Company Formation in Estonia
Company formation in Estonia is governed by the Commercial Code and carried out through the official e-Business Register. The country offers one of the most digitally advanced incorporation systems in the European Union, allowing founders to register a private limited company (OÜ) fully online within days.
Register Your Estonian OÜ — Fast, Compliant and EU-Ready
Eesti Firma provides professional company registration services in Estonia for international founders, e-residents and remote businesses. As a licensed corporate service provider (TCSP), we ensure that your Estonian company is properly structured from the outset to meet corporate, tax and registry requirements.
- ✓ 0% corporate income tax on retained earnings
- ✓ Official registration via the Estonian e-Business Register
- ✓ Remote incorporation via e-Residency or notarised power of attorney
Legal & Compliance Support
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Professional Company Setup Support in Estonia
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Estonia offers a structured corporate environment for company registration, widely used by international founders across the EU.
Professional legal assistance reduces delays, documentation errors and registry objections, particularly for foreign founders and remote businesses.
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Company Registration Options in Estonia
Available registration options depend on your circumstances and preferred method. Each option includes defined timelines, fixed pricing and professional support.
Company Formation with e-Residency
Registration is conducted online via the Estonian e-Business Register. All founders and board members must hold a valid e-Residency card or Estonian digital ID.
e-Residents
Digital Nomads
Remote Businesses
- ✅ 100% online registration process
- ✅ No travel to Estonia required
- ✅ Easy access to Estonia’s digital services
Company Registration in Person by Visit
Incorporation takes place before a notary in Tallinn. Our team prepares the required documents and coordinates the notarial procedure on your behalf.
Those close to Estonia
Frequent travelers
Those who value speed
- ✅ Personalised legal help
- ✅ Flexible company structures
- ✅ Fast company setup during visit
Company Setup Remotely by Power of Attorney
Registration is conducted remotely on the basis of a notarised power of attorney. Personal presence in Estonia is not required; our team manages the procedure on your behalf.
Non-EU founders
Those unable to travel
No e-Residency yet
- ✅ No personal presence needed
- ✅ Convenient for busy entrepreneurs
- ✅ Available to non-EU citizens
Purchase of a Ready-Made Estonian Company
A pre-registered Estonian company with a legal address and standard documentation is available for acquisition. Business activities may begin without starting a new registration process.
Urgent business start
No waiting time
Complex corporate structure
- ✅ Ready-to-use company
- ✅ Remote-friendly, no delays
- ✅ Legally verified entity
Additional Services
Additional corporate and compliance services are available based on your operational needs.
Estonia introduced the e-Residency programme, enabling non-residents to establish and manage an EU company remotely. Registration is conducted online through the official registry once the required information is submitted.
Estonia is regularly assessed in international business and tax competitiveness rankings, reflecting its distribution-based corporate tax model. The key advantages of doing business in Estonia are outlined separately. The following section outlines the company registration process, legal entity types and key taxation aspects.
Reasons to Establish a Company in Estonia
Estonia’s corporate system is digitally administered, with standardised procedures for registration and tax reporting. International rankings reflect the efficiency and competitiveness of this model.
Estonia in Global Business Rankings
These rankings show how Estonia, despite its size, has built a reputation as one of the world’s most entrepreneur-friendly countries.
| Index | Organization | Rank | Year / Scope |
|---|---|---|---|
| International Tax Competitiveness Index | Tax Foundation | 1st | 2024, Global |
| Ease of Doing Business | World Bank | ~17–18 / ~190 | 2020, Global |
| World Competitiveness | IMD | 33rd | 2024, Global |
| Economic Freedom (Europe) | Heritage Foundation | 5th | 2024, Europe |
| Business Ready — Public Services | World Bank | 1st | 2024, Global |
| Business Ready — Operational Efficiency | World Bank | Top 3 | 2024, Global |
| Business Ready — Regulatory Framework | World Bank | ≈ 11–20 | 2024, Global |
While rankings provide comparative indicators, practical advantages are reflected in Estonia’s standardised procedures and predictable legal environment.
These structural elements create a stable environment for entrepreneurship:
- Digital administrative system. Corporate procedures are conducted online through a secure digital ID infrastructure, including registration, contract signing and tax filing.
- Low share capital requirement. A private limited company (OÜ) may be established with a minimum share capital of €0.01 per shareholder, subject to statutory distribution restrictions.
- Corporate income tax model. Profits are taxed only upon distribution; retained earnings are not taxed at the corporate level.
- EU market access. An Estonian company operates within the EU legal framework, enabling cross-border services and VAT registration.
