Starting a Company in Estonia
Estonia is one of the most digitized countries in Europe, offering an ideal environment for entrepreneurs with its fast and easy company registration process. Thanks to the e-Residency program, you do not need to physically travel to the country to establish a business in Estonia. This program allows you to set up and manage a company online in Estonia from anywhere in the world.
The most common type of company Limited Company (OÜ) with a minimum capital requirement of only 1 Euro. The setup process can be completed within a few business days thanks to Estonia's digital infrastructure.
The first step in the process of establishing a company is to apply for an e-Residency card, which allows you to create your digital identity and register your company through the online platforms provided by the Estonian government. You can easily complete the necessary procedures digitally, such as registering with the tax office, opening a bank account, and starting your business activities.
Estonia, 0% corporate tax It offers an attractive tax structure for businesses by taxing only when profits are distributed. Additionally, businesses established in Estonia can benefit from all the market and trade advantages provided by the European Union.
Speed and accurate documentation are critical in company establishment. At CoWorldHub, we provide consulting services to entrepreneurs who wish to establish a company in Estonia throughout the process. We are by your side at every stage, from document preparation to tax registrations.
Advantages of Establishing a Company in Estonia
Estonia offers numerous advantages to entrepreneurs with its structure that leads in digitalization and a business-friendly ecosystem. Being a member of the European Union provides access to the European market and offers cost advantages to businesses with a low corporate tax rate (0% on undistributed profits).
Establishing a company in Estonia can be done entirely through a digital process, allowing you to manage your business easily from anywhere in the world. With the e-Residency program, you can set up a company in Estonia without being physically present, as well as benefit from banking and digital services.
Estonia provides a conducive environment for growing your company thanks to its fast processing times, low bureaucracy, advanced technological infrastructure, and skilled workforce. It also minimizes the likelihood of encountering bureaucratic hurdles while doing business.
With government incentives provided to entrepreneurs and startup support programs, Estonia has become an attractive hub for both small businesses and technology-focused companies.
Requirements for Establishing a Company in Estonia
To establish a company in Estonia, first of all e-residency It is recommended to apply for the e-residency program to obtain your digital ID card, allowing you to manage your company remotely.
The most common type of company Limited Company (OÜ) with a minimum capital requirement of only 1 Euro. The setup process can be completed within a few business days thanks to Estonia's digital infrastructure.
The company registration application is made through the Estonian Commercial Register and is typically completed within 1-5 business days. It is important to ensure that the company name does not conflict with another business. Additionally, obtaining a tax number and opening a bank account are also necessary steps.
Estonia provides an attractive environment for entrepreneurs by offering low tax rates and bureaucratic ease. In particular, VAT registration is mandatory for companies with an annual turnover exceeding 40,000 euros.
What Are the Required Documents to Establish a Company in Estonia?
Estonia stands out as an attractive country for entrepreneurs thanks to its digitization-focused infrastructure and facilitated business environment. With the country's e-Residency program, it is possible to establish a digital company in Estonia from anywhere in the world. However, for the successful establishment of a company, it is essential to prepare certain documents completely.
Capital Investment Certificate
- Şirket türüne göre gerekli olan sermaye miktari kanıtlanmalıdır (Örneğin, limited şirket için 1 Euro).
Private Limited Company (OÜ – Osaühing)
This is the most popular and common type of company in Estonia. It is particularly ideal for small and medium-sized enterprises.
- Minimum Capital: 1 Euro.
Things to Consider When Establishing a Company in Estonia
Starting a business in Estonia is highly advantageous due to its digital infrastructure, low operating costs, and access to the European Union market. However, it is essential to pay attention to certain key points to ensure a smooth process.
Firstly, it is possible to set up a company remotely thanks to the e-Residency program, but in some cases, it may be necessary to be physically present in Estonia to open a bank account. Choosing the type of company is also important; typically, the most suitable option for entrepreneurs is Private Limited Company (OÜ) is a model.
Paying attention to tax compliance and timely fulfilling financial obligations, such as annual declarations, is of critical importance. Additionally, the transparency of tax rates facilitates conducting business in Estonia, while utilizing accounting services can expedite your processes.
Before starting the company registration process, preparing your business plan and conducting market analysis to focus on the right sector and target audience will enhance your success.
Why You Should Choose Estonia to Start a Company?
