Operating as a sole proprietor (hereinafter FIE) is most suitable for people who are starting operations alone or with their family.
Registering as an FIE is simple, but an FIE is liable for their obligations with all of their personal assets.
What must be done before registering as a sole proprietor (FIE)?
Before registering as a FIE, find the answers to the primary questions that will determine the most important rules governing your everyday activity.
- What will your FIE’s business name be? The FIE’s business name must consist of the entrepreneur’s given name and surname. The FIE's business name must be clearly distinguishable from other business name registered.
- What will your initial area of activity be? Do you need activity licences or other licences?
- What will your FIE’s address be?
Application for operating as a sole proprietor
For registering as a sole proprietor, you must only submit an application. The requirement is the existence of a bank account suitable for business activity. You can submit the application to the E-Business Register.
How to register as a sole proprietor
To register electronically in the e-Business Register, you must be able to provide a digital signature. You can register via an expedited procedure if the following conditions have been met:
- your registered place of residence is in Estonia;
- the state fee has been paid electronically in the e-Business Register;
- you have provided the details of the area of activity pursuant to level 4 in the Estonian Classification of Economic Activities.
The Register must include the business name of the sole proprietor, the registered office and address of the sole proprietor’s company, the date of the start and end of the financial year, and the sole proprietor’s name and personal identification code. The application for entry onto the Register must be include the applicant contact details and planned principal activity.
What are the costs of registering as a sole proprietor?
For registering as a FIE, you will have to pay a state fee of 20 euros.
How long will it take to register as a sole proprietor?
Upon submitting a petition for entry in the e-Business Register under the expedited procedure, the FIE is registered within one business day.
What must be done after registering as a sole proprietor?
Depending on your area of activity and turnover, a varying number of additional steps must be taken.
- If you will be operating in an area of activity subject to special requirements, you will have to apply for an activity licence.
- If your annual turnover exceeds 40 000 euros, you will have to register as a VAT payer with the Tax and Customs Board.
- If you hire employees, you will have to register them with Tax and Customs Board.
Related articles
- Registering a company
- Comparison of each form of business
- Reporting for sole proprietors (FIEs)
- Dissolution of a sole proprietor (FIE)
- Dissolving a sole proprietor (FIE) on court order and in the event of the death of the entrepreneur