Have you considered acquiring a company from Estonia? If you are, we recommend that you further consider the matter or at least ensure the reliability of the company’s seller.
Unfortunately, the seller of a company often fails to provide the buyer with relevant information about the company and the risks and problems associated with it.
If a company is bought with a bank account, and subject to VAT, the buyer often gets into trouble quickly. In Estonia, banks have tightened their practices and a foreign buyer may find itself in a situation where the bank account is completely closed. The new owner will then have to re-start the account opening process, which will require more money and take time. Often the taxpayer is interested in these acquisitions, most likely the taxpayer will demand an explanation as to why the company should remain on the VAT register. In the worst case scenario, the situation could result in you paying the company for something you can’t use the way you originally thought.
Sellers also often advertise that a share capital of € 2,500 has been paid in, allowing you to immediately raise dividends from the company. That amount has generally been paid in only on paper. This in turn means that the buyer will still have to pay a share capital of € 2,500. When purchasing a ready-made company, it must also be ensured that all the company’s information will be reported to the Estonian Trade Register and that all necessary information will be provided in the company’s information.
Avoid getting scammed and make sure who you buy the ready-made company from!
We will be happy to help you with questions related to the purchase of a ready-made company and with careful background work, please contact us.
