Company Registration in Estonia

Foreigners can easily register a company in Estonia because there are no restrictions on foreigners- meaning they don’t have to get a local sponsor or a partner as a director for most sectors.

A private limited company (OU) is one of the most common structures chosen by non-EU entrepreneurs because it protects personal assets and can be created in just one day compared to a public company.

You will need to have an e-Residency card that would allow you to apply online rather than going in person to complete the registration process. Other things that you will need to have are a company name, at least one shareholder with valid papers, including a passport, one board member, one registered business address in Estonia, full articles and related documents, a description of your activities, and fees,

The company’s approval process is quite fast compared to most jurisdictions in the EU. You can simply get the incorporation within a few hours to one day, given that you have applied online using your E-Residency card. While the initial company can be opened in a day, things like a corporate bank account take around 2 to 4 weeks of time.

There’s no strict requirement to have a certain amount before you apply for a company in Estonia. Shareholders can open a company with just EUR 1, but in practice, you do need sufficient funds as per your activity to satisfy the authority about your seriousness towards running a business in the country.

No, currently, there’s no such rule for appointing a local EU/EEA resident as your company’s director. Foreigners can appoint a director of their choice from any nationality, given that it is not explicitly restricted by Estonia or the EU.

Yes, you must have a registered office in Estonia to incorporate a company. Most non-EU founders usually go for a virtual office setup or co-working space, whichever suits their purpose, along with a local registered agent or a manager, depending on the type.

Absolutely, you can easily open a company remotely by using an Estonian E-Residency digital ID on the E-Business Register Portal. The ID would cost you around EUR 100-150, and the state’s registration cost is EUR 265.

All you need is your passport copy, proof of residential address, e-Residency ID, list of activities, proposed company name, details on the beneficial owners, articles of association, information on the capital, company’s registered address, and power of attorney (if using representation).

Yes, if you are filing from your own home country or somewhere abroad, then you need a digital ID for applying through the online portal. Get in touch with Enterslice experts and see how fast we can help you apply for the same before you plan on registering your company, because the approval can take around 3 to 8 weeks.

Yes, you can set up a company bank account from anywhere using a digital fintech platform- some common providers are Wise Business, Revolut Business, and Payoneer. Traditional banks often require a visit in person for verification and an interview post-application.

An estimate to form your company would include:

• e-residency: EUR 100- EUR 150
• State registration: EUR 265
• Registered office: EUR 100 to EUR 300 per year
• Local Registered Agent: EUR 100 to EUR 250 per year if you need one.

You only need VAT if your taxable supplies exceed the EUR 40,000 limit in case you are a resident company, whereas non-resident company owners need to register irrespective of their turnover immediately after company registration. Have a chat with one of our VAT experts in the EU.

You will need to pay the following as a company registered in Estonia:

• Corporate: 0% on retained/reinvested profits or a 22% rate on gross distributed profits.
• A 24% VAT in case you cross the minimum threshold or are a non-resident owner.
• 33% employer social security contribution in case you have employees.
• 0.8 % contribution towards employment insurance

No, Estonia doesn’t tax retained corporate earnings- one of the reasons why a lot of non-EU founders prefer the destination for their new business venture or expansion of the existing one. In simple words, you will be charged 0% tax on your profits that have either been retained or reinvested instead of being distributed.

Annual report filing with the Estonian business register, maintenance of accounting records, filing of tax returns in case of distributions only, monthly VAT and payroll submissions, and notification to the register in case there’s a change in your company.

Of course, most established companies overseas often go for a branch company if they want to expand their operations in another country and take advantage of the tax-friendly environment without having to register a new company. You will need to appoint a manager to handle daily operations.

There are absolutely no restrictions on changing your company name after your company registration in Estonia. Just make sure that you search for the name with the Estonian e-Business Register Name Query- once selected and properly searched, you should pass a resolution and update your articles to reflect the new name. After the entire preparation, submit the application to the E-Business Register with mandatory documents with EUR 25 fee.

Although most activities don’t need a separate license, some activities like banking, lending, investment, payment services, cryptocurrency, insurance, healthcare, food-related activities, transportation, security, construction, and any regulated ones.

Yes, as of 2026, there are no such restrictions on hiring foreign or non-EU talent. As a founder, you get to decide your own workforce in Estonia. If you have remote operations, then you don’t need extra permits, but if you have some management, then you will need a short-term registration, D-visa, or temporary residence permit after Estonia company formation.