Estonia has become one of the most popular places to register employment agencies in Europe for the past several months. Why? Quick visa procedure for non-EU employees, efficient registration of temporary employment agencies, minimal legal and tax burdens for running employment agencies and the possibility of using the Estonian CIT without restrictions.
What is an employment agency in Estonia?
A temporary employment agency in Estonia functions on the basis of a contract between three parties:
- Employment agency – dealing with the search for employees, completing all formalities bound with employment, helping in the visa procedure, obtaining work permits and final employment;
- Employee – interested in taking up employment in an employment agency registered in Estonia;
- Target employer – interested in the services of an employee who is represented and directed to work by the employment agency.
A temporary employment agency can start its activity when it is registered in the Estonian register of employment agencies and exactly the same procedure concerns activity as an employment agency in Estonia. The authority responsible for keeping the register of temporary employment agencies and employment agencies in Estonia is the Ministry of Economic Affairs and Communications. All the agencies are supervised by the local labor inspectorate.
How to set up an employment agency in Estonia?
If you want to start functioning as an employment agent or a temporary employment agency, it is necessary to get an entry in the register of business activities before starting the actual activity. Getting an entry and a business licence can be done electronically, via a specified internet website. To register an activity, it is necessary to have access to the Estonian e-administration.
Who can register a temporary employment agency and an employment agency in Estonia?
An employment agency can be registered by anyone who has the appropriate qualifications and facilities necessary to run a business. During the registration procedure, you must indicate:
- details of the applicant’s entity – the Estonian company that will conduct economic activities; with detailed information on the right to representation;
- address at which the applicant will run an employment agency in Estonia, ensuring the technical and social minimum for this type of activity
- contact details of the person(s) managing the agency in Estonia, who are also contact persons for all official matters
- date of commencement of activity; with a business plan and a description of the services provided by the applicant bound with the activities of the employment agency in Estonia.
How long does it take to register an employment agency in Estonia?
The entire process of registering an employment agency in Estonia takes about 30 – 45 days. This time consists of:
- company registration process in Estonia – company registration with Thompson&Stein experts takes 14 working days from the moment of receiving the relevant powers of attorney from the client;
- the process of getting an access for a Proxy to the portal enabling the submission of applications – about 7 business days
- submission and consideration of the application – about 14 working days
How much does it cost to set up an employment agency in Estonia?
The cost of setting up and registering an employment agency in Estonia is about three thousand euros and it consists of:
- costs of registering a company in Estonia by a Proxy, without having to be physically present in Tallinn
- the annual cost of the company’s registered office in Estonia necessary to carry out the activities covered by the licence
- the cost of representing the company during the employment agency registration procedure in Estonia
- the cost of preparing documents bound with the registration of an employment agency.
Thompson&Stein law firm has many years of experience in providing services to employment agencies and temporary employment agencies in Estonia. Our lawyers are responsible for the entire process and coordinate the entire procedure.
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