Company Formation in Estonia, Expert Business Setup Services
Are you considering the opportunity to establish a business in Europe 🌍 and seeking the ideal jurisdiction to register a European company quickly, efficiently, and securely? Look no further!
Start a Company in Estonia just in a few Days!
It’s incredibly easy to open a company in Estonia 🚀. Choosing this EU country for your business is a smart move, offering a range of benefits for entrepreneurs. Here’s why Estonia stands out:
✅ Zero Corporate Tax on Retained Earnings: Keep more of your profits. 💸
✅ Fast and Simple Setup: Register your enterprise in just a few days. ⏱️
✅ 100% Remote: Incorporate online with e-Residency or a power of attorney. 🌐
Kickstart and Scale Your EU Business with Estonia’s Unique Advantages
Setting up a company in Estonia is fast, simple, and can be completed in just one week. 🕒 As a direct service provider with no intermediaries, we offer efficient and reliable support to help you establish your business in Estonia. Our services are fully licensed under state license number FIU000144, ensuring trust and compliance every step of the way. 💡
Get In Touch With Us - Corporate Services Are Our Specialty! Send enquiryCompany Setup in Estonia: Unlock the EU Market
Estonian Company Registration - Fast, Simple, and Cost-Effective
If you’re planning to launch your business in Europe and enter the lucrative EU market, registering your company in Estonia is the ideal first step. With advanced digital infrastructure, a favorable business climate, and a streamlined company formation process, this country offers unparalleled opportunities.
Why Choose Estonia to Open a Business?
🚀 With a fast company formation process and a minimal share capital requirement starting at 1 euro cent, Estonia provides a hassle-free and affordable way for entrepreneurs to establish a business. 🌍✨
Celebrated for its innovative and flexible commercial environment 📈 as noted by the OECD and World Bank, Estonia is one of the most open and vibrant economies in European Economic Area.
Top Benefits of Starting an Estonian Company
If you are resolved to open your company in Europe 📍, giving this nation top priority for your corporate location should be quite important. For years, Estonia has concentrated on building a friendly and creative business environment to draw foreign investors and entrepreneurs all around.
Digital Nomads and e-Residency
Estonia is an ideal location for international entrepreneurs and digital nomads looking to set up a business. With its e-Residency program, competitive tax system, and technology-friendly environment, Estonia offers e-residents the opportunity to run their businesses entirely online.
A Leading Hub for Innovation and Fintech
With its straightforward and unambiguous Commercial Code, Estonia has grown to be a desirable location for business and a dynamic center housing forward-looking startups This covers creative Web 3.0, blockchain, and crypto projects. DAOs, NFTs, fintech startups, crowdfunding platforms, and DeFi projects all find a home here.
Key Advantages of Doing Business in Estonia
For many years Estonia is a leading country (1st place) in the International Tax Competitiveness Index and consistently ranks high in the Economic Freedom Index (8th place) and in the Ease of Doing Business Index (18th place).
Registering a Company in Estonia: The Pros You Can’t Ignore
Establishing a company in Estonia is an effective way to launch your business project and enter international markets. It helps diversify risks, reduce administrative burdens, and lower the tax load on your existing enterprise.
0% Tax Rate on Retained Earnings
Company profits are not subject to corporate or income tax until distributed to shareholders. 💸 All profits can be fully utilized for business development or reinvested to generate additional income, 🚀 making Estonia similar to a tax haven. 🏝️
Minimum Share Capital is Just 0.01 €
When registering a company, founders can set the share capital at any amount. 💰 If it does not exceed 50,000 euros, the Estonian Business Register doesn’t require proof of payment into the charter fund (no bank or payment system confirmation needed). 📄
A Fully Digital Nation
Estonia’s comprehensive digitization of the public sector and business environment allows foreign investors to:
✅ Register companies,
✅ Manage finances,
✅ Pay taxes,
✅ Conduct business entirely onlineAll these services are available seamlessly through Estonia’s state e-services on the official portal eesti.ee 🖥️, as well as other trusted government platforms like the e-Business Register and the Tax and Customs Board portal 🏛️📊.
