Form an EU Company in Estonia

No. A foreigner can fully own and manage an Estonian OÜ without any citizenship, residency or physical presence in Estonia. Every OÜ must have a registered Estonian business address. A local contact person is also legally required where none of the board members or shareholders hold an Estonian address – which is the typical situation for international founders. Both are included in every management package. With an e-Residency card, the application can be submitted to the e-Business Register in approximately 15 minutes; authority registration is usually confirmed within 1 to 5 working days. Without e-Residency, formation via notarially certified Power of Attorney (€275 + VAT) is available.

E-Residency is a government-issued digital identity card that allows non-residents to authenticate online and digitally sign documents. It is not mandatory for company formation, but strongly recommended for ongoing management as it simplifies virtually every administrative task. Important: e-Residency does not confer personal tax residency in Estonia and grants no immigration rights. If you manage or operate your company primarily from another country, that country's tax rules may apply to you personally and potentially to the company. Independent tax advice is recommended. You can learn more and apply at e-resident.gov.ee.

Every new company requires a one-time incorporation fee of €630 + VAT, which includes the €265 state fee, VAT registration, a personalised consultation, bank account opening assistance and e-Services training. On top of that, you choose your monthly package: Light at €199 + VAT/month (or €1,990/year), Pro at €349 + VAT/month, or Growth at €500 + VAT/month (or €5,000/year). Additional services such as international tax consultation (from €250/h + VAT) and legal representation (from €150/h + VAT) can be booked at any time.

Light (€199/mo): Best for SPVs, personal holdings, investment funds, crypto holdings and small active companies with up to 25 transactions per month and at most 1 employee. Pro (€349/mo): Best for active businesses and eCommerce sellers with up to 50 monthly transactions and up to 5 employees. Includes OSS/IOSS reporting and 2h/month of accounting, business and tax consultation. Growth (€500/mo): Best for scaling eCommerce businesses, Amazon FBA and multi-channel sellers up to 150 transactions/month, OSS/IOSS fully included, and a reduced rate for extra transactions (€2 instead of €3). Click any package card above for the full feature breakdown.

With an Estonian e-Residency card, the application can be submitted to the e-Business Register in approximately 15 minutes. The registration is then confirmed by Estonian authorities typically within 1 to 5 working days. Without e-Residency, formation via notarially certified Power of Attorney takes slightly longer due to notary coordination, but the process remains fully manageable remotely.

Estonia's corporate income tax operates on a deferred basis. Retained profits kept in the company are taxed at 0%. When profits are distributed, corporate distribution tax applies at 22/78 of the net amount paid out (e.g. a €780 net distribution generates €220 company tax). Note that other taxable payments – such as non-business expenses and fringe benefits – can create earlier tax liabilities. VAT is charged at the standard rate of 24%; registration is required once annual turnover whose place of supply is Estonia exceeds €40,000. Other EU VAT registration triggers may also apply depending on your sales channels. Declarations are filed online through Estonia's tax portal. Your personal income taxes are determined by the laws of your country of tax residence; managing the company from abroad may also affect the company's tax position.

Yes, in most cases. We assist with business bank account opening as part of the one-time incorporation fee. We work with Estonian fintech providers and traditional banks who accept remote onboarding for Estonian companies. Wise Business is frequently available to non-resident founders. Traditional Estonian banks such as LHV serve Estonian companies but may request demonstrable business ties to Estonia. We guide you through the available options.

OSS (One-Stop-Shop) and IOSS (Import One-Stop-Shop) are EU VAT simplification schemes that allow eCommerce sellers to consolidate reporting for eligible cross-border B2C transactions through a single return filed in one EU member state – in your case, Estonia. OSS/IOSS covers eligible transactions and simplifies multi-country reporting significantly, but it does not replace all domestic VAT registrations or returns; specific product categories, warehouse locations (e.g. Amazon FBA stock held locally) and revenue thresholds can require separate country registrations. OSS/IOSS reporting is included in both the Pro and Growth Packages. It is not included in the Light Package. If you need OSS/IOSS, choose at minimum the Pro Package.

Every Estonian OÜ must submit an annual report (financial statements) within 6 months of the end of its financial year – even dormant companies with no activity must file. If registered for VAT, monthly VAT declarations are due by the 20th of the following month. Payroll taxes are due by the 10th. Beneficial ownership information must be kept up to date in the Business Register. All management packages cover these obligations so your company stays fully compliant without you needing to track every deadline.

The minimum share capital for an Estonian OÜ is €0.01 for a sole shareholder (€2,500 where there are multiple shareholders, or where specific regulatory requirements apply). The share capital contribution must be made and confirmed at incorporation – it is not possible to leave it unpaid. The simplicity of the OÜ structure and the very low minimum capital make it one of the most accessible company forms in the EU.