Estonia Economy Profile - Doing Business 2014
Core Content Overview
The Doing Business 2014 report evaluates the regulatory environment for small and medium enterprises (SMEs) in Estonia and compares it with other economies. It measures the ease of doing business across 11 key areas of the business lifecycle, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and employing workers.
The report provides a global ranking of Estonia at 22nd out of 189 economies, with a distance to frontier (DTF) score of 75.24, indicating the average distance from the best practices in these areas. Estonia's DTF improved by 1.14 points from the previous year (DB2013). The report also includes data for comparator economies such as Denmark, Finland, Latvia, Lithuania, Norway, and Poland, as well as the best performers globally, like New Zealand and Singapore.
Main Business Regulation Indicators
| Indicator |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Starting a Business |
Rank: 61 |
Rank: 50 |
Rank: 11 |
New Zealand (1) |
| Procedures (number) |
5 |
5 |
4 |
New Zealand (1) |
| Time (days) |
6.5 |
6.5 |
5.5 |
New Zealand (0.5) |
| Cost (% of income per capita) |
1.5 |
1.6 |
0.2 |
Slovenia (0.0) |
| Paid-in Minimum Capital (% of income per capita) |
20.6 |
22.1 |
23.9 |
7.0 |
| Dealing with Construction Permits |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 38 |
38 |
38 |
8 |
Hong Kong SAR, China (1) |
| Procedures (number) |
13 |
13 |
8 |
Hong Kong SAR, China (6) |
| Time (days) |
148.0 |
148.0 |
67.0 |
Singapore (26.0) |
| Cost (% of income per capita) |
15.0 |
16.1 |
87.2 |
Qatar (1.1) |
| Registering Property |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 15 |
14 |
14 |
7 |
Georgia (1) |
| Procedures (number) |
3 |
3 |
3 |
4 Economies (1) |
| Time (days) |
17.5 |
17.5 |
4.0 |
New Zealand (1.0) |
| Cost (% of property value) |
0.5 |
0.5 |
0.6 |
5 Economies (0.0) |
| Getting Credit |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 42 |
40 |
40 |
28 |
Malaysia (1) |
| Strength of legal rights index (0-10) |
7 |
7 |
9 |
10 Economies (10) |
| Depth of credit information index (0-6) |
5 |
5 |
4 |
31 Economies (6) |
| Protecting Investors |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 68 |
67 |
67 |
34 |
New Zealand (1) |
| Extent of disclosure |
8 |
8 |
7 |
10 Economies (10) |
| Strength of investor protection index |
5.7 |
5.7 |
6.3 |
New Zealand (9.7) |
| Paying Taxes |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 32 |
44 |
44 |
12 |
United Arab Emirates (1) |
| Payments (number per year) |
7 |
8 |
10 |
Hong Kong SAR, China (3) |
| Time (hours per year) |
81 |
81 |
130 |
United Arab Emirates (12) |
| Cost (% of income per capita) |
188.0 |
201.4 |
87.2 |
Qatar (1.1) |
| Trading Across Borders |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 7 |
8 |
8 |
8 |
Singapore (1) |
| Documents to export (number) |
3 |
3 |
4 |
Ireland (2) |
| Time to export (days) |
6 |
6 |
6 |
5 Economies (6) |
| Cost to export (US$ per container) |
765 |
765 |
795 |
Malaysia (450) |
| Documents to import (number) |
4 |
4 |
3 |
Ireland (2) |
| Time to import (days) |
5 |
5 |
5 |
Singapore (4) |
| Cost to import (US$ per container) |
795 |
795 |
745 |
Singapore (440) |
| Enforcing Contracts |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 26 |
28 |
28 |
32 |
Luxembourg (1) |
| Time (days) |
425 |
425 |
410 |
Singapore (150) |
| Cost (% of claim) |
21.9 |
22.3 |
23.3 |
Bhutan (0.1) |
| Procedures (number) |
35 |
35 |
35 |
Singapore (21) |
| Resolving Insolvency |
Estonia DB2014 |
Estonia DB2013 |
Comparator Economies |
Best Performer Globally |
| Rank: 66 |
70 |
70 |
10 |
Japan (1) |
| Time (years) |
3.0 |
3.0 |
1.0 |
Ireland (0.4) |
| Cost (% of estate) |
9 |
9 |
4 |
Norway (1) |
| Recovery rate (cents on the dollar) |
38.9 |
38.5 |
87.0 |
Japan (92.8) |
Key Findings
- Ease of Doing Business (EDB): Estonia ranks 22nd globally, a slight drop from 21st in DB2013.
- Distance to Frontier (DTF): Estonia's DTF score is 75.24, showing it is closer to best practices than in DB2013 (74.12).
- Business Registration: Starting a business in Estonia requires 5 procedures, takes 6.5 days, and costs 1.5% of income per capita.
- Paid-in Minimum Capital: Estonia requires 20.6% of income per capita, which is relatively high compared to some comparator economies.
- Construction Permits: Dealing with construction permits involves 13 procedures, taking 148 days, which is a significant improvement over previous years.
- Registering Property: Estonia ranks 15th globally, with 3 procedures and 17.5 days.
- Getting Credit: Estonia ranks 42nd, with a strength of legal rights index of 7 and depth of credit information index of 5.
- Protecting Investors: Estonia ranks 68th, with 8 disclosure procedures and a strength of investor protection index of 5.7.
- Paying Taxes: Estonia ranks 32nd, with 7 payments and 81 hours of tax compliance per year.
- Trading Across Borders: Estonia ranks 7th, with 3 documents to export, 6 days to export, and 765 US$ per container.
- Enforcing Contracts: Estonia ranks 26th, with 35 procedures and 425 days to enforce a contract.
- Resolving Insolvency: Estonia ranks 66th, with 3 years of time and 9% of estate cost.
Methodology and Assumptions
- The report measures regulatory procedures, time, and costs for SMEs based on a standardized company assumption.
- The standardized company is a private limited company in the largest business city (Tallinn) with 10–50 employees, domestically owned, and not owning real estate.
- The paid-in minimum capital is EUR 2,500 or 20.6% of income per capita.
- Online procedures are included, with a 0.5-day adjustment in time calculations.
- The report does not include data on bribes, informal payments, or other non-regulatory factors.
Summary of Procedures for Starting a Business in Estonia
| No. |
Procedure |
Time to Complete |
Cost |
| 1 |
Check the uniqueness of the proposed company name |
Less than one day |
No charge |
| 2 |
Deposit initial capital in a bank |
1 day |
Varies |
| 3 |
Register with the Commercial Register |
1 day |
Varies |
| 4 |
Register with the Social Insurance Board |
1 day |
Varies |
| 5 |
Register with the Tax and Customs Board |
1 day |
Varies |
Reforms in Estonia
Estonia did not record any reforms in the Doing Business indicators from DB2009 to DB2014. This suggests that the regulatory environment for SMEs remained stable during this period, without major changes in the procedures, time, or cost of starting a business.