COREDO > Corporate Services > Company Formation > Company Formation in Estonia

Company Formation in Estonia

Why Register a Company in Estonia

Estonia is one of the most digital and attractive EU jurisdictions for international business, fintech, and IT companies. The country offers fast company incorporation, 100% foreign ownership, advanced e-government infrastructure, and access to the European market.

Estonia is known for its stable economy, low corruption levels, and favourable environment for fintech, logistics, digital services, and international trade projects.

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Cost of the service
from EUR 1,680

e-Residency Programme

Estonia offers a unique digital residency programme — e-Residency. It provides foreign entrepreneurs with secure access to government electronic services and allows them to register and manage a company remotely. The e-Residency card is not a residence permit or citizenship, but it opens full access to Estonia’s digital infrastructure. With the e-Residency card, a digital resident can sign documents with a digital signature, submit applications to the Business Register, interact with tax authorities, and manage a company from anywhere in the world. The cost of obtaining e-Residency is EUR 150, and the card is issued within 2 to 5 weeks. The card can be collected at one of Estonia’s representations abroad.

Types of Companies in Estonia

Foreign entrepreneurs can register a company in Estonia in the following legal forms.

OÜ (Osaühing) — private limited company.

The most popular form of business in Estonia among both residents and e-residents. A company can be established by a single person (natural or legal). The minimum share capital is EUR 2,500; however, it does not need to be paid in at the time of registration: the founders assume the obligation to pay, and the actual payment deadline is determined by the articles of association. The liability of participants is limited to their contribution. OÜ is ideal for small and medium-sized businesses, startups, and international projects. This is the form chosen by the vast majority of e-residents for conducting international business.

AS (Aktsiaselts) — public limited company.

A single shareholder (natural or legal person) is sufficient for establishment. The minimum share capital is EUR 25,000, which must be fully paid in at the time of registration. The company is managed through a board of directors and a supervisory board. This form is suitable for large-scale projects, attracting significant investments, and companies planning a public listing on a stock exchange.

FIE (Füüsilisest isikust ettevõtja) — sole proprietor.

Suitable for small businesses and startups. There are no minimum share capital requirements; however, the entrepreneur bears full personal liability for obligations. FIE registration is available only to natural persons.

Tulundusühistu — commercial cooperative.

At least two persons (natural or legal) are required for establishment. Members of the cooperative do not bear personal liability for its obligations. This form is used primarily in agriculture and joint services.

Company Registration Procedure

Registration of legal entities in Estonia is carried out through the electronic Business Register (e-Business Register), accessible at ariregister.rik.ee. The registrar is the Registration Department of the Tartu County Court. A digital signature via an Estonian ID card, Smart-ID, or Mobile-ID is required for submitting the application — the e-Residency card is fully suitable for this purpose.

Choosing and Checking the Company Name

A unique company name must be selected and its availability checked through the Estonian Business Register.

01

Preparing the Incorporation Documents

The incorporation agreement and articles of association are prepared.

02

Appointing a Contact Person and Registered Office

For companies managed from abroad, it is necessary to appoint a licensed contact person and provide a registered office in Estonia.

03

Submitting the Registration Application

The application to register an OÜ is submitted through the e-Business Register portal.

04

Paying the State Fee

A state fee of €265 must be paid when submitting the application.

05

Review of the Application and Registration

The registrar reviews the documents and, upon approval, assigns the company a registration code.

06

For non-residents, a licensed contact person and a registered office in Estonia are mandatory — this is a requirement of the Commercial Code for companies managed from abroad.

Required Documents

To register a company in Estonia, the following documents are required:

the memorandum of association and articles of association specifying the company name, registered office, share capital, and business activities;

identity documents of the founders and board members (passports or identity cards);

confirmation of a registered office in Estonia;

an agreement with a licensed contact person (for non-residents);

a resolution on the appointment of board members.

With an e-Residency card, all documents are signed with a digital signature, eliminating the need for notarisation.

Registration Timeline

Registration of an OÜ through the e-Business Register takes just 1 business day, provided that a complete set of documents and a valid digital signature are available. It should be noted that obtaining an e-Residency card takes 2 to 5 weeks, and finding a contact person and registered office may require additional time. For AS, the timeline may be somewhat longer due to the requirement for full payment of the share capital of EUR 25,000 and the formation of management bodies. COREDO has been operating since 2016 and helps clients complete all registration stages as quickly as possible without unnecessary delays.

Service Costs

Сompany formation in Estonia (OÜ, one founder)

rom EUR 1,680 + VAT

Company name verification and reservation.
Registration with mandatory state fees.
Local contact person.
Articles of association and board minutes.
Certificate of incorporation.
Registration is carried out remotely in six steps via a notarised power of attorney.
The overall process from document preparation to incorporation typically takes 2–4 weeks, with the entry in the Business Register appearing within 3–5 business days after the notarial transaction.

