How to Open a Business in Estonia as an e-Resident

How to Open a Business in Estonia as an e-Resident

Estonia offers one of the most transparent and digital business environments in the world. For e-Residents who want to open a company correctly from the start, a structured business setup helps avoid common mistakes. For e-Residents, it allows company management fully online - regardless of physical location.

However, digital access does not remove responsibility.

Step 1: Becoming an e-Resident

To open a company remotely in Estonia, you must hold an e-Residency card. It provides secure digital identification and access to Estonian e-services.

Without e-Residency, remote company formation is not possible.

Common questions about the e-Residency process are covered in our FAQ section.

Step 2: Choosing the Right Structure

Most e-Residents open a private limited company (OÜ).

Before registration, it is important to consider:

• your residency and tax position,

• business activity,

• future plans,

• and how income will be used.

There is no “one-size-fits-all” structure. Choosing the right structure often requires reviewing tax implications and future income use.

Step 3: Company Registration

Company registration is completed digitally through the Estonian Business Register.

This includes:

• selecting business activities,

• appointing board members,

• defining share capital (which may be deferred).

Company registration is usually handled as part of a complete business setup service.

Step 4: Legal Address and Contact Person

Non-resident companies must have:

• a legal address in Estonia,

• a local contact person.

These are legal requirements, not formalities. Legal address and contact person services are mandatory for non-resident management.

Step 5: After Registration

Once registered, the company enters the compliance phase:

• accounting obligations apply,

• reporting is required even without activity,

• taxes must be handled correctly from day one.

Ongoing accounting and tax reporting apply even if the company has no activity.

Opening a company is only the beginning. Long-term compliance and correct tax handling determine whether the structure works in practice.

Related Services

• Business Setup - company formation and mandatory requirements

• Accounting & Taxes - ongoing compliance and reporting

• Advisory & Tax Strategy - structure and tax-related decisions

• DigiSettle FAQ - common questions for e-Residents