Company registration in Estonia
General requirements for company registration in Estonia
Share capital minimum EUR 0.01 (from 01.02.2023)
Limited Liability Company (OÜ)
At least 1 director (physical person);
If the company is managed from abroad, then it is required to appoint a local legal contact person;
Company has to submit annual reports;
VAT registration threshold is EUR 40.000 of annual sales turnover.
Profit taxed upon distribution at 20% rate.
Most popular company registration options in Estonia
Company Registration with e-Residency card.
Company registration with Power of Attorney.
Company registration by personal visit to Estonia.
Company registration with e-Residency card
Process explained
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E-Residency card is a government-issued digital identity and status that provides access to Estonia’s transparent business environment. Please note that e-Residency card does not change your tax residency nor does it substitute a valid travel document and grants the holder of e-Residency card special travel benefits.
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E-Residency card application is online and you can apply for it here. If link is inactive, then we suggest using google and typing “apply for e-Residency card”. The application process takes around 20-30 minutes. During the application procedure, you will have to choose your desired pickup location. All available pickup locations you can find here. The average time of receiving e-Residency card is around 30-40 business days.
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Average period of receiving e-Residency card is 30-40 business days. Depending on your business model, you might need to have a set of legal documents to run your business. The most common documents are Service Agreements, Employment Agreements, Privacy Policy for website and Terms and Conditions for website. Usually these documents can be drafted while you are waiting to receive your e-Residency card and once you have the card and the company is registered, you can enter the name of the company in already drafted documents.
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After you have received a message that your card is ready for pickup, go to the pickup location and receive your card. Please note that the e-Residency card must be collected personally and it can not be assigned to anyone else.
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If you are reading it here, then we will be happy to become your service provider and assist you with company registration process in Estonia. However, if for some reason we have failed and you wish to have another service provider, then the safest option is to go to e-Residency marketplace and choose one of pre-vetted service providers from there.
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Company registration process with e-Residency card is very smooth and therefore this seems like an obvious question. According to the Commercial Code of Estonia, if the company is managed outside of Estonia, it needs to appoint a local contact person for public communication purposes. Therefore, unless you are Estonian resident, you need to have a licensed service provider who can become your contact person and guide you through the company registration process. Obviously, Gate to Baltics OÜ is a licensed service provider and we are happy to become your contact person.
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This is probably the fastest part and it usually takes 1-2 business days to register a company in Estonia.
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The next logical step after company registration is payment account opening. To have a company without a payment account is like having a car without a fuel or bicycle without tyres. It is not a secret that local Estonian banks have strict compliance procedures when it comes to bank account opening for e-Resident companies. Therefore, our recommendation is to open your first payment account in one of the online payment service providers.
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Depending on your business model you might need to have a VAT registration number. As a general rule, the VAT registration threshold in Estonia is EUR 40.000 in annual taxable sales turnover. As the VAT issue is quite specific, it is not possible to provide “one size fits all” answer here. We suggest contacting us to determine if you need to register for the VAT. The most important thing to keep in mind here is that you can still start your business without a VAT registration number and apply for it at a later stage.
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e-Residency card state fee is EUR 100.00. company registration state fee is EUR 265.00. Our service fee is EUR 185.00 and it includes legal contact person and virtual office address services for the first registration year. TOTAL: EUR 550.00
Company registration with Power of Attorney in Estonia
If company registration with e-Residency card is not possible, then the next option is company registration with Power of Attorney.
The process overall takes around 30-45 days, depending on the location of the customer.
Unless the customer is located in Latvia, Lithuania or Poland, the PoA needs to be apostilled or legalized for use in Estonia.
The total cost for company registration with PoA is EUR 1400.00 for a single shareholder private person. The price includes all state, notary and translation fees as well as legal contact person and virtual office address in Estonia for the first year.
Cost for registration of subsidiary (shareholder legal entity) depends on the structure of the corporate shareholder and the amount of documents that we will need to process.
Company registration by visiting Estonia
This is the fastest option for company registration in Estonia. If the customer is able to travel, then the company registration is carried out within 1-2 weeks, depending on the availability of the notaries.
The total cost for company registration by personal presence in Estonia is EUR 840.00 for single shareholder physical person and the price includes all state, notary, translation fees as well as the legal person and virtual office address for the first year.
The price for corporate shareholders is estimated based on the structure of the shareholder.
Book an appointment with Gate to Baltics. Your first meeting is free of charge.
Get in touch.
Feel free to leave us a message if you have additional questions about company registration and business environment in Estonia.