Can I invest from my Estonian company?

Last updated: April 05, 2018

Technically, you can invest but your options are limited. When using LeapIN, your Estonian company is allowed to make the following investments:

  • Buy-sell shares in publicly traded companies and funds

  • Buy-sell cryptocurrencies for investment purposes

  • Invest in start-ups or other private companies registered in the EU (either a convertible loan or equity), receiving a minority stake and no controlling rights (less than 30%)

  • Lend via internationally recognized crowd-funding platforms

This means the following investments are not allowed (not an exhaustive list):

  • Buying real-estate, a car or any other physical assets

  • Buying physical gold/silver

  • Buying a controlling/majority share in another company

  • Lending to a friend or any other individual directly

  • Lending to yourself (as a shareholder / board member of the company)

Your company is allowed to invest only profits earned from your core business activities or reinvest funds earned from other investment activities, assuming the latter will not become the core business activity itself.

This means you cannot use a loan or initial share capital to make investments. And the investment activities cannot replace the initial core business of the company (e.g. instead of providing software development services the company starts trading activities), because otherwise the company will be required to have a separate activity license in Estonia.

Advice regarding investment opportunities is beyond our competence. But there are other professional service providers you can turn to. 

For instance, LHV is also known for its investing capabilities. You can read more about it on their website.

For accounting purposes you would need to provide us an extract of your investment account on a monthly basis.

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