Assistance with business setup in Estonia
We help entrepreneurs launch their business in Estonia. Guide on choosing the proper structure, preparing documents, and coordinating the entire registration process
Why is Estonia one of the best countries to register a business in Europe?
Advantages of Estonia for business in numbers
0% tax until dividend distribution. Pay corporate tax only when profits are distributed to business owners.
Remote registration
Fully remote company registration and management with e-Residency card
Ukrainians
Entrepreneurs rank first in the number of companies registered through e-Residency
For paying taxes
Pay all corporate taxes in just 5 hours a year (the average time across the EU is 37 hours per year)
Efficiency of services
Estonia ranks highest among 50 countries in the 2024 Business Ready index
Taxation and accounting for Estonian Companies
Learn more about current business taxes in Estonia for 2026 year
CIT on Distributed Profits
CIT is charged only on profits distributed as dividends. Distributed profits are taxed at 22% of the distributed amount. This is calculated as the ratio 22/78.
VAT in Estonia
The VAT rate in Estonia is 24%.
VAT registration is mandatory if the company’s turnover in Estonia reaches €40,000 or when making B2C sales within the EU. Voluntary VAT registration is also available for reclaiming input VAT. VAT applications can be submitted online using an e-Residency card or offline via a notarized power of attorney.
Example of Corporate Income Tax calculation
Exampleif a company intends to distribute €1,000 to owners, it must pay €220 in CIT on this amount. The owners will therefore receive €780 net.
Accounting in Estonia
Estonian businesses without a VAT number submit only an annual report, which must be filed by July 1 for the previous year. The first annual report may cover up to six months of the preceding year. For example, if a company is registered in July 2025, the first report would be for the 2026 financial year, including the second half of 2025. The average cost for preparing an annual report is €300. If the business has a VAT number, it must submit monthly returns. Average price for monthly accounting services: €80–150. There are no audit requirements unless specified by law.
Taxation of business owners
Income received from Estonian business must be declared and taxed in the owner’s country of tax residence.
Planning to setup business in Estonia?
We’ll guide you through the process. Contact us now
Stages of company registration in Estonia
Consultation
We conduct an initial 30-minute consultation to discuss your future company’s structure, management format, and the next steps for launching a business in Estonia
Assistance with documentation
We help you obtain an e-Residency card for online company registration (processing time is around one month). If needed, we also coordinate the notarized verification of documents for remote business setup (1 day)
Company launch
We advise on choosing the company name, business activities, founders, and share capital. We also explain how to submit documents through Estonia’s official e-services — typically, the process takes 1–3 business days
VAT Number (if required)
We advise on whether a VAT number is needed and coordinate the submission of the application through official e-services. The process usually takes up to one business day
Company payment account
We help you choose a reliable payment system or fintech solution and connect a local accountant for ongoing company support
Which company type to choose in Estonia?
OÜ — Private Limited Company.
Most popular form for small and medium-sized businesses equivalent to a Polish Limited Liability Company.:
– Minimum share capital: €0.01
– Founders: 1 or more (individuals or legal entities)
– Liability limited to share capital (no personal liability)
– Most popular choice for e-Residency
OÜ is best suited for e-commerce, IT, consulting, freelancing, and investment companies.
AS — Public Limited Company.
Most popular form for small and medium-sized businesses, equivalent to a Limited Liability Company:
– Minimum share capital: €25 000
– Founders: 1 or more (individuals or legal entities)
– Supervisory board required
– May list shares on the stock exchange
– Requires more detailed financial reporting
AS is best suited for large companies, holdings, or businesses planning an IPO.
TÜ — General Partnership.
Rarely used in modern business. Analogue General Partnership:
– Established by two or more partners
– Partners have unlimited personal liability
TÜ is suitable for partnerships where limiting liability is not a priority.
UÜ — Limited Partnership.
Analog of classic Limited Partnership:
– Established by two or more partners
– Two partner categories: limited partners (liable only up to their contribution) and general partners (with full personal liability)
– No minimum capital requirement
Suitable for passive investors who finance the business without engaging in daily management.
Service packages for company setup in Estonia
Select a solution that best suits your business needs. All packages include consultations, as well as technical and informational support at every stage of company formation. Final terms are discussed during an individual consultation.
BASIC
An optimal option for a quick start in Estonia
- Initial consultation (30 min)
- Assistance with opening a Payoneer account
- Company name availability check
- Turnkey company setup with a registered address for 1 year (includes required administrative fees for registration)
STANDARD
An ideal option for businesses planning to operate within the EU
- Everything included in the Basic package, plus:
- Support with obtaining e-Residency
- Advisory assistance with VAT registration (if required)
- Tax and legal support (3 hours)
PRO
A reliable option with comprehensive tax support
- Everything included in the Basic and Standard packages, plus:
- Submission of CFC notification for Ukrainians
- Extended support (6 hours)
Get a free consultation on setup your business in Estonia
You’ll be answered by
Ivan Chebotarov
CEO & co-Founder
Just leave your request
We’ll reply within 15 minutes during business hours
Related services for Estonian business owners
Frequently asked questions about e-Residency and company formation in Estonia
Estonia is an excellent choice if: You aim to operate internationally but lack prior experience; You seek a jurisdiction with minimal bureaucracy, low tax burden, and simple registration.
The most common choice is OÜ (Private Limited Company). It allows both individuals and legal entities to be owners, has a model Articles of Association, and a minimum share capital of €0.01. If planning to list shares, consider an AS (Public Limited Company) with a minimum capital of €25,000. OÜ is the best choice for most entrepreneurs.
With e-Residency cards, it takes 1–2 days. Via notary, it takes 1–2 weeks.
- For OÜ: €0.01 (recommended €2,500 for liability coverage).
- For AS: €25,000, payable before registration or within 12 months.
No CIT until profits are distributed. When dividends are paid, 22% CIT applies, plus personal income tax in your country of residence.
The financial report (Annual Report) is submitted once a year, no later than six months after the end of the reporting period. The first reporting year may last more than 12 months but not exceed 18 months. For example, if you opened a company in July 2025, your first financial report must be submitted by June 30, 2027.
Opening a bank account is possible, but it can be a challenging process. Many companies use payment systems, like Payoneer, Wise.
No residency requirements for directors, but having a local contact person is recommended.
Possible, but may carry tax and legal risks, including reclassification as hidden dividends.
We do not recommend performing such operations.
Use: service. Additionally, check trademark databases in the EU, the UK, and the USA. Business name reservation in Estonia is available for six months for €150.
