If you need to hire somebody based outside Estonia, your Estonian company is a suitable model for hiring independent freelancers or subcontractors across the globe. There are two methods for paying freelancers/subcontractors:
A simple written agreement between your company and your subcontractor is sufficient evidence as proof the payment was for provided services (time sheets and other such written documentation are advisable). If the work for these services is performed outside Estonia, there’s no need to register the cooperation in any public registry in Estonia, and no related income or social taxes are paid by your company in Estonia. Your company pays him/her the sum agreed, and the freelancer is responsible for declaring and paying the relevant income and social taxes, in the country where he/she operates OR
The freelancer issues your company an invoice for his/her services in the name of his/her legal entity. The invoice must also reflect the legal entity's registration code.
In contrast to cooperating with independent freelancers across the globe, your company cannot hire anybody working outside Estonia on a permanent basis as an official employee on your company’s payroll. This triggers the need to register your company as a non-resident employer in his/her location and comply with local rules and regulations.