This overview only scratches the surface of the numerous benefits associated with incorporating an undertaking in Estonia. Starting your enterprise or startup here will favorably position you compared to other alternatives and help bring your business into the legal framework of the European Union quickly.
How to Establish a Company in Estonia
Opening a company in Estonia is quick and simple regardless of your position—freelancer, startup founder, owner of an existing business. You may incorporate your entity totally online in just a few days, therefore streamlining the process and making it easily available to business owners all around.
OÜ – The Most Popular Legal Entity Type to Start
Limited Liability Companies (OÜ or Osaühing) are the most widely used company type in Estonia. 📊 Early 2025 had over 262,000 OÜs in the country, 99% of all commercial enterprises taken all together. ✅ Perfect for businesses of all kinds, this type of entity offers flexibility, limited responsibility for shareholders, and a simple incorporation process.
Startups and entrepreneurs especially respect the OÜ because of its low minimum share capital need (starting at only €0.01) and link with Estonia’s excellent digital technology, including the e-Residency program. 🚀 ✨
Setting Up an Estonian Company: Flexible Options
Depending on their preferences and travel schedule, foreign investors and entrepreneurs have many choices on how to open a company in Estonia. Either establish a business entire online, see a notary in Tallinn, or even purchase a ready-made firm. Each way has its pros, costs, and processing times:
Company Formation in Estonia Online with e-Residency
For founding a company, in the Estonian Business Register online environment 🌐, all active persons (shareholders and directors) will need an e-Residency card.
Key Benefits 💡
✅ Totally online formation process
✅ No need to visit Estonia
✅ Access to all digital services: banking, accounting, etc.Term: 1 day | Price: from 375 €
Company Registration in Estonia in Person by Visit
This procedure involves a personal visit to a notary’s office in Tallinn ✈️. Our lawyers will provide preliminary advice and the required legal support throughout the procedure.
Key Advantages ✨
✅ Personalized legal support
✅ Suitable for companies requiring a specific structure
✅ Access to digital services, including banking and accountingTerm: 1-5 days | Price: from 550 €
Opening a Company in Estonia Remotely by Power of Attorney
If you want to register a company remotely with no personal presence, 📄 then give a notarized power of attorney to our agency’s lawyers, and we will be able to perform the procedure of entity formation on your behalf.
Key Benefits 💡
✅ No personal presence at all
✅ Full legal support
✅ Possible for non-EU citizensTerm: 5-10 days | Price: from 900 €
Purchase of a Ready-Made Estonian Company
If a fully operating business is to be required urgently, then we can render ready-made companies 🏠 having an active registration number, legal address, and all necessary documentation. This will save time for those who need quick start-up. It’s the fastest way of starting business activities in Estonia.
Key Advantages ✨
✅ Turn-key business
✅ No waiting for company registration
✅ Fully Compliant, Legally Verified EntitiesTerm: 1-10 days | Price: from 1200 €
Our Pricing Plans
Below is a detailed breakdown of the fees for launching a company in Estonia. This includes a comprehensive list of costs associated with various additional corporate and legal services we offer.
Additional Corporate Services
* The cost of formation of an entity, regardless of the method, includes payment of all notary and state fees, as well as 1 hour of a legal or accounting advise. The advanced package includes legal address and contact person services for one year. The prices indicated above do not include a possible VAT.
Step-by-Step Guide to Open a Company in Estonia
Starting a business in a new country is an exciting opportunity to expand your horizons and tap into new markets. Estonia offers a straightforward and efficient process for business formation, making it an attractive destination for entrepreneurs worldwide.
Estonian Company Formation: Everything You Need to Know
This guide provides an overview of the essential steps to establish a company in Estonia, helping you navigate the process with confidence. However, to ensure the procedure goes smoothly and to avoid potential pitfalls, it is highly recommended to consult with a professional.
