New rules for share capital in Estonia

May 31, 2023 | Business, Estonia

Estonia has taken an important step towards promoting a business-friendly environment by lowering the share capital requirements for company formation. In this blog post, we will go over the updated regulations, benefits and key steps in setting up a company in Estonia with a minimum share capital of 1 eurocent. Take advantage of the opportunities offered by this progressive jurisdiction and start your entrepreneurial journey effortlessly.

Minimum share capital

Previously, share capital requirements in Estonia were higher, creating an obstacle for aspiring entrepreneurs. However, with the recent changes, individuals can now start a business with a minimum share capital of only 1 eurocent. This reduction eases the financial burden associated with starting a business for start-ups and small businesses.

Inclusive shareholder structure

Estonia takes a flexible approach to the shareholder structure, allowing both natural and legal persons to become founders of a company. This inclusiveness fosters a diverse entrepreneurial ecosystem and encourages cooperation between individuals, organisations and even international investors.

Streamlined registration process

The registration procedure for business start-ups in Estonia has been simplified. The traditional requirement to draft a memorandum and articles of association has been replaced by the standard articles of association available in the e-Business Register. This simplification makes for a faster and less complicated registration process, allowing entrepreneurs to focus on their business ideas.

Indispensable Board Members

To ensure efficient corporate governance, every Estonian company must have a board members. The board represents the company and is responsible for day-to-day operations. By appointing a competent and dedicated board, companies can promote effective decision-making and ensure compliance with legal obligations.

Filing the annual report

As in any other country, Estonian companies are required to submit an annual report. This report provides an overview of the company’s financial performance and is essential for maintaining transparency and accountability. Compliance with this requirement helps to build stakeholder confidence and demonstrate the company’s commitment to responsible financial management.

Estonia’s reduced capital requirement of 1 eurocent has opened doors for entrepreneurs and made business start-ups more accessible and affordable. Through this simplified process, aspiring entrepreneurs can start their business with minimal financial burden and benefit from the supportive business environment in Estonia. Start your entrepreneurial journey today, take advantage of the simplified registration process and discover the exciting opportunities Estonia has to offer. Contact us at BBCTallinn for expert advice and support throughout the business start-up process and to ensure a smooth and successful start-up of your business in Estonia.

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