At its today’s sitting, the Legal Affairs Committee of the Riigikogu (Parliament of Estonia) discussed the proposal of the Estonian startup community to amend the regulations of the Commercial Code so that they would not be a barrier to the wish of foreign investors to invest into the Estonian companies. The Committee found that the situation required urgent solution.
“International investments are essential to the development of companies based on the Estonian capital. If the existing legal order hinders it and makes both the investors and our startups to look towards other countries, a solution has to be found quickly,” Chairman of the Legal Affairs Committee Jaanus Karilaid said.
Member of the Legal Affairs Committee Kaja Kallas thinks that it is necessary to do everything to make investing into Estonia as simple and free of red tape as possible. “The image of Estonia’s e-success story has to keep up with the times, and if the current regulations have become a barrier to the growth of startups, they should be reviewed,” Kallas added.
The representatives of startups proposed to create a special regulation that would enable the shareholders of private limited-liability companies in the case of certain disposal transactions to opt for unattested written form that did not require notarial authentication. It means that a foreign investor does not have to come to Estonia in order to acquire shares and invest into the company, if all shareholders agree to it.
Representatives of the Ministry of Justice, law offices EllexRaidla and Sorainen, the Estonian Private Equity and Venture Capital Association, Startup Estonia, the Estonian Startup Leaders Club, the Estonian Business Angels Network and Bolt participated in the sitting.
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