• Mardo Soo

A Quick Guide on Estonia Company Formation

Updated: Jan 8, 2020

Thanks to Estonian government’s efforts in taking the ease of doing business to a whole level that fosters entrepreneurs and investors to come to Estonia with the objective of spelling life into their visionary idea. Since being crowned as the world’s first 100% digitalized society, Estonia stands tall in entire Europe as a hot cake for investment.

In Estonia, the striking aspect is the foreign investors have the same rights as being a local investor, but they need to adhere to certain rules & regulations.

So, you too probably thinking of setting up a company in Estonia, but unaware of the company formation mechanism, right? Don’t worry; we are here to help you out by putting a comprehensive guide on starting a business in Estonia: -

Things to Consider When Setting Up a Business in Estonia

First of all, do holistic research of the market, industry, or the sector the business you are planning to set up in Estonia.

Secondly, deciding on what kind of business you want to establish in Estonia.

Another important aspect of Estonia company formation is where you want to operate your business outside Estonia or set up a physical address. For the former, you’ll be required to fill for e-residency, which is an entirely breezy-easy online process.

Now, you’ll have to do the research when it comes to the license and certifications required with regards to your Estonian industry you want to get in. For example, if you are planning to launch a crypto exchange, then you’ll be required to apply for exchange license well-in-advance.

The most critical facet of setting up a business in Estonia is to decide on the initial funds you’ll be putting in your business before the regularization of the cash flow.

You’ll also have to register your company under the Estonian Trade Register and the tax authorities operative in the country.

Structure of Estonia Company Formation

Starting a business in Estonia involves the biggest headache of deciding on the Estonia company formation, it is one-step that must be taken by taking into account a myriad of things, so you don’t have to confront with hassles later on. As per the Estonian law, the various structure available for both local and foreign investors are as follows: -

Sole Proprietorship

This is for a one-person company, and the procedure to obtain it is a matter of a few minutes.


This structure is for small businesses that start in an alliance. The only condition is that the company must have at least two partners.

Limited Liability Company

This Estonian company formation structure applies to both public and private organizations, but the latter is most preferred.

Branches and Subsidiaries

Big companies established in other parts of Europe can set up their branch or subsidiary in Estonia with the minimum of fuzz.

Final Words of Advice

You should be well-aware of the size of the business beforehand when selecting one out of the above-mentioned company structures in Estonia. Our panel of consultants will help you choose an appropriate structure that works best for your business.

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