Frequently Asked Questions - Sunny Business Services

  • E-Residency
  • Company
  • Banking
  • Taxation
  • Misc
  • What is e-Residency ?

    A government-issued digital identity that facilitates to register, establish, operate and manage an EU-based company from anywhere in the world. E-Residency provides freelancers, consultants, digital nomads, solo-entrepreneurs and other digital entrepreneurs access to Estonia’s e-services and transparent business environment.

    Here’s why Estonian companies have high levels of transparency by Adam Rang:
    https://medium.com/e-residency-blog/heres-why-estonian-companies-have-high-levels-of-transparency-3de97ce631ed

  • What can e-Resident do with digital identity ?

    Your electronic ID is key to all the Estonian e-services that require authenticaion. Holders of e-resident’s card can sign documents digitally and log into every portal and access every information system that accepts Estonian ID-card.

    E-residents can establish a company in Estonia over the Internet and actively participate in managing it while living abroad. E-residency also makes management easy for entrepreneurs who have already invested and created a company in Estonia.

    Thanks to e-Residency, entrepreneurs from outside the European Union will have a chance to conveniently establish a company in Estonia and organise management within the European Union.

    e-Residency digital ID can be applied at https://e-resident.gov.ee/

  • Why can't I login or sign with my e-residency card ?

    Most commonly one of the following steps will fix it. Make sure you have inserted your ID card into computer. Start from the first step and continue to next steps until login succeeds:

    • Clear cache of your computer
    • Try using different browser. Chrome, Internet Explorer, Mozilla Firefox should all be good
    • Make sure that your browser has Token signing function enabled
    • Make sure you have installed DigiDoc4 app on your computer.
      Available for downloading at https://installer.id.ee/?lang=eng)
    • Open DigiDoc4 app, go to My eID,  see if you get a green messages and it says your certificates are valid. Then go to Settings, in the bottom of the  opened window try removing old certificates, and then Refresh configuration
    • Try different computer, and when neccessary repeat the previous steps
    • Run the guide at https://www.id.ee/index.php?id=30475

    We advise all e-Residency card holders to get also Mobile ID or a Smart ID for smoother user experience.

    More e-Residency information available at https://e-resident.gov.ee/.

    Detailed Businss Guide for e-residents:
    https://e-resident.gov.ee/wp-content/uploads/2019/11/Business-Guide-for-e-Residents-1.pdf

  • What is OÜ and what is MTÜ ?

    An OÜ (abbreviated Osaühing), is a Private Limited Company that has its share capital divided into private limited company shares and must have a management board (one or more members), which means a directing body that represents and directs the company. The registered share capital of OÜ without immediate contribution can be in the range of €2500 and €25000. With immetiate contribution the share capital can be more than €25000.

    If more than half of the board members do not reside in Estonia, the company must report a contact agent and address in Estonia (Virtual Office and Authorized Contact Person), as well as his / hers residency country address and e-mail address.

    A MTÜ (abbreviated Mittetulundusühing), is a Non-Profit Organization; charitable organizations that are based on voluntary individuals joined for the public interest. The MTÜ can enter into contracts with the Republic of Estonia and other legal and natural persons if it concerns necessary commercial and/or financial activities related to the MTÜ. The organization cooperates with the state, educational and cultural institutions, as well as other companies and organizations interested in activities of the MTÜ. This type of entity does not have share capital not shareholders. Highest management powers are held by its members.

    Let your Sunny days begin, add to the cart the Company Registration service and become a client!

    We are happy to provide more detailed and personalized information to our registered customers. If you have an inquiry or want to register, please contact our agents at corporate@sunnybusiness.ee.

  • When does my company’s fiscal year start ?

    Fiscal year usually starts from the immediate next month of when your company was established. E.g.:  Company’s establishment date: August-18-2019 therefore company’s fiscal year: September-01 to August-31. However, the fiscal year can be set with different 12 month period, as well as to match the calendar year.

  • How to choose the activity code and can it be changed later?

