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The management board is always responsible for providing complete and correct source documents; the accountant is responsible for processing those documents in accordance with Estonian GAAP and tax law.
Can we catch up on previous periods?
Yes. We routinely perform “catch‑up accounting” (tagantjärele raamatupidamine) for businesses that have fallen behind on bookkeeping or need to reconstruct ledgers before an audit, sale, or liquidation.
Typical scope
Document collection & gap list – we map missing invoices, expense receipts, bank statements.
Data entry & reconciliation – post all transactions, reconcile banks, payables, receivables, inventory.
Tax corrections – prepare or amend VAT, payroll and TSD returns if needed.
Financial statements – produce compliant balance sheet & income statement for each outstanding year.
How to start?
Contact us with a brief description of the backlog (years & estimated transactions).
We send a document checklist and NDA.
Once we receive your materials we issue a detailed quote.
Need assistance? Contact us for a fixed‑fee quote.
This information is general in nature and does not constitute legal advice.
Negative share capital must be resolved as soon as possible.
Below is a practical roadmap that reflects the requirements of the Commercial Code (Äriseadustik) and common solutions in the market.
1. When is equity “too low”?
Under Commercial Code § 176(2) the company’s net assets must be at least:
50 % of registered share capital, and
not less than the minimum share‑capital requirement (currently € 2 500 for OÜs).
Example: An OÜ with a registered capital of €2 500 must keep equity ≥ €2 500 (100 %).
If the balance sheet shows that equity is below either limit (often expressed as negative share capital), the board must, within three months after approval of the annual report, convene a shareholders’ meeting to decide on remedies.
Convert shareholder loans into equity (set‑off contribution).
Revalue (upwards) real estate or IP – allowed if fair‑value report substantiates it.
Cut costs & improve margins – demonstrate turnaround in the next financial year.
Sell non‑core assets – realise gains, book profit.
Reduce share capital to minimum (€2 500) and cover rest via profit or later capital increase.
Tip: Make sure any capital manoeuvre is properly documented, entered in the accounting ledgers and registered in e-Business Register.
3. Exit scenarios
Sell the company – shares can be transferred to a buyer who is willing to recapitalise. Ensure the SPA allocates responsibility for past debts.
Liquidate – a clean way to close down if there is no buyer or business rationale. Requires publishing a creditor notice and preparing a final balance sheet.
Turnkey liquidation service – we can handle filings, creditor notices, accounting & tax clearance (fees start around €300–€1 000).
4. When will the share capital be returned?
Only the paid-in share capital can be returned to the owner, and this may be done no earlier than 4 months after the start of the liquidation process. The return can include both the registered share capital and any remaining funds in the company’s bank account, provided all legal obligations have been fulfilled.
Need help? We can assist with share‑capital operations, draft resolutions, Business Register filings, or a turnkey liquidation package.
This guide is provided for general information and does not constitute legal advice.
The document must clearly identify the parties, the date, and the economic substance of the transaction, otherwis,e it is not accepted as a valid source document. E-invoices are fully acceptable as long as integrity and authenticity are guaranteed. Adding extras such as the payment reference or due-date is not compulsory, but it helps cash-flow management. Only a VAT-registered business may add VAT to its invoice.
Document title (e.g. “Invoice”)
Unique invoice number and date of issue
Seller’s and buyer’s name, address, registry code, VAT ID (if any)
Description of goods/services, quantity, unit price, VAT rate, net and gross amount
Date of delivery/performance if different from the invoice date
2. Language of source documents
Invoices may be issued in Estonian or English.
Documents in any other language must be accompanied by a sworn translation into Estonian or English to be accepted by auditors or the Tax and Customs Board (MTA).
3. Proving the business purpose
Under both the Accounting Act and the Income Tax Act, an expense is deductible only if it is business‑related and substantiated. If the invoice alone does not make the business purpose evident (e.g. taxi, parking, travel tickets), add explanatory information such as:
project or client name;
employee name & business trip dates;
licence plate number of the company car, etc.
Lacking or incomplete documentation may lead to the expense being treated as a non‑business cost, subject to fringe‑benefit or dividend tax.
This guide is for general information only and does not constitute legal advice. For complex situations consult a professional accountant or tax adviser.
An authorisation sets the limits for a representative’s actions.
An authorisation is a defined set of rights that determines the scope within which a representative may legally act on behalf of the principal. It outlines what actions the representative is permitted to take and under what conditions, ensuring legal clarity and accountability for both parties.
It is essential for the Estonian Tax and Customs Board that the content of authorization would be understandable and the person granting the authorization and the authorized person would be identifiable.
The main and also the most convenient and practical way to transfer the right of representation is to do it through a suitable digital identification channel. These are Mobile ID, Estonian ID, e-resident ID, and Smart ID. European Union country ID cards are also suitable. It is important to have the right to log in to the systems of the Estonian state.
If necessary, other less convenient and more expensive methods can also be used: power of attorney, lawyer’s client agreement, etc.
Accountant needs two separate sets of e‑service rights to act on behalf of your company:
Tax declarations & VAT, excise, customs, payroll – granted in the Estonian Tax and Customs Board (MTA) self‑service.
Preparation and submission of the annual report – granted in the Business Register (Rik.ee) environment.
Below you will find step‑by‑step instructions for both systems. (If you prefer a video, see the MTA walkthrough at the end of this article.)
1. Give an accountant access in the MTA self‑service
Prerequisites • The board member has an Estonian ID‑card, Mobile‑ID or e‑Residency digital ID. • You know the accountant’s Estonian personal identification code (isikukood).
Choose your company from the top‑right drop‑down menu (if you have more than one).
In the left‑hand menu click Settings → Access permissions → Access permissions of representatives → New access permission.
Enter the accountant’s personal ID‑code and (optionally) set an expiry date.
Select rights:
Package method – scroll to the bottom, press Search, tick e.g. Accountant Package (includes submission of all tax returns) and press Add.
Separate rights – open the Separate access permissions tab if you need custom scope (e.g. only VAT returns). Most useful rights are grouped under “Over‑areas”.
(Optional) To allow your accountant to manage further user rights, search for “right of the representative … to administer user rights” and add it.
Press Save. Access is active immediately.
### Troubleshooting
If the person is not found, double‑check the ID‑code or ask the accountant to log in to MTA once (this creates a user profile).
Remember to update or revoke rights if you switch service providers.
2. Authorise the accountant in the Business Register (for the annual report)
This guide is for general information only and does not constitute legal advice. Procedures may change – always refer to the latest instructions on the official websites of the MTA and the Business Register.
Submission of the annual report is mandatory in any case.
Every Estonian legal entity – including micro‑sized OÜs owned by e‑residents – must file an annual report (majandusaasta aruanne) with the Business Register within 6 months after the end of its financial year (Commercial Code § 60).
Typical deadline: If your financial year = calendar year, the report is due 30 June of the following year. To change the FY you must submit a shareholders’ resolution and amend the articles in the Business Register before the new FY starts.
1. What must be included?
Estonian GAAP (Estonia’s Good Accounting Practice) recognises four size categories. Reporting requirements scale with size:
The size of the company determines which statements are required: micro-entities file only the balance sheet and income statement, whereas small entities add a cash-flow statement and management report, and larger ones include changes in equity and often an audit.
Most of our clients fall under micro or small category.
2. Penalties for late filing
Delay
Sanction
Up to 3 months
Warning letter & initial fine (typically €200–€300)
Over 3 months
Repeated coercive fines up to €3 200 total
Persistent non‑compliance
Court‑ordered compulsory dissolution of the company
Late filing also raises red flags with banks and partners; keep your compliance record clean.
3. Best‑practice timeline (calendar‑year FY)
Month
Task
Jan‑Feb
Close previous FY in accounting; reconcile balances
As a physical or juridical person, the utilization of an address is essential for various reasons.
All addresses we provide are located in real, physical premises, fully serviced business buildings in central Tallinn.
Having a reliable address—whether you are a private individual or a legal entity—is more than a formality in Estonia:
Who needs it
Why it matters
Typical uses
Natural persons (individuals)
• Receive letters, small parcels, bank cards, and official notices. • Fulfil the statutory requirement to state an address when founding a company (including for e-residents).
