How to Set Up a Company in Estonia: Steps, Costs and What You Should Know
14 October 2026
With Companio, you can set up your company in Estonia 100% online, without living there or ever visiting. All you need is e-Residency: we provide your legal address and contact person in Estonia and file the registration for you. You pay the €265 state fee and, once you have your e-Residency, your company is registered in 1 to 3 working days.
It’s that simple!
But here’s the important part: registering the company is the easy bit.
So the question you should be asking isn’t just:
“How do I register a company in Estonia?”
It’s also:
“What does owning one involve if I don’t live in Estonia, and is it the best option for my business?”
This guide answers both. You’ll learn:
- what e-Residency is and how to get it;
- the steps to register an OÜ, the Estonian private limited company;
- what it costs to set up and run in the first year;
- where you pay taxes if you live in another country;
- and when Estonia isn’t the right choice for you.
Can you start a company in Estonia without living there?
Yes. Thanks to e-Residency, people from almost any country can set up and run an Estonian company remotely. You sign documents, register the company and file your returns online, without travelling.
Unlike some other European countries, such as Ireland, Estonia doesn’t require any director to live in Estonia or the European Economic Area.
What you do need:
- e-Residency, Estonia’s digital identity, which lets you sign documents with legal validity.
- A legal address in Estonia, which becomes your company’s registered office.
- A contact person in Estonia, required when the directors live outside the country.
One clarification that will save you trouble: e-Residency is not physical residency, a visa or tax residency. Your tax residency stays wherever you live. We explain this in the tax section.
What do you need to get started?
The first step is e-Residency. It’s a digital ID card issued by the Government of Estonia that lets you sign documents and use Estonian public services online. You can’t register the company without it.
How to get it:
- Apply online on the official e-Residency website. You’ll need your passport, a photo and to pay a state fee.
- Estonia’s Police and Border Guard Board reviews your application. It’s a standard background check.
- Collect your card in person at the location you chose when applying: an Estonian embassy or consulate, or a pickup centre. Your fingerprints will be taken.
It’s a process you complete directly with the Government of Estonia. If you have questions at any step, our team will guide you.
Practical tips:
- Choose your pickup location carefully. It’s the only in-person step, so pick somewhere close or a city you’re already travelling to.
- Buy a USB card reader and install the DigiDoc software. You’ll need both to sign.
- Keep your PIN codes safe. PIN1 identifies you and PIN2 is for signing.
- If there are several founders, each one needs their own e-Residency.
How do you register a company in Estonia?
Once your e-Residency is ready, registering an OÜ (the Estonian private limited company) takes six steps, all online.
- Choose a name. It must be unique. With Companio we can check that no existing company or EU or Estonian trademark has a similar name.
- Define your business activity. Choose the activity code that best describes your business, in as much detail as possible.
- Add shareholders, directors and share capital. You need at least one shareholder and one management board member, who can be the same person. The minimum share capital is €0.01, and you don’t need to pay it in at registration.
- Get a legal address and contact person. With Companio, both are included in your plan.
- Sign the application and pay the state fee. Each founder signs with their e-Residency card and PIN2.
- Wait for confirmation from the Business Register. You’ll receive your company’s registry code, which must appear on every invoice.
Once the company is registered, three tasks remain:
- Open a business bank account. Digital banks let you do this 100% online and are usually faster.
- Grant power of attorney for accounting to your accountant, also online and revocable at any time.
- Decide whether you need a VAT number, which depends on your customers and turnover.
How much does it cost and how long does it take to start a company in Estonia?
To register the company, you pay a state fee of €265. Once you have your e-Residency, registration takes 1 to 3 working days.
With Companio, on the Premium and Ultra plans we register your company for free: you only pay the official fees of €265 + VAT.
But, as with any company, the registration fee isn’t the cost of owning a company.
An OÜ has obligations from day one:
- keeping your accounts up to date;
- filing the annual report by 30 June each year;
- filing monthly returns when you pay salaries or distribute dividends;
- filing VAT returns, if your company is VAT-registered.
So the useful question isn’t “How much does it cost to register?” It’s “How much will it cost me in the first year?” A real example. A digital consultant working alone, with one bank account, fewer than 1,000 transactions a month and no director’s salary. Pro plan:
That’s about €142 a month spread across the first year. From the second year, the recurring cost would be €1,318 a year (€1,068 for the plan and €250 for the annual report).
This excludes e-Residency, VAT and any additional services. If you pay yourself a director’s salary, add €89 a month on the Pro plan.
Where do you pay taxes if you don’t live in Estonia?
