Entity Formation in Estonia

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At IBCCS TAX we are experienced international tax planning advisers offering
legal & tax advisory assistance both on an international and local scale.

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Entity Formation in Estonia

Embarking on your business journey in Estonia begins with a robust legal foundation. In a country renowned for its digital efficiency and e-Residency program, the process of forming a company is streamlined, but the strategic decisions made at this stage are critical for long-term success. At IBCCS TAX, we provide expert, end-to-end entity formation services, transforming the complexities of legal and tax planning into a seamless and strategically sound setup for your business.

A Strategic Approach to Your Business Foundation

We believe that establishing a legal entity is the most critical step in your business’s lifecycle. Our approach integrates a deep understanding of Estonian and international regulations with strategic foresight. We ensure that every entity we help form is not only legally compliant but also strategically positioned for growth, tax efficiency, and operational success. Our team of experts provides comprehensive guidance through every stage, from initial tax planning to post-formation support.

Our Comprehensive, End-to-End Formation Process in Estonia

We offer a holistic service that covers every aspect of establishing your presence in Estonia, ensuring a seamless process whether you are setting up your company online, in-land, or remotely. Our integrated support includes:

Initial Strategy & Planning:

Full Entity Formation:

Regulatory Compliance & Tax Registration:

Licensing, Permits & Operational Readiness:

Bank Account Setup:

Post-Formation & Liquidation Support:

Your Trusted Estonian Partner for a Successful Launch

Choosing IBCCS TAX means partnering with a team that offers holistic expertise backed by a global footprint and a commitment to excellence. In line with our principle, “We turn challenges into opportunities,” we handle the complexities of the setup process, allowing you to focus on what matters most: your business’s growth and success.

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Jurisdictions

Cyprus, Estonia, Georgia, UAE, and Uzbekistan each have their strengths for different situations. Through our extensive partner network, we also provide services across 50+ additional jurisdictions worldwide. The trick is understanding which combination fits your business model and personal circumstances. Smart international structuring means finding real opportunities in stable jurisdictions rather than chasing clever schemes that might backfire later.

We are able to register your company in a timely manner at competitive fees in the following (and not only) jurisdictions:

Taxation:

  • Corporation Tax: 2.5 – 12.5%
  • Capital Gains Tax: none*
  • VAT: 0 – 19%

Main benefits of the jurisdiction:

  • One of the lowest Corporation Tax in European Union
  • No Capital Gains Tax on sale of securities
  • No Withholding Tax on dividends paid and received
  • Large number of Double Tax Treaties signed
  • Access to EU directives
  • Non-dom regime, residency by investment, naturalisation by investment possible
  • Flexible and stable tax and legal system

Types of entities: Private Limited Company, Public Limited Company, General Partnership, Limited Partnership, Partnership Limited by Shares, Trusts, Charitable Foundation, Associations, Clubs

Disclosure rules:

  • Public Registry of Ultimate Beneficial Owners: no
  • Public Registry of Companies: yes

Time to incorporate:  from 2 days. Remote registration possible. Shelf companies available.

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Taxation:

  • Corporation Tax: 0% (14% or 20% only when profits are distributed)
  • Capital Gains Tax: 20% (in form of income tax)
  • VAT: 0 – 20%

Main benefits of the jurisdiction:

  • Full participation exemption for dividend income for qualifying holdings
  • No withholding tax on outbound dividends paid to non-residents
  • No exchange control regulations
  • No thin capitalization rules
  • Access to EU directives
  • Large number of Double Tax Treaties

Types of entities: Private limited company, Public limited company, Limited partnership, General partnership, Commercial association, Nonprofit organization, Sole proprietorship

Disclosure rules:

  • Public Registry of Ultimate Beneficial Owners: Yes
  • Public Registry of Companies: Yes

Time to incorporate: Starting form 24 hours

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Taxation:

  • Corporate Profit Tax – 15%, payable only when the dividend is distributed. Zero tax possible when using Free Zone companies or Virtual Zones Companies.
  • Import Tax – 0%, 5% or 12%
  • Excise Tax – depends on the listed products
  • Property Tax – up to 1%
  • Double Tax Treaties Network – very broad, more than 50 DTTs signed
  • Tax year – tax calendar year
  • Advance Rulings from tax authorities – available
  • VAT registration – voluntary, only obligatory if the turnover of activities subject to VAT exceeds GEL 100,000 per annum
  • VAT rates – standard rate: 18%
  • Social Security TAX – 0%

Main benefits of the jurisdiction:

  • Located in a trade strategic area between Asia and Europe
  • Ranked as 7th place in the world for ease of doing business.
  • Has successfully adopted the DCFTA that results in having eliminated all customs duties for goods originating in Georgia being imported into the EU
  • Free trade agreement (FTA) with China is effective which makes Georgia the second European country (after Switzerland) that has FTA with China
  • Offers numerous incentives for the development of the business environment.
  • One of the most competitive markets in its region
  • Offers three industrial zones, created to cater the needs of specific business sectors and they are to be found in Poti, Kutaisi and Tbilisi.

Main tax incentives that Georgia offers are:

  • STC licensed Georgian LLC: exemption from tax for trading performed outside Georgia
  • IFC licensed Georgian LLC: exemption from tax for international financial services and holding companies selling shares of foreign entities
  • VZC licensed Georgian LLC: exemption from tax for providing IT services outside Georgia
  • Free Zone Companies: exemption from any corporate tax and withholding tax.
  • Public Registry of Ultimate Beneficial Owners: No
  • Public Registry of Companies: Yes

Time to incorporate:  24 hours

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Taxation:

  • Corporation Tax: none or 9% depending on the activity and legal form
  • Capital Gains Tax: none
  • VAT: 5% (exempt for international B2B sales)
  • No WHT on dividends

Main benefits of the jurisdiction:

  • Exemption from corporate and capital gains tax for qualifying activities
  • Very low VAT rate (if applicable)
  • Very low fixed 9% rate of Corporate Income Tax on profits
  • Stable and transparent legal system
  • No Personal Income Tax
  • Stable and well-developed banking system
  • One of the most developed trading and service infrastructure in the world

Types of entities: Offshore company, Free Zone company, Designated Zone Company, mainland Limited Liability Company, Private Foundations.

Disclosure rules:

  • Public Registry of Ultimate Beneficial Owners: none.
  • Public Registry of Companies: none.

Time to incorporate: Starting from 3 days

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We provide services also in the following jurisdictions:

Poland

United Kingdom

Belgium
Bulgaria
Gibraltar
Hong Kong
Ireland
Latvia
Liechtenstain
Luxembourg
Malta
Netherlands
Singapore
Switzerland
United Arab Emirates
USA (Delaware)

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Ready to start your business journey in Estonia?

Contact our team today to schedule a consultation and discover how our expert formation services can help you achieve your goals.

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Our Team

Cezary Zieniuk

IBCCS TAX Founder / International Tax Adviser

Jowita Jablonska

managing partner
IBCCS TAX CYPRUS

Ketevan Aghoshashvili

Ketevan Aghoshashvili

Executive Director
IBCCS TAX Georgia 

Irakli Arjevanidze

Co-Founder 
IBCCS TAX Georgia

Alexander Mabian

Alexander Mabian

Partner
IBCCS TAX UAE

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