Estonia is one of the most business-friendly countries in the world, known for its digital infrastructure, ease of doing business, and innovative e-Residency program. Whether you’re a local entrepreneur or a foreign investor, Estonia offers a seamless process for setting up a company. Here’s a step-by-step guide to opening a business in Estonia.
Why Start a Business in Estonia?
100% Online Business Registration – Manage your company from anywhere in the world.
Low Corporate Taxes – 0% tax on retained and reinvested profits.
EU Market Access – Operate in a stable, European business environment.
Digital Nomad Friendly – Run a business remotely with Estonia’s e-Residency.
Step 1: Apply for e-Residency (For Foreigners)
Estonia’s e-Residency program allows non-residents to establish and manage an Estonian business remotely.
Visit the e-Residency website and submit your application.
Pay the application fee (€100-€120, depending on the country).
Provide necessary documents and a passport photo.
Wait for approval (takes about 3-8 weeks) and collect your e-Residency card.
Step 2: Choose a Business Structure
The most common business type in Estonia is an Osaühing (OÜ), equivalent to a private limited company.
Limited Liability (OÜ) – Suitable for startups and small businesses.
Sole Proprietorship – Simple structure for freelancers.
Public Limited Company (AS) – Best for large businesses with shareholders.
Step 3: Register Your Business
Log in to the e-Business Register (https://ariregister.rik.ee/) using your e-Residency card.
Choose a Unique Business Name and check availability.
Provide Business Details, including shareholders, board members, and address.
Deposit Share Capital (€2,500 for an OÜ, but can be deferred).
Submit Registration and Pay Fees (€190 for company registration).
Step 4: Open a Business Bank Account
You need a business account to manage company finances. Options include:
Estonian Banks (Swedbank, LHV, SEB) – Requires a visit to Estonia.
Fintech Banks (Wise, Payoneer, Revolut) – Online alternative for global transactions.
Step 5: Register for Taxes
VAT Registration – Required if annual revenue exceeds €40,000.
Corporate Tax – Estonia has a 0% tax on reinvested profits and 20% tax on distributed profits.
Employment Taxes – If hiring employees, you must register them with the Estonian Tax and Customs Board.
Step 6: Manage and Grow Your Business
Use Online Accounting Services – Platforms like Xolo or 1Office help with compliance.
Leverage Estonia’s Digital Ecosystem – Access government and business services online.
Expand to the EU Market – Benefit from Estonia’s access to European trade networks.
Conclusion
Estonia offers one of the world’s easiest and most innovative business registration processes. Whether you’re a freelancer, startup founder, or international entrepreneur, Estonia’s e-Residency and digital-first business environment make it an ideal destination to launch and manage a company.
Ready to start your Estonian business? Visit e-resident.gov.ee to begin your journey!
