Starting a Business - Estonia

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.

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.

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.

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.

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.

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.