- Regulatory environment. A stable and predictable regulatory environment supports long-term business planning.
- International ownership. 100% foreign ownership is permitted, and there is no requirement for local shareholders or directors.
Estonia combines EU market access with a profit-distribution corporate tax model often described as tax-efficient in comparative analysis. This framework makes it a practical jurisdiction for freelancers and internationally oriented businesses.
Company Formation in Estonia: Procedural Steps
Company registration in Estonia is largely digital, with most procedures handled online via e-Residency, while registration before a notary or by power of attorney is also available.
Registration Time Example
According to official data, the fastest recorded registration through the Estonian e-Business Register was completed in 15 minutes and 33 seconds. Actual processing times depend on document completeness and registry workload.
Source: Estonian e-Residency Programme
The registration process generally includes the following steps:
- Preparation of company details. Select a unique company name in the Latin alphabet and determine the principal activity (EMTAK code). Name availability can be verified in the Commercial Register.
- Registered address and contact person. Each company must have an Estonian registered address. Non-resident founders must appoint a local contact person, typically through a virtual office service.
- Submission of the application. The application is filed through the Estonian e-Business Register using e-Residency or an Estonian ID card. Alternatively, registration may take place before a notary or via a notarised power of attorney.
- Registration decision. The Commercial Register reviews the application and issues a decision. Upon approval, the company receives a registry code and may proceed with banking, VAT registration or EORI application where required.
The procedure is standardised, with processing times depending on the completeness of the submitted documentation.
Key Considerations
Before registration, several legal and operational aspects should be considered.
e-Residency Programme Statistics
According to official data, over 126,500 e-residents have established more than 36,000 Estonian companies across various sectors.
Source: Estonian e-Residency Programme
The following aspects are particularly relevant when establishing a company in Estonia:
- Minimum Share Capital. An OÜ may be established with a minimum share capital of €0.01 per shareholder. Dividend distributions remain subject to statutory capital contribution rules.
Learn more about share capital.
- Ownership and Management. An OÜ may be founded and managed by a single individual. 100% foreign ownership is permitted, and no residency requirement applies to shareholders or board members.
Explore the duties and responsibilities of board members.
- Corporate Taxation. Corporate income tax applies upon profit distribution; retained earnings are not taxed at the corporate level.
Read more about corporate taxation.
- Banking and Payment Services. Estonian companies may open accounts with local banks or EU-based fintech institutions, subject to internal compliance and due diligence requirements.
Find out how to open a corporate bank account.
These elements define the practical framework for operating a company in Estonia.
Overview of Legal Entity Types in Estonia
Estonian law recognises several types of legal entities, though only a limited number are commonly used in practice. The chart below shows the current distribution of business forms.
Distribution of Business Entity Forms
This chart shows the current landscape of company types in Estonia, highlighting that the vast majority are OÜs (private limited companies), the most common choice for entrepreneurs starting a business.
The selection of a legal form is governed by the Commercial Code. The main entity types and their key characteristics are outlined below.
- Private Limited Company (OÜ – osaühing). A limited liability company where shareholders are liable only to the extent of their capital contribution. An OÜ may be established by one or more founders with a minimum share capital of €0.01 per shareholder. This is the most common form for small and medium-sized businesses.
Learn more about Limited Liability Companies.
- Public Limited Company (AS – aktsiaselts).Typically used for larger enterprises, an AS requires a minimum share capital of €25,000 and both a management and supervisory board. Shares may be publicly offered in accordance with applicable regulations.
- Partnerships (TÜ – general partnership, UÜ – limited partnership). In a general partnership (TÜ), partners are jointly and severally liable. In a limited partnership (UÜ), at least one general partner bears unlimited liability, while limited partners are liable up to their contribution.
Learn more about Partnerships.
- Sole Proprietorship (FIE – füüsilisest isikust ettevõtja). A status for natural persons conducting business under their own name, with unlimited personal liability. Registration in the Commercial Register is required.
- Non-Profit Association (MTÜ).An entity established for non-commercial purposes. It has members rather than shareholders, and any surplus must be used in accordance with its statutory objectives.
Learn more about Non-Profit Associations.
In practice, the OÜ is the most commonly used form for commercial activity. The AS is typically chosen for larger structures, while partnerships and sole proprietorships involve different liability considerations.
Overview of the Tax System in Estonia
Estonia applies a distribution-based corporate income tax model with standardised reporting aligned with EU tax principles.
The main elements of the Estonian tax system are summarised below:
- Corporate Income Tax. Corporate income tax is levied upon profit distribution. Retained earnings are not taxed at the corporate level. The standard rate on distributed profits is 22%. Dividends to non-residents are generally not subject to withholding tax, subject to applicable rules.