Select a unique business name
Choose a name that isn’t already registered. 🏷️ It must follow local naming rules and include “OÜ” (for a Private Limited Company). Check availability in the Estonian Commercial Register to avoid conflicts. 🔍
Choose the registration method
Decide between online registration (via the e-Residency platform) or notary registration. 💻 Online registration is faster and allows remote management, while notary registration can be done in person or remotely with a power of attorney. 📜
Provide a local legal address
Every entity in Estonia must have a registered office address for official correspondence. 🏢 If you don’t have a physical presence, virtual office services can provide a compliant legal address. 🌐
Prepare and submit required documents
Gather necessary documents, such as the Articles of Association, shareholder details, and proof of legal address. 📂 Submit them online or through a notary, ensuring all information is accurate to avoid delays. ⏳
Register your company
Once documents are submitted and approved, your undertaking will be listed in the Estonian Business Register. 📝 You’ll receive a registration number, confirming your business is officially established. ✅
Open a business bank account
Open a corporate payment account with a local bank or an international fintech service. 💳 This account will be used for transactions, tax payments, and other financial operations. 💼
Set up accounting and bookkeeping
Arrange professional accounting services or use compliant software to meet Estonian accounting standards. 📊 Proper bookkeeping is essential for accurate tax filings, annual reports, and financial transparency. 📑
Stay compliant with ongoing obligations
Fulfill annual reporting requirements, submit financial statements, and file tax declarations on time. ⏰ Stay informed about regulatory changes to ensure your business remains compliant. 📚
Estonia vs. Other EU Countries
When considering company formation in the European Union, Estonia stands out for its unique benefits. Beyond the general perks of being in the EU, this country offers a progressive and supportive environment for modern businesses. Its fully digitalized processes and e-Residency program make it a top choice for entrepreneurs seeking efficiency and global reach.
Why Establishing a Company in Estonia is a Smart Move
Estonia embodies a forward-thinking mindset, blending innovation with simplicity to create a modern and accessible business landscape. Its approach to entrepreneurship focuses not only on efficiency but also on fostering global connectivity, making it a hub for visionaries:
Unique Corporate Tax System
Estonia has a 0% corporate income tax on undistributed profits, meaning taxes only apply when profits are paid out as dividends. This allows businesses to reinvest earnings and grow faster. In most other EU countries, corporate taxes are levied annually, regardless of profit distribution.
Effective e-Residency Program
The e-Residency program allows foreign entrepreneurs to set up and manage an Estonian based business entirely online. While other EU nations are beginning to offer digital services, this program is known for its efficiency and comprehensive features.
Innovative Legal Framework
With progressive laws supporting blockchain, fintech, and cryptocurrencies, Estonia provides an ideal environment for innovative companies. According to Ministry of Economic Affairs a and Invest in Estonia, the country stands out for fostering growth in tech-driven sectors, unlike many other EU countries with more conservative regulations that can limit growth.
Eurozone Membership
Estonia is part of the Eurozone, using the Euro as its currency, which simplifies transactions and removes currency exchange risks in Europe.
Advanced E-Governance Services
Comprehensive e-governance solutions allow businesses to handle nearly all administrative tasks online—such as signing documents, filing reports, and paying taxes. This level of integration goes beyond what is typically available in other EU countries, where in-person processes are still common.
Vibrant Startup Ecosystem
With one of the highest numbers of startups per capita in European Economic Area, the country has a dynamic entrepreneurial community. Local incubators, accelerators, and an experienced mentor network, supported by organizations like the Estonian Chamber of Commerce and Industry and Startup Estonia, create unique opportunities for startups.
Beyond Registration: Full-Scale Business Services
We offer a full range of services necessary for Estonian company registration, starting commercial activities, and further growing your business. Our corporate and support services include: professional assistance with legal compliance, accounting, and ongoing business management, all designed to help your company thrive.
