How can I create local presence for my Estonian company?
Proving the real local presence is usually necessary on two occasions.
When opening a bank account, especially at Estonian credit institutions, banks often refuse to open one if there is insufficient local presence.
In certain situations, foreign tax authorities may seek to tax an Estonian company if nothing other than the registration address links it to Estonia.
The strongest attacking argument for foreign tax authorities is the board membership. For that reason, in some circumstances, it can be worth adding a local board member and authorizing him to sign agreements. This might also be a sufficient argument for Estonian banks to open an account.
What else makes a company’s local presence stronger:
Renting a physical office or other facilities
Owning real estate in Estonia
Having employees and salary payments in Estonia
Selling/buying goods or services in Estonia.
Related topics: