Estonia, Good for Business, Investments, Labour-market, Law and Regulations

The aim of the bill is to promote investment by persons located abroad into Estonian private limited companies. According to current legislation, Estonian non-residents have difficulties with opening a bank account on behalf of a company in Estonia, which according to current law is the prerequisite for establishing a private limited company in ordinary procedure, the parliament's press office said.

In the future, it will be possible to use an account located in a bank or financial institution of any European Economic Area state when establishing a private limited company. According to the law currently in effect, only a bank account in a bank established in Estonia could be used. The account is necessary as a monetary share capital down payment will have to be transferred there when establishing a company. The bill does not have an effect on the establishment of public limited companies, the establishment of which still requires opening a securities account in an Estonian bank.

The amendment will also bring along the possibility to make contributions for increasing the share capital to accounts located in aforementioned banks and financial institutions. In addition, the wish is to make the entry and changing of the entrepreneur's e-mail address to the Commercial Register exempt from state fees.

According to current law, a total of 18 euros in state fees has to be paid for changing the entry. The parliament's legal affairs committee was appointed the leading committee.