Company registration

Estonia is is a small Eastern European country located in the Baltic Sea Region, having a well-developed connection links with Russia, Nordic markets such as Finland and Sweden as well as with its Baltic neighbours Latvia and Lithuania. Being the European Union member state, Estonia enjoys high levels of investment, financial freedom, and property rights while corporate tax rates remain relatively low. Moreover, Estonian companies and branches of foreign entities are subject to income tax only in respect to all distributed profits, so the CIT is not applied to retained and reinvested profits.

Moreover, Estonia is known for its user-friendly e-portal environment and its passion for IT-related ventures, allowing to fully interact with all business-related authorities online via fast track electronic systems. The Estonian private limited liability company (Osaühing or OÜ) is the most common form of legal entity and is usually preferred by small and medium-sized businesses. It shall be incorporated by at least 1 founder with a minimum share capital of 2500 EUR. In accordance with Estonian Commercial Law, both natural persons and legal entities are allowed as OÜ shareholders and share capital is allowed not to be paid upon the incorporation if all shareholders are natural persons and share capital amount is less than 25000 EUR. There are also no restrictions with regards to shareholders’ citizenship or residence. The Board shall have at least one member (director), who can be foreign country resident as well. However, if there are no European Union residents within the Board, then local representative is required, who shall be authorized to accept official documents on company’s behalf.