Company formation Estonia

Private limited company – Osaühing (OÜ)

The biggest advantage of Estonian Osaühing (OÜ) is the fact that they pay income tax no sooner than at the moment of profit distribution, i.e. dividend payout. The income which stays in the company and is intended to be spent on company development and further investments is fully exempt from tax. You may defer tax payment practically without restrictions.

Another thing to note is the fact that thanks to such solution there is no double taxation of companies here, as income is subject to taxation at the moment of dividend payout, the moment of taxation exists only once.

Osaühing (OÜ) also guarantee high level of privacy and asset protection. Even though in Estonia information on shareholders and the management board are published in the business register, it is possible to use services of nominee directors and nominee shareholders, whose data appear in the business register, therefore guaranteeing full protection and discretion to the actual owners.

Advantages of having an Osaühing (OÜ):

  • In Estonia, there is no taxation on company income by the moment of the distribution of profits.
  • Osaühing (OÜ) is formed in just a few days.
  • It is possible to use nominee services to guarantee owners privacy and asset protection.
  • Transparent commercial law and tax system
  • Ease of managing a company
  • Estonia is a member of the European Union and the euro area, thanks to which it takes advantage of EU economic freedoms
  • Estonia signed double taxation agreements with over 50 countries
  • It is possible to open a company remotely, without a need to visit Estonia

Nominee

In Estonia, it is possible to use nominee director and nominee shareholder services. It should be noted that the business register in the country is open for the public and everyone can easily check the following information: company name, registered address, share capital amount, information on shareholders, information on the management board. We encourage all those who care about protecting their privacy to use nominee services offered by our company.

Time saving

Doing business with our company, you save time and money. We make sure the entire process of setting up or buying a company is as quick as possible. You can sort everything out remotely, without a need to visit Estonia.

One stop shop

Thanks to cooperation with Shelfcompanies24, you may take care of all issues connected with starting a business in one place, which is much more convenient than using several different service providers and also helps to optimize costs.

Speed and superb customer service

Our team consists primarily of entrepreneurs, so we are aware of how important taking care of all issues in the shortest time possible is. Cooperating with us, you have a guarantee that all matters are solved within the deadline.

Remote procedure available

Companies in Estonia may be established remotely, without a need to visit the country, thanks to which you save time and money. We encourage you to contact us to get information on what information is needed to start the process.

Burden is ours

Cooperating with us, you do not have to worry about anything, we will take care of everything!

Do you wish to start the procedure?

Just drop us an email or give us a call and we will send you short list of information that we need. After you provide it to us you can come anytime to proceed with the formalities.

Company Formation Process in Estonia

Establishing a new company in Estonia is a structured process that typically takes 1-3 business days (e-Residency). ShelfCompanies24 handles the entire formation process on your behalf, from preparing the articles of association to registering with all relevant authorities.

Available Company Types in Estonia

The following legal structures are available for company formation in Estonia:

Company Type Description
OÜ (LLC), AS (PLC), Branch

The minimum share capital requirement is 2,500 EUR for OÜ.

Step-by-Step Formation Process

  1. Choose your company structure — Select the appropriate legal form based on your business needs, number of shareholders, and capital requirements.
  2. Prepare documentation — Our team prepares the articles of association, shareholder agreements, and all necessary corporate documents.
  3. Company name verification — We verify the availability of your chosen company name with the Estonian commercial registry.
  4. Capital deposit — Deposit the required share capital (2,500 EUR for OÜ) in a designated bank account.
  5. Notarization and registration — Documents are notarized (where required) and submitted to the commercial registry.
  6. Tax registration — Register the company for corporate tax (at a rate of 0% on retained earnings (20% on distributed profits)) and VAT (22%).
  7. Bank account opening — Open corporate bank accounts with Estonian banks for business operations.

Required Documents

  • Valid passport copies of all shareholders and directors
  • Proof of residential address (utility bill or bank statement, not older than 3 months)
  • Description of planned business activities
  • Proof of source of funds (where applicable)
  • References from existing banks or professional advisors

Tax Environment in Estonia

Companies formed in Estonia are subject to a corporate tax rate of 0% on retained earnings (20% on distributed profits). The standard VAT rate is 22%. The currency is EUR (Euro).

Timeline and Costs

Standard company formation in Estonia takes approximately 1-3 business days (e-Residency). For exact pricing tailored to your specific requirements, please contact our consultants.

Related Services in Estonia

Frequently Asked Questions

How long does it take to register a company in Estonia?

Company registration in Estonia typically takes 1-3 business days (e-Residency). ShelfCompanies24 handles the entire process on your behalf.

What documents do I need to form a company in Estonia?

You will need valid passport copies, proof of address, description of business activities, and proof of source of funds. Our team guides you through all documentation requirements.

Can a foreigner set up a company in Estonia?

Yes, foreign nationals can establish companies in Estonia. There are generally no restrictions on foreign ownership of Estonian companies.

What is the minimum capital to start a company in Estonia?

The minimum capital requirement in Estonia is 2,500 EUR for OÜ. Our consultants can advise on the optimal capital structure for your business.

Your Professional Company Formation Agent in Estonia

ShelfCompanies24 acts as your dedicated company formation agent in Estonia. Our experienced team handles the entire registration process on your behalf — from preparing incorporation documents and liaising with local authorities to obtaining your company registration number, tax identification, and all required certificates. As a company formation agent with over 30 years of experience across 50+ jurisdictions, we ensure a smooth, compliant, and fast incorporation process. Whether you need a brand-new company or prefer a ready-made shelf company in Estonia, our agents guide you through every step — including corporate bank account opening, registered address setup, and ongoing compliance support.

Contact our company formation agents today for a free consultation and competitive quote for company formation in Estonia.