In Estonia, a company pays no corporate income tax while it reinvests its profits. It pays 22% when it distributes them, for example as dividends. But if you live in another country, that country has a say too.
For example: if your company pays a €10,000 dividend, it pays €2,821 in tax in Estonia (€10,000 × 22/78). Tax is calculated on what you distribute, not on what you invoice.
As well as dividends, fringe benefits, gifts, donations and non-business expenses are also taxed at 22%. Everything is declared monthly online, on the Estonian Tax and Customs Board portal (e-MTA).
Estonia is not a tax haven. It’s a simple, transparent system that works very well when you use it as intended.
If you live outside Estonia, there are two questions to answer before setting up the company.
1. Where is your company tax resident?
Many countries consider a company tax resident where it is actually managed, not where it’s registered. If you run your OÜ day to day from your home country, that country may treat it as a local company and tax its profits.
- In Spain, this is called “sede de dirección efectiva” (place of effective management).
- In Germany, it’s the “Ort der Geschäftsleitung” (place of management).
- Having a fixed office or premises in your country can also create a “permanent establishment” there.
The official e-Residency website itself warns about this: e-Residency does not give tax residency to you or your company. You should consider whether you have obligations in the country where you live due to permanent establishment or dual tax residency.
2. Where do you pay tax personally?
Your personal tax residency doesn’t change because you own an Estonian company. Whatever you receive from your company, whether salary or dividends, is normally taxed in the country where you live.
If you live in a European Economic Area country or Switzerland and pay social security there, this is what you pay depending on how you’re paid:
If you live outside the EEA, the rules depend on whether your country has a social security agreement with Estonia.
- Estonia has double taxation treaties with many countries.
- Even so, the tax your company pays in Estonia isn’t always automatically credited against what you pay in your country.
- Some countries have specific rules for residents who own companies abroad.
Our recommendation: before setting up the company, talk to an adviser who knows the rules in your country. It’s the best investment you’ll make in the whole process.
This article is for information only and is not a substitute for personalised tax advice.
Is an Estonian company better than being a freelancer in your country?
It depends on how you work, not on the tax rate. An Estonian company is a great fit for some people and an unnecessary complication for others.
We can say this plainly because we also help people register as freelancers (autónomos) in Spain and set up companies in Bulgaria and Ireland. We don’t need you to choose Estonia; we need you to choose well.
The best structure isn’t the one with the lowest percentage. It’s the one that matches:
where you live + where you work + where your clients are + what you do with your profits.
Why set up your Estonian company with Companio?
Because we’re the most efficient accounting firm in Estonia! In 2025, we ranked first in the Äripäev efficiency TOP 10. Äripäev is Estonia’s leading business newspaper, and the ranking measures accounting firms’ revenue per employee.
Why does that matter to you? Because efficiency isn’t an award, it’s a method. We automate what can be automated and keep expert people where they really count. For you, that means:
- Speed: your company is up and running in days, all online. On the Premium and Ultra plans, registration is free: you only pay the official fees (€265 + VAT).
- Everything included: a legal address and contact person in Estonia come with your plan.
- Paperless accounting: automatic bank reconciliation with more than 2,000 banks and payment platforms.
- Taxes handled: VAT, OSS and annual reports filed by our team.
- People, not just a platform: experts who speak your language and tell you the truth, even when the answer is “Estonia isn’t for you”.
So, how do you set up a company in Estonia?
With Companio. Get your e-Residency and we’ll take care of the rest: we register your OÜ, provide your legal address and contact person, and your company is ready in 1 to 3 working days. That’s the easy part.
The part that really matters is knowing whether Estonia fits where you live, where you work and what you want to do with your profits.
Not sure whether Estonia is right for you?
Book a free 15-minute call with Andrea. Tell us what you do, where you live and what you want to achieve. We’ll tell you honestly whether Estonia, or another option, makes sense for you.
Frequently asked questions
Do I need to travel to Estonia to set up the company? No. The only in-person step is collecting your e-Residency card, and you can do that at an embassy or pickup centre near you.
Does e-Residency give me tax residency in Estonia? No. e-Residency is a digital identity. Your tax residency stays in the country where you live.
What is the minimum share capital for an OÜ? €0.01. You also don’t need to pay it in at registration.
How long does it take to register the company? 1 to 3 working days once you have your e-Residency. e-Residency is an earlier step you complete with the Government of Estonia, and we can guide you through it if you need.
Can I open a business bank account online? Yes. Digital banks let you open a business account 100% online, without travelling.
Do I need a VAT number? It depends on your customers and turnover. Our team helps you decide and applies for it on your behalf if you need one.