Accounting Services
We offer complete tax and accounting service tailored to your company’s finances and business needs. 📊 Our accountants will help you with tax registration at the Estonian Tax and Customs Board, obtaining a VAT number and EORI number, preparing annual reports for the financial year, filing tax returns, accounting for entity’s own funds, payroll calculations, and more. 💼
Legal Address and Contact Person
Every entity formed in Estonia must have a legal address, whether through traditional office space or a convenient virtual office solution. 🏢 A virtual address is especially practical for enterprises without physical presence and local residents among founders or directors. It’s also recommended to appoint a contact person to handle incoming mail and official notices. 📨 We offer registered office and business address services in Estonia – everything you need to set up a company.
Legal Services
Our lawyers have extensive experience in corporate and civil law, providing a wide range of legal services. ⚖️ We offer consultations, provide legal opinions, assist in preparing necessary documentation, including corporate documents , and represent you in negotiations or court proceedings if necessary. 🖋️
Payment Account Opening
We assist opening of payment accounts with traditional banks and payment service providers (EMI or PSP) in the European Union. 💳 Based on your company’s operations, we will identify optimal payment solutions to streamline your banking transactions and support your business activities. 🌍
Why Choose Eesti Firma OÜ?
Eesti Firma OÜ offers complete business solutions backed by over a decade of experience in commercial law and foreign business support within the European Union. Our skilled consultants, lawyers, and accountants assure a smooth business establishment and continuous corporate services in Estonia.
Trusted and Licensed Service Provider
Eesti Firma OÜ is a licensed company registrar authorized by the Financial Intelligence Unit (FIU) with license number FIU000144. Our dedication to quality, efficiency, and confidentiality distinguishes us as a trustworthy partner for entrepreneurs and businesses globally.
Proven Expertise and Strong Track Record
With a decade of industry experience, we have successfully incorporated over 3,000 businesses and assisted clients in navigating the legal and financial elements of doing business in Estonia. Our trained personnel, who include corporate advisers, graduate attorneys, and accountants, provide bespoke solutions for even the most difficult issues.
Comprehensive In-House Services
As a straight service provider, we take care of all the details of starting a business and helping it grow without going through any middlemen. Our consultants, lawyers, and accountants are all part of our in-house team. This makes sure that we can communicate easily, provide consistent services, and work quickly.
Get in Touch for Free Business Advice
Are you thinking of registering a company in Estonia? Our strength at Eesti Firma is corporate services. We will closely review your business model, talk over your objectives, and suggest the most effective Estonian enterprise building option. With our help, you might simply access the European Union single market and benefit from simpler processes and tax advantages.
Eesti Firma: Our Mission – Your Success
Being the CEO and business manager of Eesti Firma has helped me to understand how important it is to make the correct decisions for company development. 💡Our team is dedicated to deliver easy, pragmatic, and customized solutions for business development and management.
🌟 Our reputation is shaped by dependability, competence, and a strong awareness of Estonia’s economic scene. 🌍 Whether your company is starting small-scale locally or expanding internationally, we are here to ensure a perfect and stress-free experience.
🚀 Let us walk you through every phase so you may fully benefit from the European Union single market. Your achievement is first concern at Eesti Firma. 💼✨
Ilja Nikiforov – CEO, Eesti Firma OÜ
Contact us now for customised pricing on company establishment and continuous assistance as well as bespoke advice. We will together create the ideal plan to enable your enterprise not only to reach but surpass its objectives.
FAQ | Frequently Asked Questions
Our goal is to give you useful knowledge that will help you understand how to register a business in Estonia and what the benefits are. You can see a list of the most common questions our experts get asked below.
- How long does it take to open a company in Estonia?
Establishing a business in Estonia doesn’t take long. Applications submitted electronically using the Business Register’s company registration portal using e-Residency must be processed within one working day. Alternatively, whether you visit a notary in person or with a power of attorney, the procedure may take up to five working days.
