Bureaucracy Reduced! Estonia Loses the Need for Notary Certification for Transfer of Shares

From 1st of August 2020 a company’s share can be transferred without a certification by a notary. Thus, transactions like transfer of a share and granting options are made faster and simpler for the company, employee and investor.

The new, convenient and more economical solution for transferring a share can be used by companies with a share capital of at least 10 000 euros that has been contributed in full. Additionally, the shareholder(s) must unilaterally approve articles of association that allows carrying out such simplified transaction. Although a notary appointment hereafter is not required, the transfer of a share shall be at least in a format which can be reproduced in writing.

Refreshing introduction is also the reduction of the minimum nominal value of a share. Henceforth the minimum nominal value of a share may be set at one cent, which in turn in transactions regarding company’s shares allows the companies to divide shares more precisely in relation to an employee’s or an investor’s contribution.