While Estonia offers a favorable environment for starting a business, it is essential to understand the country's legal requirements and regulations. One of the key considerations is understanding the Estonian taxation system. Estonia operates a unique corporate tax model where profits are only taxed when they are distributed, which can be highly advantageous for reinvestment. Additionally, Estonian businesses are required to file annual reports and adhere to the local accounting standards. As a business owner, you should also familiarize yourself with labor laws, as well as the rules surrounding employee benefits and insurance.

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