A partner abroad that joins a consortium applying for EU funding sometimes needs its own Estonian company. The company has to exist before the proposal is submitted, so the submission deadline sets the timetable for the formation.
Consortium Conditions
Each program and call sets its own conditions, so the call text decides. In Horizon Europe, unless the call or type of action says otherwise, a consortium needs at least three legal entities that are independent from each other, each established in a different country. At least one has to be in a Member State and the others in Member States or associated countries. An affiliated entity has a legal or capital link to a consortium member and does not sign the grant agreement, so it does not count toward this minimum. Calls touching EU strategic interests can also exclude entities controlled from outside the eligible countries. The check goes up to the ultimate owners, so the owner’s country can matter.
Every applicant has to register in the EU’s Participant Register before the proposal is submitted. Validation of that registration comes later, during grant preparation. The company therefore needs to be in the Estonian Business Register early enough to complete this step before the deadline.
Formation Timing
A company can be registered online with e-Residency or at a notary in Tallinn. With a tight deadline, it can be safer for an owner without e-Residency to come to the notary in person than to use a power of attorney, which usually takes some weeks.
The Business Register reviews an application within five working days of receiving it. If the application has to be changed or a document added, the five days start again, and where something needs special checking the register can extend the review to as long as three months. The notary appointment should therefore be at least a full working week before the deadline, and earlier where possible, with time left for the Participant Register.
Share Capital and Bank Account
The board members confirm a payment in money of up to €50,000 in the registration application, so the company does not need a bank account before registration. Intellectual property can be added later through a share capital increase, so that valuing it does not delay the registration. The company does need a bank account before the first EU payment, because funding is paid only to a validated account, which in principle has to be in the company’s own name.
Financial Capacity and Experience
A new company has no closed accounts, so in Horizon Europe it provides estimated figures, such as a business plan. The financial check is normally done for a coordinator requesting at least €500,000, and for other applicants if needed. Being newly established is taken into account. If the result is not satisfactory, the granting authority can ask for further information, change or withhold prefinancing, ask for the applicant to be replaced or reject the proposal.
Experience is assessed on the applicants and their project teams. For each participant, the application lists the researchers involved, up to five relevant achievements and up to five previous projects. For a new company, this rests on the people in its team.
Our Services
We register Estonian companies for owners abroad, online with e-Residency or at a notary in Tallinn. We plan the formation around the call’s submission deadline, prepare the documents in English and Estonian, arrange the notary and file with the Business Register. The Standard plan provides the legal address and contact person afterward, and our accounting plans include both. Contact us to discuss a formation.
