Why Estonia is good place for business?

2012 August
This is predecessor of Estonia ranks high in the world for doing business article.

Estonia is the one hundred thirty second smallest country in the world by land mass, yet it produces more start-ups per head of population than any other country in Europe. It has a population the size of Copenhagen but has one of the world's most advanced e-governments.

What is it about this former Soviet state, with an obscure language and unfriendly weather, that produces so many start-ups?

Estonian business world has something refreshing in the air of business world. Estonian start-ups are beginning to break through in the world and many have become favourites in both the eyes of the international media and investors. Estonia companies have been included among the world's best start-up companies.

Map of the Republic of Estonia

What kind of possibilities Estonia offer?

There are two ways of doing business in Estonia: operating as a sole proprietor or setting up a company. In both cases, registration is carried out pursuant to the requirements of the Commercial Code. In order to operate in Estonia, persons from foreign countries may in addition register their companies' branches in the Commercial Register or register their permanent establishment with a regional Service Bureau of the Tax and Customs Board.

Achievments of Estonia

Of the 20 finalists in January's Seedcamp, an entrepreneur-mentoring program, four were Estonian - including the eventual winner, GrabCAD, a social network for engineers which has 10% of the world's mechanical engineers registered.

According to Antti Vilpponen, CEO and cofounder of ArcticStartup, a site that follows entrepreneurship in the region, Estonia has three things in its favor: political leadership, the success of Skype, and its culture.

The data up to 2009 show that, barring a few jurisdictions that specialise in offshore registration, Estonia's entrepreneurial record was the best in the industrialised world. Since then it has done even better. The smallest of the Baltic states has low taxes and Estonian governement has relatively low index of corruption, not to mention high levels of internet penetration and technical education(already mentioned Estonian e-government and much more).

World Bank figures show that registrations of new limited companies were down by 12.1% in the EU in 2009 with no signs of improvement since. But in Estonia over 14,000 enterprises have registered in 2011, 40% more than in the same period in 2008.

Investment in Estonia

If you wish to invest in Estonia or start up a company in Estonia there is to remember foreign investors have equal rights and obligations with local entrepreneurs. All foreign investors may establish a company in Estonia in the same way as local investors; no special restrictions are made.

To register a company in Estonia you must provide all documents submition to the Commercial Register in Estonian or with an appended notarised translation.

Questions

Still wondering why to register a company in Estonia?
-Read "Company registration in Estonia" service description.

Categories: -Company registration -Business -Law -Estonia

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