Open a Company in Estonia - The Main Steps

Our team can help you open a company in Estonia, irrespective of the chosen business form or the city in which it will operate.

Quick facts
Types of companies in Estonia	– private limited company, – public limited company, – partnerships, – commercial association, – sole proprietorship, etc.
General steps of opening a company	– choose available name, – select main field of activity, – prepare documents, – choose registered business address, – register company with local authorities, – register for tax purposes.
Fees for company registration	Depends on the business type. Contact our attorneys for assistance.
Online company registration available (YES/NO)	YES, but we recommend contacting our lawyers in Estonia for guidance.
Laws regarding company formation in Estonia	Commercial Code
Timeline of company registration	2-3 days (approx.)
General required documents for opening a company	– Memorandum and Articles of Association, – application form, – bank certificate confirming the deposit of share capital, – proof of fee payment, – proof of address, etc.
Share capital bank account required (YES/NO)	NO (no minimum share capital for private limited companies since 2023)
Corporate income tax rate	22% (on distributed profits; 22/78 of the net distribution)
Company registration in Estonia for foreigners	It is beneficial to become an e-resident in this case. Our attorneys in Estonia can provide details.
Other tax obligations for Estonian companies	– social security contributions, – excise tax, – customs duties, – VAT, etc.
Annual report	No later than 6 months after the end of the financial year.
VAT registration	For the taxable annual turnover exceeding 40,000 euros.
Why open a company in Estonia	– e-business infrastructure, – low taxes, – easy and fast registration process, – access to EU market, – skilled workforce, – minimal bureaucracy, etc.
Assistance	Our law firm in Estonia can help you open a company in the country, no matter if you are a resident or not. We can also recommend you to our accountants in Estonia for your company's tax and financial matters.
Special permits and licenses	Depends on the business activity (healthcare, tourism, construction, teaching, finance, etc.)
Minimum number of founders	1 for private limited company and public limited company; 2 for partnerships and commercial associations
Local registered address	All companies must have a local registered address for official communication.
Virtual office possibility (YES/NO)	YES, our lawyers can provide details.
Company name	Must indicate the legal form of the company. Our attorneys can help with the name.
Foreign entities in Estonia	– branches, – subsidiaries, – representative offices
Minimum share capital to open a company	25,000 euros for public limited company; 2,500 euros for commercial associations
Share capital for partnerships	None, partners contribute financially according to the partnership agreement.
Company secretary required (YES/NO)	NO
Shelf companies	Are pre-registered companies that have previously been inactive and are ready for purchase. Our law firm offers shelf companies.
Tax exemptions or incentives	0% tax on retained and reinvested profits; 22% corporate tax on distributed profits (the reduced 14% rate was abolished from 2025); No withholding tax on dividends to non-residents.
Sole proprietorship (FIE) – characteristics	– owned and operated by one individual, – personally liable, – subject to personal income tax, – must be registered with the Estonian Business Register
Personal income tax for sole traders	22%
VAT rates	24% (standard); 13%, 9%, 0% (reduced)
Number of double taxation treaties (approx.)	62

What types of companies can investors open in Estonia?

Investors can choose between several business forms, with different characteristics and requirements:

Private limited company;
Public limited company;
Partnerships: general and limited;
Commercial association.

In practice, many local and foreign investors who open a company in Estonia will choose to incorporate a private limited company.

Moreover, entrepreneurs also have the option to do business in the country as a sole proprietor; however, this is the business form that has the highest level of liability.

What are the characteristics of a private limited company?

When choosing this business form, investors can remember that:

A private limited company’s share capital is divided into private limited company shares. The company is responsible for fulfilling its obligations using all of its assets and shareholders are not personally liable for the company’s obligations.
There is no mandatory share capital requirement for private limited companies.
A private limited company can choose to have a supervisory board. An auditor is mandatory only if the company surpasses certain thresholds in terms of turnover, number of employees, and asset value. Our lawyers in Estonia can explain these thresholds to you if you are interested.
The registration process for a private limited company usually takes up to 5 working days for the registrar to review the application.

What are the characteristics of the public limited company?

Some of the most important conditions for setting up a public limited company include:

One or more natural or legal persons can establish a public limited company. The company is liable for its obligations with all of its assets, and shareholders are not personally liable.
The minimum share capital required for a public limited company is €25,000 and the shares must be officially included in the Estonian Central Register of Securities.
It is mandatory for a public limited company to have both a management and a supervisory board. The management board may consist of one or more natural persons.
Management board members do not need to hold shares in the company and cannot be simultaneously members of the supervisory board. The supervisory board must consist of at least three members, all of whom must be natural persons with legal capacity.
If more than half of the supervisory board members do not have Estonian residency, the company must provide a local representative in Estonia. An auditor must be appointed for public limited companies.

