Location independent business
Secure online banking
Online business administration
Digital signing of documents
Establish a 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.
Estonian companies do not pay corporate income tax until distributions are made. However, e-Residency does not automatically determine tax residency. To learn about taxation and to avoid double taxation, please consult a tax professional. You can also find more information here and here.
Any entrepreneur or freelancer running a location-independent international business can enjoy the following benefits:
- Ability to register a new company online
- Low startup and maintenance costs
- Remote administration from anywhere in the world
- 0% company income tax until distributions are made, which means more money to invest (please check whether your company is subject to taxation in another jurisdiction).
- Minimal bureaucracy and clear tax framework
- Inclusion in the EU’s legal framework
- Increased perception of trustworthiness as a result of registration in EU.
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 about different types of business entities, the process of establishing a company, accounting requirements, tax system etc. can be found in the Investment Guide.
Open a bank account in Estonia
Due to increased demand, there have been recent changes to the way e-residents can open a business bank account in Estonia. Please read this section carefully.
We currently recommend you contact a business service provider if you wish to open a business bank account for your Estonian registered company using e-Residency. Please do not book travel to Estonia for the purpose of opening a bank account for your business in Estonia before speaking to a business service provider.
Please visit our blog for more information regarding banking and e-Residency.
e-Residency does not guarantee a business bank account and they are not offered as a packaged service. The decision to extend or deny banking services to an e-resident is made at the sole and absolute discretion of our partner banks, which have the right to ask for additional information and documents.
We are continuing to work with banks and financial technology companies to provide e-residents with the tools they need to run a successful business. If you would like to open a business bank account for your Estonian registered company, we strongly recommend taking the following steps prior to arranging travel to Estonia to open your account.
Steps for opening a bank account
- Make sure your business plan is prepared ahead of time. Banks take this information seriously when making a decision to open a business bank account for a client. Demonstrating strong ties to Estonia through existing sales, partner, employee, or supplier relationships should also be included in your business plan.
- Contact a business service provider such as LeapIn, 1Office, or Incorporate.ee.
- Work with your chosen business service provider to find the banking services that will meet the needs of your company.
Please subscribe to our newsletter and watch our websites for updates on banking and financial services available to e-residents.
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:
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.