A company in Europe – why Estonia?

TOP 10 Advantages of Estonia for Registering Your Company

Do you want to start a business and register a company in Europe? We recommend that you consider opening your company in Estonia since it has many assets and stands out among other European Union countries.

At the end of 2021, there were 241,181 companies registered in Estonia out of which 24,779 (about 10%) were established last year. Given the size of Estonia’s population (1.3 million inhabitants), these figures clearly demonstrate that Estonia is a popular destination for foreign businesses to minimise jurisdictional and other risks as well as to optimise taxes.

Here are the 10 key reasons why you should set up your business and register a company in Estonia:

  1. In Estonia, there is no tax on retained earnings at all. This means that the profits of any Estonian company are exempt from corporate income tax until they decide to pay dividends and the accumulated profits are distributed among the company’s participants. This allows companies registered in Estonia to accumulate profits freely and invest funds without paying corporate taxes.
  2. Estonia ranked 1st on the International Tax Competitiveness Index thanks to its extremely straightforward and transparent tax system. The process of calculating, declaring, and paying taxes is easy, convenient, and as automated as possible. All legislative acts and tax regulations are written in simple and clear language, you can find all the necessary information on the website of the Estonian Tax and Customs Board, and the tax administration employees are always friendly and ready to help you.
  3. Estonia has the most favourable business climate – it is not for nothing that Estonia holds leading positions in various international rankings: 7th place in the Index of Economic Freedom and 18th place in the Ease of Doing Business Index.
  4. Unlike many other European countries, there is no need to contribute authorised capital when registering a company in Estonia, which makes the process of starting a business straightforward and unbureaucratic.
  5. Estonia has been a member of the European Union and the European Union Customs Union since 2004, which means that all customs duties and restrictions on trade activities throughout the EU are abolished.
  6. An e-Residency programme was put in place for foreigners in Estonia in 2014, allowing non-residents to obtain an electronic signature accepted in Estonia and other European countries. The e-Residency and electronic signature enable non-residents to use various online services, including the electronic Business Register through which you can register a company quickly and conveniently and carry out further management of the enterprise.
  7. You can instantly and effortlessly open accounts for your Estonian company in electronic payment systems such as Wise, Paysera or Revolut, which will facilitate entering international markets.
  8. Even though official paperwork in Estonia is conducted in Estonian, you can always contact and communicate with government authorities in Russian or English.
  9. The registration process in Estonia is as efficient, transparent and unbureaucratic as possible. In just a few days, you can register a company in-person, remotely by the power of attorney or online using e-Residency.
  10. To establish a business in the Republic of Estonia, you don’t have to involve local residents in its structure. The founders and general managers may be 100% non-residents of Estonia.

This is by no means a complete list of advantages in choosing Estonia for setting up your business in the European Union. You will find more information about the procedure and conditions for establishing an enterprise in Estonia on the thematic page of our website.

If you are interested in registering a company in Estonia, or if you have any questions, feel free to contact our specialists by phone, e-mail or by filling out the appropriate form on our website.

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