    When incorporating the company, only one activity code can and must be reported at the time of registration. This code should represent the activity that the company mostlikely will have mayority of the income from. The code will be adjusted if neccessary, at the time of each closing of the fiscal year with annual report/tax return. Activity code is based on NACE system.

  • Can company do business in more than one acitvity ?

    Yes. The same company can simultaneusly operate in various business fields with different acitvity codes. At the time of company registration just one activity code is reported, the one which is expected to have highest percentage of total activity. All activities with respective codes will be reported at the time of each closing of the fiscal year with annual report/tax return.

  • I am an e-Resident, how do I start operating my business ?

    To start operating your company, you will need to sign up for Virtual Office and Authorized Contact Person services, if you are not based in Estonia. You may also need help with bookkeeping, legal matters and business banking in Estonia and European Union. Luckily, we are good to help you with all of them!

    Let your Sunny days begin, add to cart the Company Registration service and become a client!

    We are happy to provide more detailed and personalized information when you’re already running your business with us. To register as a Sunny Business costumer, please contact our agents at corporate@sunnybusiness.ee.

  • What are Virtual Office and Authorized Contact Person for?

    Any Estonian registered company whose management is located outside Estonia, must appoint a licensed local agent (company) as an “Authorized Contact Person”. The address of your contact person will be an Estonian physical location and e-mail address of your company, where authorities and other parties can contact the company. The place of your company management must be reported separately, which usually is your office or home address.

    Add your Virtual Office and Authorized Contact Person services to your cart and start operating your e-company!

  • What does Virtual Office services include ?

    Virtual Office services include:

    • Address of correspondence
    • Digitalization
    • e-mailing
    • Mail forwarding
    • Archiving of mail for up to 12 months
    • Delivery of originals to designated location
    • Basic secretary services

    Add your Virtual Office service to your cart and start operating your e-company!

    We ar happy to provide more detailed and personalized information when you’re already running your business with us. To register as a Sunny Business costumer, please contact our agents at corporate@sunnybusiness.ee.

  • What does Authorized Contact Person services include ?

    Authorized contact person, or licensed local agent, is mandatory for all companies with non-Estonian resident directors. Sunny Business is registered as an authorized and competent company to provide “Contact Person” services, which includes:

    • Receiving official and procedural documents on behalf of your company
    • Share and help you understand the content, immediately

    Authorized contact person is regulated and licenced service, which sets certain requirements for the agent offering the service. Among other requirements, the agent must comply with procedures of prevention of moneylaundering and -counter terrorism, it must follow 'know your customer' principles, etc.. Complying with these requirements takes resources, which are accounted into the service fee.

  • What is the difference between Board member/director salary and Employee salary ?

    In many cases the type of salary for small company member can be either a Board member remuneration or Employee salary, or a combination of these two.

    Board member remuneration is applied for fulfilling company management tasks, such as hireing, managing of staff, business development etc. Employee salary is applied for servicing clients, participating in the provision of services or production.

    If the activity of Board member includes e.g. servicing clients, producing goods, consulting clients or otherwise participating in provision of services or production, then this part of the work would mostlikely qualify as employee salary.

    If the activity of Board member would partially qualify as fulfilling of company management tasks, then it would be a combination of employee salary and board member remuneration. The right proportion should be evaluated case-by-case. Many single-man companies have exercised a proportion of 25/75 where 25% is board member remuneration.

    The difference between remuneration and employee salary lies in taxation.

    Board member remuneration is always taxed in Estonia by 20% on gross remuneration. And social tax of 33% on gross remuneration is also payable in Estonia, unless valid A1(E101) form from country of residency of board member is provided. Tax is due next month after payout.

    The tax on Employee salary is applied in the country of residency of employee, or in the country where the work has actually been performed. If employee does the work outside of Estonia, then Employee salary would not be taxable in Estonia. Employee would report his/her foreign income from Estonia, in the country where he/she is tax resident or where his/her economic center can be considered established.

  • Do I need to pay in the share capital while establishing my company ?

    According to the law the share capital for Estonian OÜ company is minimum of €2,500. You do not have to deposit it immediately if the founder(s) of the company are private individuals; you can deposit it later at the bank or at the payment services institution within European Economic Area. Until the whole sum has been paid, the founders are personally liable for the missing contribution and must deposit it when company fiscal situation requires it.