① Register a new Estonian company. ② Receive government or banking correspondence. ③ Keep personal and business mail separate.
Legal persons (companies, NGOs, partnerships)
• Mandatory “registered office” for the Commercial Register. • Boosts credibility with banks, investors, and customers. • Ensures a fixed location for service of legal documents.
① List on the Commercial Register and invoicing documents. ② Collect licences / permits that require a local address. ③ Receive official letters, court notices, and parcels.
Compliance & risk management
Estonian law (Commercial Code §63) obliges every company to maintain a local address for legal notices.
Certain regulated activities (e.g. fintech, crypto, FTS licences) require an in-country address before an application will be processed.
A dedicated address helps you avoid missed deadlines, fines, or dissolved-by-court actions triggered by undelivered mail.
Professional image Publishing a recognised business address—rather than a home or foreign location—signals permanence and transparency, especially to EU-based partners and payment providers.
Bottom line An address is not just somewhere to “park” mail or just a mailbox; it is a legal safeguard, a credibility booster, and a practical tool for staying organised—whether you are launching your first Estonian company or scaling an established enterprise.
Will be provided upon order or subscription renewal.
The address certificate is issued automatically once your order is confirmed—or whenever your subscription renews—and emailed as a PDF to the address you provided at checkout.
If you can’t locate the message (including in your spam or promotions folder), just let us know and we’ll resend the certificate right a
The address must be updated whenever your company’s legal address changes or you lose the right to use the existing one. The address recorded in the Commercial Register must always remain valid for receiving official notices.
Changing the address of an existing company
Prepare an amendment application in the e-Business Register.
Is the new address in the same municipality?
Yes → Submit the application only. No state-fee, no extra documents.
No (different city / county) →
Adopt amended Articles of Association (AoA) at a shareholders’ meeting.
Upload the signed AoA and the meeting minutes / shareholders’ resolution.
Pay the state fee shown in the e-service.
Pay the fee instantly via Estonian bank link (or use the bank details and reference number displayed at check-out). The Register will not process your filing until the fee is received.
Need help? If you hit a payment snag, let us know—we will settle the fee on your behalf free of charge.
Adding the address during company formation
In the e-Business Register formation wizard, the founder enters the address once; it automatically appears in the foundation decision, the AoA and the future registry card.
You can choose our address from the drop-down list or enter it manually—full instructions are included in your order confirmation.
Only a management-board member who holds a valid Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card can submit the address change online.
Every required signer must possess the same form of digital ID; if an owner or other authorised person lacks it, the change can still be completed either by granting a notarised power of attorney or by appearing in person to the Estonian notary.
You can download detailed step-by-step guides from your order confirmation, and if you can’t find them, we’ll resend them right away. Our team will then guide you through every step—from drafting the minutes to uploading the files—so your Tallinn business address appears on the registry card without delay.
Your mail is handled primarily via Omniva.ee, with DHL arranged on request, and every forwarded item receives a tracking code that we share with you by e-mail.
Package ONE – Each letter is opened, scanned or re-posted as agreed, and small parcels are forwarded to your chosen address.
Packages TWO & THREE – A fixed quota of letters and small parcels is included at no extra charge; once that limit is reached, additional items are forwarded at the current Omniva or DHL rate.
As soon as we receive a letter or parcel, we scan or ship it according to your instructions and send you the tracking code. Before we ship anything, we confirm the exact postage cost with you.
The management board is always responsible for providing complete and correct source documents; the accountant is responsible for processing those documents in accordance with Estonian GAAP and tax law.
Can we catch up on previous periods?
Yes. We routinely perform “catch‑up accounting” (tagantjärele raamatupidamine) for businesses that have fallen behind on bookkeeping or need to reconstruct ledgers before an audit, sale, or liquidation.
Typical scope
Document collection & gap list – we map missing invoices, expense receipts, bank statements.
Data entry & reconciliation – post all transactions, reconcile banks, payables, receivables, inventory.
Tax corrections – prepare or amend VAT, payroll and TSD returns if needed.
Financial statements – produce compliant balance sheet & income statement for each outstanding year.
How to start?
Contact us with a brief description of the backlog (years & estimated transactions).
We send a document checklist and NDA.
Once we receive your materials we issue a detailed quote.
Need assistance? Contact us for a fixed‑fee quote.
This information is general in nature and does not constitute legal advice.
The document must clearly identify the parties, the date, and the economic substance of the transaction, otherwis,e it is not accepted as a valid source document. E-invoices are fully acceptable as long as integrity and authenticity are guaranteed. Adding extras such as the payment reference or due-date is not compulsory, but it helps cash-flow management. Only a VAT-registered business may add VAT to its invoice.
Document title (e.g. “Invoice”)
Unique invoice number and date of issue
Seller’s and buyer’s name, address, registry code, VAT ID (if any)
Description of goods/services, quantity, unit price, VAT rate, net and gross amount
Date of delivery/performance if different from the invoice date
2. Language of source documents
Invoices may be issued in Estonian or English.
Documents in any other language must be accompanied by a sworn translation into Estonian or English to be accepted by auditors or the Tax and Customs Board (MTA).
3. Proving the business purpose
Under both the Accounting Act and the Income Tax Act, an expense is deductible only if it is business‑related and substantiated. If the invoice alone does not make the business purpose evident (e.g. taxi, parking, travel tickets), add explanatory information such as:
project or client name;
employee name & business trip dates;
licence plate number of the company car, etc.
Lacking or incomplete documentation may lead to the expense being treated as a non‑business cost, subject to fringe‑benefit or dividend tax.
This guide is for general information only and does not constitute legal advice. For complex situations consult a professional accountant or tax adviser.
All Estonian companies must file an annual report, even for inactive years.
Failure to submit the report on time allows the court that maintains the Commercial Register to impose monetary fines on both the company and each person responsible for filing, and it may repeat the fine until the report is lodged.
The amount is set under the Code of Civil Procedure and can escalate with every reminder. Late filing also blocks the distribution of dividends, delays banking and licensing procedures, and damages the company’s public record.
If the report is still outstanding 18 months after the financial year-end, the court may strike the entity from the register or start dissolution or liquidation proceedings, which can freeze assets and terminate contracts.
Reports can be filed entirely online when at least one board member signs with an Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card.
Submission of the annual report is mandatory in any case.
Every Estonian legal entity – including micro‑sized OÜs owned by e‑residents – must file an annual report (majandusaasta aruanne) with the Business Register within 6 months after the end of its financial year (Commercial Code § 60).
Typical deadline: If your financial year = calendar year, the report is due 30 June of the following year. To change the FY you must submit a shareholders’ resolution and amend the articles in the Business Register before the new FY starts.
1. What must be included?
Estonian GAAP (Estonia’s Good Accounting Practice) recognises four size categories. Reporting requirements scale with size:
The size of the company determines which statements are required: micro-entities file only the balance sheet and income statement, whereas small entities add a cash-flow statement and management report, and larger ones include changes in equity and often an audit.
Most of our clients fall under micro or small category.
2. Penalties for late filing
Delay
Sanction
Up to 3 months
Warning letter & initial fine (typically €200–€300)
Over 3 months
Repeated coercive fines up to €3 200 total
Persistent non‑compliance
Court‑ordered compulsory dissolution of the company
Late filing also raises red flags with banks and partners; keep your compliance record clean.
3. Best‑practice timeline (calendar‑year FY)
Month
Task
Jan‑Feb
Close previous FY in accounting; reconcile balances
You need apostilled documents whenever your Estonian company must prove its legal standing abroad.
The apostille lets foreign banks, authorities, and business partners trust that the papers are genuine, enabling you to open non-Estonian bank accounts, sign contracts, or complete transactions in other countries without additional verification.
An apostille is an internationally recognised certificate—attached to a public document—that confirms the authenticity of the signer, seal, and capacity in which the document was issued. It allows the document to be accepted in any other state that has joined the 1961 Hague Apostille Convention (you can check the current list of member countries on the convention’s website).
In Estonia, only public notaries may issue a public document. Because the same notary cannot both notarise a document and apostille it, the process normally involves two separate notaries:
Notary A notarises or authenticates the original document.
