In early 2018, amendments to the Commercial Code came into force in Estonia, requiring all non-resident entrepreneurs who wish to establish a company here to appoint a local contact person and register them in the Estonian Business Register for receiving official documents and notices.
Eesti Firma, as a licensed company service provider, offers reliable contact person services. In this article, we explain in detail what this service involves and who needs it.
📩 Contact Person for Your Company in Estonia
Need an official contact person to reliably receive documents and communicate with authorities? 💼 Want to avoid risks and ensure full compliance? 📑🔐
Get your documents promptly and mitigate risks! The contact person service in Estonia costs just €250 per year! 📑🔐
✨ Contact us today and ensure your business stays compliant and secure! 🤝✨
Requirement to Appoint a Contact Person in Estonia
This requirement was partially relaxed by the Commercial Register Act of February 1, 2023, clarifying that only companies registered in Estonia with a foreign address are legally required to appoint a contact person.
According to the Estonian Commercial Code, the institution of a contact person was introduced primarily because Estonian companies can have registered addresses abroad and be managed entirely remotely, with their management bodies located in foreign countries. Estonia has become quite a popular jurisdiction for registration of companies by non-residents partly thanks to its advanced e-Residency program — the number of Estonian enterprises set up by foreigners and e-Residents has exceeded several tens of thousands.
Bridge of Communication Between Businesses and Government
As the actual connection of such companies with Estonia may be minimal, it is necessary to provide a steady channel of communication and transmission of notices, declarations of intent and other relevant correspondence to the governing bodies and managers of the non-resident enterprise for the state authorities, counterparties or potential creditors of the enterprise.
According to Section 24 of the Commercial Register Act of the Republic of Estonia:
a) A legal person, including a foreign company that has a branch in Estonia, may designate a person to whom the procedural documents of the legal person and the declarations of intent addressed to the legal person may be delivered in Estonia.
b) A contact person must be designated if the address of the legal person is abroad.
c) In such case, only a notary, advocate, law office, sworn auditor, tax representative of a non-resident or a provider of trust and company services may be designated as a contact person.
d) A contact person entered in the register has the right to accept procedural documents and declarations of intent on behalf of the legal person until the entry is deleted from the register and the deletion is published, unless the lack of the authority of acceptance was known to a third person. Upon delivery of a procedural document or declaration of intent to the contact person, it is deemed as delivered to the legal person. The address of the contact person is considered the address of the legal person in such case.
The purpose of introducing the concept of a contact person is to fully legitimise the situation when a company registered in Estonia is fully managed from abroad, and all the management bodies of a legal entity are located in a foreign country.
Why Is It Worth Appointing a Contact Person?
We strongly recommend appointing a contact person for those non-resident entrepreneurs whose companies use legal address services and have only a virtual office in Estonia. Availability of a contact person is extremely important to provide a steady channel of communication between representatives of the company and state institutions of the Republic of Estonia, as well as other persons who are potentially interested in the delivery of correspondence to the address of the company’s registration.
If the contact person is not listed on the company’s registration card, the service provider of the legal address will not be able to receive official correspondence addressed to the company. Thus, there is a risk that the Estonian Commercial Register will make and publish a note of inability to communicate and deliver messages of the company at its registration address (such a possibility appeared in early 2023).
The Powers of a Contact Person
A contact person acts as a representative of the company in a limited capacity and their details are included on the company’s registration card. However, the contact person’s representative function is passive only – the contact person is only authorised to accept official documents addressed to the undertaking. A contact person does not hold any rights to take legally significant actions on behalf of the company.
However, it should be noted that under the current legislation, delivery of any notices or documentation to the contact person is equivalent in nature to the delivery of these materials to the management board members or directors (general managers) of the company. Moreover, once appointed, the contact person’s details become part of the company’s official contact information, and the address of the contact person becomes the official address of the foreign company.
Who Can Serve as a Contact Person?
The law stipulates that not everyone is entitled to become a contact person in foreign companies. The purpose of narrowing potential candidates is to grant this right exclusively to professionals already subject to high standards of qualification and due diligence, who are perceived as unquestionably trustworthy by legislators and the public.
According to current legislation, law firms, notary’s offices, sworn auditors, or licensed trust and company service providers (TCSP) can serve as contact persons.
Contact Us
Eesti Firma holds a state license for company registration number FIU000144, issued by the Financial Intelligence Unit (FIU), and has the legal right to offer the contact person service to its clients.
Our team of experts offers comprehensive support, including assistance with legal, administrative processes, and accounting services in Estonia. Reach out to us for professional guidance on establishing your business in Estonia and taking full advantage of local opportunities.
The cost of the contact person service is €250 per year
We offer transparent pricing for our services, including a fixed annual fee of €250 for licensed contact person services. For more information about virtual office services in Estonia, please visit the dedicated page on our website. If you would like to order contact person services, please contact our specialists by phone, e-mail or by filling out the relevant form on our website.