  • When should I pay in the share capital if it was not paid at the time of incorporation?

    Our standard terms for depositing the shareholder contribution is 10 years or when company fiscal situation requires it, whichever comes first. Note, that share capital contribution is required before distribution of profits (dividends) to shareholder. Also other contribution terms are available upon request.

  • What else should know about contribution of share capital ?

    Once the company has IBAN (international bank account number) opened either in the bank or payment institution within European Economic Community , the shareholer(s) should transfer their stake(s) of capital on the company bank account in Euros, with payment explanation as 'Osakapital'. When all shareholders have paid their stakes, you should request the digital confirmation from the bank/payment institution on payments. We will then help you further on, to get the contribution of capital registered at Estonian company register and to get the company compliant with requirements.

  • Can the share capital be later paid from the earnings of the company ?

    No. The share capital must only be paid by shareholder(s), that's why the company is called 'limited liability' - the liability of the shareholder(s) equals the amount they have contributed.

  • Can the share capital of the company be used for payments or withdrawals ?

    Yes. Company is not required to keep the capital on its bank account. It is allowed to make payments out of it for business related expenses, investments, loans, or keep it in cash.

    We are happy to provide more detailed and personalized information when you’re already running your business with us. To register as a Sunny Business customer, please contact our agents at corporate@sunnybusiness.ee.

  • How do I liquidate the company ?

    Dissolving the company requires liquidation process to be carried out, which has some costs involved. Liquidation process must include following steps:

    • Preparation and sumbission of shareholder resolutions.
    • Appointment of local resident liquidator who is Estonian resident and lives in Estonia
    • Announcements in the public notice board
    • Payment of public notice fee
    • Payment of state fee for registering the liquidation
    • Liquidation starting balance sheet and report
    • Liquidation closing balance sheet and report
    • Signing various documents and applications on behalf of the company as needed during the process
    • Archiving of company accounting documents for minimum of 7 years, some documents are required to be archived for 10 or 50 years. Local resident company or person must be registered as depository of documents
    • Shareholders who do not have valid e-residency, must either attend to Estonian notary or to authorise local liquidator for submission of petitions and documents.

    Liquidation process usually takes about 8 months, until the company becomes completely deleted.

    Our fee for liquidation service starts from €1500 which includes all services listed above. Accounting- and tax services fee may be applicable extra. Note, that we provide liquidation service only to companies who do not have outstanding liabilities to third parties.

  • Can I put my company on sleep mode ?

    If the company does not trade, does not have any expenses or payouts, then it is possible to put company on sleep mode. However, every company must submit annual report/tax return even if company had zero transactions in the fiscal year.  Also every company with non-resident director must have Authorised Contact Person and Virtual Office services hired. This means that company will have some expenses anyhow, in order to meet these requirements.

  • How can I add new shareholders to my OÜ company?

    Changes in the shareholding cannot be made online, but are processed offline with the public notary in Estonia. It requires document works from all parties, here is what is needed:

    From current shareholder and from new shareholder

    • Power of Attorney (PoA).  Signing of the PoA must be verifyed by your notary and by new shareholder notary. Verifyed PoA must then be supported with apostil or legalized. Some exceptions apply: Notary deeds issued in Latvia, Lithuania, Poland, Russian Federation, Ukraine, Belgium, France, Denmark, Republic of Ireland, Italy do not require apostil nor legalization.
    • if the martital status of current shareholder is other than single, t.e. married, divorced, widowed, then one must provide statement from its department of family affairs with apostil or legalized, to confirm the marital status. If the marital status is married, then either a marriage contract of assets or PoA from spouse will be required.
      The above is required as the shares of OÜ company in Estonia are considered as joint assets of the marriage, and the measures are for protection of other side of the marriage,
    • Drafts of the PoA-s are always prepared and provided by us as.