- Which legal form is most appropriate for opening a company in Estonia?
The Limited Liability Company (OÜ or osaühing) is the most well-liked and ideal option. A minimum of one partner and one Management Board member are required. The liability of shareholders is limited to the amount of the paid-up share capital.
- How do I choose a name for my legal entity?
Both the spelling and the sound of your company name must be distinctive. You can check if the name you desire is available on the e-Business Register website.
- Do I have to pay the Estonian company's share capital?
Indeed, a minimum of €0.01 in share capital is required for private limited company. If the amount is €50,000 or less, you are exempt from providing the Business Register with proof of payment.
- How can I pay the share capital?
You have two options: you can use assets like property rights or equipment to make a non-monetary donation, or you can pay with cash by depositing it into the business’s account.
- Can foreigners be founders and directors of an Estonian company?
Indeed, foreign nationals are permitted to serve as both directors and shareholders of a private limited company. Estonia is a fantastic option for international business owners who wish to enter the EU market because there are no residency-based restrictions.
- How do I choose the right field of activity, and does it limit my business?
One desired field of activity from the EMTAK classification (based on NACE) must be chosen when registering a corporation. You are free to carry out any lawful activity since this is merely informational and does not limit your business operations.
- Can an Estonian company have payment accounts in foreign banks?
It is possible for an Estonian entity to open and utilize current accounts with international banks, Payment Service Providers (PSPs), and Electronic Money Institutions (EMIs). Paysera, Wise, and Revolut are well-known providers that let you open a IBAN account.
- Where can I get my company's corporate documents?
The Estonian e-Business Register portal provides you with access to electronic copies of your company’s corporate records. You can see and download important documents including the register card, articles of association, and memorandum of association on this site. You can use our services to order certified or apostille paper copies of these papers if you need them.
- Is it required to keep accounting records and file annual reports?
Yes, all Estonian businesses are required to register all transactions and maintain accounting records. Additionally, within six months of the fiscal year’s conclusion, usually by June 30, an annual report must be filed with the e-Business Register.
- Does the business in Estonia need to register for VAT?
Yes, when an entity’s taxable turnover surpasses €40,000 per year, it is required to register for VAT. Registration is optional below this threshold, though it may be beneficial depending on your business activities.
- Do I need to pay taxes when paying foreign employees?
No, there are no tax obligations if you pay freelancers or employees who do not reside in Estonia. It is the recipient’s responsibility to declare and pay taxes in their home country.
- How can I register a company online?
An e-Residency card, which enables you to electronically sign papers and use the Business Register’s site for business creation, is required in order to register online.
- What is e-Residency?
A program called E-Residency gives non-residents a digital ID card so they may sign documents, prove their identity, and use Estonian e-services including company registration and management.
- How can I apply for e-Residency?
Use the official website to submit an application for e-Residency. A state fee, identity documents, and personal information must be submitted as part of the process. Successful applicants can pick up their digital ID starter kit at designated locations worldwide.
Tax Rates in Estonia
The Estonian Tax and Customs Board oversees the administration of all taxes and government fees, ensuring effective tax collection, oversight, and adherence to ax obligations and Estonian regulations. Tax registration and filings can conveniently be completed online through user-friendly electronic services available for businesses and individuals.
Corporate Income Tax: 0% on reinvested profits, 20% (20/80 of net distribution) on distributed profits, incentivizing growth through reinvestment.
Value Added Tax (VAT): Standard rate of 22%, with a reduced 9% rate applicable to specific goods/services. Mandatory VAT registration when annual turnover exceeds €40,000.
Withholding Tax: Generally 0% on dividends, interest, and royalties paid, unless payments are directed to low-tax jurisdictions.
Personal Income Tax: Flat rate of 22% on salaries and dividends (no additional tax on dividends already taxed at corporate level). Individuals may benefit from various tax credits, reducing overall tax liabilities.
