Company Formation in Estonia, Expert Business Setup Services

1. Digital from the very beginning. No queues, no piles of forms. With a digital ID you can register a company, sign contracts, and even file taxes — all without leaving your desk. In fact, many founders manage to set up their companies in just a few hours.
2. Easy and affordable. Starting a private limited company (OÜ) doesn’t require big capital. Legally, the minimum starts at only €0.01, and up to €50,000 you don’t even need to pay it in before registration. So you can get going first, and sort the details later.
3. A tax system built for growth. Here’s what founders really love: Estonia has no corporate tax on profits you keep in the company. Reinvest earnings, grow your business, and pay nothing until you decide to distribute dividends.
4. Part of the EU market. An Estonian company is an EU company. That means free movement of goods and services, simple access to a VAT number, and the ability to open a European bank or fintech account. For many businesses, it’s the easiest gateway into Europe.
5. A business-friendly climate. Estonia is consistently rated one of the world’s easiest places to do business. The state supports innovation, and that’s why so many tech startups — including several unicorns — call Estonia home.
6. Open to international founders. No local partner or director is required. Foreign owners have the same rights as locals. Many run “one-person companies” remotely, using just their digital ID card.

Did you know?

In Estonia, starting a business can be so fast it feels almost unreal — the record for registering a company through e-Residency is just 15 minutes and 33 seconds. That’s quicker than grabbing lunch or watching a TV episode!

Source: Estonian e-Residency Program

1. Plan the basics. Pick a name for your company and decide what it will do. The name must be unique, in the Latin alphabet, and different from what’s already in the register. You can quickly check availability online. At the same time, choose your company’s main activity (EMTAK code). If you’re planning more than one line of business, don’t overthink it — just pick the one that fits best.
2. Arrange a legal address and contact person (if needed). Every company needs an Estonian registered address. If you don’t live in Estonia, you’ll also need a local contact person — usually a licensed service provider. They act as your official point of contact with the authorities, receive official letters, and forward them to you. In practice, most international founders simply use a virtual office service that covers both needs. (And no, a P.O. box won’t work.)
3. Submit the application. When you’re ready, go to the e-Business Register, log in with your e-Residency card (or Estonian ID), fill in the details, and sign digitally. Share capital starts from just €0.01 per shareholder, and the state fee of €265 can be paid right there in the portal. Not keen on doing it online? You can also handle the process in person at a notary in Estonia, or ask a licensed service provider to do it for you with a power of attorney.
4. Get confirmation. The approval is usually quick — often within one working day. You’ll get an email when your company is official, and you can download your certificate and registry code right away. From that moment, you’re good to go: open a bank account (many e-residents use fintech solutions) and register for VAT if necessary.

Some Statistics

Estonia’s e-Residency program isn’t just about digital ID cards — it’s about people building real businesses.

Over 126,500 e-residents have already joined the community, creating more than 36,000 Estonian companies that operate across industries and borders.

Source: Estonian e-Residency Program

• Minimum Share Capital. Starting a company doesn’t have to be expensive. In Estonia, you can launch a private limited company (OÜ) with just €0.01 share capital per shareholder. You don’t need to pay in the old €2,500 upfront anymore. The only limitation is that dividends can’t be paid until at least €2,500 is contributed — but that can wait until your company is already up and running.

  Learn more about share capital.

• Ownership and Management. One founder, one director — that’s all it takes. And yes, the same person can fill both roles. Foreigners can own 100% of an Estonian company, and you don’t need to live in Estonia to manage it. There are also no requirements to pay yourself a salary or hire staff right away. This makes it easy for freelancers, consultants, and digital entrepreneurs to start lean.

  Explore the duties and responsibilities of board members.

• Taxation. Here’s the part founders love most: 0% corporate tax on reinvested profits. As long as the money stays in the company to support growth, no tax applies. You only pay when taking out dividends. That’s why Estonia is often called a “growth-friendly” jurisdiction.

  Read more about corporate taxation.

• Banking and Payment Services. One of the big advantages of doing business in Estonia is the freedom to choose where to bank. You can open an account with a local Estonian bank if you want a traditional option, or go with modern fintech providers like Wise, Revolut, or Paysera. Many founders prefer fintechs because accounts are quick to set up and easy to manage from anywhere. Either way, you’ll have what you need for daily payments, receiving client funds, and paying taxes — all without being tied to one location.

  Find out how to open a corporate bank account.

