Estonia is an attractive location for companies looking to expand into the European market. Estonia is an entrepreneurial driven country that offers many competitive advantages for companies looking to do business in the Baltic Sea Region – Europe’s fastest growing market.
Many companies, large and small, are choosing Estonia for its international expansion for several reasons which include, the country’s ease of doing business, geographical location, highly developed infrastructure, world-class innovation, and business friendly economic environment.
Ease of Doing Business
Estonia ranks 12th out of 190 countries in the World Bank’s Ease of Doing Business Index. It takes less than 20 minutes to establish a company on the Internet. The cost of registration into the Commercial Register is 145 euro.
Location, Location, Location
Estonia is a small country located in Northern Europe, bordering the Baltic Sea and Gulf of Finland, between Latvia and Russia. With its geographical position between the East and West, Estonia offers easy access to EU and Scandinavian markets. Tallinn, the capital of Estonia, is within 3 hours flight from major European capitals.
Highly Developed Infrastructure
As a border state of the European Union, Estonia has a highly developed and efficient logistic infrastructure, with its port infrastructure ranking above EU average. In addition to roads, the land transport infrastructure of Estonia also includes a railroad system with 792 km of rail lines.
Estonia has a strong innovation and startup ecosystem. Estonia ranks #1 in Europe for number of startups per capita, and second in the world. Ülemiste City, the largest smart business campus in the Baltics, is located in Tallinn. Ülemiste City features more than 100,000 square meters of office space and is home to over 300 enterprises including IT companies, startups and several well-known international companies.
Business Friendly Economic Environment
Estonia is a liberal democratic republic with an open market and pro-business economic environment. As a member of WTO, European Union, OECD and NATO, Estonia has a stable political system with transparent policies. The country has an investment-friendly tax system. Companies registered in Estonia are not required to pay income tax for re-invested profits. Estonia is among the leading countries in Eastern and Central Europe for Foreign Direct Investment (FDI) per capita. With four free trade zones, all open to foreign direct investments, Estonia offers great potential for international business.