Minimum share capital requirements will be reduced for Estonian companies
Starting from February 1, 2023, founders and shareholders, must estimate the amount of share capital that is required to establish and operate a given limited liability company. According to amendments to the Commercial Code, the minimum nominal value of a share will be 1 eurocent and the share capital of an Estonian limited liability company (osaühing) may be 1 eurocent. At the moment it is 2500 euros (which does not have to be paid in). The company shall have to assess themselves, what is the appropriate sharecapital for the company.
Companies cannot be incorporated without sharecapital contribution anymore but also, the registry will not ask for a bank confirmation about the sharecapital payment. Company confirmation is enough.
This means new companies can be founded with a lower share capital and existing companies can also reduce the share capital by adopting the required shareholder decision and also amending the articles of association. It seems it is possible to pay the reduced amount back to the shareholder without any taxes.
This opens up new possibilities and things to consider for many companies.