A request for an apostille on Russian official documents to be exported abroad can be submitted via the Unified Portal of State Services. The request must be signed with an advanced unqualified electronic signature. When verifying documents, the competent authorities will interact with each other via SEMS.

The electronic apostille will be issued by creating an electronic version with a two-dimensional barcode. Upon request of the applicant, the apostille will also be issued as a paper document. The apostille registry will also be maintained in electronic form. The decree will come into force on 01.06.2022.

Many countries already have electronic apostilled legal and other official documents: Georgia, Colombia, Andorra, part of Spain, New Zealand, Bulgaria, Belgium, USA, Moldova and some other states.

The very idea of electronic apostille is not only a convenient and modern innovation, but also guarantees a higher level of information security compared to the widely used paper apostille. The file is virtually impossible to forge, and any manipulations with it will make the created document invalid. In addition, the electronic apostille system allows for remote certification of official documents, as well as for tracking the facts of violations committed by notary bodies.

Сообщение Electronic apostille will be introduced in the Russian Federation появились сначала на SOWANA.

Legal Basis

Applicant Requirements

Cross-Border Activities

Submission of Applications

State Fee Payment

Application Review

Modification of License Conditions

Revocation of License

Supervision

Cost

Contact Information

You should apply for a license if you intend to operate in the following areas:

• Activities as a non-bank financial institution (excluding sectors licensed by the financial supervision authority, where licenses are issued by the financial supervision authority);
• Provision of trust and business partner selection services;
• Provision of virtual currency services.

The license is issued by the Financial Intelligence Unit (FIU) indefinitely.

The activities of financial service providers are regulated by the Money Laundering and Terrorist Financing Prevention Act (MLTFP Act).

Сообщение Financial service provider license (cryptocurrency) in Estonia появились сначала на SOWANA.

If your company intends to carry out international transportation using vehicles weighing
over 3.5 tonnes, you must obtain an EU Community License.
This license confirms that your company meets the standards established by
EU Regulation No. 1071/2009 and No. 1072/2009.

For vehicles weighing between 2.5 and 3.5 tonnes, an EU regulation requiring a license
came into effect on May 21, 2022, but its enforcement in Estonia began
from January 1, 2023.

Important: You do not need an international license for driving in
Latvia, Lithuania, and Finland if the vehicle does not exceed 3.5 tonnes
and you are not transporting goods for third parties.

The international license is issued by the Estonian Transport Administration and includes a
main document and certified copies (one for each vehicle). These copies must be
kept in the cabin of the corresponding vehicle and presented during inspections.

Сообщение Community license for the carriage of goods in Estonia появились сначала на SOWANA.

The Concept of CFCs in Ukraine

A Controlled Foreign Company is a structure managed by a resident of another country. But how should one handle such a structure to avoid falling under constantly changing laws?

The concept of CFCs did not appear in Ukrainian law by chance. It stems from global practice. In all developed countries, it is assumed that if a person owns a non-resident company not subject to taxation in the owner’s country of residence, they must still declare that company and pay tax on its profits—even if the income has not been physically received.

The state is naturally interested in collecting taxes from a foreign company controlled from its territory. In today’s interconnected world, countries cooperate and exchange financial data. Asset movement is easily traceable, so hiding them is increasingly pointless.

The concept of a Controlled Foreign Company was only recently introduced into Ukrainian legislation. It refers to a legal entity or structure registered in a foreign country but controlled by a Ukrainian resident (individual or legal entity). Anyone with a non-resident company must understand that it is now subject to legal regulation, and therefore, this must be taken seriously.

By law, a CFC is any legal entity registered abroad but controlled by a Ukrainian resident. This broad definition allows lawmakers to interpret the CFC concept freely and prevent tax evasion through legal loopholes. Thus, this law cannot be ignored. Every controlling person must register their company to avoid sanctions and fines for failure to report a CFC.

Controlling Persons

Controlling persons are individuals who own more than 50% of a foreign company or those who own at least 10% provided there are other Ukrainian residents among the shareholders and their total combined share is at least 50%.

