Company formation in Estonia
Estonian Companies
Discover Tax Benefits and
Investment Opportunities
Estonian companies enjoy Corporate Tax Exemption
If no Dividends are paid, allowing Profit Accumulation
These companies are ideal for
Holding, Trading and Consulting Firms
If you’re considering setting up a company in Estonia, you’ve made a smart choice. Estonia has become an increasingly popular destination for businesses due to its favourable tax policies, supportive business environment and innovative digital infrastructure. In this section, we will guide you through the Estonia company formation process, providing all the information you need to get started.
Register a Business Company in
Estonia today!
Relevant Tax Advantages
Incorporating in Estonia offers several advantages, making it an attractive destination for entrepreneurs and businesses.
Most relevant advantages leading entrepreneurs to more investment opportunities for the growth of their business, they are:
0% Corporate Tax Rate on undistributed Profits – Estonia unique tax system only taxes profits when they are distributed as dividends.
Retained and reinvested profits are not taxed, encouraging reinvestment and growth within the company.
No Withholding Tax on Dividends – Dividends paid to non-residents are not subject to withholding tax in Estonia, making it attractive for foreign investors.
Company Registration in Estonia:
Setting up a company in Estonia involves several key steps. Procedures are overseen by a local public notary, encompassing the opening of a bank account, the engagement of a local accountant, and the selection of a registered office address for the company.
Register a Business Company in
Estonia today!
Estonia Company Formation Requirements
Both resident and foreign entrepreneurs looking to establish a company in Estonia must adhere to the Company Law by fulfilling several requirements, including:
- Selecting a unique business name.
- Providing the Registrar with identification documents for members and directors.
- Preparing and notarizing the company’s Articles of Association.
- Obtaining a local legal address.
- Opening a company bank account.
- Registering with Estonian tax authorities to obtain tax identification numbers, VAT registration, and social security approval.
- Applying for any necessary licenses, permits, or approvals related to the planned business activities.
Opening a Company in Estonia
The process of registering a company in Estonia is relatively swift, and much of it can be done remotely. The steps include:
Name reservation (usually takes less than one day).
Filing corporate documents (one day).
Tax and VAT registration (about 3 days).
Registering with the Employer Registry (same day).
Furthermore, Estonia has introduced an “e-residency” program, allowing for the establishment of companies remotely. Company in Estonia OÜ can guide you through this process should you choose to explore this avenue.
Register a Business Company in
Estonia today!
Basic Information
Types of companies available: Limited Liability Company and Public Limited Company.
Minimum share capital: 1 EUR (paid-in requirement is also 1 EUR).
Minimum number of shareholders for a Limited Company: 1.
Time frame for incorporation: Typically takes 1 to 5 business days.
Corporate tax rate: 0% until profits are distributed.
Dividend tax rate: 20%.
VAT rate: 20%.
Availability of shelf companies: Yes.
Supply of registered address/virtual office: Yes.
Local Director required: No.
Use of electronic signature: Yes.
Accounting/annual return requirement: Yes.
Foreign ownership allowed: Yes.
