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Estonia is well known with its highly developed IT solutions in both public and private sectors and unique income tax system for legal entities. It is possible to register online a new legal entity (private limited company: osaühing: without making contributions for the shares upon foundation) in approximately 5 minutes and start doing business.
As to the income tax system of legal entities, the taxable event has been shifted from the retained earnings (as classical systems do) to the moment of distribution of profit.
However there are a number of issues which you must consider when you are looking to set up your business in Estonia. This document takes you through some of the common questions we come across and gives you practical information about the issues you need to consider.
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