A private limited company in Estonia can be founded with or without making a contribution. Only individuals have the option of starting a company without making the contribution. Legal persons setting up a private limited company must always make a contribution, either monetary or non-monetary.
A situation where a company gives or guarantees a loan to a shareholder, partner or board member comes up all the time. Yet the Commercial Code does set out restrictions on granting loans. I will discuss some of the most likely problems and potential tax risks below.
From the 1st of September 2018, all Estonian companies will be required to submit data on their beneficial owners to the Commercial Register of Estonia.
On 1 January 2018, a new Labour Dispute Resolution Act (hereinafter referred to as TVS by its Estonian acronym) will enter into force, supplanting the Individual Labour Dispute Resolution Act (hereinafter ITVS) in force up to 31 December.
Grant Thornton Baltic advised the sale of AS United Motors vehicles retail business in Estonia. BMW and KIA vehicles retail business, vehicle parts and accessories retail business, maintenance and repair of motor vehicles in Tallinn, Tartu, Pärnu and Kohtla-Järve were sold to Inchcape Motors Estonia OÜ. GTB advised the seller AS United Motors on legal, financial and tax due diligence performed by the buyer, and carrying out the transaction. GTB had a remarkable role in negotiating the terms and price of the transaction.
Starting this year, some important changes to the health insurance system took force, and thus those serving as management board members and working on the basis of contracts under the law of obligations (authorisation agreements, contracts for services etc) should pay attention to the issues relating to activation and suspension of health insurance coverage.
Management board member agreements and employment contracts
Compared to agreements on competition restrictions, the obligation to keep business secrets has not been dealt with as widely, yet it needs significantly more coverage. In this article, the author deals with the various nuances related to business secrets, defines business secret and discusses why keeping business secrets is important for every company.
Financial year 2014 is coming to and end and it is time to start thinking about filing annual reports to the Commercial Register. Businesses should be aware that the Commercial Register is devoting increased attention to whether companies’ equity meets legislative requirements.