FREELANCE-company

FREELANCE‑company

One member company registration in Estonia and monthly accounting.

FREELANCE-company
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(*1) All company members must be e-Residents.
(*2) Registration subject to subscription to a monthly accounting plan.
(*3) Read the conditions of the fixed monthly fee of 79€(+VAT).

COMPANY REGISTRATION

Opening your FREELANCE-company in Estonia is now easier than ever! Just complete some simple steps in our online assistant. The registration fee of 390€+VAT includes:

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Company Registration

BUSINESS BANK ACCOUNT

Once the company is registered our expert team will help you choose the best banking solution for you and guide you through the process of opening a bussiness bank account.

COMPLIANCE, ACCOUNTING AND TAXES

We take care of your accounting, salary and dividends taxes, VAT reports, and the annual activity report at the end of the year. The monthly service includes:

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MANAGE YOUR COMPANY

Control every aspect of your company 100% online thanks to our exclusive online management tool Companio for e-Residents.

Companio For e-Residents

FAQs

In order to enjoy the benefits of the FREELANCE plan every month…

  • There can only be one member in the company
  • You can only have one bank, and it needs to be one of the automatic banking solutions available: Transferwise or LHV currently.
  • You can only have one payment gateway, and it needs to be one of the automatic payment gateway solutions available: Stripe or Mollie currently.
  • You can have up to 20 invoices a month (sales + purchase invoices).
  • You need to match all your bank movements and invoices by the 5th of the next month.
  • You can’t have employees, but you can use freelancers and subcontract work, as long as these freelancers can invoice you.
  • You have only Employee Salary, so you don’t have access to Daily Allowance for your trips.

If any of these conditions is not met one month, you will be charged according to the REMOTE-company plans, based on your number of invoices. For example, if one month you have more than 20 invoices, or you don’t match all invoices and bank movements, you will be charged according to the accountancy plan of the REMOTE-company product. If you want to overcome some of the limitations of the FREELANCE product (using a different bank, having employees, or adding new company members) you need to contact us to switch to the REMOTE-company product.

  1. All members must be e-Residents. See how to apply and the list of pick up locations  (obtaining your e-Residency pack takes 3-4 weeks on average and costs 120€).
  2. Register your company in minutes with our online assistant (activation of the company usually takes less than 72 working hours).
  3. Apply for your company bank account thanks to the help and advice of our support team in any of the 4 banking solutions available to FREELANCE-company. Verifying your bank account typically takes 5 days on average.
  4. In order to make your accountancy, you should link your bank account in Companio and upload your sales and purchase invoices each month.

The support team will always be there, helping you throughout the process. Thanks to Companio and our accountancy team you will have all the support your business needs.

The e-Residency program is open to any citizen of the world, regardless of your nationality or country of residence.

The main requirement to open your REMOTE-company in Estonia with us is that your business is completely digital. If you are the only partner, you must ensure that your country of citizenship or residence cannot claim that your company has its permanent establishment there. If you are a freelancer, a digital nomad, a startup, an international company or you travel regularly without a permanent establishment, the e-Residency program has been designed for you.

In addition, we only work with companies formed by individuals who are e-Residents. We don’t accept corporate shareholders. That is, we do not allow other companies as shareholders, or holding structures.

Please read our Acceptable Use Policy for more details regarding the types of business activity we support and the types of activity we do not support.

The company registration price for a FREELANCE-company is a single payment of 390€ + VAT for a one-member company (+50€ + VAT per additional partner). All company registration products include Company Registration + Virtual Office + Legal Address + Person of Contact + Employees + Board Member Registration + VAT Number Application + European VIES Registration (not all business models are eligible for VAT number and VIES registration) + Bank Account Opening Support.

All company registration products are subject to the subscription to a monthly accountancy package, whose price is 79 € / month + VAT, and includes accountancy, taxes and VAT reports, customer support, and access to our company management tool Companio. This rate is subject to conditions.

There are two options: dividends and salaries. Dividends are issued usually at the beginning of the financial year, and paid to shareholders. Salaries are usually paid every month, and can be paid to members of the board or any other employee, including also the shareholders.

In this article, you can see how to pay salaries to members of the board or other employees.

Estonia is an European country, and as such, you may become VAT liable and obtain a VAT number to deal with other European businesses. When you open your company in Estonia with us, we can apply for your VAT number and register you in the VIES registry. Not all business models are eligible for a VAT number. For example, dropshipping/FBA companies won’t get a VAT number.

Regarding taxes, the good news is: you will not pay any taxes for the money your company earns, spends in deductible expenses, or re-invests in the business. This means that all the money that goes into the bank account of your company and stays there or is spent in business expenses is virtually tax-free.

You only pay taxes for the profit that is distributed out of the company via dividends or salaries.

In this article we explain VAT and taxes for Estonian companies in detail.

The justifiable or deductible expenses are those that are required for the activity company. They are paid by the company and deducted as a business expense. Thanks to the innovative Estonian tax system, these expenses are exempt from taxes. They are considered money that gets reinvested in the company.

What are those deductible expenses? Is there a rule to know if a expense is deductible or not? We explain everything in detail in this article.

FREELANCE-company

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