- Value-Added Tax (VAT). The standard VAT rate is 24%. VAT registration is mandatory once annual taxable turnover exceeds €40,000.
- Personal Taxes and Payroll. Employment income is subject to 22% income tax. Employers pay 33% social tax plus unemployment insurance contributions. Dividends are not subject to social tax, subject to statutory conditions.
- Filing and Administration. Tax reporting is conducted electronically through the Estonian Tax and Customs Board. While no annual corporate income tax return is required in the absence of distributions, companies must maintain accounting records and submit an annual report to the Commercial Register.
In summary, corporate taxation is based on profit distribution rather than annual accrual, while VAT and payroll obligations apply according to statutory thresholds and rates.
Eesti Firma: Corporate and Legal Expertise
Although company formation in Estonia is accessible, engaging a local corporate service provider can reduce procedural risks and administrative burden. Eesti Firma provides structured legal and corporate support throughout the incorporation and post-registration stages.
- Proven experience. With over 10 years of practice and more than 5,000 companies registered, our team has handled a wide range of corporate and compliance scenarios.
- Integrated corporate services. We provide legal services, accounting, and tax advisory within a single service structure.
- Regulatory compliance focus. Our work aligns with Estonian corporate and tax legislation, ensuring statutory requirements are addressed at each stage of the company lifecycle.
- Direct professional communication. Clients work directly with qualified specialists responsible for their engagement and ongoing corporate matters.
- Ongoing administrative support. We assist with document preparation, notarial procedures, VAT registration, annual reporting and related compliance obligations.
Eesti Firma acts as a long-term corporate and legal partner in Estonia, advising on company registration beyond e-Residency and alternative registration approaches. Our multidisciplinary team delivers comprehensive support in structuring, compliance and ongoing corporate advisory.
Initial Consultation and Engagement
An initial consultation helps us understand your business objectives and determine the most suitable registration approach based on your circumstances.
Eesti Firma provides structured guidance from the outset, ensuring a clear and efficient start. Schedule a consultation to discuss your business setup.
FAQ | Frequently Asked Questions
We provide practical information to help you understand the process of establishing a business in Estonia and its regulatory framework. Below you will find answers to frequently asked questions received by our specialists.
- What is the best legal form for company formation in Estonia?
The most common legal form in Estonia is the Private Limited Company (OÜ). It offers limited liability, flexible management structure and relatively low share capital requirements, making it suitable for entrepreneurs and small and medium-sized enterprises.
- How long does it take to register or set up a company in Estonia?
Company formation in Estonia is generally efficient. Applications submitted through e-Residency are processed electronically by the Commercial Register, while notarised incorporation may require additional time depending on documentation and review procedures.
- How to check and reserve a company name in Estonia?
The company name must be unique and comply with Estonian naming requirements. Availability can be verified and reserved in the e-Business Register prior to submitting the incorporation application.
- What is the minimum share capital required and how can it be paid?
The minimum share capital for an Estonian private limited company (OÜ) starts from €0.01. Contributions may be made in cash to the company’s bank account or in kind, such as property or equipment, subject to proper valuation and documentation requirements.
- Can a foreigner register and own a company in Estonia?
Foreign nationals may establish and own companies in Estonia without residency requirements, subject to compliance with applicable legal and identification procedures. Estonia is recognised as one of the accessible EU jurisdictions for cross-border business structuring.
- Do I need to choose a business activity when registering a company in Estonia?
Yes. At least one primary activity must be selected in accordance with the EMTAK classification. This does not restrict the company from engaging in multiple lawful business activities, subject to applicable licensing requirements.
- Can an Estonian company open a bank account abroad or with fintech providers?
Yes. Companies in Estonia may open accounts with EU credit institutions or licensed fintech providers, including Wise, Revolut, Wamo and Paysera, subject to internal compliance and onboarding procedures.
- Is accounting mandatory for Estonian companies and when is the annual report due?
All companies in Estonia are required to maintain proper accounting records. The annual report must be filed with the e-Business Register within six months following the end of the financial year in accordance with statutory requirements.
- What is Estonia’s e-Residency program and how do I apply?
e-Residency is a government-issued digital identification for non-residents providing access to Estonia’s digital business environment. Applications are submitted online, and the card is collected at a designated embassy or authorised pickup location.
- How can I open a company in Estonia online with e-Residency?
With an e-Residency card, documents can be digitally signed and company formation in Estonia completed online. Processing time depends on submission accuracy and review by the Commercial Register.
