5 Steps To Get Your Business Up And Running In Estonia

If you’re a foreigner looking to expand your business operations, opening a new office branch in Estonia is the right choice.

The country is known for its e-Residency program, which allows non-residents to start a business fully online.

Before we get to that part, let’s explore the cost of registering a company in Estonia to determine whether it’s worth your investment.

How much does it cost to register a company in Estonia?

The cost can vary based on several factors, including the type of company and whether you use the services of a business service provider.

Follow this guide as a general rule of thumb:

Remember, if your company formation requires notarized documents, you may need to pay notary fees. This can add additional costs to the registration process.

How to register a company in Estonia manually

Are you sold on the idea of opening a business in Estonia? Find the step-by-step guide in this section.

1. Apply for e-Residency

If you're not an Estonian resident, signing up for e-Residency allows you to register and manage your business online. 

Simply visit the e-Residency official website, submit your application, and wait for the approval. Generally, the checking process can take up to 30 business days.

Once approved, a unique ID card will be sent to your chosen location. After you pick up the card, it will be active within 24 hours.

However, before you can use the card, you need to set up a digital ID.

2. Prepare the documents

If you haven’t already, select a memorable and suitable name for your company. Check the availability of the name on the Estonian Business Register website.

After finding the perfect name, you will need to prepare the following business documents to register a private limited company, general partnership, or limited partnership:

3. Register your company online

Next, register your company online: 

The registration process usually takes a few days, and you will receive notification upon completion. The process can be faster if all documents are in order.

Once your company is registered, you and other board members will receive digital ID cards for digital signatures and accessing various e-services.

4. Submit annual reports

Now that your company is set up and starts bringing in revenue, you have to submit an annual report within a specific time frame. 

In Estonia, the deadline for submitting annual reports is usually within six months from the end of the financial year.

This can also be done online via the e-Business Register portal.

5. Register for taxes

Companies that generate over 40,000 euros per calendar year are required to register as a VAT payer.

Send your application to the Estonian Tax and Customs Board within three business days after which your company has reached the 40,000-euro threshold.

Note that revenues generated from non-current assets are not included in your taxable annual turnover.

What if my company makes less than 40,000 euros annually? In that case, you should still register as a VAT payer if you:

By registering as a VAT payer, you can receive refunds from the government for the VAT you paid when buying goods and services.

How to register a company in Estonia via a business service provider

If you want to register a business without the hassle, consider hiring a professional business consultant like Demire Inc.

All you have to do is send us an online request – our seasoned consultant will be in touch shortly. Tell us your business requirements, hand over all the essential documents, and we’ll handle the company registration process for you.

Want to set up a crypto business? We can also help you acquire a crypto license in Estonia. Don’t worry, the process will be quick and easy.

How do I verify a company in Estonia?

To save time and money, forming a partnership with an established Estonian company is also a viable option.

That said, you need to check the company’s background and track record before engaging in a business deal.

Simply visit the e-Business Register portal, then use the search function to find your potential partner by its name, registry code, or VAT number.

You will find all the needed information, including the company’s:

This way, you can examine the company’s legal standing, financial health, and compliance status with the Estonian Tax and Customs Board.

Summary

As the first country that adopts the e-Residency system, setting up a company in Estonia is easy, even for foreigner investors.

There are two main methods to do this – either register your business manually through the e-Business register portal or hire a professional consultant like Demire Inc.

Either way, you need to sign up for the e-Residency program and obtain a digital ID first before you can engage in any commercial activity.