To set up a company in Estonia as an e-resident, you apply for an e-Residency digital ID, choose a company name, appoint a legal contact person and Estonian address if you live abroad, and register a private limited company (OÜ) online in the Estonian Business Register. Registration is typically completed within one business day.
The 8 steps to set up a company in Estonia
- Apply for e-Residency. Application through the official e-Residency programme; a state fee applies and you collect the card at a designated pickup point.
- Choose the company form. Almost every foreign founder registers an osaühing (OÜ), a private limited company. It gives limited liability and access to the 0% retained-profit regime.
- Choose a company name. It must be distinguishable in the Business Register and must not conflict with existing trademarks.
- Appoint a contact person and legal address. Required when the entire management board lives outside Estonia. Only licensed service providers may act as contact person. We work with providers we trust and will introduce you rather than leaving you to compare directory listings.
- Decide on share capital. There is no minimum share capital requirement for an OÜ. Capital can be set at a nominal amount, but the amount you choose has practical consequences for credibility and future dividend planning. If you intend to contribute securities or other assets rather than cash, the non-monetary contribution has to be valued and documented properly.
- Register online. Through the Business Register’s e-service using your digital ID. Registration is usually approved within one business day.
- Open a business bank account. You can read here what documents are needed to open a bank account.
- Set up accounting from day one. Choose your financial year, decide when VAT registration becomes compulsory, and start capturing source documents correctly. This is where our accounting service for e-resident companies comes in.
Set up a company in Estonia correctly the first time: a consultation with our legal advisor
Most founding mistakes are cheap to avoid and expensive to unwind. Before you register, you can book an online consultation with our legal advisor, who will go through your plans and tell you how to structure the company so it is set up correctly the first time rather than corrected after. You do the registration yourself, the advisor makes sure you know exactly what to enter and why.
What the consultation covers:
- Whether the register’s default articles of association fit your plans or where you need them adapted
- How to structure share capital and ownership, including multiple founders and future investor entry
- What documentation a non-monetary contribution requires if you are contributing assets or an existing portfolio to the company
- How to define management board rights, obligations and remuneration
- Whether you need a shareholder agreement and what it should cover
- Which decisions at registration are hard to reverse later
What we arrange alongside it:
- Introduction to a licensed contact person and legal address provider required by law when the whole board lives abroad
- Guidance on selecting a suitable bank and successfully opening a bank account, with an overview of banks operating in Estonia
- Accounting set up from the first day, so your books never need reconstructing
Common founding mistakes we see:
- Default articles of association that block a later share transfer or investor round
- Ownership split 50/50 with no shareholder agreement and no deadlock clause
- Assets moved into the company with no valuation and no documentation, making the cost basis indefensible
- A financial year chosen without thinking, creating an inconvenient reporting cycle
Book an online consultation with Keit Kukk, our legal advisor, before you register and we’ll connect you with a licensed contact person provider. Legal advisory is €125/hour.
What it costs to run, not just to start
| Cost item | Typical range |
|---|---|
| Business Register state fee | One-off 256 €, set by the state |
| Legal consultation before founding (optional) | €125/hour |
| Contact person + legal address | ~€125–400/year |
| Accounting (dormant / annual report only) | From €50/hour |
| Accounting (active company) | From €79/month |
| Corporate income tax on retained profit | €0 |
| Corporate income tax on distributed profit | 22% (22/78 of net distribution) |
What e-Residency is not
- is not citizenship, residency or a visa.
- It does not make you an Estonian tax resident.
- It does not exempt your company from filing obligations.
- It does not guarantee a bank account.
After you set up a company in Estonia: your first-year compliance checklist
- Financial year set (usually 1 January – 31 December)
- Accounting policies and chart of accounts in place
- Decision on VAT registration (compulsory above €40,000 turnover)
- Board member remuneration decided and documented
- Source document routine agreed (invoices, contracts, bank statements)
- Annual report scheduled, due 30 June for calendar-year companies
- If the company will hold securities or crypto, investment accounting set up from the start
Founding a company or just founded one? Book a 30-minute call and we’ll map your first 12 months of obligations. 📧 legal@targetsmart.ee →