Foreign entrepreneurs who want to open companies in Estonia have various choices when it comes to choosing the structure of their future business. One of the simplest ways of starting a business in Estonia is by registering a sole proprietorship or sole trader (FIE). This business form is available for single company owners and come with several advantages, but also with full responsibility related to the business’ debts and obligations.
Our company formation agents in Estonia can help investors who want to set up sole proprietorships in this country. We can also assist with the registration of other types of companies.
There are several aspects which need to be considered when opening a sole proprietorship as a foreign citizen in Estonia. This business form is governed by the Company Law in Estonia, and the following requirements must be met when registering it:
Opening a company in Estonia is not complicated, no matter the chosen business form, however, the sole proprietorship takes only a few days to register, which is one of its greatest advantages.
The list of documents related to the registration of a sole proprietorship in Estonia is not extensive, as the future business owner will only need their ID or passport and the application form released by the Trade Register. The sole trader will also need to submit proof of their registered address in Estonia. Also, before registering the sole trader, a foreign investor must obtain a personal identification number.
It is useful to know that since Estonia has introduced e-residency, the personal identification number is issued together with the residence permit.
Our Estonian company formation advisors can help foreign investors who want to register as sole traders here. They will explain the requirements related to the documents they need to prepare before going to the Trade Registrar.
Once the sole proprietorship is taken into evidence by the Companies Register, it no longer needs to register with the Tax and Customs Department, as the information will be forwarded electronically. However, there are other accounting requirements which need to be respected by the Estonian sole trader.
These requirements are:
Our local agents can assist with the registration for taxation of sole traders and other types of companies in Estonia. We also offer accounting services to those who need help in bookkeeping matters in Estonia.
It is important to know that there is no specific business license issued to sole proprietorships in Estonia, however, for certain activities, it is possible for an authorization to be required. For example, those who open small catering businesses as sole traders are required to obtain a food processing license.
1.Does a sole trader need a share capital?
No, there are no share capital requirements when opening a sole proprietorship in Estonia.
2. How much does it cost to register a sole trader in Estonia?
The business start-up costs of a sole trader in Estonia are not high, and the investor only needs to consider the registration fee which needs to be paid with the Trade Register and the notary fees when drafting and authenticating the application and the signature.
3. How long does it take to register a sole trader in Estonia?
The company formation process of a sole trader in Estonia takes 2 or 3 days.
4. Can I hire employees if I am a sole trader in Estonia?
Yes, it is possible for a sole trader to have employees.
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