Purchasing an Estonian Company
Purchasing an Estonian CompanyUpdated on Tuesday 05th May 2020
What is an Estonian shelf company?
Shelf companies in Estonia are previously registered companies that had no activity and were “put on a shelf” to age. The purchase of a shelf company in Estonia has become very popular because it is incorporated and VAT registered allowing its new owner to start operating as soon as possible.
The most common type of Estonian shelf company is the limited liability company.
Purchasing an Estonian shelf company
An Estonian shelf company has been registered previously but it usually has no nominee director or shareholders and hasn’t made any transactions, or concluded any contracts. Another important aspect is that when purchasing a shelf company in Estonia the new owner must open a bank account and must also have a registered office. The purchase process takes one day and the new owner only needs an ID and the purchase procedure will take place in front of a notary public. After the purchase has been made, the new owner can start using the shelf company in the same day. Registering an Estonian company with the Commercial Register will take about 5 working days; during this time the new owner needs a power of attorney in order to have representation with the competent authorities. Once the purchase has been made, the new owner can change the name of the company, the activity purpose; name a director and the shareholders.
Advantages when buying a shelf company in Estonia
If you want to invest in Estonia by buying an Estonian shelf company you should know that the main advantage you have is the time saving procedure, as the incorporation of a new company in Estonia takes longer than changing ownership of a ready-made company. The minimum share capital a company requires is 25,000 euros that have been paid in full when the company was first registered. It only requires an owner and a director that can also be foreign.
The new owner of a shelf company in Estonia can benefit from corporate longevity that can improve the company’s image and attract more clients; the owner can also add or create a history to the new business and can benefit from bank loans with financial institutions that may require a history of incorporation. Also the Estonian tax system efficiency will help the new owner to maximize his or her profits.
If you want to start a new business or purchase an already-registered one, our law firm in Estonia can provide you with the suitable solution. Our lawyers can also help you in other corporate matters, such as trademark registration or VAT registration.