the forecast period. Therefore, even though the competition in the industry is quite high, the retail industry in Estonia is still expected to be one of the most profitable to get involved in, if you are willing to put in more effort as a seller.
Foreign investors who require more detailed information on the retail business in Estonia are invited to address our company registration professionals in Estonia.