Local business incentives
| Estonia appears to be one of the most liberal countries of Central and Eastern Europe. Since the independence in 1991, the country has built up a stable economy based on a series of privatisations, stable currency, setting up and foreign investments incentives. Estonia signed agreements with the European Union countries and other European countries. The Estonian Investment Agency (EIA) is a governmental organisation which assists and encourages investments promotion in Estonia. To get further information on aids granted, the EIA should be contacted.
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Legal forms of companies
| Form |
Number of partners/shareholders |
Minimum and/or maximum capital |
Liability |
Registration fee |
Release of financial documents |
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Individual Private Entrepreneur is a sole proprietorship.
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1 person.
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No minimum capital.
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Liability is unlimited.
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EKK 500.
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No
|
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Osauhing is a Private Limited Company.
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Minimum 2 partners.
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Minimum EEK 40,000.
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Partners' liability is limited to amount contributed.
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Maximum EKK 20,000
|
No
|
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Aktsiaselts is a Public Limited Company.
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No minimum.
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Minimum EEK 40,000.
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Partners' liability is limited to the amount contributed.
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Maximum EKK 40,000
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Yes
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Taisuhing is a general partnership.
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Minimum 2 partners.
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No minimum capital.
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The General Partner is personally liable with no limitation for debts and obligations of the company.
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0.2% of the registered capital with EKK 3,000 minimum fees.
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No
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Usaldusuhing is a limited partnership.
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Minimum 2 partners.
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No minimum capital.
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Liability is unlimited for at least one partner.
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0.2% of the registered capital with EKK 3,000 minimum fees.
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No
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Registration and licensing procedures
All documents must be drawn up in Estonian. When a translation is required, legalisation from the Estonian Embassy is required.
Status have to be delivered, within six months after signature by the founders, with the Trade Register where the company is going to be located. Two to three weeks are necessary to carry out all the constitution's formalities.
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Foreign exchange control
As for currency exchange regulations, free conversion of currencies is carried out as well as the right to transfer profits and capital with no limitation or period of time.
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Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Estonia. However, it is possible to get information directly from the Estonian Agency of Investment which is the unique body with the aim of informing foreign investors.
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FDI inflows in Estonia
| FDI inflows (millions US$) |
2000 |
2001 |
2002 |
World rank |
| Foreign Direct Investments (F.D.I.) |
284
|
891
|
926
|
64
/ 196 |
| Sources : UNCTAD Database FDI/TNC |
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Last modified in
December 2003
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