How do I register a ‘beneficial owner’ of my Estonian company?
Estonia boasts one of the world’s most transparent business environments, emphasizing the importance of clear ownership control for every company.
This transparency ensures the global trustworthiness of Estonian businesses, even when managed entirely online by Estonians and e-residents. As a director of an Estonian company, it is a legal obligation to declare the individuals benefiting from the company’s activities, known as ‘beneficial owners.’ This declaration must be made by all directors and promptly updated within 30 days in the event of any changes to the company’s beneficial owners.
Defining ‘Beneficial Owner’
The concept of ‘beneficial owner’ may seem intricate, but it can be simplified. In Estonia, only individuals who own more than a quarter of a company, whether directly or indirectly, are considered beneficial owners. This distinction means that not all shareholders need to be registered as beneficial owners. Additionally, a beneficial owner can extend to individuals benefiting from the company’s activities and profits, even if they are not formally registered as owners. This may include those exerting influence over the company or expecting returns, irrespective of formal ownership status.
