Estonia has become an increasingly attractive destination for entrepreneurs and investors from around the world, thanks to its advanced digital infrastructure, business-friendly environment, and supportive government policies. In this article, we will explore whether foreigners can register a company in Estonia, the process of doing so, and the advantages of starting a business in this Baltic nation.
Is it difficult for a foreigner to register a company in Estonia?
No, it is not difficult for a foreigner to register a company in Estonia. The Estonian government has made the process relatively simple, and the country’s digital infrastructure and e-Residency program has made it even easier for foreigners to establish and manage their businesses online.
How do I register a company in Estonia as a foreigner?
To register a company in Estonia as a foreigner, follow these steps.
- Apply for e-Residency: The first step in registering a company in Estonia as a foreigner is to apply for e-Residency. This is a digital identity card that allows you to access Estonian government services and manage your business online from anywhere in the world.
- Choose your company structure: Once you have your e-Residency, you need to choose the company structure that best suits your needs. The most common type of company in Estonia is the Private Limited Company (OÜ).
- Register your company: After selecting your company structure, you can register your company online through the Estonian Business Register. The registration process is straightforward and can be completed in a matter of days.
- Open a bank account: You will need to open a bank account for your Estonian company. Many banks offer online account opening services, making this process easy and convenient.
- Obtain necessary licenses and permits: Depending on the nature of your business, you may need to obtain licenses or permits to operate legally in Estonia.
- Establish a legal address: Your Estonian company will need to have a registered legal address in Estonia.
- Hire a local contact person: If you don’t have a physical presence in Estonia, you’ll need to appoint a local contact person to represent your company.
What is e-Residency?
e-Residency is a government-issued digital identity that allows foreigners to access Estonian government services and manage their businesses online from anywhere in the world. With e-Residency, you can register and manage your Estonian company, file taxes, and access other business-related services without physically being in Estonia.
Can I move to Estonia with e-Residency?
e-Residency does not grant you the right to reside in Estonia or the European Union. It is solely a digital identity that allows you to access Estonian government services and manage your business online. If you wish to move to Estonia, you will need to apply for a residence permit or visa separately.
Advantages of starting a business in Estonia as a foreigner
- Ease of company registration: The Estonian government has made it simple for foreigners to register a company, making the process quick and efficient.
- Digital infrastructure: Estonia’s advanced digital infrastructure allows you to manage your business online from anywhere in the world, making it an ideal location for remote entrepreneurs.
- Favorable tax system: Estonia has a business-friendly tax system with a 0% corporate income tax on retained and reinvested profits.
- Access to the European market: As an EU member state, Estonia provides access to the European market, opening up numerous opportunities for businesses.
- Skilled workforce: Estonia has a highly skilled and educated workforce, making it easier to find qualified employees for your business.
- Stable political and economic environment: Estonia boasts a stable political and economic environment, which creates a favorable atmosphere for businesses to thrive.
- Advanced IT infrastructure: Estonia is known for its advanced IT infrastructure and digital services, making it an ideal place for tech-based businesses.
- Strong start-up ecosystem: Estonia has a vibrant start-up ecosystem that offers ample networking opportunities, funding, and support for new businesses.
- English proficiency: The majority of Estonians speak English fluently, making it easy for foreigners to communicate and navigate the local business environment.
- Minimal bureaucracy: Estonia has a reputation for minimal bureaucracy and red tape, which makes it easier for businesses to operate and grow.
Establish your company in Estonia with Workhy
If you are considering starting a business in Estonia, Workhy is here to help. We provide company formation services in Estonia with e-Residency for entrepreneurs from all over the world, allowing them to establish their companies online without having to travel there. Our additional services include financial services, online bookkeeping software, tax filing, opening online bank accounts, providing a registered address, and contact person. Let Workhy guide you through the process of setting up your Estonian company, so you can focus on growing your business and maximizing your opportunities in this dynamic market. For detailed information and services, visit Workhy’s website.