    Decision of the initial shareholders on:

    • if new shareholder will obtain part of its current €2500 share (easier and preferred option),
    • or if new additional shares will be issued where current shareholder keeps €2500 and new shareholder gets additional shares so the share capital of the company will increase. The last option requires initial share capital of €2500 to be paid and registered first, and additional share capital be paid by new shareholder,
    • if new shareholder will become also a director,
    • if it will pay any investment into the company or a premium to initial shareholder,
    • the new registered share capital: 2500 euros or more?

    Details of the Shareholder(s)

    In case of private shareholder(s):

    • full name
    • date of birth
    • residency address
    • email address
    • copy of passport of the private shareholder(s) to be emailed to PROVIDER separately
    • marital status of the private shareholder: single/married/divorced/widow

    Number of members of the management board

    Details of the member(s) of the management board:

    • name
    • date of birth
    • residency address
    • email address
    • copy of passport: to be emailed to PROVIDER separately

    Decision on how the company will be legally represented

    • Each member of the management board alone
    • All members of the management board jointly
    • Some different quorum

    All documents must be either issued or translated by sworn/notarial translation into english, or russian, or estonian langage.

    Our service fee applies, ask for quote.

  • Can my foreign company be the founder or shareholder of Estonian company and what does it take ?

    Yes it can. However, the establishing of the company then is not that simple as it would be with private founder who is e-resident.

    Establishing of Estonian company with foreign company as founder and shareholder, will require following:

    • Depending on a registrar country of foreign company, either company certificate/certificate of incorporation/certificate of good standing or registry extract. The document must indicate details of signatory director who is entitled to represent the company. The document must be certifyed by issuing authoroty, e.g. business registrar, Companies House, Secretary of State, etc depending on a country.  The document must also be supported with apostil or legalized, depending on a country. Some exceptions apply: Documents issued in Latvia, Lithuania, Poland, Russian Federation, Ukraine, Belgium, France, Denmark, Republic of Ireland, Italy do not require apostil nor legalization.
    • Corporate registry documents in a form, that provide proof of ultimate beneficial owner(s) up to physical person(s). Depending on a country this can be in very different forms and additional requirements may apply.
    • Memorandum of Association/Articles of Association of founding/shareholder company, certifyed by issuing authoroty.
    • Power of Attorney (PoA) from founding/shareholder company, signed by signatory director whose details are reported on company certificate.  Signing of the PoA must be verifyed by your notary. Verifyed PoA must then be supported with apostil or legalized. Some exceptions apply: Notarized documents issued in Latvia, Lithuania, Poland, Russian Federation, Ukraine, Belgium, France, Denmark, Republic of Ireland, Italy do not require apostil nor legalization. Draft of the PoA is always prepared and provided by us as.
    • All documents must be either issued or translated by sworn/notarial translation into english, or russian, or estonian langage.
    • A notary and apostil fees in the country of initial- and new shareholder will be paid by shareholders additionally.
  • What is e-notary service ?

    This revolutionary service is available in Estonia since April 2020. When in the past the remote mode was available only for the transactions with shares that are publicly listed or registered as securities, then E-notary service now enables to have remote transactions also with shares of small private limited companies.

    The service is provided by Estonian notaries and advance booking is required. Any documents that relate to the planned transaction, must be sent to the notary in advance, either in digitally signed form or in certified hard copy. Apostil may be required as well.

    After receipt of all documents the notary will review them and confirm if e-notary remote transaction will be offered. For sophisticated transactions, or where notary is not confident about some parts of the transaction, only the traditional on-spot transaction will be available.

    Once you have been confirmed about e-notary remote transaction, then make sure to have following capabilities woking properly:

    • you have stable internet connection with downloading speed of not less than 5 mb in second
    • your computer/laptop has webcamera and microphone installed and working
    • you have valid picture ID, e.g. passport or national ID card
    • you have your Estonian e-residency card, ID card or Mobile ID handy. With the card a card reader attached to your device. DigiDoc app installed on your computer. Currently e-notary supports only Google Chrome browser, so make sure you have that installed on your device too.

