So now that you are convinced of the benefits of e-residency and planning to start a company in Estonia, you may be wondering – do I really need to set up a legal address and a contact person there, or can I just use my home address and personal contact info while managing business remotely? Let’s dive into why these elements are important, and what issues you may face if you skip them.
What is a Legal Address in Estonia?
When you register a company through the Estonian e-Residency program, you are required to provide a legal address for your business. This is an actual physical location in Estonia where your company is officially registered.
This address serves as the official mailing address for your company, where any legal documents, tax forms, and other important correspondence will be sent. It also acts as the registered office – the place where your company is headquartered. Besides that, this is required by Estonian law, too.
Who is a Contact Person in Estonia?
In addition to a legal address, you must also designate a contact person for your Estonian company. Don’t get confused – the contact person is not automatically a member of the board, but someone physically located in Estonia who can represent your business and act on its behalf when needed.
The contact person will be the primary point of contact for your company, handling things like:
- Receiving and responding to official communications
- Attending to legal and tax requirements
- Coordinating with Estonian authorities
- Accepting service of process on behalf of the company
Why Do I Need These for my e-Residency Company?
You may be wondering – can’t I just use my home address and personal contact info instead? After all, I’m an e-resident running my company remotely, so do I really need an Estonian address and representative?
The short answer is yes, you do. Here’s why:
- Legal and Tax Compliance: Estonia requires companies registered there to have a local legal address and contact person. This ensures your business is properly established and can fulfill its legal and tax obligations within the country.
- Communication and Representation: Having a dedicated address and contact person in Estonia makes it easier for authorities, clients, partners, and others to reach your company. It gives your business a professional, legitimate presence.
- Reliability and Trust: Potential customers and business partners are more likely to trust a company that has a proper physical address and local representative, rather than one that’s only based abroad.
- Avoid Penalties and Complications: If your company lacks these required elements, you could face fines, suspensions, or even deregistration by the Estonian government. This would severely disrupt your operations.
How do I get a Legal Address or Contact Person?
Only a local notary, notary’s office, advocate, law office, sworn auditor, audit firm or licensed trust and company service provider may be designated as your contact person. The virtual office service providers in Estonia’s e-Residency Marketplace have the necessary operating license to provide this service.
What Happens if I Don’t Have a Legal Address or Contact Person?
Let’s look at a few scenarios to illustrate the potential issues:
Scenario 1: No Legal Address
Without a registered office address in Estonia, your company may not receive important legal or tax documents. This could lead to missed deadlines, penalties, and compliance issues. Authorities may even deregister your business if they can’t reach you.
Scenario 2: No Contact Person
If you don’t have a designated contact person in Estonia, there’s no one to liaise with government agencies, accept service of process, or handle other critical matters on behalf of your company. This leaves your business vulnerable and unresponsive.
Scenario 3: Incorrect/Outdated Information
Even if you do have a legal address and contact person, make sure the information is accurate and up-to-date and is reflected in the register. If these details change, you must notify the authorities promptly. Failure to do so can result in the same problems as having no address or contact at all.
Securing Your Estonian e-Residency Company
To avoid these pitfalls, it’s essential that you establish a proper legal address and contact person for your Estonian company as part of the e-Residency registration process. Don’t forget to check the period of validity of these services – usually you have to renew the agreement once a year, sometimes billing is done even by month. In case the agreement is not renewed the contact person and legal address will be deleted from the register automatically which leads to the threat of your Estonian company being deleted from the register as well. Have them up to date and lay the foundation for a compliant, reliable, and trustworthy business.
While it may seem like an extra hassle, taking these steps will save you a lot of headaches down the road. Your Estonian e-Residency company will be on solid footing, able to operate smoothly and engage effectively with authorities, customers, and partners.
Read more about the necessity of the contact person & the legal address or try out our service cost calculator for e-residency and order the service immediately. We also provide accounting services and tax management for e-residents.
In case you need help with setting up and registering the company in Estonia, contact us by e-mail info@aaroni.ee or choose a suitable moment for a web meeting to discuss our cooperation.
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