Open a company in Estonia — e-Residency guide 2026
Estonia's e-Residency program lets you register and manage a company entirely online — from anywhere in the world. Here's the complete step-by-step process, current as of 2026.
Step-by-Step Process
8 steps to go from application to sending your first invoice.
Apply for e-Residency
Submit your application online. Pay €100 state fee. Collect your digital ID card from an Estonian embassy or pickup location.
Choose company type
Most founders choose OÜ (osaühing) — the Estonian private limited company. Minimum capital is €0 to register.
Prepare documents
Draft memorandum and articles of association. Can be done online through the e-Business Register.
Notarise and submit
Online notarisation available for OÜ. Submit documents electronically via the e-Business Register.
Register the company
The e-Business Register processes your application. This takes 1–3 business days.
Open bank account
Apply for a business bank account. Wise, Revolut, LHV are popular for e-Residents.
Register for VAT
Mandatory if annual turnover exceeds €40,000. May also need registration in other EU countries.
Start invoicing
Estonia requires PEPPOL-compliant e-invoicing for B2B. Atlas-EU generates compliant invoices.
Total Cost Breakdown
vs Stripe Atlas: $500 (US) / €299–900+ (LT/IE)
Estonian Tax Overview
Corporate Income Tax
0% on retained and reinvested profits. Only distributed profits are taxed at 20% (standard) or 14% (regular distributions).
Source: Estonian Tax and Customs Board
VAT
Standard rate: 22%. Reduced rate: 9%. Registration threshold: €40,000 annual turnover.
Source: Estonian Tax and Customs Board
E-Invoicing
Format: PEPPOL / e-invoice (mandatory B2B). PEPPOL is the standard for B2B e-invoicing in Estonia.
Required Fields
- Registry code
- Buyer VAT ID
- Seller VAT ID
- Invoice date
- Invoice number
- Line items
Not covered in this guide: Actual company registration filing (we provide guidance, not filing services); bank account/EMI integration; tax return filing; payroll/HR.
Frequently Asked Questions
Can I open an Estonian company without living there?
Yes. Through the e-Residency program, anyone in the world can register and manage an Estonian company entirely online. You only need to visit an embassy once to collect your digital ID card.
What is the minimum share capital for an OÜ?
You can register with €0 share capital. However, €2,500 must be paid in before the company can distribute dividends.
What taxes does an Estonian company pay?
Estonia has a unique 0% corporate income tax on retained and reinvested profits. Only distributed profits (dividends) are taxed at 20% (or 14% if regularly distributed).
Do I need to register for VAT?
Estonian VAT registration is mandatory if your annual taxable turnover exceeds €40,000. For cross-border B2B sales, reverse charge may apply.