Banking - Doing Business in Estonia
Estonia is renowned for its business-friendly environment with a simple tax system and digital-first approach to government services.
Whether you wish to launch a startup, expand your corporation through a local branch, or work here as a freelancer, Estonia offers excellent opportunities and an efficient digital ecosystem.
Here are a few reasons why Estonia is an ideal place to do business:
- A company can be established in a day through a fast and straightforward registration process.
- The minimum share capital of a private limited liability company is 0.01 euros.
- Almost all reports and applications can be easily submitted online.
- Estonia's tax system is simple, with a 0% corporate income tax on undistributed profits.
- There are very few restrictions to foreign ownership or management and foreign entrepreneurs are treated equally to Estonian citizens.
- As an EU member state, Estonia provides access to the European single market and operates under the EU legal framework.
Estonia is also an excellent base for your business, even if you don't plan to live here. With the e-Residency program, you can easily manage your company remotely from anywhere in the world. For more detailed steps on establishing a company in Estonia, please see here.
The following guide will answer common questions that may arise when conducting business in Estonia. We hope to provide an overview of the most important things to expect or keep in mind. For any specific inquiries, please contact our team of expert lawyers who are ready to assist you with any issues you may have.
Banking
Essential information on bank accounts for your Estonian business.
Your Estonian company must have a bank account to register the share capital contribution. This does not necessarily have to be an Estonian bank — share capital can be registered with a credit or payment institution anywhere within the European Economic Area.
If you're starting small or mostly using your company as a legal entity through which you provide your personal services as a contractor, having a bank account in your home EEA country may be easier for the moment. You should, however, consider your business model and plans for growth. Having an account in an Estonian bank can facilitate dealings with local clients and partners and may make it easier to obtain loans for any local operations in Estonia. And while in-person visits to the bank office in your home country may seem simpler, they also may become an inconvenience in the future.
You can find a list of licensed banks in Estonia here. The terms and conditions for opening a bank account vary depending on the bank. A key requirement is to provide evidence that your company has a clear connection to Estonia. This could include having business operations closely tied to Estonia or maintaining long-term relationships with business partners, suppliers, or clients in the country.
Secondly, you must have an Estonian passport, ID card, or residence permit. An e-resident’s status alone is not a sufficient basis to open a bank account. If you do not have one of these documents, the bank will require additional evidence to verify your connection to Estonia.
Thirdly, you must submit detailed information about your company, such as:
- a copy of the passport of board members;
- company data (address, date of the registration, field of activity, number of employees etc.);
- account statement for the last 12 months;
- information about the ownership structure, including beneficial owners.
Different banks require varying information, and the details they request can be highly specific. Account opening fees also vary but are typically in the range of 300–600 euros. To determine what information you must provide, it is best to contact the bank where you intend to open an account.
Once you have provided all the necessary information, the bank may take up to 10 working days to decide whether to proceed with signing the contract. After the account opening is approved, you will need to visit the bank’s office to sign the customer agreement.
If you need to submit documents to the bank, they must be originals or certified copies, notarised or certified by a registrar. For documents issued abroad, the bank may require them to be legalised or certified with an apostille unless an international agreement states otherwise. Additionally, if the documents are in a foreign language, the bank may require a translation into Estonian, Russian, or English. The translation must be completed by a sworn translator or a translator whose signature has been notarised.
The account opening process varies by bank. For instance, you may begin by completing a detailed application form on the bank’s website (e.g. LHV Bank), participating in a video meeting with the bank (e.g. SEB), or visiting a branch office in person (e.g. SEB and Swedbank). Please be aware that, as a rule, non-resident clients cannot be digitally identified and need face-to-face identification.
Wise and Revolut are known as low-cost and simple platforms for managing business expenses and income in multiple currencies. You can set up an account directly on their websites by providing the following information:
- Company data (location, field of activity, etc.)
- Board members (names, dates of birth, countries of residence)
- Ownership documents (proof of who owns or controls the company).
Wise may request additional documentation if needed and typically approves or denies applications within 10 business days. Revolut reviews applications within 24 hours, although the timeline may vary based on the complexity of the application.
Setting up a business account on these platforms is often more cost-effective compared to traditional banks. Wise does not charge monthly account fees, and both platforms offer low fees for cross-border transfers, with payments processed more quickly than through conventional banking systems.
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ALFA International is a leading network of independent law firms, established in 1980. It is the largest legal network offering effective solutions worldwide. We are the only member of this network in Estonia.
Gazelles are rapidly growing companies that have increased their revenue and profit by over 50% in three years and created many new jobs. Less than 1% of Estonian companies are gazelles. We have won the Gazelle Company title twice.
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