Estonia, located in Northern Europe, stands out as an ideal destination for establishing businesses aimed at expanding into international markets. As one of the few EU countries bordering Russia, Estonia offers strategic access to the Russian market while being firmly integrated into the European Union’s economic framework. The country also boasts one of the largest ports in the Eurozone, which facilitates seamless trade and logistical operations.

Estonia’s status as a member of several key international organizations—including the European Union, NATO, OECD, and the Schengen Area—positions it as a stable and reliable business hub. Furthermore, the nation’s adoption of the euro solidifies its financial stability. Since 2004, Estonia has benefited from significant financial assistance through European development funds, such as the European Regional Development Fund (ERDF) and the Social Funds (ESF). 

These contributions have played a pivotal role in building a robust economy that attracts foreign investors. With a clear focus on minimizing bureaucratic and financial barriers, Estonia offers a conducive environment for entrepreneurs seeking to establish and grow businesses with minimal time and monetary investment.

Forms of company registration in Estonia

Business operations in Estonia are carried out through several legal forms: private individual (FIE), joint stock company (AS), and limited liability company (OÜ). Certain activities, such as medical, pharmaceutical, insurance, brokerage, and tourism, require obtaining a specific license.

The most popular structure is the OÜ, similar to a Russian limited liability company. The company’s authorized capital is divided into shares (units), and it is only liable for debts up to the value of its assets.

Key requirements:

• The company can be registered online with an Estonian ID card.
• There is no limit on the number of founders (starting from one), nor is there any restriction based on nationality.
• The minimum authorized capital for a company is 2,500 EUR.
• Legal entities must pay the authorized capital immediately upon registration, while individuals are not required to do so.
• The registration process takes up to 48 hours online and up to 5 days when using notary services.

Advantages of starting a company in Estonia include:

• A unique tax system with a zero percent corporate tax rate on reinvested profits.
• An advanced e-government system that simplifies and accelerates the interaction between businesses and government entities.
• Strategic location within the EU, while being close to the Russian border.
• Simplified company registration process, business operations, and favorable tax policies.
• The opportunity for foreign investors to obtain virtual citizenship and temporary residence permits.
• Double taxation avoidance, as Estonia has agreements with 67 countries.

Legal requirements

The company name must be unique and contain the name of the organizational and legal form (for example, «OÜ»). The company must have a legal address confirmed by documents (certificate of ownership, lease agreement).

The director can only be an individual. If he is not a resident of the Republic of Estonia, he must provide the address of actual residence. Legal entities are required to maintain accounting records and submit financial statements annually.

If a company is a VAT payer or has employees, you must report monthly to the Tax Department. When registering a company in Estonia, you need to submit information about the beneficiary to the Commercial Register: full name, passport number (ID), place of residence.

The Republic of Estonia — is an attractive country for doing business related to trade, outsourcing of IT services, logistics. Government structures are consistently following the path of liberalizing foreign trade policy, reducing export-import barriers, and developing modern market infrastructure.

Contact «MERGER BUSINESS CONSULTING» for advice from an experienced corporate lawyer. You will learn how to open a company in Estonia in a short time, prices for registration, provision of notary and legal services. The standard time for registering a business is about 7 days.