Notary B adds the apostille that certifies Notary A’s authority and signature.
After notarisation and apostilling, the document is usually translated by a sworn translator into the language required by the receiving country. Courier or postal delivery costs are extra and depend on the shipping method you select.
Power of attorney (PoA) authorises us to act on your behalf for the transactions you specify.
To be valid in Estonia and recognised abroad, it must meet three basic requirements:
Notarial form – The PoA must be signed in front of a notary (in Estonia or abroad).
Proper authentication –
If the PoA is signed in a country that is party to the 1961 Hague Apostille Convention, the notary’s signature must be apostilled.
If the country is not a Convention member, the document must be legalised through that country’s foreign ministry and the Estonian embassy or consulate.
Language – The notary act should be in Estonian or accompanied by a sworn translation into Estonian or English.
Step-by-step process
Draft – We supply a template that details the exact powers you wish to grant.
Notarisation – You sign before a notary; the notary verifies your identity and capacity.
Apostille / legalisation – Applied as required by the country of signature.
Translation (if needed) – Performed by a sworn translator.
Delivery – Send the original or certified copy to us; courier fees depend on your chosen service.
Country-specific nuances
Most jurisdictions follow the Hague Apostille rules, but some (e.g., Canada, UAE) still require full consular legalisation.
With a properly notarised and authenticated PoA in place, we can conduct the authorised transactions smoothly and in full compliance with international and Estonian law.
The background check we offer has nothing to do with applying for e-Residency. Estonia’s Police and Border Guard Board (PBGB) carries out its own screening of every e-Residency applicant and charges the state fee set in the Identity Documents Act and the State Fees Act. Those fees vary by pick-up location (Tallinn: no extra charge; embassies: + €20; partner hubs such as Seoul, Tokyo or San Francisco: local service fee).
What e-Residency is — and isn’t
A government-issued digital ID that lets you sign, authenticate and run an EU company online.
Not a form of citizenship, tax residency, visa, residence permit, or travel document.
Our background-check service is designed for corporate due-diligence on Estonian natural or legal persons; it neither replaces nor influences the PBGB’s screening for e-Residency applications. For official details on e-Residency requirements and fees, see the PBGB website.
End-to-end background-check service is fast, confidential, and fully compliant
Once your order and payment are confirmed we e-mail you a short intake form asking for the target’s key identifiers—typically a full name, Estonian personal ID-code (isikukood) or company registration number. After we receive this information our compliance team:
Searches official Estonian sources – Commercial Register, Beneficial Ownership Register, Land Register, tax and court databases, sanctions lists and press archives.
Verifies and consolidates the findings – matching records across databases, flagging inconsistencies and potential risks.
Drafts a concise report – summarising ownership, management, legal disputes, insolvency history, licences, sanctions, PEP status and any adverse media.
The finished report is delivered as a secure PDF to your chosen e-mail address—usually within two to three business days—so you can make informed decisions based on reliable, up-to-date data. All searches are confidential and performed in accordance with Estonian data-protection law.
To the registration department of a country court no later than within 6 months after the end of the financial year. The report can be submitted through the Company Registration Portal. If you do not submit the report in due time, the court maintaining the register may fine both the company and its management board members without advance warning.
The company’s financial year is always the calendar year, starting on the 1st of January and ending on the 31st of December.
B) The company’s business name, registry code and location
Must be stated in the company’s business documents and on its website. The annual report must also state those data and additionally the company’s e-mail address and website address as well as other telecommunications data.
C) Activities
Are presented in the annual report. Enclose up to 10 largest activities by sales revenue as annexes to the report. Activity cannot be freely described but instead must be indicated as the relevant wording in the Estonian Classification of Economic Activities, level 4. Insignificant activities are not required to be stated. The management report provides a more detailed description of the reporting year’s activities and the changes planned for the coming year. Please keep in mind that stating an activity in the Commercial Register does not automatically grant you the right to engage in it if a special law prescribes any additional requirements (for example the Trading Act requires that a place of sale be registered with the local government, the Building Act requires that a building contractor be registered, the Public Transport Act requires a public transport or taxi license, etc.).
D) Changing registry data (company address, management board members, etc.)
A petition for entry of change is filed with the county court maintaining the register. A petition for entry can be filed through Company Registration Portal or a notary. A state fee must be paid when filing a petition for entry (indicating the company’s registry code and the relevant reference code).
Notice of changes to data outside entries must be sent through Company Registration Portal or by post. Data outside entries can be changed without a state fee. A state fee is also not required for submitting a resolution of shareholders or the supervisory board to extend the duration of powers of a management board member entered into the register.
Documents (both on paper and digital) must be submitted as originals (incl. with original signatures) or as notarised copies. A notary may also prepare a digital copy of a document. Documents must be in Estonian or accompanied by a translation made by a sworn translator or certified by a notary. If failing to submit the required data, the company, as well as all its management board members can be fined repeatedly.
E) A person’s address
Is looked up from the Population Register by the county court maintaining the register. But if a company’s management board member, liquidator or the chair of the supervisory board does not have a place of residence registered in the Estonian Population Register, the data of that place of residence must be submitted and any changes in those data must be notified of immediately. Those data are also considered data outside entries so no state fee is required for them.
Every Estonian company must have an Estonian address.
F) The list of shareholders
Is kept by the private limited company’s management board.
If other shareholders have a pre-emptive purchase right, a shareholder selling its share must present the sales contract to the management board so that the management board can inform other shareholders. The notary certifying a sale or pledge of a share will also communicate the transaction to the county court maintaining the register. The management board may assign the list of shareholders to be maintained by the Estonian Central Register of Securities for a fee. In that case transactions with shares are conducted through a securities account opened in a bank. If a company had multiple shareholders and only a sole shareholder remains then the management board must send a notice to that effect to the county court maintaining the register.
Only private persons who have an Estonian personal ID code can register an Estonian company online. If you as a legal entity would like to register an Estonian company, please get in touch with us. We will help you with the registration process.
The company can be registered by one founder. If you have more than one founder, please get in touch with us. We will help you with the registration process.
To register an Estonian company, both the founder and the board member(s) must have an Estonian personal ID code. If the founder and the board member are different persons, both must digitally sign the company registration application. You will be able to download the application after filling out the registration form. Once you have signed the downloaded document, you must upload it to the portal for submission.
The management board of an Estonian company can be located outside of Estonia. In this case it is regulated by the law to provide the address of the board and appoint an authorized contact person.
G) Equity capital level
You must make sure that the company’s net assets (equity capital) do not decrease below one half of its share capital, and never below the lower limit of share capital set forth in the law. Otherwise the management board must summon the shareholders to decide an involvement of new funds, a merger, a reconstruction or dissolution of the company, etc. In the case of long-term insolvency, the management board must immediately present the court with a bankruptcy petition. Failure to react can bring about proprietary and criminal liability for the management board.
The share capital of the company must be at least 2500 euro. The maximum share capital permitted is 25 000 euro. You can register the company without having to deposit the share capital. You can do this later at the bank.
H) The Tax and Customs Board
And other national and local authorities utilise the Commercial Register’s data through a computer network and they are forbidden from requesting you to submit an excerpt of the Commercial Register (§ 541 (1¹) of the Commercial Code). You do not have to register separately as a person paying income tax, social tax and land tax. Still, you have to register as a person paying value added tax (VAT) if your company’s annual turnover exceeds the lower limit set forth in the law. You can register as a person paying value added tax through the website of the Tax and Customs Board.
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
Estonia’s tax framework is renowned for its simplicity and growth-friendly incentives.
Zero corporate tax on retained earnings
Corporate income tax (20 % of the net amount, calculated as 20/80 on the distributed sum) is due only when you pay dividends or treat funds as non-business expenses. Profits that stay in the company can be reinvested tax-free for unlimited periods, accelerating growth and cash-flow planning.
Possibility of tax-exempt dividends in group structures
Dividends received from an Estonian or foreign subsidiary may be distributed further without additional Estonian tax if participation conditions are met. Likewise, profits allocated to a foreign permanent establishment are generally exempt.
