One of the major reasons why Tallinn has been favoured by success is its geographical location. Locating on the shores of the Gulf of Finland and the Baltic Sea and being surrounded with powerful neighbours, the city has been a gateway for trade flows from East to West as well as in the South-North direction already for a thousand years. The city is easy to access by air, sea, rail and road.
There are many ways in which one can establish a business in Estonia, and the choice depends on particular circumstances. Under the Estonian Commercial Law, business can be conducted in the following legal forms:
The existing Taxation Law came into effect in 1994. According to foreign experts it was considered as one of the most advanced in the world. Economic and political developments necessitated the updating of the tax system and the new Law on Income Tax, which passed on the 15th of December 1999 (effective from January 1, 2000).