Top FAQs About Starting a Business in Estonia: What You Need to Know

Estonia is a top choice for entrepreneurs looking to establish a business in a digitally advanced and business-friendly environment. Whether you’re exploring the benefits of the e-Residency program or seeking tax advantages, understanding the process is crucial. In this article, we’ve compiled answers to the most important and frequently asked questions about setting up a company in Estonia. For a more comprehensive list of questions, visit Eesti Firma’s FAQ page.

Why Choose Estonia for Your Business?

Estonia is a trailblazer in digital innovation and business transparency. Ranked among the top countries in the World Bank’s Ease of Doing Business Index, Estonia attracts global entrepreneurs for several reasons:

• Ease of registration: You can establish a company online through the e-Residency program.
• Tax advantages: A 0% corporate income tax on reinvested profits encourages business growth.
• Access to the EU market: Estonia is a gateway to 27 EU countries, offering vast market potential.

What Business Entities Can You Register in Estonia?

Understanding the types of business structures available is crucial. Here are the main options:

1. Private Limited Company (OÜ): The most common form, ideal for small and medium enterprises, with limited liability.
2. Public Limited Company (AS): Suitable for larger enterprises, especially those considering public trading.
3. Sole Proprietorship (FIE): For individual entrepreneurs looking for a simpler structure.

The Private Limited Company (OÜ) is the preferred choice for most, thanks to its flexibility and minimal capital requirement of just €0.01.

Can You Start a Company Remotely?

Yes! Estonia’s renowned e-Residency program allows you to establish and manage a business from anywhere in the world. Through this digital identity, you can:

• Register your company online.
• Sign documents digitally.
• Access business banking and taxation services remotely.

How Long and How Much Does It Take to Register a Company?

The process is streamlined for efficiency:

• Timeframe: It typically takes 1–5 working days. With e-Residency, online registration is often completed within a day.
• Costs: Depending on the services you need, registration costs range from €365 to €1,200. Additional costs may include legal address services and accounting support.

What Are the Taxation Benefits in Estonia?

One of Estonia’s standout features is its business-friendly tax system. Companies enjoy:

• 0% corporate tax on reinvested profits, only paying tax when profits are distributed.
• 20% corporate income tax on distributed profits, which is competitive within the EU.
• 22% VAT rate, mandatory for businesses exceeding a turnover of €40,000 annually.

About Us – Eesti Firma

At Eesti Firma, we specialize in helping entrepreneurs navigate the process of establishing their businesses in Estonia. From company registration to tax consultation and virtual office services, we provide comprehensive support every step of the way. With years of experience and a deep understanding of Estonian business regulations, we are your trusted partner in building a successful business.

Whether you’re looking for a seamless company registration experience or ongoing business support, Eesti Firma is here to help you achieve your entrepreneurial goals in Estonia.