Estonia stands out as one of Europe’s most innovative and entrepreneur-friendly countries, with its digital infrastructure, low taxes, and fast company registration processes. You can establish and manage your company entirely online within a few hours.
The E-Residency program allows you to own and manage a company from anywhere in the world. Estonia's transparent tax system provides the advantage of not having to pay corporate tax, except on profit distributions.
Additionally, being a member of the EU enables companies to easily access the entire European market. Estonia's stable economic structure, supportive ecosystems for entrepreneurs, widespread digital services, and technology hubs provide an ideal environment for growing your business.
How Long Does It Take to Set Up a Company in Estonia?
Starting a company in Estonia stands out as one of the fastest and easiest processes in Europe. Thanks to digitalization and an advanced e-service infrastructure, setting up a company online in Estonia takes only It can be completed in 15 minutes to a few hours. However, for this process to proceed quickly, e-Residence card you need to be the owner.
With the e-residence card, you can carry out procedures such as company establishment, bank account opening, and tax registration online from a distance. Once the necessary documents are provided, your company its official activation usually takes 1 to 5 business daysIt concludes between.
If you are planning a physical business model or to operate in specific sectors, additional permits and licenses may be required during this process, which could delay the procedures by a few weeks. At CoWorldHub, we provide the necessary consulting services for all company formation processes in Estonia, ensuring that you complete the process quickly and smoothly.
Establishing a Company with Multiple Shareholders in Estonia
Estonia, as one of Europe's most digital economies, simplifies and speeds up the process of setting up a company. To establish a company with multiple shareholders (for example, an OÜ – Private Limited Company), it is essential to first verify the identities of all shareholders and determine their capital contributions.
Company formation can be done online e-Residency with the card or through a notary.
After appointing the board members, preparing the articles of association, and completing the commercial registry process, your company can typically begin operations within a few days. Companies established in Estonia gain access to the EU market, benefit from a digital tax system that simplifies accounting, and offer attractive incentives for foreign investors.
What is the Estonia e-Residency Program?
Estonia's e-Residency is an innovative program that enables individuals worldwide to establish an Estonia-based company in a digital environment. Through this program, even non-Estonian citizens can set up a business compliant with EU regulations, access banking services, and file online tax declarations.
With the e-Residency card, you can sign contracts digitally, authenticate official documents, and manage all business processes remotely. This program is ideal for entrepreneurs looking to expand their business on an international platform, offering significant advantages, especially for freelancers, start-up owners, and businesses engaged in cross-border trade.
What is the Estonia e-Residency Card, and How to Obtain It?
The Estonia E-Residency program offers entrepreneurs from around the world a digital identity, enabling them to establish and operate a company within the EU. With this digital identity, you can perform cross-border banking transactions, sign documents with an e-signature, and manage your company entirely remotely.
E-Residency To apply, you need to complete an application form on the official website (e-resident.gov.ee) and submit your passport details to finalize your application. The evaluation process typically takes 4-6 weeks, and if approved, you can collect your ID card from your chosen Estonian Embassy.
The program offers significant advantages for digital entrepreneurs by providing flexibility in business operations and access to the EU market.
Advantages of the Estonia e-Residency Program
The Estonia e-Residency program provides entrepreneurs worldwide with a digital identity, offering the opportunity to establish a company within the EU quickly and cost-effectively. With e-Residency, you can manage your business digitally and integrate with the EU market, even without a physical presence in Estonia.
Through the program, you can open online bank accounts, manage tax processes remotely, and securely sign contracts with an electronic signature. By simplifying business establishment processes in a digital environment, this program offers flexibility to entrepreneurs, making it an ideal solution for digital nomads, freelancers, and cross-border business owners.
At CoWorldHub, we provide consultancy services for the e-Residency application process, supporting you with company formation and the required documentation.
Application for Estonia e-Residency Program
The Estonian e-Residency Program offers a digital identity to entrepreneurs worldwide, enabling them to establish and operate a business within the European Union (EU) market. Through this program, you can set up an Estonian company online without the need to be physically present in Estonia, open accounts in EU banks, sign digital contracts, and manage tax-related matters.
During the application process, you fill out the application form on the official e-Residency website and complete identity verification, after which you receive your digital ID at the chosen pickup location. This program provides an ideal solution, especially for freelancers, entrepreneurs, and those looking to engage in commercial activities within the EU.
