Estonia, known for its transparent business environment, requires companies to declare their beneficial owners—individuals who ultimately benefit from the company’s activities.

This transparency ensures the global trustworthiness of Estonian businesses, even when managed entirely online by Estonians and e-residents. As a director of an Estonian company, it is a legal obligation to declare the individuals benefiting from the company’s activities, known as ‘beneficial owners.’ This declaration must be made by all directors and promptly updated within 30 days in the event of any changes to the company’s beneficial owners.

What Is a Beneficial Owner?

A beneficial owner is someone who:

• Owns more than 25% of the company, directly or indirectly.
• Benefits financially from the company, even if not formally listed as an owner.
• Influences company decisions or profits behind the scenes.

Not all shareholders need to be declared as beneficial owners—only those meeting these criteria.

Why Is It Important?

Since 2018, Estonian law has required companies to declare beneficial owners to comply with the Money Laundering and Terrorist Financing Prevention Act. This ensures transparency and protects businesses against illegal activities.

Who Needs to Register?

For simple ownership structures, such as a single shareholder who is also the director, the beneficial owner is often you. Even in this case, registration is mandatory.

For more complex structures, you’ll need to identify both direct and indirect owners who hold over 25% ownership.

How to Register

1. Log in: Visit https://ariregister.rik.ee and log in with your e-Residency card, Mobile-ID, or Smart-ID.
2. Find Your Company: Go to “My Undertakings” and select your company.
3. Declare Beneficial Owners: Enter the details of all beneficial owners.
4. Submit Changes: Ensure updates are made within 30 days of any ownership changes.

Stay Compliant and Transparent

Registering beneficial owners is a legal obligation and an easy way to build trust in your company. For further details, refer to Section 9 of Estonia’s Money Laundering and Terrorist Financing Prevention Act or visit the Estonian Business Register.

By fulfilling this requirement, you uphold Estonia’s high standards of transparency while reinforcing your business’s credibility worldwide.

So, how to declare beneficial owners after starting an Estonian company?