Look before you leap. This proverb very much holds true before incorporating a legal entity in Estonia. Before entering a less familiar jurisdiction, see a lawyer at home in Canada or the US. Also, perhaps see an accountant. Do you really need to create a legal entity in a distant civil law jurisdiction, where things work differently than in Canada? Can you only obtain favourable tariffs or preferred treatment in the European Union (plus Switzerland and Norway) by having a legal entity registered in a European Union country like Estonia, rather than in Canada?
This is a key question to ask. There are no doubt other questions that will be specific to your fact situation, or some general questions to ask (e.g. How are dividends taxed when paid from the Estonian company—assuming you have a company incorporated in Canada—to a Canadian/American parent company).
If it appears advantageous to incorporate an Estonian company, the simplest type of company to incorporate in Estonia is called an „OÜ“ or „osaühing“. The „OÜ“ moniker serves a similar purpose to „Ltd“ or Limited in Canada, or „Inc“ meaning Incorporated. It is a corporate identifier. If you are planning on setting up a larger enterprise (i.e. total assets in excess of € 20 million, annual revenue in excess of € 40 million), then you may wish to use an „aktsiaselts“ or „AS“. If you would like to receive more information on this topic, see the Government of Estonia's English language webpage.
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