Estonia represents a good choice for the entrepreneurs interested in starting a company abroad. The advantageous tax system in Estonia, along with its membership to the European Union, make Estonia a great destination for foreign investors.
The legal act that regulates the terms and conditions regarding the establishment of a company in Estonia is the Estonian Commercial Code, which was adopted in September 1995.
A public limited company or Aktsiaselts (AS), as it is called in Estonian, is one of the several types of Estonian companies. The most popular legal entities in Estonia are the public limited companies and the private limited companies; the differences between these two derive from the mandatory formalities and rules required for their establishment. For anyone who wishes to develop a larger business in Estonia, starting a public company is the best option.
The public limited liability company in Estonia is a company that owns a shared capital, divided into shares. The minimum capital required for establishing a public company in Estonia is about 25.000 Euro and the minimum value of a share should be 0.6 Euro. A shareholder of the public limited company is not personally liable for the company’s obligations.
A public limited company is managed by a mandatory managing board, a supervisory board and the meetings of shareholders. An auditor is also demanded for this type of company.
The first step in establishing a public company in Estonia is choosing an unique name for the company- the availability of a name can be verified at www.rik.ee. Depending on the value of your share capital you might have to make a bank deposit- in case your initial capital is more than 25.000 Euro. You will also be required a memorandum and articles of association in the process of starting an AS in Estonia. Following procedures involve applying for registration to the Commercial Register (the fee is 140.60 euros for regular registration or 185.34 euros for expedited registration) and registering for VAT at the Estonian National Tax Board.
Shares must be registered and entered in the Estonian Central Register of Securities, the organ that administers the shares of all joint stock companies that operate in Estonia. The person who is named as the shareholder in the share register benefits of all the rights attached to the registered shares.
Starting a public company in Estonia is advantageous because it offers the possibility of gathering a large number of shareholders, by this means raising capital from the public much easier.
For foreign investors, starting a business in Estonia, is convenient and profitable due to the flexible economical environment that the state legislation provides. For any further details or assistance in opening a public company in Estonia please feel free to contact our company formation specialists.