Estonia is one of the Baltic countries and the country has a rapidly growing economy that welcomes foreign investors. When doing business in Estonia, it is sometimes useful to draw up a power of attorney in order to appoint an individual to perform legal actions for an Estonian company or a foreign company operating in Estonia.
A power of attorney can be valuable for various business actions when companies need to settle legal matters in Estonia
. Business owners can draw up a power of attorney
and entitle a third party to perform all necessary actions in their name to make sure that every procedure runs smoothly even in their absence. A power of attorney may be used when establishing a company in Estonia
in order to obtain all necessary legal documents.
Types of power of attorney
According to the rights a power of attorney can grant to a third party, it can be general or special. A general power of attorney
is concluded when an individual is appointed as a general representative of an Estonian company. This document gives the appointed person the right to take any legal action in the name of the company: conclude employment contracts
or other contracts make any necessary purchases or sales, handle accounts and bank accounts in Estonia
, collect payments and many more. A general power of attorney can create obligations for the appointed party to handle certain issues, such as tax payment.
A special power of attorney in Estonia allows the appointed individual to have certain limited rights needed to represent the company. Unlike the general power of attorney, this type of document offers powers for specific actions, such as concluding one type or purchase. A special power of attorney can, for example, empower an employee to handle a specific task for the company.This type of document is less risky than the general power of attorney.
Our company formation consultants in Estonia can provide complete details about the rights, obligations and liabilities that come with a power of attorney.