    If your transaction assumes other party, e.g. seller, buyer, other shareholder, board member of your company, etc, then all other parties must attend e-notary appointment remotely at the same time, regardless of their timzone they are in, or physical location. Every participant must have these technical features available and working properly. If one of the participants is lacking any of those, the transaction can not be held remotely.
    Please note, that having e-notary remote transaction from cafe or other crowded place is not recommended, and notary may deny from transaction when  confusing elements are present.

    Make sure you start log-in at least 15 minutes before the e-appointment is set with notary.

    Log in at https://www.notar.ee/en.

    You will see a document that will be subject of your transaction, e.g. shares sale agreement, application, petition etc once you have logged in and confirmed that you agree to transaction being certified remotely. The document generally is in Estonian language, but don't worry, notary will translate you verbally main details of the document.

    As next step, you will be photo-identified where your webcam will picture you, your ID document and then both together. When face reqognition is done, you are ready for remote transaction and wait for notary to appear on your screen.

  • Do I need to visit Estonia to open a bank account ?

    To open account with Estonian bank, the answer is Yes. To open  account with bank outside Estonia, the answer is No. You do not have to visit Estonia to open a bank account, though many Estonian banks do prefer to provide services when the commercial activity, trading, employment or management is at least partially based in Estonia. If your main business activities will take place in other countries, we would encourage you to apply for banking services in one of these countries where the activity will mostly take place. Also, your current bank may be good solution for your Estonian company.

  • Does FinTech companies or payment service providers work for my e-Resiency company ?

    FinTech institutions or payment providers, or often also called as 'online banks', such as PayPal, Payoneer, Transferwise, Holvi, Revolut and Stripe, among others, may be feasible solutions for small businesses, or at the beginning, later on you may want to work with traditional banking institutions.
    Please note, that fintech institutions have fewer regulations compared to traditional banks, and client funds deposited there may not be guaranteed by goverments.

  • Can you help me with opening the account at fintech service providers ?

    Fintech companies, like most of traditional banks, want to be sure that the beneficial owner of the company itself is fully aware of its business details. Their account applications also ask for different personalized information. That is why the application should be filed only by yourself as enterpreneur.

  • Can estonian company have bank account in a country other than Estonia ?

    Yes. In fact it even makes very much sense when trading or the business actually is made in other countries. You may want to open company account at your 'home' bank, where you personally are already known to the bank.

  • How do I get company documents for account application at my bank or fintech service provider ?

    Opening of bank account with banks or fintech service providers requires some paperwork about your company. Required documents are purely at discretion of each bank, but most commonly the company certificate with shareholders and management members outlined, translated copy of company articles/MoA and tax residency certificate in a certifyed form are required. Check with your bank or fintech service provider, which documents exactly are required, and we will get the right set of paperwork across to you. The certification and collection of documents has some service charges, depending on the specific documents, if apostil is needed, and on translation service. Total fees for the right set of documents usually ranges between €40 and €140.

    We support your on-boarding with following banking and payment services:

    • LHV Bank
      An recommended, innovative and customer friendly Estonian bank. Based on your detailed business information, your profile of business and background, we introduce you to LHV bank. We provide you with application form to be filled in and signed by youreslf. If we think your application needs more focus or input, we will advise you accordingly. The bank will do their due diligence and inform you on their decision in about 10-15 days. Your meeting in bank office is required only after positive decision. Multicurrency bank account, Mastercard, secure online banking. USD payments supported only in partnership with Transferwise. Account opening fee is payable only after successful opening of the account. Visit LHV website for their fees.
    • Swedbank
      Your meeting with the bank is required for initial application. E-residents are required to attend pre-booked meeting with Swedbank. Account opening fee is payable only after successful opening of the account.  Visit Swedbank Estonia website for their fees. Second meeting is required upon positive decision by the bank. Multicurrency bank account, Mastercard, secure online banking. All major currencies.
    • SEB Bank
      Your meeting with the bank is required for initial application. Second meeting is required upon positive decision by the bank. Multicurrency bank account, Mastercard, secure online banking. All major currencies. E-residents are required to pay application fee on submitting the application. Visit SEB Estonia website for their fees.
    • Holvi.com,
      a fintech service provider with Finnish IBAN number, banking account and Mastercard. Payments within SEPA area. Account can be opened online and no travelling or bank meeting is required. UPDATE: Holvi will stop opening of new accounts to e-residents as of January 1st 2020.
    • Transferwise Borderless
      a fintech payment service provider with German IBAN number, banking account and Mastercard. Worldwide payments. Supports Amazon FBA accounts. Account can be opened online and no travelling or bank meeting is required.
    • Payoneer
      a fintech payment service provider with IBAN number, banking account and Mastercard. Worldwide payments. Supports Amazon FBA accounts. Account can be opened online and no travelling or bank meeting is required.
    • PayPal
      a fintech payment service provider, no IBAN account. Account can be opened online and no travelling or bank meeting is required.
    • Stripe
      a payment platform with merchant account for online businesses.

