{"id":9378,"date":"2023-02-02T17:21:37","date_gmt":"2023-02-02T17:21:37","guid":{"rendered":"http:\/\/www.trustimia.com\/some-influencer-why-start-a-company-in-estonia\/"},"modified":"2023-02-02T17:50:41","modified_gmt":"2023-02-02T17:50:41","slug":"some-influencer-why-start-a-company-in-estonia","status":"publish","type":"post","link":"https:\/\/www.trustimia.com\/et\/some-influencer-why-start-a-company-in-estonia\/","title":{"rendered":"Some influencer – Why start a company in Estonia"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n

More and more start-up companies are founded in Estonia instead of Finland, and more and more freelancers have moved their business operations to the ideal entrepreneurial atmosphere created by Estonia<\/strong><\/h1>\n

Establishing a company abroad is becoming more common every year, and internationality is considered good. Estonia is the right place for a completely new company or one already operating in Finland. In this article, we discuss the general basics of doing business in Estonia and related prejudices, taxation, accounting and legislation.<\/p>\n

 <\/p>\n

Why is doing business in Estonia more profitable than in the rest of Europe<\/strong><\/h2>\n

“Estonia does not have corporate taxation or an advance tax system, this in itself is a significant competitive advantage for companies.” Says the Managing Director of Trustimia | Lawyer Raul Markus<\/strong><\/p><\/blockquote>\n

One of Estonia’s biggest advantages for entrepreneurs is taxation. In Estonia, for example, the osa\u00fching (O\u00dc), which corresponds to a limited company, does not pay any tax on the company’s profit, as in Finland, where the corporate tax is currently 20 percent. An Estonian company is therefore 20% more profitable than a company registered in Finland.<\/p>\n

Let’s imagine that a limited company registered in Finland has a turnover of \u20ac200,000. The amount of expenses, on the other hand, is \u20ac100,000. After the expenses have been deducted, the result remains \u20ac100,000. Corporate tax is paid on that \u20ac100,000 at 20 percent, i.e. \u20ac20,000. In this case, after tax, the profit to be distributed to the owners is \u20ac80,000.<\/p>\n

A limited company registered in Estonia is not liable for tax on the result. If the company had a turnover of \u20ac200,000, the amount of expenses would be \u20ac100,000. After the expenses have been deducted, the result remains \u20ac100,000. In this case, \u20ac100,000 of profit remains to be distributed directly to the owners.<\/p>\n

 <\/p>\n

According to the example calculation, a company registered in Estonia would be \u20ac20,000 more profitable for its owners. In addition, the company does not incur the burden of advance taxes and assessment obligation in advance..<\/strong><\/p>\n

 <\/p>\n

Estonia – The best digital society in the world<\/h2>\n

“With the help of e-citizenship, establishing a company, registering it and conducting business can be done completely digitally”<\/p><\/blockquote>\n

In Estonia, almost anything can be done online and the normally rigid operation of the agency is fast and efficient. Bureaucracy takes significantly less time One of the smartest solutions in the world to attract companies is the Estonian e-citizenship project. Some of the services brought by e-citizenship are digital identification, tax payment and encryption and verification of documents.<\/p>\n

Is it legal for a Finnish social media influencer to set up a company in Estonia, even though I currently live in Finland?<\/h2>\n

TRUSTIMIA’S LAWYER RAUL MARKUS ANSWERS:<\/p>\n

\n
\n

\"Trustimia<\/p>\n

“Yes. The EU regulation on the free movement of goods and services within the EU contains the basic principle that companies can offer their services freely in the EU’s internal market, regardless of nationality or the country where the company is located,” explains Trustimia’s CEO | lawyer Raul Markus<\/p>\n

Personal tax liability is always determined according to the owner’s permanent residence, but the company’s taxation is handled according to the laws of its home country. If you are a Finnish citizen and live in Finland, you pay taxes to Finland on the fees you withdraw personally, but Estonian law applies in full to the company’s tax liability. In other words, the Estonian company you own does not pay tax on profits before they are repatriated, for example as dividends. It is for this reason that Estonian corporate taxation makes it possible to use the company’s funds to grow the business significantly better than the Finnish corporate taxation system.<\/p>\n

