“Legal Affairs Committee wants to promote foreign investments into Estonia”

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The Legal Affairs Committee sent the Bill on payment accounts to the first reading. The Bill should promote foreign investments into Estonia.

The Bill would introduce the possibility to use an account opened in a bank or payment institution in any Contracting State of the European Economic Area 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.

The Chairman of the Legal Affairs Committee Jaanus Karilaid said that the amendment would improve our business environment. “Today, foreign investors give up investing into Estonia and establish their companies elsewhere because they cannot open an account here from a distance. The Bill would liberalize our economic environment and would bring foreign investors and e-residents back to Estonia.”

Member of the Committee Külliki Kübarsepp thinks that the Bill would benefit from a better coordination among the financial supervisory authorities. “The Financial Intelligence Unit of the Police and Border Guard Board and the Financial Supervision Authority do not always agree with the Ministry of Finance. In light of the Danske Bank case, it is particularly important not to ignore other possible risks while promoting entrepreneurship.”

The Bill should eliminate state fees on entering the e-mail address of the entrepreneur in the commercial register, or changing it. Currently, an EUR 18 state fee must be paid to change an entry. The Bill does not change the procedure for establishing a public limited company; a securities account in an Estonian bank will 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.

Krishan Chand

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