Setting up a company in Estonia: A detailed guide (2025)

Estonia has become one of the most attractive destinations in Europe for setting up a company thanks to its favorable tax policies, favorable business environment, and modern e-government system. With strong support from programs such as e-Residency, investors can easily open and manage a company remotely. 

This article by GLA will guide you through the specific process of setting up a company in Estonia and the benefits of choosing this country as a business location.

1. Overview of Estonia

Estonia, officially the Republic of Estonia, is a country in the Baltic region of Northern Europe along with other countries such as: Finland, Latvia, Hungary, etc.

If we only consider geographical location, Estonia is a country with a relatively small area and a geographical location that is not very convenient for the circulation of goods compared to other countries in the same region.

Although it emerged later than other countries in the region, it is one of the fastest growing and strongest economies in the European Union, holding high positions on the rankings of human development, economy, civil society, and education.

2. 6 reasons why investors should choose to set up a company in Estonia

2.1. 0% corporate income tax

Estonia is one of the countries with the most optimal tax systems in Europe. Estonian companies with foreign sourced income are exempt from corporate income tax (corporate income tax is 0%).

Specifically, Estonia's tax system is a special tax system. Accordingly, corporate profits are not immediately subject to corporate income tax (tax exemption) but will be deferred until the profits are distributed in the form of dividends, or retained in a corporate bank account or reinvested and used for purposes not subject to corporate income tax.

Once distributed, the company's profits will be subject to the general corporate income tax rate of 20%.

For example, a company with a profit of 100 EUR can pay dividends of up to 80 EUR (not subject to corporate income tax) and will only pay corporate income tax on the undistributed profit of 20 EUR. Notably, Estonia is not on any blacklist of most countries in the world.

2.2. Easy to register, open and manage a company

Most EU countries require business owners to apply for a visa or be physically present in that country to open a company in Europe. Meanwhile, Estonia - a member of the EU supports foreign individuals to be granted E-residency and completely allows foreign citizens to set up a company in Estonia without having to fly to Europe.

The E-residency is a policy that the Estonian government offers to citizens around the world who wish to conduct business in Europe, by establishing a company in Estonia without being dependent on the place of residence. This policy also facilitates the development of online services such as:

• Make a business license.
• Open bank accounts and online payment gateways.
• Declare and fulfill tax obligations.
• Thanks to the above advantages, this policy has brought maximum convenience to business owners.
• Take advantage of alliance benefits

In case the company regularly trades with countries in the EU, establishing a company in Estonia is an advantage that is worth considering for the Enterprise. 

Specifically, the EU is the most stable and prosperous economic bloc in the world. The economic bloc operates based on a single market economy, allowing most goods, services and people to move freely. 

It is also the largest bloc in the world and the largest exporter of goods and services, as well as the largest import market for most countries in the world.

Establishing a company in Estonia means that businesses will take advantage of tax incentives and import and export of goods from signed agreements.

2.3. Taking advantage of EVFTA

Signed on August 01, 08, the EVFTA agreement brings many advantages and opportunities to develop investment between EU countries. For Vietnam. EVFTA promises to be the key to expanding investment from Vietnam to Europe and from Europe to Vietnam in the field of import and export of goods and the field of e-commerce.

2.4. Open an international payment account

International payments are one of the top needs of businesses worldwide, Estonia with its brand as one of the leading countries in technology, internet is supported by most international payment service providers.

Owning an international payment account in a European country helps business owners (especially e-commerce and dropshipping businesses) to be more convenient in doing business, operating the company remotely, diversifying payment gateways and online payment accounts as well as paying/receiving payments from partners/customers worldwide.

2.4. Support for licensing in the cryptocurrency sector

In the field of cryptocurrency, a business owning a crypto license contributes to increasing the reputation of the business and making it convenient to transact with most individuals and organizations around the world.

 In fact, very few countries in the world support this type of license. However, in Estonia, issuing a cryptocurrency license is completely legal and government-licensed.

This is also one of the most attractive factors for foreign investors, attracting millions of global investors to set up companies in Estonia. If your business is doing business or intends to do business in this field, Estonia will be a suitable country.

3. Detailed procedures and processes for opening an Estonian company

Opening a company in Estonia brings many benefits, from a favorable business environment to preferential tax policies. To be successful, it is important to understand the process and procedures. GLA will support businesses to register to open a company in Estonia easily and legally.

Step 1: Choose company form

Step 2: Register company name and submit registration application:

GLA will assist businesses in registering online through the Estonian business portal. Investors need to provide information about the company name, office address, business lines, and list of shareholders. 

GLA will support the company in working with Estonian government agencies, handling any issues, ensuring the company opens successfully.

4. How does GLA support businesses to open companies in Estonia?

Global Links Asia, with experience in consulting and supporting the establishment of a company in Estonia, will support businesses in:

• Consulting and support for company establishment in Estonia.
• Recommend the right company type based on your business model.
• Prepare necessary documents for Estonian Enterprises.
• Tax advice tailored to your business type in Estonia.
• Support for registering all types of business licenses in Estonia
• Support opening physical bank accounts, online banking in Estonia.
• Prepare financial statements and tax reports in accordance with Estonian accounting standards.

5. Frequently asked questions about setting up a company in Estonia

Highlights

• Setting up a company in Estonia is an attractive option due to its flexible business environment, tax incentives, and access to the large EU market.
• Investors can take advantage of the advanced e-government system to register and manage companies remotely, saving time and costs.
• Estonia is one of the countries that facilitates organizational activities in the cryptocurrency sector. 
• Opening a limited liability company in Estonia is an ideal choice for many businesses.