Estonia – Branch

Introduction to setting up a branch in Estonia

Estonia’s relatively relaxed business environment makes it popular for foreign investment, but there are certain rules to abide by when setting up a branch. All company formation and business proceedings are regulated by the Commercial Code and so you must adhere to this when establishing a branch in Estonia.

What are the accounting requirements for an Estonian Branch?

The branch must apply to the National Tax and Customs Board for VAT registration. VAT taxation is subject to annual turnover; turnover exceeding €16 000 is VAT payable. VAT returns should be filed monthly.

Annually audited accounts must be submitted to the Commercial Register and an annual tax report must be filed with the Tax and Customs Board.

The branch must set up and maintain an Estonian bank account in accordance with the Estonian Accounting Act.

What are the formalities regarding Estonian branches?

– A copy of the parent company’s Certificate of Incorporation
– A copy of the Memorandum and Articles of Association of the parent company
– A copy of the parent company’s Certificate of Good Standing
– A registered office
– The authorisation document certifying the authority of the Estonian branch representative – to be an Estonian resident with active legal capacity
– At least one company director must be an Estonian, Swiss, or EU resident
These documents are required for registration of the branch with the Estonian Commercial register.

All documentation provided must be notarised, apostilled and translated into Estonian by a certified translator.

What office facilities are available when registering a branch?

There are two main types of office available in Estonia:

– Virtual, including off-site telephone, fax and mail forwarding facilities to maintain the business professionalism of a physical office

– Serviced, including all business services necessary for the branch and ready for immediate occupation

Taxes

A summary of Estonian Corporate Taxes is available here.

We will handle every aspect of the branch formation for you. Using our expert knowledge we can offer a branch formation package in which we take care of branch registration, issue of the certificates of registration, local directors, local representative and place of business in Estonia, tax registration, VAT registration, and translation of documents (if required).

Our unique one stop solution for all European formation requirements also offers formation packages to set up multiple branches. The benefits for establishing multiple branches include further increased exposure and global presence, and we can organise everything for you.

A summary of Estonian Corporate Taxes is available here.