    Read also article on Business Banking for e-residents by Hannah Brown:
    https://medium.com/e-residency-blog/e-residency-welcomes-stripe-transferwise-paysera-to-the-marketplace-38c22b2faa6

  • How can I get an EU VAT number ?

    As many people get confused with so called 'EU VAT number', then be advised that thare is no such thing available as EU VAT number. Any VAT number in EU is issued by one of EU member states and is therefore named after issuing country, not after EU (E.g. – EE for Estonia, ES for Spain or DE for Germany). 

    VAT number format list by countries can be found at:
    http://ec.europa.eu/taxation_customs/vies/faqvies.do?locale=en.

  • What is VAT and VAT number ?

    Glad you asked! VAT (Value Added Tax) is a specific kind of consumption tax, applied to the sale of goods and services.

    Now, VAT Number is the unique number that identifies a taxable person (mostlu a business) that is registered for VAT.

    Many companies face stringent VAT compliance requirements as they commence cross-border trading. Whether providing goods and services across international borders, or shipping products abroad to an overseas warehouse or fulfillment center, providing digital services to other businesses and consumers, they likely have a VAT number. But it is not neccesarely Estonian VAT number.

    You need one? Go to our Online Store and fill the VAT application form.

    We are happy to provide more detailed and personalized information when you’re already running your business with us. To register as a Sunny Business customer, contact our agents at corporate@sunnybusiness.ee.

    We are happy to provide more detailed and personalized information when you’re already running your business with us. To register as a Sunny Business customer, please contact our agents at corporate@sunnybusiness.ee.

  • What is VAT with limited liability ?

    The obligation of limited VAT liability comes as a suprise to many enterpreneurs when they start crossborder trading within EU.

    Putting it into a very simple words, an Estonian company is subject VAT with limited liability when it purchases certain services or goods from a supplier in another EU country, when the supplier does not charge its local VAT, and when a company does not create taxable revenue in Estonia.

    A person taxable with limited liability is not entitled to the right to deduct input value added tax.

  • When is a company subject to registration for VAT with limited liability ?

    A company is subject to registration as a liable to VAT with limited liability (hereinafter: a VAT payer with limited liability), if a company is not registered as a VAT payer but purchases goods from another VAT payer of the other EU Member State the taxable value of which exceeds 10,000 euros as calculated from the beginning of a calendar year or receives certain services from a foreign person engaged in business who is not registered as a VAT payer in Estonia.

    The difference between a VAT payer and a VAT payer with limited liability lies in the fact that a VAT payer with limited liability pays value added tax only on the intra-EU acquisition of goods and on receiving the services from a foreign person engaged in business.

    A VAT payer with limited liability does not charge VAT from goods sold or services provided, and it does not have the right to deduct input value added tax either.

    The obligation to register as a VAT payer with limited liability shall be effective as of the date of receiving following services:

    • grant of the use of intellectual property or transfer of the right to use intellectual property;
    • advertising services;
    • services of consultants, accountants, lawyers, auditors and engineers, translation services, as well as data processing or the supplying of information;
    • financial services, except for leasing safes, or insurance services, including reinsurance and insurance intermediation services;
    • allowing use of manpower;
    • the hiring or leasing of or establishment of a usufruct on movables, except means of transport;
    • electronic communications services, including assignment of rights to use transmission lines;
    • electronically supplied services;

    ... and some other services listed in subsection 10 (5) of the Value-Added Tax Act.

