The companies only needs one board member (yourself) and have a share capital of 40,000 EEK (approximately 24,000 SEK), the share capital is already paid and then withdrawn.

This means that you DO NOT need to bring in the share capital of the company to make it operational. It is almost the same procedure as in Sweden, but with the difference that you DO NOT need to bring in capital and then if you want, take the money out.

In Estonia, the income from work is taxed with a fixed percentage (they do not apply progressive taxation).

Currently (the income-year of 2009) you pay 21 percent income tax (regardless of income) on the salary that you take out in Estonia.
The Government of Estonia has also announced a future reduction of income tax to 18 percent in 2011.

The corporation tax in Estonia is 0 percent, which means that the gains in an Estonian company are not taxed.

                                                                                        Tony Harkén