At CoWorldHub, we offer consulting services for the Estonian e-Residency application process, providing step-by-step guidance and ensuring all procedures are completed thoroughly and accurately.
Does the e-Residency Program Provide Travel or Residency Rights?
The Estonia e-Residency program offers entrepreneurs residing outside of Estonia the opportunity to establish and manage a business digitally. However, The e-Residency program does not grant the right to physically travel to or reside in Estonia..
This program enables business owners, through a digital identity, to open a bank account in Estonia, conduct legal processes remotely, and gain access to the European Union market.
E-Residency provides only a digital identity and does not grant rights such as visa exemption or residency permits in the Schengen area. Therefore, it is necessary to apply for a separate visa or residence permit for operations that require a physical presence in Estonia or for long-term residence.
Types of Companies You Can Establish in Estonia
Estonia is an attractive country for entrepreneurs due to its business-friendly environment and digital infrastructure. The process of setting up a company is quick and easy, which is why many entrepreneurs prefer to operate in various sectors in Estonia. In this article, we will thoroughly examine the types of companies you can establish in Estonia, the advantages of each, and the purposes they are suitable for.
Private Limited Company (OÜ – Osaühing)
This is the most popular and common type of company in Estonia. It is particularly ideal for small and medium-sized enterprises.
- Minimum Capital: 2.500 Euro (Kurulum esnasında tamamı ödenmesi gerekmez)
- Ownership: It can be established by a single person or multiple individuals.
- Liability: The owners' liability is limited to the capital they contribute.
- Tax Advantage: The company does not pay corporate tax as long as profits are not distributed.
Who is it suitable for?
Entrepreneurs, e-commerce businesses, and those offering consultancy services benefit from an ideal structure.
Collective Company (TÜ – Täisühing)
A collective company is a type of company in which the partners are personally liable without limit for the company's obligations.
- Partnership Structure: Two or more partners are required.
- Liability: Partners are personally liable without limit for the company’s debts.
- Capital Requirement: There is no minimum capital requirement.
Who is it suitable for?
Suitable for trust-based partnerships and small businesses.
Limited Partnership (LP – Usaldusühing)
In this type, one of the partners has unlimited liability, while the others are only liable to the extent of their capital contributions.
- Partnership Structure: At least one limited partner (komanditer) and one unlimited partner (komandite) are required.
- Capital: There is no minimum capital requirement.
Who is it suitable for?
It is suitable for investors who want to provide capital to the business but do not wish to take on risks.
Anonim Şirket (AS – Aktsiaselts)
This type of company is preferred for large-scale businesses and may have publicly traded shares.
- Minimum Capital: 25.000 Euro
- Ownership: Ownership is provided through shares.
- Liability: The liability of the partners is limited to the capital they contribute.
Who is it suitable for?
It is ideal for entrepreneurs with large-scale projects, international investors, and companies planning to go public.
Branch Office (Filiaal)
It is the branch established by foreign companies to operate in Estonia.
- Ownership: It is owned by the parent company.
- Liability: The parent company is responsible for the debts of the branch.
Who is it suitable for?
It is suitable for international companies looking to establish a permanent presence in Estonia.
Foundation and Association (Sihtasutus and MTÜ)
It is used for non-profit organizations.
- Foundation (Sihtasutus): It is established with donations aimed at a specific purpose.
- Association (MTÜ): It operates for the common interests of its members.
Who is it suitable for?
It is ideal for individuals or organizations looking to serve the community.
Contact Person for Establishing a Company in Estonia
Establishing a company in Estonia is an attractive option due to the advantages of digital infrastructure and the simplicity of bureaucratic processes. However, working with a local contact person is essential to ensure the process proceeds quickly and smoothly.
The contact person provides guidance throughout all processes, such as preparing application documents, registration in the trade registry, tracking legal requirements, and handling procedures with official authorities. Additionally, staying in contact with this person is beneficial for learning how to take advantage of Estonia’s tax benefits and accessing potential support programs.
As CoWorldHub, our expert team supports you through all the necessary stages of establishing a company in Estonia, standing by your side for a seamless entrepreneurial journey.
