Licences and permits in Estonia – when will you need one?

When you set up a company abroad, it is necessary to analyse, at the very beginning of the registration process, whether it is necessary to obtain a license or permission for your type of activity. This is particularly important because each country in the European Union has different regulations for particular types of business activity subject to regulation and licensing. It is worth noting that in some cases one of the requirements is to operate in a certain legal form, ex. as a Joint Stock Company or to have a certain share capital. Therefore, it is worth consulting your plans with a law firm before starting your business to avoid costly mistakes at later stages.

Company in Estonia – For whom is this a good solution?

Establishing a company in Estonia is a particularly good solution for new technologies industry.  Thanks to effective legislative processes and transparent legal environment, it is beneficial for cryptocurrency exchange or token issuing companies. What’s more, setting up a company in Estonia is also much easier and cheaper for firms active in traditional industries such as finance and shipping.

One should also take into account the possibility of reinvesting the gained profits in further development of the company in Estonia without paying CIT.

Who can apply for permits and licenses in Estonia?

It is worth noting that only entities registered in the Estonian Commercial Register can apply for licenses in Estonia. Therefore, it is necessary to establish a new company in Estonia or an Estonian branch of a foreign company. Each license is granted on the basis of specific requirements. In some cases, it is necessary for at least one member of the board to be an Estonian resident. The authorities also verify the compliance of adopted procedures, capital requirements as well as the integrity of the people involved in the company in Estonia.

When will the company be obliged to apply for additional licenses and permits?

If your company in Estonia plans to operate in one of the following sectors, it is very likely that you will need to obtain a license or an additional permission:

• transport
• banking & finance
• sale of alcoholic and tobacco products
• telecommunications and courier services
• education
• medicine
• work placement
• gas and energy trading

If the Estonian company’s activities have a direct impact on the environment, an additional permit may be required for the exploitation of natural resources, as well as pollution and waste control.

How to apply for a permits or license in Estonia?

Applications are accepted only in electronic form or in some cases through a notary public. The process is conducted only in Estonian language, since this is required by the local administrative procedure code.  In order to effortlessly comply with all formal requirements, it is recommended to contact a law firm.

The time of issuing an Estonian license or permit depends on its type and is very different, ranging from a few to even 90 days. The official fee for processing the application ranges from a few to several thousand euros (e.g. a cryptocurrency license – 3 300 euros).