A SPV (special purpose vehicle) company in Estonia is a legal entity, generally registered under the form of a limited liability company, which was created to accomplish certain short-term or specific purposes. SPV companies are usually utilized by companies to isolate the firm from financial risks. Our Estonian company formation advisors can offer assistance in registering a SPV entity in Estonia, which can also include the undertaking of various financial transactions like securitization.
How to set up a SPV company in Estonia
Foreign entrepreneurs who are looking to open a SPV company in Estonia need to follow certain registration procedures which differ for those required in commercial businesses.
To register a limited liability company in Estonia, the following steps have to be followed:
• Select a company name;
• Register the office and the business address to receive mail;
• Deposit the minimum share capital of at least EUR 7,500;
• Organize the Articles of Association and the Memorandum of Association;
• Register the company with the Commercial Register of Estonia;
• Register with the Register of Economic Activities if the company activities require to. Our company formation professionals in Estonia can provide more details on what these activities consist of;
• Comply with VAT payment, if necessary.
Securitization in Estonia
Securitization, which is a common activity of SPVs in Estonia, represents the process of packaging and turning loans into shares, which can be then sold to investors. Any properly functional financial market should incorporate this type of transactions.
A securitization transaction implies several parties, such as:
• the sponsor;
• the third-party credit enablers;
• the trustee;
• the securitization entity;
• the underwriter;
• the credit rating agencies;
• the initial lender;
• the originator;
• the investor.
Entrepreneurs are invited to get in touch with our company registration representatives in Estonia for further information related to the incorporation of an Estonian SPV.