• Private Limited Company (OÜ – osaühing). By far the most popular form, especially for startups and small businesses. An OÜ is a limited liability company, meaning your personal assets are protected — you’re only liable for the capital you invest. It can be set up by just one person, and the minimum share capital is now only €0.01 per shareholder (the old €2,500 requirement is gone). This makes it ideal for e-residents and foreign founders. Most new businesses in Estonia, particularly those run by international entrepreneurs, are registered as OÜs.

  Learn more about Limited Liability Companies.

• Public Limited Company (AS – aktsiaselts). This form is intended for larger businesses that plan to raise capital from many shareholders or go public. The minimum share capital is €25,000, and an AS must have a supervisory board of at least three members in addition to the management board. Shares of an AS can be publicly traded, unlike those of an OÜ. For most small and medium businesses, the requirements are too heavy, so they start as OÜs. If you grow big and want to attract investors, you can always transform your OÜ into an AS later.
• Partnerships (TÜ – general partnership, UÜ – limited partnership). Partnerships are used much less often, especially by foreigners. In a general partnership, all partners are personally liable for the company’s obligations. In a limited partnership, at least one partner has unlimited liability and manages the business, while the others are liable only for their investment. These forms don’t require high capital, but because of the personal risk, most entrepreneurs prefer the OÜ structure.

  Learn more about Partnerships.

• Sole Proprietorship (FIE – füüsilisest isikust ettevõtja). This isn’t a company form, but a status for self-employed individuals. An FIE operates under their own name and is personally liable for debts. It’s only available for people who live in Estonia and register in the Commercial Register. Local freelancers sometimes use this form, but it doesn’t work for e-residents or non-residents. For international entrepreneurs, an OÜ is usually the safer and more flexible option.
• Non-Profit Association (MTÜ) and Others. Non-profits (MTÜ) are set up for civic, cultural, or charitable purposes. They have members instead of shareholders, and profits must be used for non-commercial goals. There are also cooperatives (ühistu), but these are niche forms, rarely relevant for typical entrepreneurs.

  Learn more about Non-Profit Associations.

• Corporate Income Tax. Profits aren’t taxed until you take them out of the company. As long as you reinvest or retain earnings, you pay nothing at the corporate level. When you distribute dividends, income tax is charged at a flat rate — 20% today, rising to 22% in 2025. There’s usually no withholding tax on dividends paid to non-residents, which makes it straightforward for foreign owners. Example: if your OÜ makes €50,000 profit and you reinvest it in product development, you pay €0 tax.
• Value-Added Tax (VAT). The standard VAT rate is 22%, going up to 24% in mid-2025. You must register for VAT once your annual turnover exceeds €40,000. Registration and filings are all done online. If you stay under the threshold, you don’t need to bother with VAT until your business grows.
• Personal Taxes and Payroll. Salaries are taxed at a flat 20% (22% from 2025). Employers also contribute 33% social tax on top of gross salary, plus small unemployment insurance payments (about 0.8% employer + 1.6% employee). Dividends aren’t subject to social tax, which is why some owners combine salary and dividends for efficiency — but this needs proper planning.
• Filing and Administration. Tax reporting in Estonia is almost fully digital. Around 98% of tax returns are filed online through the e-Tax system, which also works in English. Most things are pre-filled, and for companies the main tax events are only when distributions happen. There’s no annual corporate income tax return like in many countries, but you still need to prepare proper accounts and submit an annual report to the e-Business Register.

• We’ve done this thousands of times. With more than 10 years of practice and 3,000+ companies registered, we’ve seen almost every possible case. Whether you’re a freelancer or building a startup, we know the shortcuts and the pitfalls.
• Everything in one place. Instead of chasing different providers for a corporate solutions, legal services, accounting, or tax advice, you’ll get it all from us. One partner, one point of contact, no juggling.
• We know the rules inside out. Estonian laws and taxes can change. We keep up with them so you don’t have to. Our job is to make sure your company is always fully compliant while you focus on growing it.
• You get people, not a call center.  Your business isn’t just another file for us. We listen, we adapt, and we give advice that fits your situation. Many of our clients stay with us for years because they know we care about their success.
• Less hassle, more business. We handle the boring bits: preparing documents, dealing with notaries, VAT numbers, annual reports, you name it. You get back the most valuable thing — time to work on your product, service, or clients.

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Our Mission – Your Success

When I started Eesti Firma, my goal was simple: to make life easier for entrepreneurs. Over the years we’ve built a team that knows the Estonian system inside out. We handle the formalities, you focus on building, and if something unexpected comes up — we’ll be there to help you handle it.

That’s what partnership means to us.

– Ilja Nikiforov, CEO of Eesti Firma OÜ