Nuances of business in Estonia: a new firm or a firm with a history?

Do you know how to become a business owner in Estonia? We will help you choose the best option for you.

Starting a new business in Estonia, as in any European country, always raises questions: how to open a business, which tax system to choose, how to properly withdraw cash from a current account, and other issues related to accounting and tax accounting. In our article today, we will consider the question of which company to choose: new or with a history.

How can I become a business owner in Estonia?

There are two of them:

• opening a brand new company;
• purchase of an existing one (either on the shelf or with a history).

Let’s look at these two options, their advantages and disadvantages, and how you can minimize or prevent existing risks.

1.A new company and what will you have to face along the way?

For a foreign entrepreneur, the process of creating a new company will take no more than one working day — the procedure is fast and easy in any case!
⠀
Especially if you take care of acquiring the right of e-citizenship. After all, if you are an “e-resident”, then with the help of a “digital card”, you will be able to sign documents and
encrypt files.

This will help you start your own business in Estonia-within a few days or even hours at most. There is a precedent when a business was registered in this way in 18 minutes and 3 seconds.

2. Acquisition of an existing company.

• Here you can go along two paths, one of which is the acquisition of a shelf company or a company that was already established some time ago, but which did not operate, and therefore does not have debts, and unpleasant surprises in this regard will be minimal.
• The second way is the acquisition of a company with a history, i.e. an enterprise that conducted business activities earlier, has a reputation, and therefore the new owner will be able to take out a loan and find new business partners more easily. The disadvantages of this action include higher risks associated with a higher market value of such an enterprise, as well as possible debts and hidden obligations that such an enterprise may have.

⠀
In order not to make a mistake at the stage of creating or acquiring a business in Estonia, you will most likely need the help of qualified specialists. So you will be able to understand on
what you should pay attention to in order to save your money, time and nerves in the future when working in the Estonian market.