No additional personal income tax for Estonian residents
If you are an Estonian tax resident, dividends you receive from your company are not subject to extra personal income tax, corporate tax settles the obligation. (Non-residents must follow the rules of their home country.)
Flat, transparent rates elsewhere in the system
Payroll taxes, VAT, and other levies use uniform rates with straightforward reporting, reducing compliance overhead.
Remember: The company (a legal person) and you (a natural person) are separate taxpayers. Keeping finances distinct avoids misclassification and ensures you benefit fully from Estonia’s business-friendly regime without risking penalties or double taxation abroad.
The address must be updated whenever your company’s legal address changes or you lose the right to use the existing one. The address recorded in the Commercial Register must always remain valid for receiving official notices.
Changing the address of an existing company
Prepare an amendment application in the e-Business Register.
Is the new address in the same municipality?
Yes → Submit the application only. No state-fee, no extra documents.
No (different city / county) →
Adopt amended Articles of Association (AoA) at a shareholders’ meeting.
Upload the signed AoA and the meeting minutes / shareholders’ resolution.
Pay the state fee shown in the e-service.
Pay the fee instantly via Estonian bank link (or use the bank details and reference number displayed at check-out). The Register will not process your filing until the fee is received.
Need help? If you hit a payment snag, let us know—we will settle the fee on your behalf free of charge.
Adding the address during company formation
In the e-Business Register formation wizard, the founder enters the address once; it automatically appears in the foundation decision, the AoA and the future registry card.
You can choose our address from the drop-down list or enter it manually—full instructions are included in your order confirmation.
Only a management-board member who holds a valid Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card can submit the address change online.
Every required signer must possess the same form of digital ID; if an owner or other authorised person lacks it, the change can still be completed either by granting a notarised power of attorney or by appearing in person to the Estonian notary.
You can download detailed step-by-step guides from your order confirmation, and if you can’t find them, we’ll resend them right away. Our team will then guide you through every step—from drafting the minutes to uploading the files—so your Tallinn business address appears on the registry card without delay.
Establishing a company in the e-register the contact person needs to be added by the establisher/s.
After adding it, the contact person confirms it in the same environment. If the company is founded by a notary, the contact person gives a digitally signed confirmation as a separate document or gives it directly at the place to the notary.
If from us have been ordered a company formation service, we will add all data where it will be needed.
The Estonian Economic Activities Classification (EMTAK) is the national version of the internationally harmonized classification NACE Estonia.
We recommend that you select the business that you are likely to have the most sales in the first year of operation of the private limited company. It is not prohibited to operate in more than one activity unless it is subject to authorization or notification. The EMTAK code you select when you start a private company cannot be changed later. However, once the annual report has been submitted, the company will become the public EMTAK code with the highest sales turnover.
EMTAK is hierarchical in its structure, divided into five levels. The first four levels correspond to NACE, and the fifth level is national, which was created taking into account the peculiarities of the Estonian economy and the corresponding legislation.
Unless the residence of at least one-half of the board members of the company is in Estonia, in another Member State of the European Economic Area or in the Swiss Confederation, the foreign company must have a local contact person.
A contact person will be registered in the Estonian Commercial Registry.
A contact person must confirm his will to be a contact person. Either directly in the e-business register or with a digitally signed consent sent to a Public Notary.
Key rules, reservation periods, and trademark checks.
In Estonia your company name must be written in the Latin alphabet, avoid unusual symbols, be unique in the Commercial Register, and not duplicate or infringe any registered trademark. Because an Estonian company is also an EU company, it is wise to run an EU-wide trademark search to ensure the name is not already protected elsewhere in the single market.
A legal entity may reserve one business name for six months at a time, specifying both the intended legal form (e.g. OÜ, AS, MTÜ) and field of activity. Only one active reservation is permitted per entity, and the name can be used solely for the chosen form and activity. For valid reasons the reservation can be extended once for a further three months, provided the request is filed no later than five working days before the original reservation expires.
Negative share capital must be resolved as soon as possible.
Below is a practical roadmap that reflects the requirements of the Commercial Code (Äriseadustik) and common solutions in the market.
1. When is equity “too low”?
Under Commercial Code § 176(2) the company’s net assets must be at least:
50 % of registered share capital, and
not less than the minimum share‑capital requirement (currently € 2 500 for OÜs).
Example: An OÜ with a registered capital of €2 500 must keep equity ≥ €2 500 (100 %).
If the balance sheet shows that equity is below either limit (often expressed as negative share capital), the board must, within three months after approval of the annual report, convene a shareholders’ meeting to decide on remedies.
Convert shareholder loans into equity (set‑off contribution).
Revalue (upwards) real estate or IP – allowed if fair‑value report substantiates it.
Cut costs & improve margins – demonstrate turnaround in the next financial year.
Sell non‑core assets – realise gains, book profit.
Reduce share capital to minimum (€2 500) and cover rest via profit or later capital increase.
Tip: Make sure any capital manoeuvre is properly documented, entered in the accounting ledgers and registered in e-Business Register.
3. Exit scenarios
Sell the company – shares can be transferred to a buyer who is willing to recapitalise. Ensure the SPA allocates responsibility for past debts.
Liquidate – a clean way to close down if there is no buyer or business rationale. Requires publishing a creditor notice and preparing a final balance sheet.
Turnkey liquidation service – we can handle filings, creditor notices, accounting & tax clearance (fees start around €300–€1 000).
4. When will the share capital be returned?
Only the paid-in share capital can be returned to the owner, and this may be done no earlier than 4 months after the start of the liquidation process. The return can include both the registered share capital and any remaining funds in the company’s bank account, provided all legal obligations have been fulfilled.
Need help? We can assist with share‑capital operations, draft resolutions, Business Register filings, or a turnkey liquidation package.
This guide is provided for general information and does not constitute legal advice.
Digital notarial services in Estonia and selected embassies.
In Estonia, a public notary acts as an official intermediary between private individuals or companies and the Commercial Register, helping to certify applications, transactions, and legal documents. Thanks to Estonia’s advanced digital infrastructure, many notarial services can now be completed remotely using the e-Notary system.
Book notary appointments and review draft contracts
Access invoices and your full notarial history
e-Notary is available throughout Estonia and in selected Estonian embassies abroad, including:
Helsinki
Stockholm
Brussels
London
Riga
If you prefer, you can visit an Estonian embassy in one of these cities instead of travelling to Estonia for share transactions or other notarised acts. This is especially convenient for e-residents.
Choosing a notary
You can log in to notar.ee with your digital ID to choose a notary and schedule an appointment. Notary fees are state-regulated, and the quality of service is consistent. You may want to choose one who is able to conduct the procedure in English and supports the e-notary scheme.
Additional rights and services
Estonian law (§ 30 and § 33 of the Notaries Act) gives you the right to request that a notary submit documents to the Business Register on your behalf. If the notary certifies the content of the application, their fee also covers:
Legal consultation
Preparation of the draft application
Guidance on applicable state fees
A notary can also help submit address changes to the Population Register and file certain activity licence applications, as listed in Annex 1 of the Notarial Regulations.
If you cannot come to visit an Estonian notary, you cannot visit an e-notary, then the only way to conduct the whole process by power of attorney.
The sample power of attorney will be sent to you automatically with the order confirmation. You can add the necessary information there, legalize it and send it back to us.
The liquidators shall immediately publish a notice of the liquidation proceedings of the private limited company in the official publication Ametlikud Teadaanded.
The notice of liquidation must state that the creditors if they exist, must submit their claims within four months of the publication of the notice.
The story is that we are offering a faster way, 48 hours, to get rid of your business, but process speed will start to run from the moment when Public Notary has verified documents.
For a private limited company, the absolute minimum is six months—but only if every statutory step is completed on time.
The clock starts when the dissolution is entered in the Commercial Registerand the liquidation notice is published in the state gazette Ametlikud Teadaanded.
At least four months must pass after shareholders are notified of the final balance sheet and asset-distribution plan.
If all filings, creditor notices, and tax clearances are handled promptly, the process can be wrapped up in roughly half a year; any outstanding requirements will extend the timeline.
