Set up a company in Estonia as a foreign founder: cost, time and ownership
The usual company type for a foreign founder in Estonia is the OÜ (private limited company). Foreign ownership: No nationality bar is stated for owning an OÜ. e-Residency, the route to running it online, is open to people from all countries except Russia and Belarus. Financial services, crypto, tourism, education and construction need a licence or notice before trading. Minimum capital: €0.01 per shareholder. Government fee: €265 state fee to register an OÜ (plus a €150 state fee for the e-Residency application).
The OÜ (private limited company) in Estonia, from the official pages
| What | Detail | Source |
|---|---|---|
| Vehicle | The private limited company (OÜ) is the form e-Residency calls generally the most suitable for e-residents | e-resident.gov.ee |
| Foreign ownership | e-Residency is open to applicants of every country except Russia and Belarus | e-resident.gov.ee |
| Sector limits | Any legal activity is allowed; financial services (including crypto), tourism, education and construction need a licence or notice of economic activity first | e-resident.gov.ee |
| Minimum share capital | €0.01 per shareholder | e-resident.gov.ee |
| Government registration fee | €265 state fee to register an OÜ | e-resident.gov.ee |
| e-Residency fee | €150 state fee for the e-Residency application, paid before you can register online | e-resident.gov.ee |
| Time to register | 15 minutes to 1 hour online, once you hold the e-Residency card (e-Residency's own estimate) | e-resident.gov.ee |
| Local director / contact person | No resident director rule is stated; if the management board's address is abroad, a licensed contact person in Estonia is required by the Commercial Code | e-resident.gov.ee |
| Local address | A legal address in Estonia or a contact person service from a licensed provider is required; e-Residency quotes €200 to €400 a year on average (private provider fee, not a government fee) | e-resident.gov.ee |
| Online registration | Electronic registration works when every related person can sign digitally with an Estonian ID card, e-Residency card, Smart-ID or Mobile-ID | rik.ee |
| Notary exception | If a co-founder has no digital ID or a shareholder is a company, registration must go through an Estonian notary | e-resident.gov.ee |
| Corporate income tax | 22/78, meaning 22% of the gross amount, charged when profits are distributed; the lower 14/86 rate ended on 1 January 2025 | emta.ee |
| Tax on distribution only | Profits are not taxed until distributed; distributed profits are taxed at 22% | e-resident.gov.ee |
| Annual report | File the annual report with the registration department within six months of the financial year end | rik.ee |
Questions founders ask about Estonia
- Can a foreigner own 100% of a company in Estonia?
- No nationality bar is stated for owning an OÜ. e-Residency, the route to running it online, is open to people from all countries except Russia and Belarus. Financial services, crypto, tourism, education and construction need a licence or notice before trading.
- What is the minimum capital for a company in Estonia?
- €0.01 per shareholder.
- How much does it cost to register a company in Estonia?
- €265 state fee to register an OÜ (plus a €150 state fee for the e-Residency application).
- How long does it take to register a company in Estonia?
- 15 minutes to 1 hour to register online, per e-Residency (after you hold the e-Residency card).
- Do I need a local director in Estonia?
- No Estonian-resident director is required on these pages, but if the management board's address is abroad the company must appoint a licensed contact person in Estonia.
- Can I register a company in Estonia from abroad?
- Yes. With an e-Residency card (or Estonian ID, Smart-ID or Mobile-ID) all founders can sign digitally and register fully online; if any co-founder lacks a digital ID, or a shareholder is a company, registration goes through an Estonian notary.
- What is the corporate tax rate in Estonia?
- 22% (22/78 of the net distribution) charged only when profits are distributed; undistributed profit is not taxed. No separate small-company rate.
Other countries
Australia · Colombia · Cyprus · Georgia · Hong Kong · Indonesia · Ireland · Malaysia · Malta · Mexico · Netherlands · Philippines · Portugal · Singapore · Spain · Thailand · United Arab Emirates · United Kingdom · Vietnam
To weigh the choice, read where to incorporate as a remote founder.
- Company type
- private limited company (OÜ)
- Foreign ownership
- No nationality bar is stated for owning an OÜ. e-Residency, the route to running it online, is open to people from all countries except Russia and Belarus. Financial services, crypto, tourism, education and construction need a licence or notice before trading.
- Minimum capital
- €0.01 per shareholder
- Government fee
- €265 state fee to register an OÜ (plus a €150 state fee for the e-Residency application)
- Time to register
- 15 minutes to 1 hour to register online, per e-Residency (after you hold the e-Residency card)
- Local director
- No Estonian-resident director is required on these pages, but if the management board's address is abroad the company must appoint a licensed contact person in Estonia
- Register from abroad
- Yes. With an e-Residency card (or Estonian ID, Smart-ID or Mobile-ID) all founders can sign digitally and register fully online; if any co-founder lacks a digital ID, or a shareholder is a company, registration goes through an Estonian notary
- Corporate tax
- 22% (22/78 of the net distribution) charged only when profits are distributed; undistributed profit is not taxed. No separate small-company rate
- Official page
- e-resident.gov.ee
- Checked
Fees, capital rules and timings change. Check e-resident.gov.ee before you register, and get a written quote from any agent you use. Spotted something out of date? Tell us in the members' chat.