Social Tax: Employers pay social tax at a rate of 33%, directly contributing to employees’ social security benefits, including pensions (20%) and health insurance (13%).
Double Taxation Treaties: Estonia has over 60 international agreements with EU and non EU countries to minimize cross-border tax obligations for businesses and individuals.
Types of Estonian Business Entities
When starting a business in Estonia, choosing the appropriate legal form is crucial, as it directly impacts the company’s operations, liability, and investment requirements. Below is a concise overview of the available business structures in Estonia to help you determine the best option for your needs.
Private Limited Company – The most common company structure in Estonia is a Private Limited Company (Osaühing, OÜ), which is perfect for new businesses and small to medium-sized businesses. It can be set up with as little as €0.01 in share capital, and the liability of shareholders is capped at what they have contributed.
Public Limited Company – For larger companies, particularly those wishing to generate money through public share issues, a Public Limited Company (Aktsiaselts, AS) is an appropriate form. It is governed by more stringent regulations and has a minimum share capital requirement of €25,000. Large businesses find it to be an appealing alternative because shareholders’ liability is capped at the amount they invested in the business.
General Partnership – A corporate entity known as a General Partnership (Täisühing, TÜ) is made up of two or more partners who are each fully liable for the debts of the company. This structure works well for companies where all partners actively participate in management and does not require a minimum initial investment.
Limited Partnership – At least one general partner with unlimited responsibility and at least one limited partner with liability limited to their investment make up a Limited Partnership (UÜ, Usaldusühing). There is no minimum capital needed.
Sole Proprietorship – The most basic business structure in Estonia is the sole proprietorship (Füüsilisest isikust ettevõtja, FIE), which is intended for individual business owners. Due of the owner’s unlimited personal liability, business debts may be paid with their personal assets. For independent contractors and small-scale self-employed people, this arrangement is perfect.
Non-Profit Association – An organization created for non-profit objectives, like social, cultural, educational, or humanitarian endeavors, is known as a Non-Profit Association (Mittetulundusühing, MTÜ). Members cannot get a portion of the profits; instead, they must be used to further the objectives of the organization. Establishing an MTÜ does not require a minimum amount of capital.
Branch Office – An extension of a foreign business doing business in Estonia is called a Branch Office (Filiaal). It must abide by Estonian laws and regulations but is not a distinct legal entity. The parent business bears full liability for the debts and liabilities of the branch.
Company Structure in Estonia
Every legal entity in Estonia requires a defined structure, which is entered into the Commercial Register via the Company Registration Portal and clearly outlined in the company documents. Below is a detailed overview of the standard company structure components in Estonia.
General Meeting – In Estonia, the General Meeting is a company’s highest decision-making body. Its members (for MTÜ) or shareholders (for OÜ and AS) are in charge of approving important business decisions, including financial statements, structural adjustments, and management choices. Although the meeting is usually conducted once a year, special sessions may be called if needed.
Management Board – In Estonia, a company’s management board is in charge of its day-to-day operations and legal counsel. Without regard to nationality or place of residence, a entity must have at least one director, who may be located anywhere. Corporate entities are not permitted to serve as directors; only individuals (natural persons) are.
Supervisory Board – A supervisory board is not necessary for an OÜ or MTÜ, but it can be set up if more oversight is needed, but this is a must for a Public Limited Company (AS): the owners must choose at least three people to serve on the supervisory board. The supervisory board doesn’t run the day-to-day business, but it does provide long-term direction and control.
Shareholders or Members – Ownership and liability in Estonian companies depend on the entity type. In a Private Limited Company (OÜ) and a Public Limited Company (AS), at least one shareholder is required, who can be an individual or a legal entity. Full foreign ownership is allowed, and liability is limited to the share capital contribution. In a Non-Profit Association (MTÜ), governance is based on members rather than shareholders, with profits reinvested into the organization’s objectives.