Dissolving a company in Estonia is a formal legal process that must follow specific steps outlined in the law. Failing to comply may lead to delays or legal complications.
A private limited company (OÜ) can be dissolved by:
a shareholders’ resolution,
a court decision,
bankruptcy, or
other conditions defined in the Articles of Association.
Once the decision to dissolve the company is made, the following mandatory steps must be followed:
Adopt a liquidation decision – The board members (or shareholders) must sign a legally valid resolution, which is then submitted via the Estonian e-Business Register. This can also be done with a Power of Attorney or through an e-notary, though using the e-Business Register is recommended for speed and convenience.
Publish a liquidation notice – A public announcement must be made via the Government’s official publication platform: www.ametlikudteadaanded.ee.
Prepare the final balance sheet – This includes an overview of the company’s assets, liabilities, and distribution plan.
Adopt a deletion decision – Once all legal and financial obligations are fulfilled, a final decision to remove the company from the Commercial Register must be filed.
By completing these steps properly, the liquidation process is carried out in accordance with Estonian law, helping to avoid delays, disputes, or legal risks.
A private limited company or public limited company may, as a company being acquired, merge with the assets of a natural person (acquiring natural person) who is the sole shareholder of the company.
The merger is permitted also in case the shares are in the joint ownership of the spouses. The merger of a private limited company or public limited company with the assets of the company’s shareholder who is a natural person is permitted also in case in addition to this shareholder the shares of a private limited company or public limited company being acquired are held exclusively by the company itself.
The assets of a company being acquired, including its obligations, shall transfer to the acquiring company upon merger.
The merger will take place without liquidation proceedings. So it’s faster than conventional liquidation.
The merger process between a natural person and her/his company takes far less than the conventional liquidation – about 2-4 months.
Yes, after the shareholders have filed the liquidation decision with the Estonian Business Register, the company must publish a public notice in the www.Ametlikud Teadaanded.ee
Ametlikud Teadaanded is the official online publication of the Republic of Estonia, in which announcements, invitations, and announcements are published for public announcement.
Publishing that notice is included in our liquidation-service fee but only liquidator or board member can add it.
The liquidator’s authority is recognized solely through the Business Register, but the notice itself is entered online in the e-Business Register environment by logging in with an Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card.
Establishing a company in the e-register the contact person needs to be added by the establisher/s.
After adding it, the contact person confirms it in the same environment. If the company is founded by a notary, the contact person gives a digitally signed confirmation as a separate document or gives it directly at the place to the notary.
If from us have been ordered a company formation service, we will add all data where it will be needed.
A sole proprietor ( FIE ) does not need a contact person, but must provide a valid Estonian address when applying for entry in the Commercial Register. The same rule applies to freelancers in creative or professional fields.
Before starting business activity, every FIE—whether resident or e-resident—must file an online registration via the Commercial Register; the Tax and Customs Board receives the data automatically, so no separate tax registration is required.
E-resident sole proprietors should note that they must pre-pay social tax four times per year, at a flat amount set annually in the state budget, regardless of actual income.
Unless the residence of at least one-half of the board members of the company is in Estonia, in another Member State of the European Economic Area or in the Swiss Confederation, the foreign company must have a local contact person.
A contact person will be registered in the Estonian Commercial Registry.
A contact person must confirm his will to be a contact person. Either directly in the e-business register or with a digitally signed consent sent to a Public Notary.
The Import One-Stop Shop (IOSS) is an EU-wide electronic system.
The IOSS platform enables suppliers and electronic interfaces that sell imported goods to buyers in the EU to collect, declare, and pay VAT to the relevant tax authorities. This eliminates the need for buyers to pay VAT at the moment the goods are imported into the EU, which was previously required for goods valued over 22 EUR.
Launched on to simplify VAT compliance for businesses involved in distance sales of imported goods to EU consumers.
Through the IOSS, sellers and online marketplaces can collect, declare, and pay VAT for goods imported into the EU—directly to the relevant tax authorities—at the point of sale. This eliminates the previous requirement for buyers to pay VAT upon importation (which applied to goods valued over €22).
Benefits for sellers:
Centralised VAT registration for all EU countries.
Simplified VAT reporting and payment.
Improved customer experience by avoiding customs delays and unexpected charges.
Benefits for buyers:
VAT is included upfront in the purchase price.
No hidden fees or customs handling charges at delivery.
Faster and smoother shipping process.
If a seller is not registered with the IOSS, the buyer must pay VAT upon delivery, and may also face customs clearance fees from the courier or postal service.
The Economic Operators Registration and Identification System, commonly referred to as EORI, is a registration system that is mandatory for companies engaged in importing or exporting goods from or to non-EU countries within the EU.
The EORI code is specific to the country where the company is established and is required for customs clearance procedures.
For instance, if an Estonian company imports goods directly to Germany, it is still required to obtain an EORI number in Estonia, as this is where the company is registered. This ensures compliance with the EU’s customs regulations and facilitates the efficient movement of goods across borders.
In cases where the concerned person has authorized the disclosure of their information, it is possible to conduct a search for the name and address of the company or individual associated with that EORI number.
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
An authorisation sets the limits for a representative’s actions.
An authorisation is a defined set of rights that determines the scope within which a representative may legally act on behalf of the principal. It outlines what actions the representative is permitted to take and under what conditions, ensuring legal clarity and accountability for both parties.
It is essential for the Estonian Tax and Customs Board that the content of authorization would be understandable and the person granting the authorization and the authorized person would be identifiable.
The main and also the most convenient and practical way to transfer the right of representation is to do it through a suitable digital identification channel. These are Mobile ID, Estonian ID, e-resident ID, and Smart ID. European Union country ID cards are also suitable. It is important to have the right to log in to the systems of the Estonian state.
If necessary, other less convenient and more expensive methods can also be used: power of attorney, lawyer’s client agreement, etc.
It is imperative to activate the SIM Card roaming before sending it abroad.
Our company ensures that the SIM card is activated in Estonia before dispatching it to the customer.
If there are any obstacles during the activation process, our service provider, Telia (www.telia.ee), can provide assistance.
Please note that any issues arising after the SIM card has been dispatched are the responsibility of the customer and should be addressed directly with the service provider.
required by numerous service providers (such as Google, and LinkedIn, among others) as they do not recognize virtual numbers within several of their control systems.
To commence usage of the prepaid card, simply insert the SIM card into your mobile device, turn it on, and enter the designated PIN code of 0000.
The usage time of the card commences upon activation, which is achieved by initiating a call.
Roaming capabilities have been enabled within Estonia, providing further convenience and ease of use for travelers and locals alike.
The starter kit for the prepaid card includes an initial balance of 1 EUR. The card remains active for a period of 180 days from the day of activation or top-up with a minimum of 3 EUR.
After the 180-day period has lapsed, the card will still enable the user to answer incoming calls, read messages, make calls to the Estonian emergency number 112, and top up the card for an additional 30 days.
This arrangement affords users greater flexibility and autonomy in managing their communication needs.
The process of charging, or adding credit to an account, is a straightforward and convenient procedure.
It can be accomplished remotely through various means, such as accessing the Telia portal or utilizing the Telia app.
Additionally, Telia offers a global option to purchase calling time, allowing for seamless communication across international borders. These multiple avenues for charging facilitate accessibility and flexibility for users, while also ensuring consistent and reliable service from Telia.
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
This can be defined in the memorandum and articles of association. Together with the already predetermined option set based on EMTAK.
We will draw up an establishing contract and articles of association.
The Estonian Classification of Economic Activities (EMTAK) is the national version of the international harmonized NACE classification. EMTAK has a hierarchical structure, being divided into five levels. The first four levels conform to the NACE structure and the fifth level is the national level, established according to the specifics of the Estonian economy and the relevant legislation.
Being an e-resident of Estonia does not give you the right to live in Estonia or elsewhere in the EU, nor does it provide any form of residency, visa, or immigration status. E-residency is simply a digital identity that allows you to manage a business remotely, not a physical presence permit.
What qualifies as permanent residence in Estonia?