Programs for Resident Entrepreneurs in Estonia
Estonia continually strengthens its entrepreneurial ecosystem by offering innovative and digital solutions to both local and international entrepreneurs. e-Residency The program enables foreign entrepreneurs to establish a company and manage their business within the European Union without being physically present in Estonia.
Startup Visa the program provides entrepreneurs with high growth potential an easy way to obtain a residence permit. Thanks to various incentives offered to companies established in Estonia, as well as technology parks and incubation centers, entrepreneurs can reduce operational costs while gaining access to global markets.
Additionally, Estonian Business Development Agency (EAS), provides guidance to entrepreneurs with advisory services and financial support packages, supporting their growth.
Is a Virtual Office Required to Establish a Company in Estonia?
Although a virtual office is not mandatory when setting up a company in Estonia, it provides a significant advantage for managing business operations quickly and easily. Estonia’s e-Residency program allows foreign entrepreneurs to establish companies remotely; however, it is mandatory to have a legal address in Estonia for the company.
At this point, virtual office services are a popular solution for entrepreneurs. A virtual office provides you with a physical address in Estonia, allowing you to manage official correspondence from this location and, when necessary, offers mail handling services.
Especially for those who want to manage their company without being physically present in Estonia, a virtual office is also cost-effective. This allows entrepreneurs to focus their time and resources on business development processes rather than operational tasks.
Does the Estonia e-Residency Program Make You a Tax Resident?
The Estonia e-Residency program provides a digital identity, allowing you to establish and manage a company in Estonia from anywhere in the world. However, having e-Residency alone does not make you a tax resident in Estonia.
Tax liability depends on criteria such as where the company is managed, the scope of business activities, and the source of income. If your company's management is not based in Estonia or if you are not generating income in Estonia, you are generally not considered a tax resident in Estonia.
However, the situation may vary based on international tax treaties and the nature of your company's activities, so it is advisable to seek professional consultancy for detailed tax planning.
Company Formation in Estonia Without a Digital ID
It is possible to establish a company in Estonia without a digital ID (e-Residency). However, in this case, processes are completed in person, and certain procedures may take longer. You can set up a company by being physically present in Estonia or through a local representative.
First, the appropriate company type for your business model (usually a Private Limited Company – OÜ) is selected. To establish the company, you need to apply to the Estonian Business Register and provide information about the founders and directors.
You may need to apply in person at banks in Estonia to open a bank account. Additionally, seeking support from a local consultant for accounting services and legal processes will help facilitate your tasks.
While a digital identity is not mandatory for establishing a company in Estonia, having e-Residency can expedite online processes and provide advantages for remote management.
How to Pay the Estonia Company Registration Fee?
Paying the company registration fee in Estonia is a straightforward and quick process. After completing your application, you can typically pay the registration fee via bank transfer, credit card, or online payment systems.
If you are establishing a company digitally through Estonia's e-Residency program, all payment transactions can be completed online. It is not necessary to open a local bank account in Estonia; international payments are accepted.
During the process, it is important to use the correct reference number and keep the payment receipt. Additionally, some consulting firms offer comprehensive service packages for the establishment process and can manage payments on your behalf.
Corporate Taxation System in Estonia
Estonia offers an attractive tax system for entrepreneurs. In Estonia, corporate taxes apply only when profits are distributed, meaning no tax is paid on profits as long as they are retained within the company. This advantage allows businesses to reinvest and grow.
When profits are distributed, a corporate tax rate of 20% is applied. Additionally, Estonia offers tax exemptions at lower rates to encourage small businesses.
The company establishment process is straightforward, can be completed online, and is typically finalized within a few days. This flexible system makes Estonia a tax-efficient hub for international entrepreneurs.
Business Establishment Consultancy in Estonia with CoWorldHub
At CoWorldHub, we provide comprehensive consultancy services for entrepreneurs looking to establish a business in Estonia. We guide you through the process of choosing the appropriate business type, applying for e-residency, understanding tax regulations, opening a bank account, and registering your business.
Thanks to Estonia's digital solutions, you can establish your company remotely, quickly, and effortlessly, allowing you to operate in the international market with low costs. We oversee all application processes from start to finish, ensuring that all documents are prepared accurately and facilitating your adaptation to Estonia’s business environment.
We assist you in overcoming any bureaucratic hurdles you may encounter during the business setup process, standing by your side to help you make the most of Estonia’s advantages. For more detailed information please contact us.
