Start a company in Estonia
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In Estonia, a company can be established either through the electronic environment of the Business Register or, alternatively, through a notary.
However, to establish a company in the electronic environment, founders (and members of the management board) must have the ability to use a digital signature. Estonia accepts a certain kind of digital signature which requires an Estonian ID-card, which is given to all Estonian citizens and residents. Now, a program called e-residency has been created to also give this ability to foreigners and non-residents. Despite its name, it is not a kind of visa, residence permit, or tax residency. Primarily, it provides the opportunity to securely access Estonia's e-government services and to use a legally binding digital signature. The process of becoming an e-resident may not be the simplest for everyone, however. Therefore, an alternative option is to authorize a trustworthy individual in Estonia to establish the company and carry out the necessary procedures on your behalf. An appropriate person for this role is an attorney. An attorney is a member of the Estonian Bar Association who has the necessary legal knowledge as well as strict requirements for the protection of the clients’ interest. In the case of authorization, the key decisions would still be made by you, but the attorney would handle the process on your behalf.
Establishing a company using e‑residency
Establishing a company using an attorney
Prerequisites
Becoming an Estonian e-resident
Notarial power-of-attorney
Important notes
You generally do not need a local bank account to establish a company. However, if you do wish to open a local bank account, be aware that depending on the bank, a personal visit to the bank may be required. In addition, banks may require actual ties to Estonia and/or a valid business plan for an e-resident to open an account. We recommend contacting banks in advance and finding a suitable one beforehand.
Granting e-residency is within the authority of the Estonian Police and Border Guard Board. You may be obligated to give additional information. E-residency is not a right and you cannot dispute their refusal.
As a law firm, we must comply with anti-money laundering policies and follow KYC (Know Your Customer) procedures. Factors such as citizenship, geographical location, background and other circumstances may affect our ability to collaborate with you.
Location
There is no need to personally come to Estonia.
However, the ID-card is handed over only in person at selected countries and locations. For more information, please see here.
There is usually no need to personally come to Estonia.
In most cases the notarial power-of-attorney can be executed abroad and sent to us via regular post. Legalisation or apostille certification might also be necessary. For more information, please see here.
Time
After applying for e-residency, the total time it takes to get the company operational is approximately 2 months:
- The decision to issue or refuse the e-residency application is made within 30 calendar days.
- The delivery of the ID-card to the selected location takes about 2-5 weeks.
- Application to establish a company is reviewed by the registrar within one working day.
After receiving the notarial power-of-attorney, the total time it takes to get the company operational is approximately 3 weeks:
- The documents can typically be translated to Estonian by a sworn translator within a week.
- An appointment with a notary can typically be arranged within a week.
- Application to establish a company is reviewed by the registrar within five working days.
Direct costs
The costs to get the company operational are around 400 euros:
- A state fee for the review of the application for e-residency is 100 euros (130 euros in an embassy).
- A state fee for the delivery of the ID-card to a foreign embassy is 20 euros (0 euros if the location is in Estonia).
- A state fee for the entry of your company into the business register is 265 euros.
State fees are not subject to VAT.
The costs to get the company operational are around 800 euros:
- Translation services by a sworn translator cost approximately 500 euros.
- The notary fee for notarizing the memorandum of association and articles of association is usually 21 euros (for an OÜ which has a share capital of 2500 euros and a single founder).
- The notary fee for submitting the application for the business register is 35,75 euros.
- A state fee for the entry of your company into the business register is 200 euros.
Translation and notary fees are subject to VAT (22%).
State fees are not subject to VAT.
Necessary documentation
Your company needs a memorandum of association and articles of association. In the registration process, certain confirmations must also be provided.
We can help you draft these documents according to your exact needs.
Your company needs a memorandum of association and articles of association. In the registration process, certain confirmations must also be provided.
We can help you draft these documents according to your exact needs.
Other important obligations
It is obligatory to have an Estonian registration address or, alternatively, a contact person who resides in Estonia.
Certain business activities are subject to licensing requirements.
As you see, both options have their strengths and weaknesses, and seeking legal assistance can be beneficial in either case. Based on the foregoing, we offer our clients the following service packages:
Services include
- Assistance with the e-residency application
- Communication with authorities
- General counselling regarding the main obligations of an Estonian company and the requirements of your business activities
- Assistiance with the establishment of the company in the e-business register, guiding you if necessary
- Contact person service per request
- Assistance with regards to the power-of-attorney
- Drafting the memorandum and articles of association for your company
- Arranging necessary translation services
- General counselling regarding the main obligations of an Estonian company and the requirements of your business activities
- Establishing your company with the notary
- Contact person service per request
Our fee
Contact us for a quote and kindly provide a brief introduction regarding your plans and current residency.
Learn more about doing business in Estonia
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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.
The Estonian Chamber of Commerce and Industry is the largest and most influential organization representing entrepreneurs in Estonia, with 99 years of activity. The Chamber has over 3,500 members, whose contribution accounts for more than 40% of the net turnover and tax revenue of Estonian companies.