    A company is required to submit an application for registration oneself as a VAT payer with limited liability to the Tax and Customs Board within three working days as of the date on which the obligation arises.

    We are happy to provide more detailed and personalized information when you’re already running your business with us. To register as a Sunny Business costumer, please contact our agents at corporate@sunnybusiness.ee.

  • Is my company eligible for Estonian VAT Number ?

    This depends on your busienss profile, type of services you sell, will you sell B2B or B2C, will you sell locally or cross-boarder, how will your goods transit, etc. With many business profiles the VAT number must be obtained in the EU member state(s) where the business is actually carried out or where the consumers are located. This means, that your Estonian company may require VAT number for example in several EU member states, but perhaps not in Estonia.

    We suggest you to please take into consideration the following:

    Does your company taxable annual sales in Estonia reache +40,000€. If yes, Estonian VAT number will be mandatory to obtain.

    Are part of the company’s activities or products being delivered, stored and/or sold in Estonia. If no, it’s most likely you will not be eligible for VAT number in Estonia.

    You need to apply for VAT number in the countries where you have warehouses, fulfilment services (countries where the products are physically stored and the turnover is created) or suppliers.

    E.g.: If you are using German and French warehouses, you need to obtain VAT number in Germany and in France.

    Before you reach distance selling threshold, you need to obtain the VAT number of the country where the threshold is exceeded. If you haven't obtained VAT number by right time, you will be obliged to pay away the VAT amount on your sales turnover, despite that you probably did not charge VAT from your customers.

    You need one? Go to our Online Store and fill the VAT application form.

    We are happy to provide more detailed and personalized information when you’re already running your business with us. To register as a Sunny Business costumer, please contact our agents at corporate@sunnybusiness.ee.

  • Who issues a VAT number ?

    Only tax administrations offices have the right to issue a VAT number, but since the process may be complicated and time consuming we are happy to assist you in reviewing trading details and file the on-line application, for you to get VAT number within 5-10 days.

    You need one? Go to our Online Store and fill the VAT application form.

  • Can I report company formation expenses done from my personal account to the company’s accounting ?

    These expenses shall be reported as company’s costs and you will be able to reimburse them once your company has money on it’s bank account. Make sure purchace receipts meet compliance.

  • Which receipts or invoices are good for company accounting ?

    For company accounting only fully detailed receipts/purchase invoices/confirmations are good and qualifying. Purchase receipt can be on paper or in digital form. It must be the one that has the name and full details of the seller, lists goods or services that were purchased, their price, any tax charges if applicable, and preferably also full details of the buyer - your company.

    Note, that credit card slips or bank account statements do not qualify for company accounting and can not be subject to reimbursement. They only confirm the fact of payment, but are not sufficent to fully identify the seller or the services/goods purchased, nor any tax information.

  • What happens if purchase receipt or invoice does not qualify for accounting ?

    In such case it is really not possible to ensure that the money was spent on business expences. Therefore non-qualifying receipts or -invoices if paid out from company, are subject to corporate taxes as if they were dividends or salary.

  • Who is a Politically Exposed Person (PEP) ?

    A Politically Exposed Person is an individual who is or has been entrusted in the past twelve months with a prominent public function.

  • What is the Financial Action Task Force (FATF) countries list and who might be affected by it?

    The FATF, is an intergovernmental organization founded to develop policies to combat money laundering and terrorism financing. Countries listed are considered high risk, and will most likely have difficulty accessing any kind of business banking service even with a company registered in Estonia. Unfortunately we can not support customers from countries listed by FATF.

    FATF list can be found at:
    http://www.fatf-gafi.org/countries/#high-risk

  • What is a Power of Attorney (PoA)?

    A power of Attorney is a legal and notarized document which gives a third party person (usually an attorney/lawyer) the legal power to act in behalf of another person’s interests.

  • How can I change my Estonian company’s address?

