Estonia

Starting a Business in

Estonia

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Private Limited Company (osaühing or OÜ)
  • City: Tallinn

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No. Procedure Time to Complete Associated Costs
1 Check online the uniqueness of the proposed company name

The Commercial Register refuses to register a company if the name resembles an existing company name or registered trade mark. The entrepreneur can check proposed names on www.rik.ee. The law provides that the company business name shall be clearly distinguishable from other business names entered in the Estonian commercial register.
1 day no charge
2 Deposit the initial capital in a bank


1 day no charge
3 Submit online the registration application to the Commercial Register

On 1st January 2011 the official currency of the eurozone, the Euro, became the sole legal tender in Estonia.

The costs of registration into the Commercial Register are €140.60 regular registration or €185.34 expedited registration

A separate registration with the National Social Insurance Board, which gets its information from the National Tax Board, is not required. Health insurance in Estonia is through a compulsory scheme under which employers are obliged by law to pay social tax (the source of revenue for health insurance) for their employees. The rate of social tax is 33% of the taxable amount. This tax must be paid by the tenth day of the month following the taxable period, and the corresponding tax return must be submitted to the local tax board office of the residence or seat of the payers of social tax by the same date.
1 day EUR 140.60 regular registration or EUR 185.34 expedited registration
4 Register for VAT at the National Tax Board

The general VAT rate is 18%.

The company’s management board must file an application for company registration, making the company liable for VAT with the Tax and Customs Board, within 3 days as of the date on which the taxable turnover of the company. Registration shall be completed by the Tax and Customs Board within 3 days of filing the application. Registration may be (and in the practice, often is) effected immediately after establishment because it allows companies to reclaim VAT tax that cannot be offset by VAT charged to purchasers of their goods and services.

Starting January 1, 2009 the application for registration of the company as a taxable person can also be submitted electronically via the electronic system of the Commercial Register.
up to 3 days no charge
5 Register with the Central Sick Fund of Estonia

In Estonia, health insurance is provided through a compulsory scheme under which employers are obliged by law to pay social tax (the source of revenue for health insurance) for their employees. The employer is obliged to register all new employees, board members, and contractual workers with the Sick Fund within 7 days of their employment date. The employer must pay social tax of 33% of the taxable amount by the tenth day of the month following the taxable period. By the same date, the employer must also submit the corresponding tax return to the local tax board office of the residence or seat of the payers of social tax
1 day no charge
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