To be considered a permanent resident, you must live in Estonia for at least 186 days per calendar year for personal or professional reasons. This requires strong ties to Estonia, which must be proven with supporting documents. Common examples include:
A lease agreement of at least 6 months (must be supported by additional evidence)
An employment or service contract lasting at least 6 months
Proof of property ownership in Estonia
Utility bills or fuel invoices in your name
School or kindergarten records (if you have children in Estonia)
Annual report if you’re on the board of an Estonian company
Transport tickets showing extended stays
Letters of explanation from people you live with
If you provide an employment contract, study certificate, or proof of military service in Estonia, that alone may be sufficient.
E-Residency does not include a physical address. If you’re looking to establish stronger ties to Estonia, founding a company, along with using our legal address and contact person services, is a practical and compliant way to do so. We’re here to assist.
The taxation system of Estonia is favourable because the refinanced and retained profit is not subject to the corporate income tax. All taxation can be done remotely. So do company establishment, accounting etc.
Secure online access to company data (legal facts, accounting, banking, taxes, etc.), allowing you to operate the company from anywhere in the world without the need for a regular physical presence in Estonia.
Member of the European Union
Member of the European Monetary Union (currency: Euro)
English is widely spoken
Transparent and attractive tax system
Rapid company registration and business set up
Easy business management via innovative e-solutions
According to § 9 of Estonia’s Money Laundering and Terrorist Financing Prevention Act, a beneficial owner (UBO) is the natural person who ultimately owns or controls a legal entity—either directly or indirectly.
Direct control: A natural person directly owns more than 25% of the company’s shares or voting rights.
Indirect control: A natural person controls another company (or companies) that, in turn, owns more than 25% of the legal entity.
Control can also be exercised through other means, such as shareholder agreements or the right to appoint management.
It is also possible for a company not to have a reportable beneficial owner. For instance, in a private limited company where four shareholders each hold exactly 25%, none of them meets the threshold for control, and under Estonian law, no UBO is declared.
Lead-in: Estonian law defines a beneficial owner as the real person who ultimately controls a company—usually through shareholding of more than 25%, either directly or indirectly.
The purchase and sale of cryptocurrencies may be subject to anti-money laundering regulations. Therefore, attention must be paid to § 70 (1) 4) and (5) and § 71 of the Money Laundering and Terrorist Financing Prevention Act (RahaPTS), according to which the corresponding activity license must be applied for from the FIU.
An application for an activity license can be submitted to the register of economic activities, which can be accessed either through the www.eesti.ee portal or from the MTR website https://mtr.mkm.ee. The state fee for applying for an activity license is 3,300 euros. Pursuant to § 71 of the Money Laundering Act, the FIU shall resolve an application for an activity license within 60 days as of the date of submission of the application. Upon the decision of the Financial Intelligence Unit, the term for granting an activity license may be extended up to 120 days. Services may not be provided before permission has been obtained. A person who holds an activity license of the Financial Supervision Authority does not have an obligation under another law to apply for an activity license of the Financial Supervision Authority, an activity license of a financial supervision authority of a Contracting State of the European Economic Area. The services specified in subsection 70 (1) within the group.
Digital notarial services in Estonia and selected embassies.
In Estonia, a public notary acts as an official intermediary between private individuals or companies and the Commercial Register, helping to certify applications, transactions, and legal documents. Thanks to Estonia’s advanced digital infrastructure, many notarial services can now be completed remotely using the e-Notary system.
Book notary appointments and review draft contracts
Access invoices and your full notarial history
e-Notary is available throughout Estonia and in selected Estonian embassies abroad, including:
Helsinki
Stockholm
Brussels
London
Riga
If you prefer, you can visit an Estonian embassy in one of these cities instead of travelling to Estonia for share transactions or other notarised acts. This is especially convenient for e-residents.
Choosing a notary
You can log in to notar.ee with your digital ID to choose a notary and schedule an appointment. Notary fees are state-regulated, and the quality of service is consistent. You may want to choose one who is able to conduct the procedure in English and supports the e-notary scheme.
Additional rights and services
Estonian law (§ 30 and § 33 of the Notaries Act) gives you the right to request that a notary submit documents to the Business Register on your behalf. If the notary certifies the content of the application, their fee also covers:
Legal consultation
Preparation of the draft application
Guidance on applicable state fees
A notary can also help submit address changes to the Population Register and file certain activity licence applications, as listed in Annex 1 of the Notarial Regulations.
Secure tools for digital identification, signatures, and access to e-services.
Estonia’s digital society is built on secure, convenient, and legally binding e-identity tools: the ID-card, Digi-ID, and Mobile-ID. These allow you to log into e-services, sign documents digitally, and manage your business or personal affairs fully online.
ID-card & Digi-ID
The ID-card and Digi-ID are physical smart cards used to:
Access Estonian e-services (e.g. Business Register, Tax Board, banks)
PIN codes, issued with the card (replacements available at Estonian service points or embassies)
Valid certificates, which you can check and renew at id.ee
A computer with internet access
Mobile-ID – Digital ID on Your Phone
Mobile-ID offers the same functionality as the ID-card, but without the need for a card reader. Instead, it works directly from your mobile phone.
How it works:
Requires a special Mobile-ID SIM card, issued by Estonian mobile operators
Stores private keys and signature functionality directly on the SIM
Actions are confirmed using PIN1 (authentication) and PIN2 (signing)
Perfect for users who prefer secure identification on the go
e-Residency Digital ID
If you are an Estonian e-resident, your e-Residency card allows you to access all of the above features (except Mobile-ID). You can:
Manage your company
Sign documents digitally
Use secure government and private e-services Note: E-Residency does not grant legal residence, tax residence, or the right to enter Estonia or the EU.
Need help?
Most answers to common technical and practical issues can be found on the official website: 🔗 www.id.ee
There you’ll find:
Detailed FAQs
Step-by-step video tutorials
Instructions for software, certificate renewal, and common problems
If you can’t find a solution, please reach out to the ID Help Centre via this contact form. The more clearly you describe your issue, the better the support team can assist. All answers are sent to you in writing with easy-to-follow instructions tailored to your situation.
Lead-in: Whether you use an ID-card, Digi-ID or Mobile-ID, Estonia’s digital tools let you handle secure transactions and official matters easily from anywhere in the world—with expert help just a click away.
Power of attorney (PoA) authorises us to act on your behalf for the transactions you specify.
To be valid in Estonia and recognised abroad, it must meet three basic requirements:
Notarial form – The PoA must be signed in front of a notary (in Estonia or abroad).
Proper authentication –
If the PoA is signed in a country that is party to the 1961 Hague Apostille Convention, the notary’s signature must be apostilled.
If the country is not a Convention member, the document must be legalised through that country’s foreign ministry and the Estonian embassy or consulate.
Language – The notary act should be in Estonian or accompanied by a sworn translation into Estonian or English.
Step-by-step process
Draft – We supply a template that details the exact powers you wish to grant.
Notarisation – You sign before a notary; the notary verifies your identity and capacity.
Apostille / legalisation – Applied as required by the country of signature.
Translation (if needed) – Performed by a sworn translator.
Delivery – Send the original or certified copy to us; courier fees depend on your chosen service.
Country-specific nuances
Most jurisdictions follow the Hague Apostille rules, but some (e.g., Canada, UAE) still require full consular legalisation.
With a properly notarised and authenticated PoA in place, we can conduct the authorised transactions smoothly and in full compliance with international and Estonian law.
If you plan to live and work in Estonia, you must register your local address in the Estonian Population Register. Without it, you won’t be eligible for public healthcare, social support, or many other government services.
What you need to register:
A residence notice (elukoha teade) — filled out in Estonian (see translated example if needed)
Your ID or a copy (if applying by post)
Proof of residence — e.g. a tenancy agreement or ownership document
If the property has multiple owners, consent is required from all
If you have an Estonian ID card, you can complete the process online via the eesti.ee portal.
Lead-in: Registering your address is a legal requirement and essential for accessing public services in Estonia.
Smart-ID personal identification can be used today in Estonia, Latvia, and Lithuania. Anno 2023.
If you are an alien living in Estonia the options are:
Residents of Estonia, Latvia, and Lithuania (incl. people staying here on the basis of a permanent residence permit) have a residence permit card. It allows you to create a Smart-ID account exactly as you would with an ID card: just follow the on-screen instructions. Your personal identification code is written on the residence card.
