Estonia
Company Formation in Estonia
Estonia
Overview
Estonia is the world's most advanced digital society and the pioneer of e-Residency — a government-issued digital identity that allows anyone in the world to start and manage an EU company fully online. Estonia's unique corporate tax system charges 0% on retained profits and 20% only when profits are distributed as dividends. This makes it ideal for reinvesting entrepreneurs and digital businesses.
Why Choose Estonia
0% tax on retained earnings — only taxed on distribution
e-Residency — start an EU company from anywhere
Digital-first government — all filings done online
EU and Eurozone member
€2,500 capital can be deferred (not paid at formation)
Startup visa programme
Leading digital and tech ecosystem
Business Entity Types
| Entity | Ownership | Directors | Capital | Tax | Best For |
|---|---|---|---|---|---|
| OÜ (Osaühing) | 100% | 1 (board member) | €2,500 (can be deferred) | 0% retained; 20% on distribution (14% for regular distributions) | Digital businesses, consultants, startups |
Step-by-Step Formation Process
Apply for e-Residency (if needed)
3–6 weeks (one-time)Apply online and collect your e-Residency card at an Estonian embassy.
Online Company Registration
15 minutes (instant)Register via the Estonian Business Register portal using e-Residency digital ID.
Bank Account
1–4 weeksOpen an Estonian or EU business bank account.
Costs & Fees
| Government / License Fee | EUR 265+ |
| Our Service Fee | USD 1,800+ |
| Annual Renewal | USD 1,200+ |
Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.
Get Custom QuoteBanking
Estonian banks have tightened requirements for non-residents. EMIs and neobanks are the fastest option.
Recommended Banks
Tax Overview
Estonia's unique system means 0% tax as long as profits stay in the company. Tax is only triggered when dividends are paid — at 20% (or 14% for regular distributions).