    You can do it on-line if the board member has e-residency card, Estonian Mobile ID or Smart ID. Log on to Company Registry and proceed to Submission of Application. If the new address is within the same municipality, then the application is free of state fee. If the new address is in different municipality, then the Artices of Association must be amended during the same course. If company board members haven't got e-residency, then it’s possible to change company details in the notary’s office in Estonia by board member or assign a Contact Person to do it based on Power of Attorney.

  • How can I change board members of my Estonian company ?

    First the shareholder(s) must prepare shareholder resolution, which must comply with its own requirements and must be digitally signed  by shareholder. If company has more than one shareholder, then depending on terms of majority for voting in your company, more than one shareholder may be required to sign digitally. Shareholder resolution must be in estonian language (bilingual or trilingual resolutions are also accepted), it must be saved in .pdf format before digitally signing it.

    Templates for shareholder resolution can be found at: https://abiinfo.rik.ee/templatesmanagementboard.

    Secondly, current board member has to log on to Company Registry with e-residency card, Estonian Mobile ID or Smart ID and proceed to Submission of Application. Start the petition for an entry regarding alteration. Once the alterations are done, remember to attach digitally signed shareholder resolution under Additional documents to be submitted with the entry petition. The application must be digitally signed by existing board member and by new board member before submitting it. The state fee of €18 is payable on application.

    Should you wish to have our support with corporate changes, then our team will assist and prepare the documents as needed.

    If company board members haven't got e-residency, then it’s possible to change company details in the notary’s office in Estonia by board member or assign a Contact Person to do it based on Power of Attorney.

  • How can I authorize the accountant for entering company annual reports to the online business registry ?

    Please follow these steps to authorize the accountant:

    1. Insert your e-residency card into your computer
    2. Log on to https://ettevotjaportaal.rik.ee/index.py?chlang=eng , login button is located upright.
    3. Enter your Pin1 when prompted.
    4. From top menu go to 'Annual reports'
    5. Defining persons entering data
    6. Add new person for entering data
    7. In the empty field of ’Personal identification code of the person entering data’ enter the code of accountant. If you have signed up for our services, contact us to obtain the code of accountant.
    8. Select the name of your company
    9. Tick ’The person entering data is authorised to submit the report:’
    10. Click Save
    11. And you are done, thank you! Let us know if you succeeded
  • How can I digitally sign company annual report/tax return with my e-residency card ?

    To digitally sign annual report, please follow these steps:

    1. Have your e-residency card inserted in the computer and go to company registry site: https://ettevotjaportaal.rik.ee/index.py?chlang=eng
    2. Switch to english
    3. Login in from the up right
    4. click ID kaart icon and enter your PIN1
    5. click Annual reports
    6. click View
    7. click Next
    8. click Send the report to signing
    9. click Digital signing of the report
    10. add the date of signing
    11. click Save
    12. click Add a digital signature to the report
    13. click Please sign the report
    14. click Sign the document
    15. enter your PIN2 when prompted
    16. And you are done. Let us know if you succeeded, because the report is then not yet submitted, we will have to submit it.
  • How can I authorize the accountant for online tax system?

    In order for us to provide your company with various tax services, such as VAT number, VAT -, Income tax -, Social tax, Corporate tax-, MOSS etc. declarations and other communications to Tax- and Customs Board, the board member should follow these steps:

    1. Login at https://www.emta.ee/eng
    2. In the box up left, select the name of your company
    3. Go to Settings
    4. Access permissions
    5. Access permissions of representatives
    6. New access permission
    7. In the box Personal identification code or registry code enter our ID # 10116749
    8. Search
    9. Next
    10. Delegable permission
    11. Search
    12. Accountants package
    13. Add
    14. Add once more
    15. New access permission
    16. In the box Personal identification code or registry code enter our ID # 10116749
    17. Search
    18. Separate permissions
    19. In the Name field search for: Submitting applications for registration as a person liable to value added tax (KMKR)
    20. Tick Submitting applications for registration as a person liable to value added tax (KMKR)
    21. Add
    22. Add again
    23. And you are done. Let us know if you succeeded.