How to start a business in Estonia as a foreigner (2026)

Legal framework

Estonian Commercial Code (Äriseadustik, RT I 1995, 26, 355, consolidated 2023); e-Business Register operated by RIK (Centre of Registers and Information Systems); e-Residency programme (Police and Border Guard Board)

Starting a business in Estonia as a foreigner

The usual vehicle for a foreigner starting out in Estonia is an Osaühing (OÜ) private limited company, registered with the e-Business Register.

Company type

an Osaühing (OÜ) private limited company

Registered with

the e-Business Register

Minimum capital

minimum share capital of €0.01 (often set at €1+)

Timeline

a few hours to 1 business day with e-Residency

Government cost

€265 state fee (plus a €150 e-Residency application)

Foreign ownership

100% foreign ownership allowed; a local contact person is required if the board is non-resident

Rules and fees change; confirm with the official registry before incorporating.

Key points: starting a business in Estonia

1. 01Foreign Ownership

   Estonia imposes no equity limits on foreign nationals or non-residents. A foreigner may own 100% of an OÜ or AS without special permission; the Commercial Code explicitly treats foreign and domestic founders equally.

   investinestonia.com state.gov

2. 02Minimum Share Capital

   Since the February 2023 amendment to the Commercial Code, an OÜ (private limited company) requires only €0.01 per shareholder as minimum capital, effectively eliminating the previous €2,500 threshold. A public limited company (AS) still requires €25,000.

   e-resident.gov.ee riigiteataja.ee

3. 03Registration Steps & Timeline

   The official process has five steps: (1) check and reserve company name via the e-Business Register; (2) obtain an Estonian legal address; (3) submit incorporation application online through the e-Business Register portal; (4) pay the €265 state fee electronically; (5) receive confirmation within one working day. Total elapsed time is typically 1-3 business days.

   learn.e-resident.gov.ee investinestonia.com

4. 04e-Residency Route

   Non-residents can obtain an Estonian e-Residency digital ID card (€150 application fee, issued by the Police and Border Guard Board) to sign all documents with a qualified electronic signature, enabling fully remote company formation with no in-person notary visit required.

   e-resident.gov.ee learn.e-resident.gov.ee

5. 05FDI Screening (FIRAA)

   The Foreign Investment Reliability Assessment Act mandates prior approval for foreign investments that may affect national security or public order in strategic sectors (e.g., critical infrastructure, defence). The regime is suspensory: the transaction must stand still until clearance is granted. General commercial company formation is unaffected.

   whitecase.com state.gov

6. 06Legal Address Requirement

   Every Estonian company must have a registered legal address in Estonia. Non-residents without a local address must engage a licensed business address provider; numerous service providers offer this through the e-Residency marketplace.

   learn.e-resident.gov.ee investinestonia.com

Starting a business in Estonia: FAQ

Timeline of decisions

1. 1 Jan 2024Law · official
   Brand-name reservation introduced: founders can hold a name for six months before incorporation

   The final phase of the 2022 Commercial Register Act allows any prospective founder to reserve a preferred company name for up to six months, specifying legal form and business scope. This removes the common frustration of losing a desired name to a faster filer during the registration process.

   Riigi Teataja — Commercial Register Act (Äriregistri seadus)

2. 1 Dec 2014Law · official
   Estonia launches e-Residency, the world's first state-issued digital identity for non-citizens

   Estonia becomes the first country to grant a government-backed digital identity to foreign nationals, enabling them to start and manage EU-registered companies, sign documents, and file taxes entirely online without ever visiting Estonia. British journalist Edward Lucas receives card #1 from President Toomas Hendrik Ilves; by 2024 over 130,000 people from 180 countries hold e-Residency, and e-residents account for roughly one-fifth of all new Estonian company registrations annually.

   e-Residency of Estonia — Official Government Program

3. 1 Jan 2011Decision · official
   Online company registration via the e-Business Register becomes the dominant channel, cutting formation time to hours

   By 2011 the majority of Estonian companies are incorporated through the fully digital e-Business Register portal (ariregister.rik.ee), reducing registration from five working days to a few hours, and as little as 18 minutes for residents using a digital ID card. The portal's dominance makes Estonia one of the fastest and cheapest jurisdictions in the world for company formation, a status later confirmed by international rankings.

   e-Estonia — Official Digital Society Showcase (Enterprise Estonia / Government)

4. 1 Sept 1995Law · official
   Commercial Code (Äriseadustik) enters into force, foundational business-registration law enacted

   Estonia's Commercial Code establishes five legal forms for business entities, sole proprietorship, general and limited partnerships, private limited company (OÜ), and public limited company (AS), and mandates entry in the state Commercial Register as the condition for legal existence. The OÜ minimum share capital is set at 40,000 EEK (later converted to €2,500 on euro adoption in 2011), a floor that will stand for nearly 28 years until abolished in 2023.

   Riigi Teataja — Commercial Code (Äriseadustik), consolidated

Sources

1. 1.e-resident.gov.ee/start-a-company/
2. 2.learn.e-resident.gov.ee/hc/en-gb/articles/360000624838-5-steps-to-register-a-company-online
3. 3.learn.e-resident.gov.ee/hc/en-gb/articles/360000625118-Costs-fees
4. 4.investinestonia.com/business-in-estonia/establishing-company/
5. 5.investinestonia.com/business-in-estonia/establishing-company/process/
6. 6.e-resident.gov.ee/blog/posts/upcoming-changes-to-the-commercial-code-make-it-easier-to-
7. 7.riigiteataja.ee/en/eli/509012023001/consolide
8. 8.rik.ee/en/e-business-register/e-business-register-portal
9. 9.state.gov/reports/2025-investment-climate-statements/estonia
10. 10.whitecase.com/insight-our-thinking/foreign-direct-investment-reviews-2025-estonia
11. 11.investinestonia.com/business-in-estonia/establishing-company/e-residency/