The e-Residency program allows you to pay and register the share capital of a company in Estonia from any European bank account. This means that it does not have to be an Estonian bank and it can be a digital banking solution.
If you are a Companio customer, we can help you with this, but you can also do it on by yourself. In this article, we explain how to do it. 😉
1. Pay the share capital
The first thing you have to do is pay the share capital.
And how do you do it? The shareholders just have to transfer the money from their personal accounts to the company’s bank account in the right percentage.
In order to do that, every shareholder would calculate his or her part according to the distribution of shares between the shareholders (percentage of shares), and the total amount of share capital that you have declared in your company registration.
From 2019, the share capital can be paid into any account with a European IBAN, including digital banks such as Wise or Revolut.
We are going to see 2 examples so that you better understand how the share capital is distributed depending on the number of partners that the company has:
🤔 Imagine that your company only has one partner, you, who, therefore, has 100% of the shares, and that you have declared the standard social capital of 2500 euros.
It’s very simple, you just have to make a transfer of 2,500 euros from your personal account to your company account, with the “Share capital” concept.
🤔 Another example: imagine that you are 4 members, and your company has a share capital of 3000 euros, with the following distributions:
- Member 1: 30% of the share capital (€ 900).
- Member 2: 50% of the share capital (€ 1500).
- Members 3 and 4: 10% of the share capital each (€ 300 each).
In that case, each partner would make a payment for the corresponding amount from their respective personal accounts to the company account.
You must wait until all the transfers have arrived to get the statement we mentioned above.
This is important
Do not forget these essential points when paying the share capital:
⚠️ Write “Share capital” in the concept or description of the payment.
⚠️Make sure you can get a bank statement for this movement, as you will need it later.
⚠️This statement must be digitally signed by the bank to be accepted. That means you need to ask the bank to provide you with a digitally signed file (in PDF, .asice, or any format but digitally signed) verifying that payment.
⚠️ This document must be in Estonian. If this bank does not give you a copy in Estonian, you must request a sworn translation of that document. You will be given a digitally signed translation (.asice or .bdoc file). That is the file you need to upload.
We can do this process for you with our social capital translation pack. If you want more information about this service you can ask us through the chat.
2. Declare the share capital
You must follow the following steps to declare it:
✅ Once you log in with your e-Residency card in the e-Business Register, you must look for your company in the section “My undertakings” and click on the company name.
✅ On the next page, you will see the company data and the button “Change the data“. Click on the button and confirm that you would like to start a new petition.
✅ Once the petition is opened, you must click on item 5, named “Capital”. On this page you can see “The amount of capital” and the information “Established without making contributions“. Make sure to change the “Established without making contributions” checkbox so it is NOT marked. Then click on “Save”.
✅ Check that the capital section now specifies “Delete established without making a contribution”.
✅ Scroll down and click on “Next” until you get to “Documents”. Don’t change anything in the Articles Of Association. Now drag and drop the bank receipt(s) indicating that you have paid the contribution(s) of the shareholders, and set their type as “Bank notice”.
If your company has several shareholders contributing to the share capital, you will have to repeat this process until all the receipts of the share capital contribution payments have been added.
Click on “Next” to get to the “Confirmation of the application”.
✅ Signing the application.
Now scroll down until you see the changes to be done. Verify it indicates that the note “Established without making contributions” will be deleted.
✅ The last step is to proceed to the payment.
Next, you need to pay the state fee for the registry alteration in the “Payment of the state fee” section. Just choose the way to pay (through a payment link if your company has an account in an Estonian bank or through other methods such as direct transfer otherwise). It’s advisable to indicate that you want to submit the application to the registry once it is paid.
Otherwise, just click “Send” to submit the request once it’s paid. That’s all. You will probably receive an email soon with updates about your application.
A fast and easy process
Thanks to the changes introduced in the Estonian legislation in 2019, this process is very easy and the share capital can be paid into the bank account of a company in any country in the European Union.
We hope that this article has helped you to understand how to register the share capital of a company in Estonia, but if you still have any questions, you can ask us.
Our mission is to help you with all the paperwork and accounting tasks of your company, so you can focus on what really matters: growing your business. Do you want to know how we can help you? Click here.