If you are a non-resident, ie a person who does not have a local personal identification code, it is not possible to create a Smart-ID account in Estonia and Latvia. However, it is possible to register a Smart-ID Basic account with limited rights in Lithuania by visiting the bank branch of Medicines Bankas, don’t forget to bring your identity documents!
Customers can log into the client area and pay to renew their subscriptions.
All offered payment gateway extensions can be used to process manual renewal payments. Customers can choose a different payment method for each renewal payment. It’s better to set up automatic payments.
If there is a problem with logging in to the customer area, let us know and the payment link will be sent.
After we receive the payment we will manually extend your subscription.
An authorisation sets the limits for a representative’s actions.
An authorisation is a defined set of rights that determines the scope within which a representative may legally act on behalf of the principal. It outlines what actions the representative is permitted to take and under what conditions, ensuring legal clarity and accountability for both parties.
It is essential for the Estonian Tax and Customs Board that the content of authorization would be understandable and the person granting the authorization and the authorized person would be identifiable.
The main and also the most convenient and practical way to transfer the right of representation is to do it through a suitable digital identification channel. These are Mobile ID, Estonian ID, e-resident ID, and Smart ID. European Union country ID cards are also suitable. It is important to have the right to log in to the systems of the Estonian state.
If necessary, other less convenient and more expensive methods can also be used: power of attorney, lawyer’s client agreement, etc.
Keeping your residence information up to date in the Population Register is a legal obligation.
To register your residence in Estonia, you must submit a notice of residence to the city or rural municipality government of your place of residence. This ensures that your address is correctly recorded in the Estonian Population Register, as required by law.
You can submit your notice of residence in the following ways:
Online via the e-population register (requires Estonian ID-card, Mobile-ID, or e-Residency). You can also track the status of your submission there.
By e-mail to your local city or rural municipality government (in Tallinn, to the district government). The form must be digitally signed.
By post, including a signed notice and a copy of your ID showing your personal data.
If you have multiple permanent addresses, one must be designated as your main residence—the address with legal effect in the register. Other addresses may be submitted as additional residences, but the main one must always be accurate and up to date.
Whenever you move within Estonia, relocate abroad, or return from abroad, you are legally obligated to update your residence address in the Population Register.
Clarifying taxation rules for e-residents and Estonian companies.
According to Estonian tax law, e-residents are considered non-residents for tax purposes. This means that only income earned in Estonia is taxed in Estonia. If there is no Estonian-sourced income or activity, you must pay taxes in the country where the service is provided or the income is earned. E-Residency alone does not create tax residency—neither in Estonia nor elsewhere.
An Estonian company established by an e-resident is automatically considered an Estonian tax resident company, and subject to Estonian corporate tax rules. However, the personal tax residency of the e-resident does not change simply because they hold an e-Residency card.
It’s a common misconception that e-Residency provides residency or tax residency status—it does not. E-Residency is a digital identity, not a visa, residence permit, or travel document. It allows you to manage a company remotely, but it has no impact on where you pay personal taxes.
Keep in mind:
Your personal tax residency is determined by factors such as physical presence (e.g. more than 183 days in a country) and centre of economic or personal interests.
Your personal tax residency may also trigger permanent establishment rules, which could lead to tax obligations for your Estonian company in your country of residence.
Lead-in: E-Residency gives you access to Estonia’s digital business environment—but it has no effect on your personal or corporate tax residency, which are determined by entirely separate legal criteria.
Just let us know via e-mail with an advance of 7 days, before the date of the subscription extension date and not having an invoice unpaid.
Also, you can log in to the customer area and close your subscription yourself.
What needs to be noticed is that the waiver does not have a retroactive effect, ie the period for which it has already been paid is valid until the end.
Also, it is very important to remember that the order ends permanently when the address and/or contact person has also been deleted from the Estonian Business Registry. Without it, the standing order is not completed.
Legal entities whose address is located or a board resides in a foreign country must appoint a contact person.
A deadline can be set for the contact person. After measuring the deadline, the contact person is automatically deleted from the company. After that, the contact person must be appointed for a new term.
If your IOSS number is canceled or expires, you should immediately contact the Estonian Tax and Customs Board. Understand the reason for cancellation or expiration.
Find out how to reapply or renew your IOSS registration. Continuing to sell goods in the EU without a valid IOSS number could lead to non-compliance with VAT regulations.
The Import One-Stop Shop (IOSS) is an EU-wide electronic system.
The IOSS platform enables suppliers and electronic interfaces that sell imported goods to buyers in the EU to collect, declare, and pay VAT to the relevant tax authorities. This eliminates the need for buyers to pay VAT at the moment the goods are imported into the EU, which was previously required for goods valued over 22 EUR.
Launched on to simplify VAT compliance for businesses involved in distance sales of imported goods to EU consumers.
Through the IOSS, sellers and online marketplaces can collect, declare, and pay VAT for goods imported into the EU—directly to the relevant tax authorities—at the point of sale. This eliminates the previous requirement for buyers to pay VAT upon importation (which applied to goods valued over €22).
Benefits for sellers:
Centralised VAT registration for all EU countries.
Simplified VAT reporting and payment.
Improved customer experience by avoiding customs delays and unexpected charges.
Benefits for buyers:
VAT is included upfront in the purchase price.
No hidden fees or customs handling charges at delivery.
Faster and smoother shipping process.
If a seller is not registered with the IOSS, the buyer must pay VAT upon delivery, and may also face customs clearance fees from the courier or postal service.
The Import One-Stop Shop (IOSS) number is designed to simplify VAT payments for cross-border e-commerce transactions within the EU. Estonian businesses can apply for an IOSS number through the Estonian Tax and Customs Board website. This registration allows businesses to manage VAT collection more efficiently when selling goods to other EU member states.
Companies using the IOSS number must maintain accurate records of all eligible sales for ten years. They need to make these records available upon request by any EU member state. Businesses are also required to ensure that the VAT charged at checkout is correctly calculated based on the buyer’s location. Compliance with these requirements is crucial for maintaining the validity of the IOSS registration.
The IOSS number helps Estonian companies streamline the VAT collection process. It simplifies the declaration process when selling goods to other EU countries. It helps avoid double taxation. It simplifies administrative procedures. This is achieved by allowing businesses to report and pay VAT in a single monthly return, regardless of the EU countries to which they ship.
As a physical or juridical person, the utilization of an address is essential for various reasons.
All addresses we provide are located in real, physical premises, fully serviced business buildings in central Tallinn.
Having a reliable address—whether you are a private individual or a legal entity—is more than a formality in Estonia:
Who needs it
Why it matters
Typical uses
Natural persons (individuals)
• Receive letters, small parcels, bank cards, and official notices. • Fulfil the statutory requirement to state an address when founding a company (including for e-residents).
① Register a new Estonian company. ② Receive government or banking correspondence. ③ Keep personal and business mail separate.
Legal persons (companies, NGOs, partnerships)
• Mandatory “registered office” for the Commercial Register. • Boosts credibility with banks, investors, and customers. • Ensures a fixed location for service of legal documents.
① List on the Commercial Register and invoicing documents. ② Collect licences / permits that require a local address. ③ Receive official letters, court notices, and parcels.
Compliance & risk management
Estonian law (Commercial Code §63) obliges every company to maintain a local address for legal notices.
Certain regulated activities (e.g. fintech, crypto, FTS licences) require an in-country address before an application will be processed.
A dedicated address helps you avoid missed deadlines, fines, or dissolved-by-court actions triggered by undelivered mail.
Professional image Publishing a recognised business address—rather than a home or foreign location—signals permanence and transparency, especially to EU-based partners and payment providers.
Bottom line An address is not just somewhere to “park” mail or just a mailbox; it is a legal safeguard, a credibility booster, and a practical tool for staying organised—whether you are launching your first Estonian company or scaling an established enterprise.
Will be provided upon order or subscription renewal.
The address certificate is issued automatically once your order is confirmed—or whenever your subscription renews—and emailed as a PDF to the address you provided at checkout.
