In recent times, many entrepreneurs have been actively interested in starting a business in Estonia. Opening a company in Estonia is not only a real alternative to other popular European jurisdictions but also one of the best options for starting a business in Europe with a low tax burden and ease of doing business. The zero tax rate for undistributed profits opens up great opportunities for running and expanding a business. The jurisdiction is open to foreign investment, which makes it attractive for opening non-resident companies.

Advantages of opening a business in Estonia

• Undistributed profits are not subject to tax;
• It is not mandatory to contribute share capital, which makes the opening procedure cheaper and simpler;
• You can be a sole owner or share ownership and responsibility;
• The company director is not obliged to be employed by the company, which means no social security expenses;
• The costs of maintaining a company are among the lowest in Europe;
• There is an opportunity to obtain a VAT number for subsequent VAT refunds;
• Most services can be accessed remotely, which is especially convenient for foreigners.

Optimal company forms

There are two optimal company forms for non-residents in Estonia: OÜ - this is the equivalent of a limited liability company, and AS - a joint-stock company.

Among small and medium-sized businesses, the most popular form is OÜ. Share capital for OÜ is mandatory, but there is no fixed amount; it is sufficient to declare the required amount (with the exception of crypto businesses and other forms of activity that require government regulation). To register a company in the form of OÜ, one founder is enough, and the number of possible founders is not limited. The founders can be citizens of any country and can be both individuals and legal entities.

Documents for registration

• Copies of founders' passports;
• Several options for the company name; from 2024, it is possible to reserve the company name before registering it in the Commercial Register for 6 months;
• Confirmation of an address in Estonia (utility bills, telephone, etc.);
• Description of the main activity.

Based on this data, IT-OFFSHORE specialists will prepare a registration package of documents and help quickly open a company in Estonia.