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EuropeRemote-friendly Verified · 31 Jul 2026

How to found a company in Estonia

You’d incorporate a Osaühing (private limited company) (OÜ).

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The numbers

Government filing fee
€265Expedited electronic registration in the e-Business Register. Registration through a notary is €200. The e-Residency application fee is separate, around €100–150 depending on pickup location.
Typical turnaround
1 day
Corporation tax
0%0% on retained and reinvested profit. Distributions are taxed at 22%, calculated as 22/78 of the net amount distributed.
VAT (KMKR) threshold
€40,000Taxable turnover in a calendar year. Registration is due within three business days of crossing it.
Minimum directors
1No director residency requirement, but a company whose board sits outside Estonia needs an Estonian contact person and legal address.
Minimum shareholders
1

What you’ll need

  • An e-Residency digital ID, or another accepted means of digital signature
  • An Estonian legal address and contact person where the board is abroad
  • Share capital of at least €2,500, which may be contributed later
  • A business bank or e-money account that accepts Estonian companies

Watch out

  • ⚠️e-Residency is a digital identity. It confers no tax residency, no citizenship and no right of entry.
  • ⚠️The company remains taxable where it is effectively managed from, which is usually where the founder lives.
  • ⚠️Liability attaches from the moment turnover reaches the VAT threshold, not from the date you register.
  • ⚠️Account opening, not registration, is the usual delay — Estonian banks generally require a demonstrated local connection.

The steps

  1. 1

    Apply for e-Residency

    You~4 weeks

    Online application and background check, then collection of the card in person at a designated pickup point.

  2. 2

    Appoint a contact person and legal address

    Founding1 day

    Required for companies whose management board is outside Estonia.

  3. 3

    Register in the e-Business Register

    Founding1 day

    The application is signed digitally. Expedited electronic registration is usually processed within one business day.

  4. 4

    Open a business account

    You~2 weeks

    An Estonian credit institution, or an EEA e-money institution that accepts Estonian companies.

  5. 5

    Register for VAT

    You3 days

    Mandatory within three business days of crossing €40,000. Voluntary registration is available below it.

What you’ll need around it

All products
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Business banking

Wise Business

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Business banking

Revolut Business

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Formation

e-Residency

Checked 31 Jul 2026 against an official source. Rules and fees change — confirm anything you are about to act on. Founding is not a law firm and this is not legal or tax advice.