Estonian OÜ Accounting Guide¶
This guide covers how Minnova handles accounting, taxes, and financial operations as an Estonian OÜ using Enty as the accounting provider. Topics include client payments, dividends, salaries, investments, VAT, and expenses.
The company is VAT-registered to reclaim VAT on expenses and issue compliant invoices to EU clients.
Billing & Entity Details¶
| Item | Value |
|---|---|
| Legal name | MINNOVA OÜ |
| DBA | None (operates as MINNOVA OÜ) |
| Registration / Tax ID | 16513523 |
| Billing address | Kangru tee 19/2-1, Lubja küla, Viimsi vald, Harjumaa 74010, Estonia |
| Primary contacts | +372 53077336, +372 53506631 |
| Billing email | hello@minnova.io |
| Preferred payment currency | EUR |
Bank Account (LHV)¶
| Item | Value |
|---|---|
| Bank | LHV PANK AS |
| BIC / Bank ID | LHVBEE22 |
| SWIFT / Routing | LHVBEE22 |
| Account name | MINNOVA OÜ |
| IBAN / Account # | EE687700771007981749 |
| Account currency | EUR |
Multi-currency receipts¶
- For USD/GBP and other non-EUR payments, prefer a Wise balance to minimize FX spreads; convert to EUR in Wise and send to LHV.
- If the client insists on EUR billing, invoice in EUR and note the FX source/rate and date (Wise mid-market or ECB).
- Record FX differences and Wise/LHV fees as finance charges and keep transfer receipts for the audit trail.
Receiving Money from Clients¶
Clients pay into the company's LHV or Wise business account in EUR or other currencies. Enty connects to bank feeds (or accepts manual CSV uploads) to track incoming payments.
Incoming funds remain company money until withdrawn as salary or dividends.
Paying Ourselves¶
There are two ways to withdraw money from the company:
| Type | Tax Rate | Notes |
|---|---|---|
| Salary | ~40-45% | Declared monthly via TSD, contributes to pension and social benefits |
| Dividends | 20% | Paid from retained profit, more tax-efficient but requires earnings |
When running payroll, aim for at least the Estonian minimum gross salary so social tax obligations are met.
Important: Always declare salary or dividends before transferring company money to a personal account. Undeclared transfers are treated as fringe benefits and taxed at ~64%.
Declaring Dividends¶
- Log in to Enty dashboard and select "Distribute Dividends"
- Enter the amount and confirm available retained earnings
- Enty generates documentation, calculates the 20% tax, and reports to EMTA
- Transfer the declared amount to personal accounts
Dividends must be distributed according to share percentage. For a 50/50 company, each founder receives half.
Business Travel & Expenses¶
| Method | Recommended | Handling |
|---|---|---|
| Company card (Wise, LHV) | Yes | Enty auto-detects and categorizes; confirm as business expense |
| Personal card | OK | Upload invoice and receipt to Enty, then reimburse from company |
Examples of deductible expenses:
- Flights and train tickets
- Hotels and accommodation
- Taxis and public transport
- Coworking spaces and conference tickets
- Office supplies (coffee, snacks, etc.)
Always request invoices with the company name and VAT number.
Company Investments¶
Retained company profits can be invested tax-free through corporate brokerage accounts. Gains grow untaxed until withdrawn as dividends.
Allowed investment types:
- Stocks and ETFs via Lightyear Business, IBKR Corporate, or LHV Broker
- Real estate (rental properties)
To set up:
- Open a business brokerage account in the OÜ's name
- Transfer funds from the company bank account
- Use a clear transfer note (e.g., "Investment transfer")
- Enty will categorize the transfer as a financial investment
Warning: Never invest company money through personal accounts. This is treated as a fringe benefit and taxed at ~64%.
VAT¶
The company is VAT-registered, which means:
- Enty files monthly or quarterly VAT returns (KMD) with EMTA
- VAT paid on business expenses can be reclaimed
- Invoices to EU B2B clients use reverse-charge (0% VAT, but reported)
- All purchase and sales invoices must be saved
VAT registration is optional until turnover exceeds €40,000/year, but we registered early for credibility with EU clients and to reclaim VAT on expenses.
Reporting & Tax Submissions¶
Enty handles all filings:
| Report | Frequency |
|---|---|
| TSD (salary/payroll) | Monthly |
| KMD (VAT report) | Monthly/Quarterly |
| Annual Report | Yearly |
| Dividend declaration | As needed |
Our responsibilities:
- Upload invoices and receipts
- Confirm expense categorizations
- Notify Enty before paying dividends or salary
Shareholder & Board Structure¶
The company is 50/50 owned by both founders. Each founder is also a board member (juhatus) for equal authority over company decisions.
Dividends are distributed strictly according to share percentage.
To add or change shareholders/board members, either update the Business Register directly or have Enty prepare the documents.
Best Practices¶
- Never transfer money to personal accounts without declaring it as salary or dividends
- Use company accounts for business expenses, or reimburse via uploaded invoices
- Declare dividends only through Enty
- Use corporate (not personal) investment accounts
- Let Enty handle all reports and tax submissions