How to Register as a Sole Proprietor (FIE) in Estonia
Overview of a Sole Proprietor (FIE)
A Sole Proprietor (FIE) is the simplest form of business in Estonia, suitable for individuals who wish to operate independently or with family members.
While registration is straightforward, it is important to note that an FIE is personally liable for all business obligations, meaning their personal assets can be used to cover debts.
Key Considerations Before Registering as an FIE
Before proceeding with registration, key decisions must be made regarding:
- Business Name: The FIE’s name must include the entrepreneur’s given name and surname and be distinguishable from existing business names.
- Business Activities: Define the primary area of activity and check whether any special licenses are required.
- Business Address: A registered address in Estonia is mandatory.
Registration Process
Registering as an FIE is simple and can be done electronically via the e-Business Register.
1. Application Submission
- The registration process requires submitting an application via the e-Business Register.
- The entrepreneur must have a bank account suitable for business activity.
2. Digital Signature Requirement
- If registering electronically, the applicant must provide a digital signature.
- An expedited procedure is available if the following conditions are met:
- The applicant's registered residence is in Estonia.
- The state fee is paid electronically via the e-Business Register.
- The activity classification follows level 4 of the Estonian Classification of Economic Activities.
Required Information for Registration
The following details must be included in the registration application:
- Business Name
- Registered Office and Address
- Financial Year Start and End Dates
- Entrepreneur’s Name and Personal Identification Code
- Primary Area of Activity
- Contact Details (email, phone number, etc.)
Costs of Registering as an FIE
- State Fee: €20
Registration Timeline
- If submitted via expedited electronic registration, the FIE is registered within one business day.
Post-Registration Obligations
After successful registration, additional requirements may apply:
- Licensing: If operating in a regulated industry, necessary licenses must be obtained.
- VAT Registration: Mandatory if the annual turnover exceeds €40,000 (Tax and Customs Board).
- Employee Registration: If hiring employees, they must be registered with the Employment Register.
Conclusion
Operating as an FIE offers an easy and cost-effective way to start a business in Estonia, though it comes with unlimited liability. With simple registration and minimal upfront costs, it is an ideal choice for entrepreneurs starting small businesses.
NB! The source of FIE Registration process is explained on official Governmental website of Estonia.
At Helvetios, we offer professional assistance to streamline your FIE registration process. From documentation to tax compliance, our experts ensure a hassle-free experience. Contact us today to start your business in Estonia with confidence.