Here are some of the most frequent questions our clients have asked.

What is e-Residency?  

Estonia is the first country to offer e-Residency, a government-issued digital identity and status that provides entrepreneurs with access to Estonia’s transparent digital business environment. You can find out all about e-Residency, who can apply, how to apply etc. directly on the e-Residency webpage – https://e-resident.gov.ee/become-an-e-resident/

In case you need help with your application, our team can also gladly help you with the process.

What are the benefits of e-Residency?

Starting an EU company

  • Registering an EU-based company entirely online
  • Accepting online payments through providers like PayPal
  • Owning your company without the need to appoint a local director

Location-independent business

  • Starting a company 100% online from anywhere in the world
  • Travelling and operating your business remotely
  • Moving abroad without the need to re-establish your company

Growing your business remotely

  • Signing, authenticating, encrypting and sending documents digitally
  • Declaring business taxes online
  • Accessing EU Single Market and cross-border capital

Being a part of a global community

  • Networking with e-Residents across 165+ countries
  • Connecting with service providers in a growing marketplace
  • Discovering new ways to grow your business

What services does Silva Hunt offer?

Silva Hunt is an e-resident company service provider for advanced businesses and entrepreneurs who are looking for a hassle free business environment. If you want easy access to the European single market, a stable jurisdiction and an advanced digital, paperless and location independent company structure, we can gladly help you out. The limitations of other service providers are just our sweet spot: advanced business models with demanding requirements.

Do you support holding companies?

Yes. You can also read more why it is a great idea to have a holding company in Estonia –

Do you support e-resident companies whose business in e-commerce?

Yes. We have a lot of clients in e-commerce, Amazon FBA etc. E-Residency can be a great solution to make it easier for online sellers. There are some complex EU VAT regulations in place that e-commerce sellers have to take into account, for example omplext VAT regulations difficulties finding the right country to establish a company, issues with high incorporation costs, large amounts of bureaucracy etc. However, there are also many benefits running an Amazon FBA business in Europe with an Estonian company.

  • It is much more cost-effective incorporate in Estonia, compared to most of the other EU countries. Also, lower administration costs compared to other EU countries
  • No paperwork, no bureaucracy, and no local director that has control over your company. You have full control over your company and its activities
  • 0% corporate tax on non-distributed profits (if you owe taxes in Estonia)
  • The online state system RIK allows you to access and monitor your company’s registration files with transparency
  • Remote business management via many digital solutions, including digital signatures.
  • Shared capital payment for a ‘Private Limited Company’ is just 2,500€ and are not compulsory to be paid when first starting off.
  • Last, but not least – you can grow your company with the help of the the e-resident community where experienced and like-minded entrepreneurs around the world with Estonian companies are happy to  share valuable information with each other.

Do you support companies who are dealing in cryptocurrencies?

Unfortunately not.

Do you help e-resident companies obtain necessary licenses? Absolutely. There are some business activities that are subject to special requirements and you will need to submit a notice of economic activity or apply for a business license. If applicable, you will need to obtain the necessary licence before you begin business activity. These business activities include areas like tourism, finance and financial activities, labour market, management consultancy or insurance that require a license according to the laws of Estonia. We will gladly help you obtain the necessary information documents and go through the necessary procedures with you.

You can also find a list of licenses and economic activities in the State Portal.

Another option to check which area of activity requires a license or a notice of economic activity, is to use the EMTAK Search. After you find your business activity, scroll down to expand the Details section and check for special requirements.

Do you accept e-resident companies who would like to come over from another service provider?

Yes. We understand that sometimes your previous service provider does not match the expectations of your business anymore or does not offer all the services that your company might need. We will help you with the transition process, and assist you in gathering all the necessary data that you need to take with you. NB! Transferring from one service provider to another can be done anytime, but it is easiest to do in the beginning of the fiscal year.

What is an annual report?

The annual report is a financial document that gives an overview of the company’s financial position and financial performance. The size of your company and its business activities also decide the length and content of the annual report.

Who has to submit it?

Every company registered in Estonia (including companies registered by e-residents) has to submit an annual report of their business activities to the Business Register, according to the Commercial Code (see § 60). The report has to be prepared in Estonian and in the official currency (EUR). NB! Even if your company has no transactions or has been dormant, the annual report still needs to be submitted.

When is the deadline?

The deadline is within six months of the end of the financial year. Generally, the financial year is defined as a period between 01.01-31.12 of each year, which means that the deadline for submitting the annual report is June 30. NB! The deadline has been extended in 2020 due to the COVID-19 crisis. The new deadline is 31 October 2020.

What happens when a company misses the deadline?

It might happen that a monetary fine is issued to the company without a warning if the annual report is not submitted on time or is not submitted at all. In case the annual report is not submitted within 6 months after the deadline has passed, supervision proceedings will be initiated which could end in the compulsory dissolution of the legal person.

What has to be included in the annual report for an active company?

This also depends on the company size.For larger companies, the annual report must contain the annual accounts (balance sheet, income statement, cash flow report and statement of changes in equity, plus annexes) and management report.

However, the vast majority of e-residents’ companies will most likely fall within the definition of a micro-enterprise and therefore only need to submit an abridged annual report. A micro-enterprise is a private limited company or Osaühing („OÜ“) complying with all the criteria described below:

  • total assets do not exceed EUR 175,000;
  • revenue does not exceed EUR 50,000;
  • total liabilities do not exceed total equity; and
  • one shareholder who also acts as a member of the Management Board.

For micro-enterprises, only two basic reports must be added to the annual accounts (balance sheet and income statement plus up to three annexes). Compiling a management report is not necessary.

How to use RIK (Company Registration Portal) to submit your annual report?

The e-reporting environment of the Company Registration Portal is a solution established for electronic submitting of annual reports; its use requires logging in with the ID card or mobile ID. The reporting environment allows preparing the main reports and the notes, adding notes and documents, digitally signing the annual report or printing and signing it on paper, and also allows the sworn auditor to prepare the sworn auditor’s conclusion and to certify it electronically.

You can submit your report in RIK here: https://www.rik.ee/en/company-registration-portal/annual-report

A detailed step-by-step guide how to enter the data into RIK portal –https://abiinfo.rik.ee/uploads/files/Electronic%20submission%20of%20annual%20account20150622.pdf

Who is allowed to use the RIK portal and submit the report?

Access for electronic submitting of annual reports and its notes is allowed for the following persons: Board Members, general partners, limited partners with the right of representation, subsidiary managers, liquidators and bankruptcy trustees. At the same time, a person with the right of representation may grant e.g. the accountant(s) the right to enter and submit a report. The accountant can enter the data, keep an eye on the signing of the annual report, and observe when the auditor signs the auditors’ report. After all necessary actions are completed, the accountant being granted the right to submit the annual report can submit the report to the registry. A Board Member can add the sworn auditor before preparing the report, so that the sworn auditor can observe the entry of data, or during the preparing of the report or only after all persons with the right of representation have signed the report.

How can your service provider help you with the annual report?

Most e-Residency service providers should help you with your annual report – some offer it for an extra fee. When you are a customer of Silva Hunt, submitting the annual report is already included in our service fee, so all you have to do is make sure we have all the correct information and documents to submit it.

Useful links:

https://learn.e-resident.gov.ee/hc/en-us/articles/360002569617-Accounting

https://medium.com/e-residency-blog/its-annual-report-season-4adaf49cc5e2