Business Registration in Estonia for Non-Residents
Why Estonia?
Estonia is one of the few EU countries that not only allows foreigners to establish companies but has built a fully transparent and highly digital infrastructure to support this. For foreign entrepreneurs who do not permanently reside in the EU, Estonia has become an attractive business destination for several reasons:
✅ Access to e-Residency: Through a special government programme, any person can obtain a digital identity from Estonia and use it to register a company entirely online.
✅ Fast and straightforward registration: Most companies can be established within 1–3 days without the need to be physically present in Estonia.
✅ 0% corporate income tax on retained earnings: This means that businesses reinvesting profits are not subject to corporate income tax until dividends are distributed.
✅ Fully digital governance: No queues, no paper documents, no visits to government offices — everything is done online.
✅ Transparency and trust: The Estonian Commercial Register is public, financial reports are accessible to the general public, and the business environment is known for its high level of corporate culture.
Who Is a Non-Resident and Why Does It Matter?
In the context of registering a company in Estonia, a non-resident is defined as a natural person who does not have a permanent residence in Estonia — i.e., is not listed in the Estonian Population Register (Rahvastikuregister) and does not possess an Estonian personal identification code.
For non-residents, special rules apply, which affect:
✅ Access to state services — you must either hold an e-Residency card or operate via a notary.
✅ Eligibility for specific legal forms — for example, one cannot register as a sole proprietor (FIE) without permanent residence in Estonia.
✅ Requirement to appoint a contact person — a legal entity with no management board registered in Estonia is required to designate a local contact person with an Estonian address.
Therefore, a foreign citizen who does not reside in Estonia but wishes to incorporate a company is automatically considered a non-resident and must comply with the relevant procedures. However, this is not a restriction — on the contrary, Estonian legislation clearly and transparently regulates how a non-resident may register and manage a business.
What Business Forms Are Available to Non-Residents in Estonia?
Although Estonian legislation provides for several legal forms of business entities (AS, FIE, TÜ, UÜ, cooperatives), the most practical and widely used option for foreign nationals is the private limited company (osaühing or OÜ for short). This legal structure enables full participation in the European business environment, offering limited liability, partnership opportunities, international transactions, and the ability to receive profits into foreign bank accounts.
Other forms, such as AS (public limited company), FIE (sole proprietor), partnerships, and cooperatives are either unavailable to non-residents (as in the case of FIE) or are too complex and heavily regulated for small and medium-sized businesses.
