Lowtax Network

Back To Top

Your Lowtax Account

Estonia: Types of Company


The various forms of company are listed in detail below. Private and Public Limited Liability Companies are the most common form of business. The Commercial Code, introduced in 1995, regulates the business sector in Estonia. A business may be in the name of an individual or a commercial enterprise.

Anyone starting a new business in Estonia must have a resident’s permit and a work permit. Once resident in Estonia for three months, an individual must apply for a resident’s permit and to obtain one, must either be in business or employed. To start a new business often requires an activity licence, which can be obtained by application.

A self-employed person should register with the Estonian Tax and Customs Board; there is no fee for this. If the individual declares liability for VAT, then he or she must register with the Commercial Register. This requires submission of a notarised petition and payment of the appropriate fee.

A Private Limited Liability Company must be entered in the Commercial Register. A Memorandum of Association and Articles of Association must be submitted. Details in the Memorandum should include the name of the business, the trading address, details of the founding shareholders, the amount of share capital and value of shares, and details of the management and supervisory boards.

Evidence is required that the full amount of share capital has been paid into an Estonian bank. Management boards must submit an application to the Commercial Register within six months of the date of formation of the company.



Back to Estonia Index »