Establish Estonian company online
Estonian companies can be established, registered, and administered entirely online. In 2009 Estonia received a Guinness World Record for “fastest time to register a new legal entity” – just 18 minutes.
Furthermore, in Estonia company income is not taxed, and taxes are paid only upon profit distribution to shareholders. e-Residency does not automatically establish tax residency. To learn about taxation and to avoid double taxation please consult a tax professional (or download whitepaper).
Any entrepreneur or freelancer interested in running a location-independent international business enjoys the following benefits:
- Ability to register a new company within a day
- Low startup and maintenance costs
- Remote administration from anywhere in the world
- 0% company income tax means more money to invest
- Minimal bureaucracy and clear tax framework
- Company belongs to EU legal framework
- Companies registered in the EU are regarded as more trustworthy
Steps for registering a company:
- Contact a virtual office service provider to obtain a legal address in Estonia. We are currently working on quicker and more cost-effective options to obtain this required address. Please subscribe to our newsletter for updates.
- Register a company online at the Company Registration Portal
More information may be found in the Investment Guide.
Open a bank account in Estonia
Estonia is well-known for its user-friendly and secure online banking. The e-Resident smart ID card is approved by LHV, Swedbank and SEB banks in Estonia, with others planned in future. Please subscribe to our newsletter to remain informed as we confirm additional banking partners.
e-Residency does not guarantee a bank account. Account opening is at the sole discretion of partner banks.
- Secure online transactions
- User-friendly online account management
- Easy tax reporting
- Access to online payment service providers
Steps for opening a bank account:
- Visit a bank in Estonia1: currently LHV, Swedbank, and SEB support e-Residents
- Submit an application for a new account and wait for approval
- Upon approval, digitally sign the contract with your e-Resident smart ID card and return via e-mail to the bank
- You are now eligible to open an online payment service provider account
NOTE 1 For compliance reasons, opening a bank account today requires one face-to-face meeting. We are working to enhance this process. Please subscribe to our newsletter for updates.
Administer the company online
Managing a company remotely is convenient, and eliminates the time and expense of travel. Estonian businesses also enjoy some of the lowest administrative burden of any company in the world. The services now available to e-Residents to administer businesses online have been used by Estonians for many years in running their own enterprises.
- Remote administration from anywhere around the world
- No need to hire and correspond with a local director or representative (unless you want to!) — minimising risk and complexity
- Declaring taxes online saves time and expense
- State-provided online accounting software minimises corporate reporting burden
Steps for administering company:
- Manage company online in e-Business Register
- Declare taxes at the e-Tax Board
- Use the AU Accounting for tax filing2, or various other commercial alternatives
NOTE 2 The state-provided online accounting software is currently available in Estonian and will be translated soon. Please subscribe to our newsletter for updates.
Digitally sign documents and contracts
Digital signatures have been available in Estonia since 2000 and are used daily. More than 200 million digital signatures have been created in Estonia since inception.
- Contracts and documents can be digitally signed and sent to partners and colleagues within minutes
- Eliminates the need to send documents via expensive international couriers
- Digital signature provides higher level of security compared to handwritten signature
- E-mail digitally signed documents to your partner to countersign
Digital signatures are legally equal to handwritten signatures in Estonia, between partners upon agreement and with many service providers all around the world. It qualifies as an e-signature under EU Directive 1999/93/EC, E-SIGN law (15 USC 96) in the US and similar laws in other countries.