There are three criteria for identifying a controlling person. First, ownership of a non-resident company where one is a shareholder or beneficial owner via a trust. Nominee shareholders must disclose share quantities, allowing calculation of ownership percentages.

Second, to prevent circumvention of the 50% threshold by dividing ownership among several persons, another rule applies: a person with over 10% ownership is deemed controlling if other Ukrainian residents also control the company. All such persons must report their involvement.

This second criterion is controversial. For example, a person might not know the other shareholders, or shareholder composition might have changed, making it unclear who holds more than 10%. Such cases require individual legal assessment.

Third, if a person exercises de facto control (alone or jointly with others) over a foreign company, they are considered controlling. Even without shares or beneficial ownership, if a person manages or controls the company, they fall under the CFC law and bear responsibility accordingly.

This third criterion applies, for example, to officials banned from owning non-resident companies or businessmen hiding company ownership behind third parties.

Media investigations that expose such control are now reviewed by legal departments in banks, which are tasked with identifying real beneficial owners. Yet, determining the true controller is often complex when documents list one person and journalists another. This topic is still under discussion at banking conferences and behind the scenes.

What Is a Share in a CFC?

What constitutes ownership in a foreign company? The law defines it as a portion of corporate rights, granting the holder benefits and powers, such as voting rights, profit entitlements, and claim to assets upon liquidation. There are also tax benefits associated with income and liquidation proceeds.

De Facto Control in CFCs

Now that we understand what a CFC is, let’s address a critical issue: de facto control. The Tax Code defines this broadly, significantly limiting ways to avoid liability.

De facto control means influencing key company decisions—asset and profit management, contract signing, and liquidation. It includes giving orders to company management. For example, if someone can call and issue binding instructions, that constitutes legal control.

Negotiating on behalf of a company, even without formal authority, also qualifies as control.

One key legal criterion is a power of attorney for major transactions valid for more than one year. This nuance offers an interpretive loophole—most powers of attorney are issued for a year or less, potentially exempting the holder from being deemed in control. However, executing bank transactions from the company account confirms control and falls under the CFC law.

Another indicator is listing a person as founder or beneficiary when opening a company bank account. Ukrainian banks are now required to update data about the ultimate beneficiary of companies that include foreign entities as shareholders. If the listed nominee is not the true owner, banks may request trust declarations or conduct in-depth reviews to identify the real controller.

Banks use directories of known nominee shareholders. When someone is listed as a shareholder in dozens of companies, it’s hard to argue they are the actual owner. In such cases, Ukrainian residents are often listed instead. This information is now available to tax authorities, and failure to report CFCs may result in fines.

Exceptions to de facto control exist. For example, individuals managing assets under a power of attorney—lawyers, auditors, trust managers, protectors, guarantors, insurers—are exempt. The law also curiously lists “enforcers,” a vague term that raises interpretive issues. A Google search suggests “bar bouncer,” which obviously does not fit in this legal context, creating room for manipulation.

Thus, every law-abiding owner of a non-resident company must now report it. First, they must notify their resident legal structure. Then, they must pay tax on the income earned by that entity. The Tax Code details the procedures and deadlines for doing so.

There are two tax options for individuals:

• Standard rate: 18% tax.
• Reduced rate: 9%, plus a military levy.

There are also two taxation strategies:

• Pay taxes on hidden ownership, bypassing the beneficial owner.
• Or formally declare yourself as a shareholder and pay 10.5% tax on dividends (9% + military levy).

What Income Is Not Taxable?

Not all CFC income is taxable. This is one of the most discussed topics in international company taxation. Let’s look at the available exemptions:

• CFC profits are not taxable if Ukraine has a double tax treaty with the relevant jurisdiction and one of two conditions is met. First: the CFC pays effective profit tax at a rate not less than 18%, or the shortfall is within 5 percentage points. (Cyprus, for example, falls slightly below this threshold.) Second: the CFC’s passive income does not exceed 50% of total income. This is to prevent abuse through “wallet” companies that generate income solely from passive sources (stocks, bonds, funds, etc.).
• CFC profits are not taxable if the total income of all a person’s CFCs from all sources does not exceed €2 million by the end of the reporting period. This raises the question: does €2 million refer to income or profit? Income might be considered total turnover, while profit is income minus expenses.