Trustimia’s lawyer Raul Markus has worked as a lawyer and tax expert in Estonia for more than 20 years. According to Markus: “Previously, at the end of the 21st century, large corporations and listed companies from Finland headed to Estonia, nowadays Estonia’s tax advantages and business-friendly atmosphere are also known among SME entrepreneurs.”<\/p>\n<\/div>\n<\/div>\n

\n

Tax optimization – what does it mean?<\/b><\/h2>\n

Tax optimization is always individual and aims to get the company and its owners the maximum benefit from running the business. Basically, taxes must always be paid regardless of the country, but optimization aims to improve the company’s profit, the amount of dividends, and strengthen the company’s working capital. Optimizing taxation is always profitable and reasonable, and it would be good to take that into account already when setting up the company. Several Start Up companies have already internalized the importance of tax planning from the point of view of investments and external capital.<\/p>\n<\/div>\n

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What does it cost to establish a company in Estonia?<\/h2>\n

Trustimia E-citizenship and limited company package for EU citizens \u20ac480.00 once and \u20ac290.00 \/ year<\/h3>\n

The whole package for setting up and managing an Estonian company completely digitally. The first payment for this package is 480 + 290 = 770\u20ac and the recurring payment after the first year is 290\u20ac\/year. Accounting and software license \u20ac75\/month are billed monthly in accordance with the service agreement.<\/p>\n

The package includes the establishment of an Estonian company (stock company) and the following services:<\/p>\n

Contact person and official address in Tallinn – annual subscription<\/strong>
\nEvery company registered in Estonia must have a local official address, and every Estonian company located outside Estonia, whose board of directors is located outside Estonia, must have a designated contact person, who is the first contact person used by the authorities for the delivery of official documents.<\/p>\n

E-citizenship – assistance in the application<\/strong>
\nAssistance in filling out E-citizenship application forms and answering questions that may arise during the process. (E-citizenship application fee \u20ac100 you must pay yourself)<\/p>\n

Accounting and accounting software license
\n\u20ac75 \/ month. Bookkeeping one hour per month (about 20 receipts) and a software license through which you can send your sales invoice yourself. Additional bookkeeping work, if necessary, \u20ac70\/h.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Company to Estonia – The big ones ahead, the little ones behind #estonianmafia” font_container=”tag:h1|text_align:center” use_theme_fonts=”yes”][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1665857252629{background-color: #1e73be !important;}”][vc_column][vc_row_inner css=”.vc_custom_1511348417220{padding-top: 100px !important;padding-bottom: 100px !important;}”][vc_column_inner][vc_column_text css_animation=”fadeIn”]<\/p>\n

Lue lis\u00e4\u00e4<\/a>\u00a0 yrityksen perustamisesta Viroon<\/h6>\n

[\/vc_column_text][vc_empty_space height=”15px”][vc_custom_heading text=”Trustimia is an expert company offering consulting, financial management and corporate legal services. We specialize in assisting companies in the Baltic market.” font_container=”tag:h3|text_align:center|color:%23ffffff” use_theme_fonts=”yes” css_animation=”fadeIn” css=”.vc_custom_1667838687334{margin-bottom: 35px !important;}”]Take contact<\/span><\/a>[\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_column_text] More and more start-up companies are founded in Estonia instead of Finland, and more and more freelancers have moved […]<\/p>\n","protected":false},"author":5,"featured_media":9083,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[72,22,68,1],"tags":[65],"class_list":["post-9378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles_eng","category-news","category-newsroom-2","category-uncategorized","tag-yritys-viroon-2"],"yoast_head":"\nSome influencer - Why start a company in Estonia | Trustimia<\/title>\n<meta name=\"description\" content=\"Social media influencers are now heading to Estonia. One of Estonia's biggest advantages for entrepreneurs is taxation. 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