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Open Bank Account Estonia

Opening a Bank Account in Estonia

Updated on Monday 09th August 2021

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For investors wanting to open a company in Estonia it is necessary to know they must have an Estonian bank account as well. Opening a bank account in Estonia is a straight forward process that will offer multiple benefits to its owner.
 

Documents required for opening a bank account in Estonia
 

In order to open a bank account in Estonia, the following documents must be provided in cases of legal entities:
  • Copies of identification documents (ID card or passport) of the company’s shareholders and directors;
  • Specimen signatures of the directors of the company;
  • Copies of the Articles of Association of the Estonian company;
  • Copy of the Certificate of Incorporation of the company obtained from the Estonian Trade Register;
  • A certificate of good standing issued by the Trade Register;
  • Specific application forms provided by the bank.
It is also important to know that Estonian banks will ask the reason for opening the bank account.
 
Individuals are also allowed to open bank accounts in Estonia through a very simple online procedure. In order to open an Estonian bank account a person must provide a valid identification document, the invoice numbers after paying the fee for setting up the bank account, a telephone number, a valid address where mail can be sent to and an e-mail address.
 
You can read about the opening of a bank account in Estonia in the infographic below:
 
Open a Bank Account in Estonia.png
 

Advantages of opening a bank account in Estonia
 

According to the Estonian banking law, banks will provide secrecy to their clients. The fees for setting up the account, the maintenance or closing a bank account are cheaper in Estonia than in other European countries. The Estonian bank system provides modern internet services that can be used for bill payments, money transfers or to check the account balance. Estonian banks also emit credit or debit cards to their clients. One important advantage of the Estonian banking system is that it allows clients to open an account in foreign currencies. Our lawyers can definitely help you open a bank account in Estonia.
 
Opening a bank account is an essential step for all foreign nationals who wish to immigrate to Estonia.
 

Types of bank accounts in Estonia
 

Businessmen who want to open a bank account in Estonia should know that there are several types of bank accounts individuals and legal entities can open in this country. The main types of accounts are:
  • The current account that will allow the client to manage day-to-day finance through any banking channel;
  • The start account that must be set up on company incorporation in Estonia;
  • The securities account for companies that want to trade their shares on the stock exchange;
 

What commissions you must pay in order to open a bank account in Estonia?

 
In order to open a bank account in Estonia, the owners of a company must pay the following types of commissions: 
 
• commission-fee for setting up the Estonian bank account
• maintenance / administration fee - usually charged yearly or monthly; 
• commission-fees for every money deposit or withdrawal 
• commission-fee for closing the account.


Banking Law in Estonia

 
Estonia’s banking system is mainly based on the Banking Law that comprises several regulations in order to ensure the correct functioning of the country.  Investors who would like to open a bank account in Estonia should know that the most important law on banking in this country is the Law on the Bank of Estonia (Eesti Pank Act).
 

The Bank of Estonia (Eesti Pank)
 

Eesti Pank or the Bank of Estonia is the central bank of the country.  Estonia is a member state of the European Union, so the main role of the Estonian Central Bank is to regulate and enforce the monetary policy of the European Central Bank.  Eesti Pank must also keep and manage foreign exchange and ensure economic stability of the country.  Estonia uses the currency board system to administrate the exchange rate. The Estonian kroon can be easily converted therefore free movement of capital is possible. The Estonian currency board is a system based on very strict regulations. According to the currency board, the Estonian Central Bank is required not to lend money to the government, while the Estonian Kroon Act prohibits Eesti Pank to deflate the exchange rate of the kroon (in Estonia 1 EUR= 15,6466 kroons).  The most important monetary policies enforced in order to ensure the financial stability of the country are the continual possibility to buy and sell foreign currency and the requirement for commercial banks to always have a reserve of money.
 

Financial institutions in Estonia
 

All banks provide the same financial services for local and foreign individuals or Estonian companies. One of the strongest points in Estonia’s banking system is the electronic transaction network, as the number of financial transactions done online is rapidly increasing. International banks also work together with other financial institutions or mobile operators in order to provide new modern solution for their customers. Commercial banks in Estonia play a key role in providing leasing and factoring services, as during the last years, interests have decreased in order to attract more clients. The factoring services offer domestic, export, invoice services, and for foreign companies they even include managing the accounts receivable registers for their local businesses.
 
Investment institutions in Estonia offer different types of investment funds, contractual funds and pension funds being among the most popular, while the Estonian Central Security Depository offers public limited companies the possibility to register their securities.
If you want to set up a business and need details on how to open a bank account in Estonia please feel free to contact our Estonian lawyers.