An incorporated Estonian company structure should include:
- At least 1 shareholder
- At least 1 local member of the board
- At least 1 local contact person responsible for AML, International Financial Sanctions and for the communication with the state authorities
- Accounting services for conducting annual reports
Shareholders of the company have the right to act as members of the management board. A key requirement for the person responsible for AML is the continuous monitoring of clients’ activities with an objective to prevent money laundering and the financing of terrorism and being a local Estonian resident. In case of revealing suspicious activites it is necessary to notify the state authorities of Estonia.
Taxation of companies who deal with cryptocurrencies
Financial services of joint-stock companies are not subject to VAT. For companies, there is a zero income tax rate. Following taxes are compulsory:
- 25% when dividends are withdrawn – the company itself decides how to distribute dividends
- 3% – the social tax on the personnel
- 20% – income tax
Accounting services cost aprx. 100 euros / month and legal address necessary for incorporation and functioning of the company costs aprx. 300 euros / month. Compared with PI and electronic money licensed companies, the overhead costs of the cryptocurrency licensed company is cheaper.
Cryptocurrency exchange license obtaining procedure
Cryptocurrecny exchange license obtaining procedure in Estonia is regulated and approved by the local law. Our team of skilled professionals will guide you through a specific process and will explain all details, that are vital for the successful result. Our experts accompany clients at all stages – from the process of the incorporation of the company till the final procedure of obtaining the license.
First stage requires:
- to prepare the notarized and apostilled copy of passport with power of attorney for one of our specialists
- translation of the power of attorney into Estonian with subsequent certification
- incorporation of an Estonian company
- opening of a corporate bank account
All these processes are conducted and controlled by our skilled team members. In order to incorporate a company, we will help to collect the following package of documents: contact details of the founders – registration, real residence, e-mail address, telephone number.
After the company registration is completed, we prepare the documents for a license obtaining procedure.
Application for a license
Cryptocurrency exchange license is issued by Estonian regulator in case following information and documents are prepared and presented in the required manner:
- contacts of the applicant company – phone, e-mail, website address
- information on the persons responsible for providing services
- information on shareholders / shareholders
- information about the legal representative of the company – name, date and place of birth, contact information
- Company inner rules for the implementation of procedures when working with cryptocurrencies and information about the person responsible for compliance with presented rules. The document should be developed in accordance with the requirements of the legislation of the Republic of Estonia
- certificates confirming the non-criminal background of shareholders / members of the board – should be issued at the place of residence
Specialists of Prifinance provide following comprehensive support:
- full consulting support during registration of the company
- assistance in preparing and filing an application for a license
- interaction with the state authorities in the process of considering an application for a license
- registration of a legal address
- payment of state duties
- registration / transfer of powers of attorney
- accounting and legal assistance
