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Company registration in Estonia

* Registration or purchase of a company in Estonia

Joining the European Union has positively impacted Estonia’s economic development and its relations with Europe.

Estonia can be an opportunity for you to relocate to the European Union for permanent residence and to expand your current business.

* Main advantages of establishing a company in Estonia:

  • Geographical advantage (access to the sea, proximity to the Northern Capital of Russia)
  • Membership in the Eurozone
  • Low level of bureaucratization
  • Attractive tax policy: undistributed profits of the company are not taxed
  • Moderate taxes
  • No requirement to contribute charter capital during company registration
  • The owner of the company can be a non-resident of Estonia, both an individual and a legal entity
  • Opportunity to sell goods and services under the Estonian European brand
  • Subsidiaries in other EU countries
  • Developed banking infrastructure, accounts in Estonian branches of foreign banks with online management, loans from local banks
  • Multiple business visas to Estonia and all Schengen countries
  • Management of the Estonian company can be conducted remotely by appointing a director or chairman of the board. The Estonian company does not need to have directors. The director is appointed by the board resolution, and their activities are regulated by a labor contract
  • Ability to purchase real estate and vehicles in the name of the company
  • Obtaining a two-year residence permit in Estonia, extendable for 5 years, and subsequently permanent residence within the EU for owners, board members, directors of Estonian companies, and their family members

* Our team will provide the following services for your company registration:

  • Professional consultations
  • Preparation of the documentation package
  • Payment of all state fees and notary services
  • Registered legal address
  • Document translation
  • Representative services
  • Seal/stamp production
  • Obtaining notarized founding documents (B-card and charter) from the state registry
  • Assistance with opening a corporate bank account, provided at least one board member is personally present

* Company registration timeframe in Estonia

Registering an Estonian company takes 1 working day. After 5 working days, the data of the new firm will appear in the Estonian Commercial Register (http://www.rik.ee/en ).

The stated registration period and procedure are standard and uniform for all companies. They cannot be shortened, whether you are establishing a new company or acquiring an existing one.

Documents and information required for company registration:

  • Company name
  • Main business activity
  • Company email address
  • Copies of passports, addresses, and email addresses of all board members
  • Copies of passports, addresses, and email addresses of all founders who are individuals
 

If a legal entity is the founder of the company, the following must be provided from the local business register:

  • Company name
  • Registration number
  • Address
  • Names of owners/founders
  • Names of board members (directors)
  •  

* Legal forms of companies in Estonia:

Private Limited Company (OÜ)
An ideal solution for small and medium-sized businesses

A Private Limited Company is suitable for organizing small and medium-sized businesses with no restrictions on the number of participants. The company is managed by a Management Board Member who has the right to receive remuneration for their duties and is granted full authority, including signing contracts on behalf of the company, conducting business activities, and opening bank accounts.

Key Features:

  • Minimum share capital: 0.01 EUR per participant

  • Founders: from 1 person, no maximum limit

  • Management: at least 1 board member

  • Documentation: company articles of association

  • Reporting: once per year based on the financial year results

  • Company seal: optional, electronic signature permitted

  • State fee: 265 EUR for online registration

Public Limited Company (AS)
For large businesses with ambitious plans

This legal form is intended for large enterprises with significant share capital. General shareholder meetings are held annually. The Estonian Public Limited Company has stricter capitalization requirements and is suitable for large-scale projects.

Key Features:

  • Minimum share capital: 25,000 EUR

  • Contributions: monetary and in-kind

  • Shares: issuance and trading of shares permitted

  • Scale: suitable for large enterprises

Non-Profit Association (MTÜ)
For noble purposes and public benefit

This legal form is intended for non-profit activities. It is commonly used for establishing charitable organizations, foundations, associations, and unions. It has become particularly attractive since 2025 due to tax exemptions.

Key Features:

  • Founders: minimum of 2 persons

  • Dividends: not permitted

  • State fee: 100 EUR at registration

  • Taxes: exempt from income tax since 2025

  • Purpose: non-profit activities for public benefit

* Tax Rates in Estonia 2025

Corporate Taxes

  • Undistributed profits are tax-exempt: 0%

  • Dividend tax: 22/78 (22% of gross amount or 28.21% effective rate)

VAT (Value-Added Tax):

  • Until 30 June 2025: 22%

  • From 1 July 2025: 24%

  • Reduced rate for hotel services: 13%

  • Reduced rate for periodicals: 9%

Personal Income Tax

  • Withholding personal income tax rate: 22%

  • Tax-free income ranges from 0 to 654 EUR per month (up to 7,848 EUR per year), depending on annual gross income

  • Tax-free pension income: 776 EUR per month (9,312 EUR per year)

Social Contributions and Insurance

  • Social tax rate: 33%

  • Minimum base for social tax: 820 EUR per month
    Corresponding minimum social tax payment: 270.60 EUR per month

  • Unemployment insurance:

    • Employee: 1.6%

    • Employer: 0.8%

  • Pension contributions: 2%, 4%, or 6%, depending on individual choice

Minimum Wage

  • Monthly minimum wage: 886 EUR

  • Hourly minimum wage: 5.31 EUR

Key Changes in 2025

  • Preferential dividend tax rate 14/86 abolished

  • Personal income tax increased from 20% to 22%

  • VAT will increase from 22% to 24% starting 1 July 2025

  • Dividend tax changed from 20/80 to 22/78

These changes are aimed at increasing tax revenues and require businesses to review their tax planning strategies.

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