What are the steps for company incorporation in Estonia?

Once you decide on the most suitable business form, it is time to register your business as part of the mandatory steps when you set up a company in Estonia.

The list below highlights the process for investors who open a private limited company:

Choose the name: the company needs to have a unique name, and you can check its availability before you start the process;
Choose the industry: you will need to select the company’s main field of activity according to the Estonian classification of economic activities;
Determine the company’s particulars: when you open a company in Estonia, you will need to prepare its constitutive documents, as well as choose a local registered address.
Register: this is done either via a notary or through the online business register; our attorney in Tallinn will give you more information.

We invite you to watch a short video on company creation in Estonia:

What documents do I need to prepare?

The company’s articles of association are the most important documents prepared during the incorporation process; however, they are not the only ones required to complete the company registration.

The following documents are included in the company registration dossier submitted to the Estonian authorities for processing:

Registration application form;
Company documents (i.e., Articles of Association, Memorandum);
Documents concerning the company founder(s).

What personal information will I be offering when I open a company in Estonia?

As the founder of the company, you will be providing several pieces of personal information to the Business Register:

Full name and address;
A passport or ID copy;
Contact details (telephone number, e-mail).

Different requirements apply in the case of e-Residency in Estonia. Our team can give you more details.

When do I open a bank account for the company in Estonia?

You open the corporate bank account with a bank branch of your choice once the business is registered.

You are free to choose an international or an Estonian bank, and the choice can be made based on several important criteria, such as having worked with that bank before, the fees for your chosen banking package, bank branch availability throughout the country, or other criteria.

How much does it cost to register a company in Estonia?

Company incorporation in Estonia involves several costs, among which we can mention the ones for registration with the authorities, along with others, such as those for a virtual office, if required.

The costs for business registration are the following:

265 EUR for private limited company registrations;
20 EUR for sole trader registration;
20 EUR for general or limited partnership registration;
200 EUR for registering the branch of a foreign company.

Please keep in mind that these fees represent only the ones required to register a new business with the Estonian authorities. Opening a company in this country includes more costs that vary according to several factors.

What steps do I follow after I open the company in Estonia?

Once the company registration phase is complete, you have effectively opened a company in Estonia.

Some of the key issues that follow include:

You register for VAT as required;
You can make changes to the company’s capital or shareholders;
You must keep adequate documents for accounting and reporting purposes;
You can hire employees by observing the employment laws.

For those who open a company in Estonia, an important issue will also be observing the national minimum wage rates. In April 2026, this was 5,67 euros per hour.

Do I require special permits and licenses to run a company in Estonia?

Yes, in some cases. Some industries (or areas of activity, as defined in the Estonian Classification of Economic Activities) require special licensing. In this case, the permits for functioning are to be obtained before the company starts its economic activities, to ensure legal functioning.

Examples of industries that are regulated and required additional licenses include:

financial services;
tourism;
education;
construction.

How will my company be taxed?

Corporate taxation in Estonia is summarized below by our team:

The standard corporate income tax rate is 22%;
The employer pays 292.38 euros per month as a minimum social tax liability. This is calculated annually and therefore can be expected to be a varying income for business owners;
The VAT rate has a standard value of 24%, with reduced rates of 13%, 9% and even a 0% exemption applicable in some cases.

How will I be taxed if I receive income from my Estonian company?

In addition to the taxes above, if you act as a director in the company you open in Estonia, you will be liable for a director’s fee, depending on your residence status. We offer a summary below:

22% personal income tax and 33% social tax for Estonian residents;
22% personal income tax and no Estonian social tax if a special certificate is obtained in the case of EEA or Swiss residents (only if they are insured for social benefits in their country of residence);
No personal income tax or social tax is levied on dividends received in Estonia.

What annual compliance requirements will I have to follow?

As a general rule, all legal entities opened in Estonia follow the requirements for submitting annual accounts. This also applies to dormant companies.

The annual accounts are submitted in Estonian, as part of the general rule to have all accounting activity presented to the authorities in the Estonian language. Working with an Estonian accountant is not mandatory, but it is common and they will handle the preparation of documents.

Some key accounting documents include:

The balance sheet;
The internal accounting procedure (with an exception in place for micro-entities);
The annual report (a comprehensive review of the company’s financial results in the previous tax year).

Contact our law firm in Estonia for complete assistance if you want to open a company. We assist investors who wish to set up a company in Estonia, as well as those who have questions about immigration or family law matters, among other legal inquiries.