The Legal Affairs Committee has sent a bill on payment accounts to its first reading in the Riigikogu that should promote foreign investments in Estonia and is hoped to attract Estonian e-residents back to the country as well.
The bill would introduce the possibility of using an account opened in a bank or payment institution in any contracting state of the European Economic Area (EEA) to establish a private limited company in Estonia. The current act requires the account of a private limited company to be opened in Estonia before the company can be established, according to a Riigikogu press release.
According to Chairman of the Legal Affairs Committee Jaanus Karilaid, this amendment would improve Estonia's business environment.
"Currently, foreign investors give up investing in Estonia and establish their companies elsewhere because tehy cannot open an account here remotely," Karilaid said. "This bill would liberalise our economic environment and bring foreign investors and e-residents back to Estonia."
Committee member Külliki Kübarsepp believes that the bill would benefit from better coordination among financial supervision authorities.
"The Financial Intelligence Unit of the Police and Border Guard Board (PPA) and the Financial Supervision Authority do not always agree with the Ministry of Finance," she said. "In light of the Danske Bank case, it is particularly important not to ignore other possible risks while promoting entrepreneurship."
The bill in question should eliminate state fees on entering or changing an entrepreneur's email address; currently, an €18 fee is levied on changing an entry. The bill would not change the procedure for establishing a public liimited company, however; a securities account at an Estonian bank would remain a requirement.
The first reading of the Bill on Amendments to the Commercial Code, the Non-profit Associations Act and the State Fees Act (712 SE) is scheduled for the 24 October plenary sitting of the Riigikogu. The bill was initiated by the Government of the Republic.
Editor: Aili Vahtla