Estonia

Estonia is a Baltic country that is a member of the European Union and is known for its digital ecosystem, ease of doing business, and tax advantages.

Why Estonia for business?

A prestigious jurisdiction with a high status

0% for retained earnings

Possibility of obtaining e-residency status

Access to the European market

No restrictions on the residency of the company’s founders and managers

Fast company registration without a personal visit to the country

Content

Who is this jurisdiction suitable for?

IT business, SaaS, startups

Simplified conditions for technology companies

Freelancers and consulting companies

Easy registration and simple management

E-commerce and international business

Access to European banks and payment systems

Crypto companies

Possibility to obtain a crypto license

Learn about other countries for your business and life

Not sure which country is right for you? Get a free guide – “How to choose a jurisdiction for your business?”

The main criteria for choosing a country
Comparative analysis of 5 countries
Step-by-step plan for starting a business in a new country
5 risks to consider before registering

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What do you need to know about Estonian business requirements?

01
Local presence requirements
- Legal address – mandatory, can be a physical or virtual office
- The director and shareholders of the company can be non-residents
- There is no mandatory requirement for a secretary
- If the shareholders and the board of the company are non-residents, then a resident contact person in Estonia is required
02
Tax conditions
- Corporate tax: 22% + 2 percent defense tax from 2026
- No tax on retained earnings
- VAT: from July 1, 2025, the rate will be 24% instead of 22% (temporarily introduced until 2028). Reduced rates from January 1, 2025 (13%, 9% and 0%)
- Dividend tax: 22%
03
Legal forms of companies
- LLC (Osaühing (OÜ)) – ideal for small and medium-sized businesses
- Minimum share capital – EUR 1 per shareholder
- Joint Stock Company (Aktsiaselts (AS)) – suitable for large enterprises, minimum share capital – EUR 25,000
04
Banking services
- Traditional banks require verification of beneficiaries, business model, and sources of funds (KYC and AML). Usually, the personal presence of the director or owner of the company is required for identification
- Payment systems allow you to open an account remotely and offer a simplified verification procedure
05
Annual commitments of the company
- Annual submission of financial statements
- Submission of VAT declarations (if you have a VAT number)
- Passing an audit
06
The audit of annual reports is mandatory for companies whose reports contain at least two of the following indicators:
- Sales revenue or profit from EUR 5 million
- Total assets from EUR 2.5 million
- Average number of employees – 50
07
An audit is also mandatory for firms that meet any of the following three conditions:
- Sales revenue or profit of at least EUR 15 million
- Total assets of at least EUR 7.5 million
- Average number of employees – 180

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FAQ

Is it possible to register a company remotely, without a personal visit?

Yes, registration takes place completely remotely.

How long does it take to register a company in Estonian?

Registration of a company takes 2 to 3 weeks from the date of receipt of the full set of documents.

What documents are required to register a company in Estonian?

The list of required documents includes:

3 preferred company names;
description of the areas of work of the future company;
national and foreign passports of each beneficiary, founder and director;
identification code of each beneficiary, founder and director;
confirmation of the registration address of each beneficiary, founder and director (e.g., a utility bill).

Can a citizen of another country open a company in Estonian?

Yes. A person of any nationality can start a business in Estonian. No citizenship, residency, or residence in the country is required to register a company.

Do I have to file reports if the company does not conduct business?

Thus, even if a company does not conduct business, it must file zero reports.

Do I need a legal address when registering a company in Estonian?

Yes, a legal address is required; it can be either a physical address or a virtual address.

Will I be able to get a VAT number after registering my business?

Yes, of course, after registering a company, you can start the procedure for obtaining a VAT number.

Estonia

What do you need to know about Estonian business requirements?

Local presence requirements

Tax conditions

Legal forms of companies

Banking services

Annual commitments of the company

The audit of annual reports is mandatory for companies whose reports contain at least two of the following indicators:

An audit is also mandatory for firms that meet any of the following three conditions:

FAQ