Benefits of Setting Up a Company in Estonia

Estonia offers many advantageous legal frameworks for business. Here is one that is unique in its financial and legal structure compared to other EU countries. According to Estonian law, there is no requirement to contribute share capital (starting from €2,500) when the company is founded. The articles of association determine the deadline for the registered capital contribution, which can be set anywhere from one year to the dividend payment date. While the capital contribution can be deferred, it is important to note that the owner (founder) is personally liable with their personal assets for the company's obligations up to the amount of the unpaid capital.

Company Formation in Estonia

• The primary advantage of opening a company in Estonia is the 0% tax on undistributed profits. This feature of the legislation allows for capital increase and reinvestment, offering new opportunities to optimize the tax burden and grow the business.
• A simple and fast company registration process. On average, a company is registered in less than 3 hours.
• Establishing a company in Estonia does not mean there is an obligation to distribute the profits earned.
• One of the main advantages of an Estonian company is its income tax. If a company generates income from its economic activities and is registered in Estonia, it does not have to pay income tax on its profits if it reinvests them into business development.
• Low company registration costs. The minimum share capital is €2,500, but its payment can be deferred.
• The owner of the company can be a non-resident (an individual or a legal entity).
• The owner and director of a company in Estonia can be the same person.
• There are no requirements for salary amounts or employment conditions.
• Simple reporting and a clear documentation process.
• Registering a company in Estonia makes it possible for a non-resident to obtain European Union taxpayer status and be issued VAT and EORI numbers.
• The possibility of becoming an "e-Resident" – meaning, by registering a company in Estonia and obtaining an e-Residency card, a person can manage the company remotely after registration, sign documents with a digital signature, and access all public services and registries in Estonia without being an Estonian citizen.
• Registering a company for non-residents in Estonia offers new possibilities for holders of a long-stay D-visa. This is often a convenient way to apply for a residence permit in Estonia in the future.
• Estonia is located in the European Economic Area and is a member of the European Union. All laws adopted in the EU apply in Estonia, which facilitates entry into the EU market.
• Opening a company in Estonia is beneficial for businesses where it is important to quickly and cost-effectively register intellectual property and obtain European trademarks and patents.
• The legal and judicial system in Estonia is transparent and understandable, which makes it possible to feel a sense of business security.

Get Information on Becoming an e-Resident and Starting a Company in Estonia