Do business in Estonia
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Benefits
Why choose Commenda for your expansion in Estonia
Choose the right Estonian entity for your business
We’ll help you incorporate the most common structure: Private Limited Company (Osaühing/OÜ), ideal for international businesses.
Take the complexity out of Estonian compliance
From digital shareholder agreements to real-time tax filing, Commenda ensures your Estonian entity meets every corporate requirement.
Stay compliant, automatically
We guide you through Estonia’s corporate governance rules, reporting obligations, and workforce regulations so you can focus on scaling.
Entity Types
Choose the right business structure for your company
Private Limited Company (Osaühing, OÜ)
- Quick digital setup through Estonia’s advanced e-Residency platform
- Limited liability protection for shareholders
- Minimum share capital requirement: €1 (deferred contribution allowed until dividend distribution)
- Access to EU markets through Estonia’s membership in the European Union
- Attractive corporate tax model: 0% on retained earnings; 20% only when profits are distributed
- At least one management board member must be appointed
- Annual reporting must be filed with the Estonian Business Register
- Physical address and contact person required if no resident board member
Got questions? Schedule a call with one of our experts
Frequently Asked Questions
Can foreigners register a company in Estonia?
Yes. Foreigners can incorporate an Estonian Private Limited Company (Osaühing, OÜ) without local residency. Many choose to use Estonia’s e-Residency program, which allows founders to manage their company entirely online.
What’s the minimum capital requirement for an OÜ?
The minimum share capital is €1, and the contribution can be deferred until dividend distribution. This makes it one of the lowest capital requirements in the EU.
How long does incorporation take?
Thanks to Estonia’s digital-first system, an OÜ can be incorporated in as little as 1–5 business days, especially when using e-Residency.
Is VAT registration mandatory?
VAT registration is not automatic. It becomes mandatory once your annual taxable turnover exceeds €40,000. Voluntary registration is also available if you want to reclaim input VAT from business expenses.
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