Company formation in Estonia
Private limited company (OÜ)
Legal minimum, year 1£573
Legal minimum, per year after£130
Typical year 1£1,786
Corporation tax22%Ease Banking
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Every fee
Setting up
Government fee£228
€265 state feee-Residency card£85 to 130
Required€100 to €150, collected in person
Contact person and legal address£130 to 345
Required€150 to €400 a year
Formation service£0 to 250
Optional
Share capital€0.01
Time to form1 to 3 days
Running it, per year
Contact person and legal address£130 to 345
Required
Annual report filing£0
RequiredNo fee
Accountant£0 to 1,700
Practically neededMonthly tax returns make DIY hard
Legal minimum after year 1£130
Audit: Exempt below thresholdsForeign ownersNo resident director; a local contact person is mandatory if managed abroadFully online with an e-Residency card (one embassy pickup)
Tax0% on retained profit; 22% on distributions (22/78). Planned rise to 24% repealed Dec 2025Dividend withholding: 0% (tax paid by company on distribution)VAT/GST: 24%
BankingLocal banks (LHV, Swedbank) selective with e-residents; Wise and Revolut common
Profits are usually taxed where the company is actually managed, which for a UK-based founder is often the UK.
Questions
- How much does it cost to set up a company in Estonia?
- The legal minimum for the first year is £573, counting only what the law requires and doing every filing yourself. A typical first year, with an accountant, costs about £1,786. The government fee is £228 (€265 state fee). Share capital is not included.
- How much does it cost per year to run a company in Estonia?
- The legal minimum after the first year is £130 a year. Running costs including optional and practically needed services range from £130 to 2,045. Audit: Exempt below thresholds.
- Do I need a local director in Estonia?
- No. No resident director; a local contact person is mandatory if managed abroad.
- Can a non-resident form a company in Estonia remotely?
- Yes. Fully online with an e-Residency card (one embassy pickup).
- What is the corporation tax rate in Estonia?
- 0% on retained profit; 22% on distributions (22/78). Planned rise to 24% repealed Dec 2025. Dividend withholding: 0% (tax paid by company on distribution). VAT/GST: 24%.
- How long does it take to form a company in Estonia?
- 1 to 3 days.