On Jan. 15 this year an amendment to the Commercial Code is entering into force that requires all Estonian companies whose management board members are located abroad to appoint a contact person in Estonia.
Any branch of a foreign company also has to appoint a contact person if the place of residence of at least half of the managers of the branch is not Estonia, another member state of the European Economic Area, or Switzerland.
The amendment is based on the requirement that any company needs to be available in Estonia through at least an appointed representative.
According to the new rules, only a notary, notary's office, advocate, law office, sworn auditor, audit firm, tax representative of a non-resident for the purposes of the Taxation Act, and a trust and company service provider specified in § 8 of the Money Laundering and Terrorist Financing Prevention Act may be designated a contact person.
As an exception, a member of the management board or a body substituting for the management board, a partner, shareholder, or procurator of a company may be appointed a contact person if their residence is in Estonia.
Failure to observe these new rules can result in the deletion of the company's entry in the commercial register, though at least one previous warning is required.
Editor: Dario Cavegn