The general formula for taxable profit is: income minus expenses. The result is then taxed. However, international accounting standards sometimes equate income with profit, so clarification is still being debated.

• If a company’s shares are publicly traded on recognized stock exchanges, its profits are not subject to tax. The term “recognized exchanges” is not legally defined but implies that the organization holds a relevant license.
• Another exemption applies to CFCs involving charitable participants. These companies do not distribute profits among shareholders but instead transfer funds to NGOs, which allocate them for specific needs.

Sanctions for CFC Law Violations

If a controlling person fails to report their CFC, they face a fine of 100 subsistence minimums. As of January 1, 2020, this is UAH 210,000.

Thus, penalties should make CFC owners think carefully. There is a long list of sanctions for failure to notify and pay taxes. Avoiding liability is nearly impossible under these provisions.

Preferential Liquidation of CFCs

When an individual realizes they must file reports and pay taxes on each of their foreign companies, they may consider liquidating those assets. Legal complexities and unanswered questions often lead to this decision. A preferential liquidation rule previously allowed the first liquidation (before 30.06.2020) to proceed without including the assets received during liquidation in taxable income.

Сообщение How to get the most out of a CFC in Ukraine while remaining within the legal framework? появились сначала на SOWANA.

Most often, this choice is made by those who aim to work with the European market and also seek tax optimization. Since 2004, Estonia has been a member of the European Union, and the country offers enough benefits and incentives for foreign investors to consider becoming its resident.

So, if you’ve decided to choose Estonia — you’ve made the right decision. What’s next? After registering your company and business, the next step is opening a corporate account.

To save your time and effort, we offer a bundled business registration package:
“Company registration in Estonia + account opening in a UK payment system” – €1300.

Owning an Estonian Company Is Profitable!

Russian language. Estonia was once part of the Soviet Union, and the Russian language is widely spoken here. Along with Estonian and English, Russian is commonly used in business circles.

Low bureaucracy. The country faces practically no corruption, and bureaucracy is kept to a minimum thanks to modern technologies.

IT technology. Estonia has an advanced digital infrastructure. Documentation is predominantly handled electronically.

Close to Moscow and St. Petersburg. A flight between the capitals takes only about 1.5 hours.

Registering a Business in Estonia Is Easy

Registering a company in Estonia is easier through specialized legal service providers. We will help you quickly complete all necessary forms and documents online. Contact us at info@sowana.ee and we will register your company remotely within one day!

Taxation in Estonia

Estonia offers one of the most business-friendly tax systems in the world. The country has never appeared on any blacklist, even though it provides considerable tax flexibility to companies. Estonia has agreements with other countries to avoid double taxation.

The main tax is income tax, which is 20%. However, if a company reinvests its profits into the business, this tax does not need to be paid. Tax is only applied when profits are distributed and dividends are paid. In 2018, a reduced tax rate of 14% was also introduced, which applies under certain conditions.

VAT Number for Estonian Companies

A company registered in Estonia does not need to deal with customs documents. Its goods are not subject to customs control within the EU. Moreover, when selling goods between EU countries, turnover tax is not applied.

Not every company needs a VAT number. Whether it is required depends on several key factors: the type of transactions, type of goods and their movement (import/export), logistics and supply chain, and resale schemes. Generally, having a VAT number indicates that the company is engaged in intermediary activity focused on purchasing goods within the EU. Therefore, such companies must obtain a VAT number.

Simplified Reporting Scheme

Estonian companies submit annual reports. They are not required to report monthly. For annual reporting, the accounting department will need contracts and invoices (primary documents).

The available forms of business in Estonia include:

• FIE – sole proprietor (individual),
• AS – public limited company,
• UÜ – limited partnership,
• OÜ – private limited company,
• TÜ – general partnership.

Foreign residents and investors most commonly choose private limited companies (OÜ).

How to Register a Company in Estonia?

• The registration process begins with gathering the necessary documents.
• You must choose a company name. It must be unique, so it’s better to come up with several options.
• The minimum share capital is €2500, which does not need to be paid up immediately at the start.

