Starting from 01.07.2012 come into effect several amendments in the Aliens Act, which concern applying for residence permit for employment to work as a member of management body of a legal entity, applying for residence permit for business and applying for residence permit in existence of sufficient legal income. There are also some amendments in the rules for internal applying for residence permit and in the regulation for registration of one’s staying away from Estonia.

I Amendments in temporary residence permit for employment to work as a member of management body

Pursuant to this amendment to the Aliens Act, the Act shall differentiate the applicants for residence permit for employment of those applicants who perform managerial or supervisory functions of a legal person registered in Estonia, which is governed by public law, from those applicants who perform managerial or supervisory functions of a legal person which is governed by private law or of a foreign company branch registered in Estonia (hereinafter legal person governed by private law).

1.3.Temporary residence permit for the purpose to perform managerial or supervisory functions of a legal person registered in Estonia, which is governed by public law.

Submission of application
In a foreign representation of the Republic of Estonia, in the general order.

Requirements
The company must be registered in Estonia and the granting of residence permit must be in conformity with the purpose of granting temporary residence permit for employment. The requirement for permission of the Estonian Unemployment Insurance Fund and the salary criteria (i.e. fixed rate salary) are not applicable.

1.4.Temporary residence permit for the purpose to perform managerial or supervisory functions of a legal person registered in Estonia, which is governed by private law.

Submission of application
The application for residence permit may be submitted in Estonia, provided that the following conditions are fulfilled:

• the company has been registered in Estonia at least 4 months prior the submission of an application for residence permit;
• the company has conducted business activities in Estonia at least during the last 4 months;
• the person is staying in Estonia legally on the basis of visa-free stay or visa in connection with the activities of the company.

When submitting an application, the documents evidencing economic activities of the company must be enclosed (e.g. statement of the bank account of the company, data of value added tax declaration, documents evidencing transactions, contracts).

Requirements
The requirement for permission of the Estonian Unemployment Insurance Fund is not applicable, the salary criterion (i.e. the medium Estonian monthly gross salary multiplied by the coefficient 1,24) is applicable. The company must have been registered in Estonia at least 5 months, it must have conducted actual business activities in Estonia during the last 5 months and the granting of the residence permit must significantly contribute to achieve the purpose of the granting of residence permit for employment.

Residence permit for the purpose to perform managerial or supervisory functions of a legal person governed by private law may be granted to a partner of general partnership and limited partnership, member of management or supervisory board of private limited company, public limited company, foundation and commercial association, member of management board of non-profit association, procurator, liquidator, bankruptcy trustee, auditor, tax auditor, member of audit committee and director of foreign company branch.

An alien, who has obtained a temporary residence permit for employment for the purpose to perform managerial or supervisory functions of a legal person governed by private law, may perform managerial or supervisory functions in several legal persons governed by private law.

NB! With respect to the aliens who have submitted a temporary residence permit for employment as a member of managerial body before 01.07.2012, the immigration quota for the first half-year of 2012 shall be applied (i.e. to those persons, who are subjected to the immigration quota, the residence permit shall be refused).

II Amendments in temporary residence permit for business

Submission of application
The application for residence permit may be submitted in Estonia, provided that the following conditions are fulfilled:

• the company has been registered in Estonia at least 4 months prior the submission of an application for residence permit;
• the company has conducted business activities in Estonia at least during the last 4 months;
• the person is staying in Estonia legally on the basis of visa-free stay or visa in connection with the activities of the company.

Investment requirement:

• an alien, who has a holding in a company, must have capital for at least 65 000 euros, which must have been invested into business activities in Estonia;
• an alien, who is applying for temporary residence permit for business as a self-employed person, must have capital for at least 16 000 euros, which has been invested into Estonia.

The Aliens Act specifies, that, among others, the equity capital of a company, subordinated liability and registered fixed assets value may be considered as investment.

The description of business plan must be submitted either in Estonian or English language.

The description of business plan must express the following data:

• idea of business – planned activities, potential clients and suppliers, plans of development, fixed assets available for the company, circulating capital, labour force being used;
• financial forecasts for the next two financial years – revenue forecast, balance sheet, cash flow forecast;
• Curriculum Vitaes of the persons who perform managerial and supervisory functions.

After the lapse of one year, when applying for the extension of residence permit, the investment requirement set for application for residence permit may be replaced by the sales income (at least 200 000 euros per year) or by the social security tax paid in Estonia (in each month at least equal to the monthly social security tax paid in Estonia from the fivefold remuneration of Estonian annual average gross wages).

Distinctions for employment in Estonia, applicable to the person who has obtained a residence permit for business:

• the person may work in the company stated on the residence permit for the purpose to perform managerial or supervisory functions without receiving any remuneration for such work
• the person may perform managerial or supervisory functions in a different legal entity, if at least one legal person governed by private law, in which the person is performing managerial or supervisory functions, is paying to him/her the remuneration corresponding to the salary criterion (coefficient 1,24).

III Amendments in temporary residence permit in existence of sufficient legal income

Starting from 01.07.2012 it is not possible any more to grant a temporary residence permit in existence of sufficient legal income. The aliens, who are already holding a valid residence permit in existence of sufficient legal income, can extend the residence permit on the same terms and conditions on which they obtained the residence permit. An application for extension of residence permit must be submitted at least 2 months prior the expiry date of the residence permit.

NB! With respect to the aliens who have submitted a temporary residence permit in existence of sufficient legal income before 01.07.2012, the immigration quota for the first half-year of 2012 shall be applied (i.e. to those persons, who are subjected to the immigration quota, the residence permit shall be refused).

IV Amendments in registration of one’s staying away from the country

Aliens, who are holding a residence permit in Estonia and who intend to stay temporarily outside Estonia for more than 183 days per year, must register their staying away from Estonia with the Police and Border Guard Board. In case if an alien has registered his/her staying away from Estonia, then the time of his/her staying away from Estonia shall be calculated into his/her permanent residence time in Estonia. Pursuant to an amendment of the Aliens Act, the Police and Border Guard Board has a right to refuse to register the staying away, if such intended staying away is not justified or is contradicting to the purpose for granting the residence permit.

V Amendments in internal applying for residence permit on the basis of a motivated proposition of a member of the Government of the Republic

Pursuant to an amendment of the Aliens Act, starting from 01.07.2012 the Police and Border Guard Board shall decide on granting a right to submit an internal application for temporary residence permit to a person, whose settling to reside in Estonia serves the public interests according to the motivated proposition of a member of the Government of the Republic.  For that purpose such alien must address in person, and taking along the motivated proposition of a member of the Government of the Republic, a Service Office of the Citizenship and Migration Bureau of the Police and Border Guard Board.

VI Other amendments

When applying for temporary residence permit for employment as a posted worker – the aliens are obligated to submit together with the application for residence permit also an insurance contract granting that any costs related to his or her medical treatment as a result of illness or injury during the period of validity of the residence permit applied for will be met to the extent equal with persons covered with health insurance.