On the 1st of February 2023 a new version of the Estonian Commercial code and the new Business Registry Law shall come into force. The new version of the Commercial code along with the new Business Registry law will introduce substantial changes and will also offer new opportunities and options for Estonian companies.

Legal address

One of the key changes is that you can no longer indicate your postal address or virtual office as your company’s location in Estonia. Of course you can still use a virtual office as a mail forwarding service but this is not a substitute for a legal address.

The new law introduces changes to the way the company address is stated in the registry. The law draws the clear distinction between three possible locations the company must state:

  1. the address of the company;
  2. the address of the management board;
  3. the address of the contact person (if such a service is used).

What does it mean?

This means if you make management decisions outside of Estonia you should indicate an address in a foreign country where management decisions are most often made. In this case you should also appoint a licensed contact person in Estonia. If you intend to visit or relocate to Estonia and make your management decisions here, then you can indicate your legal address in Estonia.

If you wish to manage your company from Estonia then Magrat can offer a great solution such as physical workspaces right in the center of Tallinn where you can have convenient modern conditions and have easy access to accountants and legal advisors. You can also indicate the address of this workspace as the legal address of your company in Estonia.

Contact person

For entrepreneurs who manage their company from outside of Estonia Magrat as a licensed service provider offers the contact person service. 

The role of a contact person is defined in the law as following:

   An undertaking, including a foreign company that has a branch in Estonia, may designate a person to whom the procedural documents of the undertaking and the declarations of intent addressed to the undertaking may be delivered in Estonia (hereinafter contact person).

In other words a contact person makes sure that the management of the company receives all the official documentation sent by the state authorities under any official proceedings or any other document that may have legal consequences, including any claims or notifications. Only licensed professionals or organizations are allowed to provide a contact person service. You can check our contact service offer here.

With the new law the company must have a local contact person in Estonia if it is stated that the company management is located outside Estonia. Though the contact person shall remain as a useful option for any companies registered in Estonia also.

Please bear in mind that you should make up your mind and sort out your company’s details in the e-Business Registry if you haven’t done it yet. Such changes must be properly implemented in the registry by 30th of April 2023.

Magrat is always happy to assist you in corporate and accounting matters. If you have any questions or requests, then contact our team!