Doing Business with Estonia

A comprehensive guide to doing business, exporting, investing, and manufacturing in Estonia.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Invest Estonia

Tel: +372 627 9700
Web: www.investinestonia.com

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Estonian Tax and Customs Board

Tel: +372 880 0811
Email: emta@emta.ee
Web: www.emta.ee

National Chamber of Commerce

Estonia Eesti Kaubanduskoda

Tel: +372 604 0060
Email: koda@koda.ee
Web: www.koda.ee

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Economic Affairs and Communications

Phone: +372 625 6342
Email:
info@mkm.ee
Web: www.mkm.ee

  • Type of Government: Parliamentary republic
  • Population: Approximately 1.3 million
  • GDP: Around $37 billion USD
  • Corporate Tax Rate: 20% on distributed profits
  • Personal Income Tax Rate: Flat rate of 20%
  • Major Exports: Machinery and equipment, mineral products, agricultural products
  • Major Imports: Machinery and equipment, mineral products, chemicals

 

Exporting to Estonia involves several steps. Here’s a comprehensive guide:

  1. Conduct Market Research

    • Identify demand for your product in Estonia.
    • Understand local regulations and consumer preferences.
  2. Verify Export Regulations

    • Ensure compliance with your country’s export regulations and Estonia’s import requirements.
    • Check for product certifications or standards needed.
  3. Find Local Partners

    • Establish relationships with local distributors or agents in Estonia.
  4. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure documents meet Estonia’s customs requirements.
  5. Arrange Logistics and Shipping

    • Select a reliable shipping company experienced with European imports.
    • Ensure accurate completion of shipping documents, such as bills of lading.
  6. Customs Clearance

    • Work with a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes required for import.
  7. Distribution and Sales

    • Establish distribution channels within Estonia.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

Importing goods into Estonia involves several key steps. Here’s a detailed guide:

  1. Obtain an Importer’s License

    • Register your business with the Estonian Business Register.
  2. Verify Import Regulations

    • Check if your goods require special permits or certifications.
    • Consult the Estonian Tax and Customs Board for specific regulations.
  3. Classify Your Goods

    • Determine the correct tariff classification for your products.
  4. Hire a Customs Broker

    • Work with a licensed customs broker to handle documentation and clearance.
  5. Prepare Import Documentation

    • Necessary documents include commercial invoices, bills of lading, and certificates of origin.
  6. Arrange Shipping and Logistics

    • Choose a reliable shipping company.
    • Ensure proper packaging and labeling of goods.
  7. Customs Clearance

    • Submit all documentation to the Estonian Tax and Customs Board.
    • Pay any applicable duties and taxes.
  8. Receive Goods

    • Coordinate with your customs broker to receive and inspect the goods upon arrival.

Key Contacts

Incorporating a company in Estonia involves several steps. Here’s a comprehensive guide:

  1. Choose a Company Type

    • Decide on the type of company (e.g., private limited company, public limited company).
  2. Reserve a Company Name

    • Ensure the name is unique and complies with Estonian naming regulations.
  3. Prepare the Articles of Association

    • Draft the company’s articles of association outlining the structure and operation.
  4. Register the Company Online

    • Use the Estonian e-Business Register to submit your application electronically.
  5. Open a Bank Account

    • Open a bank account in the company’s name and deposit the required share capital (minimum €2,500 for a private limited company).
  6. Register for VAT (if applicable)

    • If your company’s turnover exceeds €40,000, register for VAT with the Estonian Tax and Customs Board.
  7. Obtain a Legal Address

    • Ensure your company has a legal address in Estonia.
  8. Submit the Registration Application

    • Submit the application to the e-Business Register along with necessary documents and fees.

Costs

  • Registration Fee: Approximately €190 for electronic registration.
  • Share Capital: Minimum €2,500 for a private limited company.

Key Contacts

Setting up a manufacturing plant in Estonia involves several key steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze local demand and industry trends.
    • Evaluate competitors and supply chain logistics.
  2. Choose a Suitable Location

    • Identify industrial zones with necessary infrastructure.
    • Contact local government or industrial parks for available sites.
  3. Understand Legal Requirements

    • Familiarize yourself with investment laws and regulations.
    • Ensure compliance with environmental and safety standards.
  4. Develop a Business Plan

    • Prepare a detailed proposal outlining your investment, objectives, and operations.
    • Include financial projections and environmental impact assessments.
  5. Register the Business

    • Register your company with the Estonian e-Business Register.
    • Obtain necessary licenses and permits for manufacturing.
  6. Secure Financing

    • Explore funding options through banks or investment agencies.
    • Consider government incentives for manufacturing.
  7. Design and Construct the Facility

    • Hire architects and contractors familiar with local regulations.
    • Ensure compliance with building codes and safety standards.
  8. Install Equipment and Machinery

    • Import necessary machinery, ensuring compliance with local regulations.
    • Coordinate with customs for smooth importation.
  9. Obtain Necessary Permits and Licenses

    • Apply for industry-specific licenses and permits.
    • Ensure compliance with health and safety regulations.
  10. Recruit and Train Staff

    • Hire local talent and provide necessary training.
    • Work with employment agencies for assistance.
  11. Begin Operations

    • Ensure all systems are in place and test the production line.
    • Implement quality control measures.

Key Contacts

Registering a trademark in Estonia involves several steps. Here’s a comprehensive guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique and not already registered.
    • Use the Estonian Patent Office database for the search.
  2. Prepare Your Application

    • Include details such as the trademark design, classification of goods/services, and applicant information.
  3. Submit Your Application

    • File the application with the Estonian Patent Office.
    • Applications can be submitted online or in person.
  4. Pay the Application Fee

    • Fees vary based on the number of classes. Check the current rates on the Estonian Patent Office website.
  5. Examination Process

    • The office reviews the application for compliance and potential conflicts.
    • Respond to any objections or requests for additional information promptly.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition. There is a period for third parties to challenge the registration.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered. You will receive a certificate of registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for 10 years and can be renewed. Submit renewal applications before expiry to maintain protection.

Costs

  • Application Fees: Vary based on the number of classes. Visit the Estonian Patent Office website for details.
  • Legal Fees: Optional, depending on whether you use legal services for application preparation.

Key Contacts

Resolving commercial disputes in Estonia involves several steps. Here’s a guide on the process:

  1. Attempt Negotiation

    • Begin by negotiating directly with the other party to find an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions.
    • Mediation is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration as a private dispute resolution method.
    • Provides a structured approach with binding decisions.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in Estonian commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate court.
    • Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case.
    • Follow the legal procedures as guided by your attorney.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Estonia, it’s important to understand various influential factors. Here’s an overview:

Social and Cultural Factors

  • Language and Communication
    • The official language is Estonian, but English is widely spoken in business.
    • Building relationships and trust is crucial in business dealings.
  • Business Etiquette
    • Punctuality is highly valued.
    • Direct communication is appreciated.

Political Environment

  • Government Structure
    • Estonia is a parliamentary republic.
    • Known for political stability and a transparent regulatory environment.
  • Regulatory Environment
    • Supportive of entrepreneurship with efficient e-governance systems.

Economic and Foreign Exchange Factors

  • Currency
    • The official currency is the Euro (EUR).
    • Stable economic environment with minimal foreign exchange restrictions.
  • Investment Climate
    • Attractive for foreign investors, especially in technology and innovation sectors.

Rule of Law

  • Legal System
    • Based on civil law.
    • Strong protection for property rights and contracts.
  • Intellectual Property
    • Comprehensive IP laws with effective enforcement.

Infrastructure

  • Transportation and Logistics
    • Well-developed infrastructure with efficient ports and road networks.
    • Digital infrastructure is highly advanced.

Relevant URLs

Our Members Include Leading Organizations in Estonia

Ask our Experts on Doing Business in/with Estonia

If you’re looking to do business or invest in Estonia, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.