For more information about registering a company in Estonia, contact our experts via messenger at +372 552 00 78.

Corporate Account for EUR and Crypto Payments in the UK

UK banks treat foreign clients with particular attention. For foreign companies choosing the UK for a corporate account, local payment systems are the best option. These systems are licensed and well-established.

We offer cooperation with a payment system that, in addition to standard banking services, provides unique tools. For example, it allows active operations with cryptocurrencies.

Why Open a Corporate Account in the UK?

We’ve selected a user-friendly payment system accessible to non-resident companies. The requirements are standard.

Key advantages of the payment system include:

• International payments via blockchain networks, SWIFT, SEPA, ACH, Faster Payments.
• The latest security systems for storing crypto assets.
• Multi-currency accounts supporting up to 8 cryptocurrencies.
• 24/7 online access to accounts via a mobile app.

Perhaps the most important benefit of this payment system is the ability to open a fully secure corporate crypto account — a service rarely available elsewhere globally.

How Expensive Is It to Use a UK Payment System?

The service offers a choice of three tariff plans. During the first month, service is completely free, regardless of the chosen plan. After that, monthly fees, transaction limits, and payment commissions depend on the company’s turnover indicators.

Want to register a company in Estonia? Don’t miss the opportunity to open an account with a UK payment system! It’s both advantageous and secure!

We’ve collected the most useful information in our Telegram channel:
@EstoniaSowana
Subscribe so you don’t miss the latest updates.

Call us on messenger: +372 552 00 78
Email us: info@sowana.ee
You deserve accurate information and attentive professionals!

Сообщение Registering a company in Estonia and opening a UK account for euros and cryptocurrencies? появились сначала на SOWANA.

There are two ways to obtain the card:

• The application and all required documents can be submitted online via the government portal. It takes about 15 minutes to complete, and the state fee is 100 euros (payable by card).
• If you are in Estonia, you must visit the police and provide the application along with the full set of documents.

A decision will be made within 30 days. There is a chance of rejection if the applicant has a criminal record, negative background, or if Estonian authorities find no valid reason to grant e-residency.

In case of rejection, you can reapply.

You can collect your e-resident card in Estonia within 2–3 weeks. Or you can collect it from one of 34 countries at an Estonian embassy or consulate in 3–5 weeks. Along with the card, you will receive an ID card reader and PIN codes that can be used to confirm your actions.

The e-Resident Card is:

• Not citizenship in the usual sense. The holder has no right to reside in Estonia, obtain a residence permit, or enter the country. It is also not tax residency. Foreigners can obtain tax residency only after staying in Estonia for more than 183 days in a year.
• Not a substitute for a visa or passport.
• The card allows you to register a business in Estonia online and use Estonian online banking services.
• Interact with the Tax and Customs Board, submit declarations and applications online.
• Use a digital signature for documents, including contracts. This enables you to open companies, manage them, and submit tax declarations remotely from anywhere in the world.
• Access other Estonian services that require electronic identification and submission of applications, including the start of business activity.
• Receive and use a personal identification number in Estonia.
• Obtain licenses online.

In general, having e-Resident status opens the following opportunities:

• Access to the internal market of the European Union.
• The right to open a bank account in any Estonian bank. However, in practice, this can be difficult without a reliable intermediary, as the EU imposes strict requirements on e-residents due to previous cases of financial fraud.
• Access to all Estonian electronic services.

Who is this service for?

• Foreign entrepreneurs and startup founders who want to enter the European market.
• Travelers who want to simplify their stay in Estonia or the EU.
• Anyone planning to build and grow economic ties with Estonia.

How can we help?

We’ve gathered all the most useful information in our Telegram channel: @EstoniaSowana

Subscribe to make sure you don’t miss the latest updates and articles.

Contact us to learn everything about becoming an e-Resident!

Messenger: +372 552 00 78
info@sowana.ee

You deserve accurate information and attentive specialists!

Сообщение E-RESIDENT CARD (Estonian electronic residence), what is it? появились сначала на SOWANA.