How to Open a Hotel in Estonia

Foreign businessmen interested in the accommodation industry in Estonia can set up their operations here in accordance with the stipulations provided by the local legislation. The registration of a hotel in Estonia is done by respecting the provisions of the incorporation process available for any other type of company, but it is necessary to obtain special permits which offer the right to conduct accommodation activities in Estonia. Persons who want to find out more details about the hotel industry in Estonia can receive assistance on this matter from our team of Estonian company formation specialists. 

 

 

In order to open a hotel in Estonia any investor is required to incorporate the business under one of the legal entities available under the Estonian legislation. In order to do so, it is required to propose and register a company name, a process which can be completed at the Commercial Registry, where persons who want to establish a company can verify various aspects of the procedure. 

 

The following step is to choose a legal entity under which the accommodation unit can carry out its operations. Entrepreneurs can incorporate their company under the next business forms: 

 

• private limited liability company;

• public limited company;

• general partnership;

• sole proprietorship;

• limited partnership. 

 

Under the local legislation, businessmen are not required to register for social insurance taxes, as this process is done through an automatic scheme, which receives information on this matter from the Tax and Customs Board; still, new companies have to register for Value Added Tax (VAT) purposes, payable at the Tax and Customs Board; our Estonian company formation agents can assist entrepreneurs with the registration at the local authorities. 

 

When opening a company established as an accommodation unit in Estonia, one of the main steps related to its incorporation is the process of receiving licenses in accordance with the hotel classification system available here. The main authorities regulating the industry are the Consumer Protection Board, the Rescue Board and the Health Protection Inspectorate. 

 

Hotels in Estonia are categorized based on star system, where 1 star refers to hotels providing the minimum accommodation services, while 5 stars are awarded to hotels providing a high quality accommodation services. 

 

If you need further information on the hotel industry in Estonia, please contact our team of company formation consultants, who can provide you with an in-depth presentation on this economic sector.