Additional services

from EUR 135

Remote registration package (POA drafting, translation, notary fees) — EUR 600.
Registered address — EUR 360/year.
Virtual office — EUR 450/month.
E-Residency application assistance — EUR 540.
Bank account opening (online bank) — EUR 2,280.
Bank account opening (traditional bank) — EUR 4,680.
Local director services — EUR 2,880.
VAT registration — EUR 600.
EORI number — EUR 480.
Apostilled registration documents — EUR 900.
Accounting services — from EUR 135/month.
Business and legal consulting — EUR 300/hour.

Estonian Tax System

Estonia offers a unique corporate taxation system that sets it apart from most EU countries. Undistributed corporate profits are not taxed — corporate tax at a rate of 22% (calculation formula: 22/78 of the distribution amount) is charged exclusively on distributed profits (dividends). Since 1 January 2025, the previously applicable reduced rate of 14/86 for regular dividends has been abolished. This model makes Estonia an attractive jurisdiction for companies reinvesting profits into business development: as long as profits remain within the company, no corporate tax is levied.

The standard value-added tax (VAT) rate is 24% from 1 July 2025. Reduced rates apply to certain categories of goods and services: 13% for hotel services, 9% for prescription medicines, medical devices, and printed publications. The tax year coincides with the company’s financial year. Tax administration is carried out by the Estonian Tax and Customs Board (EMTA).

Estonia has concluded double taxation avoidance agreements with more than 60 countries, enabling the optimisation of the tax burden for international operations. Financial services in the country are regulated by the Estonian Financial Supervisory Authority (Finantsinspektsioon, EFSA), which is also responsible for issuing financial activity licences.

Opening a Bank Account

After company registration, one of the key steps is opening a bank account. Traditional Estonian banks may require a personal visit for identity verification. However, the market offers a wide range of fintech solutions and payment institutions that serve e-residents entirely remotely. The choice of banking partner depends on the nature of the business, expected transaction volumes, and the geography of operations. COREDO helps clients find the optimal banking solution tailored to the specifics of their business. The cost of a contact person for non-residents is approximately EUR 200 to EUR 400 per year, depending on the provider and the scope of included services.

Our Experts

The COREDO team has been operating since 2016 and possesses deep expertise in company registration in Estonia and other European jurisdictions.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of business across dozens of jurisdictions.

Pavel Kos

Head of Legal. Has been with COREDO since June 2017, responsible for legal support of corporate projects and company registration in various jurisdictions.

Frequently Asked Questions

Is physical presence in Estonia required to register a company?

No, thanks to the e-Residency programme, the entire OÜ registration process can be completed fully remotely from anywhere in the world. You only need to collect the e-Residency card once from one of Estonia’s representations abroad.

Is it mandatory to contribute the OÜ share capital of EUR 2,500 at the time of registration?

No, the Estonian Commercial Code allows the registration of an OÜ without actually contributing the share capital at the time of establishment. The founders assume the obligation to pay, but the payment deadline is determined by the company’s articles of association. Many entrepreneurs start with a nominal amount.

What obligations arise for a company after registration?

The company is required to submit an annual report to the Business Register, maintain accounting records in accordance with Estonian Financial Reporting Standards, and pay taxes on time (VAT, social taxes when employing staff). Non-residents must maintain a valid agreement with a contact person and a registered office in Estonia.

Can an e-resident open a bank account for an Estonian company?

Yes, although opening an account with traditional Estonian banks may require a personal visit. Alternatives include fintech solutions and payment institutions that accept e-residents entirely remotely. COREDO helps clients find the optimal banking solution.

What tax advantages does registering a company in Estonia provide?

The main advantage is the absence of tax on undistributed profits. Corporate tax at a rate of 22% (22/78 of the distribution amount) is charged exclusively upon dividend distribution. This allows companies to reinvest all profits into business development without an additional tax burden. Estonia also has double taxation avoidance agreements with more than 60 countries.

What is a contact person and why is it required?

A contact person (kontaktisik) is a licensed representative of the company in Estonia who ensures communication between the company and government authorities. The requirement to appoint a contact person is mandatory for companies managed from abroad and is enshrined in the Estonian Commercial Code. The contact person must hold a valid licence issued by the Ministry of Justice.

Related Services

COREDO provides comprehensive business support in Estonia. In addition to company formation, we offer:

legal protection for business in Estonia

obtaining a financial licence in Estonia

Get Expert Consultation

Planning to register a company in Estonia? The COREDO team has been operating since 2016 and helps entrepreneurs from dozens of countries successfully launch businesses in Estonia and other European jurisdictions. We will handle all legal and organisational matters — from document preparation to interaction with the Business Register.