Estonia at a glance
Estonia is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Estonia
- OÜ (private limited company) The default form for founders and e-residents: limited liability, no real minimum capital, set up and run 100% online. One-person companies are typical.
- AS (public limited company) For larger ventures. EUR 25,000 minimum capital, a supervisory board and usually an auditor; can list on a public exchange.
- FIE (sole proprietor) Not a separate legal entity and the owner is personally liable. Must be situated in Estonia, so it is generally unsuitable for non-residents.
| Corporate tax | Estonia runs a distributed-profit system: 0% corporate tax on profit you retain and reinvest, with tax due only when profit is distributed. Distributed profit is taxed at 22% (calculated as 22/78 of the net distribution, so a EUR 10,000 dividend carries EUR 2,821 of tax). There is no municipal or local corporate tax. A planned rise to 24% and a temporary 2% profit tax were both cancelled in late 2025, so 2026 stays at 22%. |
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| VAT rate | Standard VAT is 24%, in force since 1 July 2025 (up from 22%) and now permanent. Reduced rates are 13% (accommodation) and 9% (books, press and certain medicines). The VAT registration threshold is EUR 40,000 of domestic turnover per year. |
| Minimum share capital | No real minimum: EUR 0.01 per shareholder since the 2023 reform abolished the old EUR 2,500 requirement, and it need not be paid before registration. Note: if capital is set below EUR 2,500, shareholders stay personally liable up to that amount. |
| Setup time | About one business day to register in the Company Registration Portal once you can sign digitally. The e-Residency digital ID itself takes roughly 3 to 8 weeks to be issued and collected first. |
| Remote setup | Yes, 100% remote. Non-residents form and run the company online with an Estonian e-Residency digital ID; documents are signed digitally and a standard OÜ needs no trip to Estonia and no notary. |
| Director / residency | No residency or nationality requirement for directors or shareholders. The company needs an Estonian legal address, and if the board is located abroad it must appoint a licensed contact person (who receives official mail but cannot act for the company). |
| Banking options | Most non-residents use a fintech business account, Wise Business, Revolut Business or Payoneer. Traditional banks (LHV, SEB, Swedbank) can open accounts but usually want a genuine local connection; LHV is the most e-resident-friendly. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Estonia pioneered e-Residency in 2014, the first government-issued transnational digital identity, and has topped the OECD International Tax Competitiveness Index for over a decade. Taxes are filed online via the e-MTA portal.
How to register a company in Estonia
The process is straightforward and, in Estonia, largely digital. In outline:
- Choose your company type and name. Most founders pick the OÜ (private limited); we confirm the name is available.
- Verify your identity. Yes, 100% remote. Non-residents form and run the company online with an Estonian e-Residency digital ID; documents are signed digitally and a standard OÜ needs no trip to Estonia and no notary.
- File the incorporation. Once documents are signed, registration usually completes in around 1 day.
- Open a business account and register for tax/VAT. Most non-residents use a fintech business account, Wise Business, Revolut Business or Payoneer. Traditional banks (LHV, SEB, Swedbank) can open accounts but usually want a genuine local connection; LHV is the most e-resident-friendly.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
Form your Estonian company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Estonia, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Estonia
Founders from outside the EU can own and run an Estonian company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Estonia up front, so there are no surprises.
Estonia and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so an Estonian company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Estonia against other countries, see company formation in Europe.