If you have investigated the idea of creating your own company in Estonia, you probably have also heard of the necessity to use a registered address and contact person service. The mandatory use of this service is first and foremost important for Estonian businesses that are controlled and managed outside of Estonia, which in fact was not even a possibility prior to the 15th of January 2018. Since that date, Estonian companies are allowed to be located in foreign countries with the obligation of having a local contact person and an address still in the country which will be added into the e-business register.
Unfortunately, or even luckily, appointing a legal contact person and an address is not as easy as using a friend and his/her address as per the Estonian law. A contact person in such cases can only be a notary, a notary’s office, a lawyer, a law firm, a sworn auditor, an audit firm, a tax representative of a non-resident within the means of the Taxation Act, or a trust fund and company service provider like Incorporate, specified in the §7 of the Money Laundering and Terrorist Financing Prevention Act.
This is all because the appointed contact person must be a reliable person and is also a passive representative of the company. However, the contact person does not have the right to make any declarations of intent on behalf of your company. Also, the address of the designated contact person will be considered the address of the company, where all your local physical and digital correspondence will be sent. This means that the contact person also has he obligation to forward to and notify the company’s management of any procedural documents or letters received on the company’s name.
The legal address and contact person should be appointed during incorporation
While there is the possibility of switching from one contact person and address to another during your Estonian company’s lifetime, a new company, which is managed and controlled from abroad, should begin by finding a reliable provider for this service before incorporation. This is because a company located abroad must already have a contact person and a legal address to put into the Articles of Association which in turn will be reflected in the e-Business Register afterwards.
Switching from one service provider to another, however, is just as simple as altering your company’s Articles of Association and making an entry petition in the registry.
What if my company will be managed from Estonia or has a local board member?
In case your company will be managed from Estonia, you are not legally obligated to use a contact person or legal address service and its official address, stated in the Articles of Association, will be used for local correspondence. As for the contact person, any board member with representation rights can receive and answer letters and represent the company.
Similarly, if a member of the management board, a founding partner, a shareholder, or a procurator of the company is a resident of Estonia, and your company is located abroad, you can appoint the local resident as the contact person along with their address.
Incorporate, your trusted service provider
At a minimum, we offer all our customers our registered address and contact person service as a licenced trust fund and company service provider who are looking for a reliable and efficient partner to handle their company’s local communications.
Please feel free to reach out to us if you are interested in using our contact person and legal address service.