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Estonia

Estonia’s economy has boomed in recent years as it has pursued a liberal business agenda in preparation for EU membership which was finally achieved in 2004.

Foreign investment has flooded into this small Baltic state enabling it to create a relatively relaxed environment for the international business community.

However Estonia is still developing and investors should tread carefully. It is particularly important here to seek professional advice on all legal, financial and tax matters.






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There are two main kinds of business entity in Estonia:

• Public Limited Company - Aktsiaselts (AS), with minimum share capital of EEK 400,000 (€25,500).

• Private Limited Company – Osaühing (OÜ), with minimum share capital of EEK 40,000 (€2,550).

Estonia operates one of the most liberal foreign trade regimes in the world, with virtually no tariff or non-tariff barriers.

This approach has been carried through into the wider regulatory arena. The local currency, the Estonian Kroon (EEK), is pegged to the Euro and is fully convertible on current account and capital account transactions.

Capital and earnings can be freely repatriated. Estonia has no exchange controls or restrictions on foreign investment.

The amount of foreign capital that can be invested in an Estonian business enterprise is unlimited and companies can be in full foreign ownership.

However, tax regulations must be strictly adhered to and there are severe penalties for infringement.