Doing Business in Estonia

Doing Business in Estonia

Dealing with the Government Identify major issues when dealing with local and federal governments.

Direct obstacles from the state and local government are minimal and can mainly arise from the individual you are interacting with. Procedural deadlines, including for replying to requests for information, are usually set out in law, although they may prove impractical if an institution is overloaded with work.

A significant portion of bureaucratic processes can be conducted online through relevant e-registries and personal presence is rarely required anywhere. Most notarial acts can also be performed through remote authentication (video bridge), including the signing of contracts for the sale or purchase of real estate, company shares or other assets. However, for accessing e-registries and signing documents online, possession of an Estonian Digital ID is required.

Most individuals in government offices understand English and/or Russian, and with their consent, it is possible to use a foreign language in oral communication. Additionally, e-registries, government websites, and a large portion of legislation are available both in English and Russian. However, the language of public administration in Estonia is understandably Estonian, and official documents such as notarial acts must generally be submitted in Estonian or accompanied by a certified translation. In a local government unit where at least half of the residents belong to a minority ethnic group, there is a right to address authorities in that language (i.e., Russian).

Please also refer to the section on foreign investment review.

Government influence Other than through relevant competition regulations, or in specific industries in which business combinations are regulated, may government agencies influence or restrict the completion of business combinations, including for reasons of national security?

A certificate for a cross-border merger or division shall not be issued if it is planned for fraudulent purposes or with the intent to evade legal requirements, or if it is planned for criminal purposes or may pose a threat to the security of Estonia. This also applies if the registrar has a justified suspicion that the cross-border merger or division is planned for the purposes specified above. The registrar may make inquiries to state or local government authorities or other public-law legal persons, who will inform the registrar about unfulfilled obligations and provide an assessment of whether, in their opinion, there are circumstances excluding participation in the cross-border merger.

In the case of real estate acquisition, the Restriction on Acquisition of Immovables Act sets certain limits for foreigners when acquiring agricultural or forest land. This does not apply in the context of a company's merger and division but is applicable in other ways of land acquisition.

In other cases, without regards to competition regulations or specific industries, government agencies do not have a general right to hinder business combinations, given that the legal procedure has not been violated and the persons involved comply with the requirements of the law.

We will be there for you throughout the process
Eesti kaubandustööstuskoja liige Gasellfirma ALFA International - The Global Legal Network
Office
Meistri 12, 13517 Tallinn
Phone number +372 655 5559
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