If you can’t locate the message (including in your spam or promotions folder), just let us know and we’ll resend the certificate right a
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
The address must be updated whenever your company’s legal address changes or you lose the right to use the existing one. The address recorded in the Commercial Register must always remain valid for receiving official notices.
Changing the address of an existing company
Prepare an amendment application in the e-Business Register.
Is the new address in the same municipality?
Yes → Submit the application only. No state-fee, no extra documents.
No (different city / county) →
Adopt amended Articles of Association (AoA) at a shareholders’ meeting.
Upload the signed AoA and the meeting minutes / shareholders’ resolution.
Pay the state fee shown in the e-service.
Pay the fee instantly via Estonian bank link (or use the bank details and reference number displayed at check-out). The Register will not process your filing until the fee is received.
Need help? If you hit a payment snag, let us know—we will settle the fee on your behalf free of charge.
Adding the address during company formation
In the e-Business Register formation wizard, the founder enters the address once; it automatically appears in the foundation decision, the AoA and the future registry card.
You can choose our address from the drop-down list or enter it manually—full instructions are included in your order confirmation.
Only a management-board member who holds a valid Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card can submit the address change online.
Every required signer must possess the same form of digital ID; if an owner or other authorised person lacks it, the change can still be completed either by granting a notarised power of attorney or by appearing in person to the Estonian notary.
You can download detailed step-by-step guides from your order confirmation, and if you can’t find them, we’ll resend them right away. Our team will then guide you through every step—from drafting the minutes to uploading the files—so your Tallinn business address appears on the registry card without delay.
Your mail is handled primarily via Omniva.ee, with DHL arranged on request, and every forwarded item receives a tracking code that we share with you by e-mail.
Package ONE – Each letter is opened, scanned or re-posted as agreed, and small parcels are forwarded to your chosen address.
Packages TWO & THREE – A fixed quota of letters and small parcels is included at no extra charge; once that limit is reached, additional items are forwarded at the current Omniva or DHL rate.
As soon as we receive a letter or parcel, we scan or ship it according to your instructions and send you the tracking code. Before we ship anything, we confirm the exact postage cost with you.
Just let us know via e-mail with an advance of 7 days, before the date of the subscription extension date and not having an invoice unpaid.
Also, you can log in to the customer area and close your subscription yourself.
What needs to be noticed is that the waiver does not have a retroactive effect, ie the period for which it has already been paid is valid until the end.
Also, it is very important to remember that the order ends permanently when the address and/or contact person has also been deleted from the Estonian Business Registry. Without it, the standing order is not completed.
Will be provided upon order or subscription renewal.
The address certificate is issued automatically once your order is confirmed—or whenever your subscription renews—and emailed as a PDF to the address you provided at checkout.
If you can’t locate the message (including in your spam or promotions folder), just let us know and we’ll resend the certificate right a
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
Power of attorney (PoA) authorises us to act on your behalf for the transactions you specify.
To be valid in Estonia and recognised abroad, it must meet three basic requirements:
Notarial form – The PoA must be signed in front of a notary (in Estonia or abroad).
Proper authentication –
If the PoA is signed in a country that is party to the 1961 Hague Apostille Convention, the notary’s signature must be apostilled.
If the country is not a Convention member, the document must be legalised through that country’s foreign ministry and the Estonian embassy or consulate.
Language – The notary act should be in Estonian or accompanied by a sworn translation into Estonian or English.
Step-by-step process
Draft – We supply a template that details the exact powers you wish to grant.
Notarisation – You sign before a notary; the notary verifies your identity and capacity.
Apostille / legalisation – Applied as required by the country of signature.
Translation (if needed) – Performed by a sworn translator.
Delivery – Send the original or certified copy to us; courier fees depend on your chosen service.
Country-specific nuances
Most jurisdictions follow the Hague Apostille rules, but some (e.g., Canada, UAE) still require full consular legalisation.
With a properly notarised and authenticated PoA in place, we can conduct the authorised transactions smoothly and in full compliance with international and Estonian law.
If there are some letters per year we will scan or onward them for free and charge only posting costs. We don’t wrestle with small packages, right now.
The address must be updated whenever your company’s legal address changes or you lose the right to use the existing one. The address recorded in the Commercial Register must always remain valid for receiving official notices.
Changing the address of an existing company
Prepare an amendment application in the e-Business Register.
Is the new address in the same municipality?
Yes → Submit the application only. No state-fee, no extra documents.
No (different city / county) →
Adopt amended Articles of Association (AoA) at a shareholders’ meeting.
Upload the signed AoA and the meeting minutes / shareholders’ resolution.
Pay the state fee shown in the e-service.
Pay the fee instantly via Estonian bank link (or use the bank details and reference number displayed at check-out). The Register will not process your filing until the fee is received.
Need help? If you hit a payment snag, let us know—we will settle the fee on your behalf free of charge.
Adding the address during company formation
In the e-Business Register formation wizard, the founder enters the address once; it automatically appears in the foundation decision, the AoA and the future registry card.
You can choose our address from the drop-down list or enter it manually—full instructions are included in your order confirmation.
Only a management-board member who holds a valid Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card can submit the address change online.
Every required signer must possess the same form of digital ID; if an owner or other authorised person lacks it, the change can still be completed either by granting a notarised power of attorney or by appearing in person to the Estonian notary.
You can download detailed step-by-step guides from your order confirmation, and if you can’t find them, we’ll resend them right away. Our team will then guide you through every step—from drafting the minutes to uploading the files—so your Tallinn business address appears on the registry card without delay.
Your mail is handled primarily via Omniva.ee, with DHL arranged on request, and every forwarded item receives a tracking code that we share with you by e-mail.
Package ONE – Each letter is opened, scanned or re-posted as agreed, and small parcels are forwarded to your chosen address.
Packages TWO & THREE – A fixed quota of letters and small parcels is included at no extra charge; once that limit is reached, additional items are forwarded at the current Omniva or DHL rate.
As soon as we receive a letter or parcel, we scan or ship it according to your instructions and send you the tracking code. Before we ship anything, we confirm the exact postage cost with you.
Just let us know via e-mail with an advance of 7 days, before the date of the subscription extension date and not having an invoice unpaid.
Also, you can log in to the customer area and close your subscription yourself.
What needs to be noticed is that the waiver does not have a retroactive effect, ie the period for which it has already been paid is valid until the end.
Also, it is very important to remember that the order ends permanently when the address and/or contact person has also been deleted from the Estonian Business Registry. Without it, the standing order is not completed.
Legal entities whose address is located or a board resides in a foreign country must appoint a contact person.
A deadline can be set for the contact person. After measuring the deadline, the contact person is automatically deleted from the company. After that, the contact person must be appointed for a new term.
Being an e-resident of Estonia does not give you the right to live in Estonia or elsewhere in the EU, nor does it provide any form of residency, visa, or immigration status. E-residency is simply a digital identity that allows you to manage a business remotely, not a physical presence permit.
What qualifies as permanent residence in Estonia?
To be considered a permanent resident, you must live in Estonia for at least 186 days per calendar year for personal or professional reasons. This requires strong ties to Estonia, which must be proven with supporting documents. Common examples include:
A lease agreement of at least 6 months (must be supported by additional evidence)
An employment or service contract lasting at least 6 months
Proof of property ownership in Estonia
Utility bills or fuel invoices in your name
School or kindergarten records (if you have children in Estonia)
Annual report if you’re on the board of an Estonian company
Transport tickets showing extended stays
Letters of explanation from people you live with
If you provide an employment contract, study certificate, or proof of military service in Estonia, that alone may be sufficient.
E-Residency does not include a physical address. If you’re looking to establish stronger ties to Estonia, founding a company, along with using our legal address and contact person services, is a practical and compliant way to do so. We’re here to assist.
As a physical or juridical person, the utilization of an address is essential for various reasons.
All addresses we provide are located in real, physical premises, fully serviced business buildings in central Tallinn.
Having a reliable address—whether you are a private individual or a legal entity—is more than a formality in Estonia:
Who needs it
Why it matters
Typical uses
Natural persons (individuals)
• Receive letters, small parcels, bank cards, and official notices. • Fulfil the statutory requirement to state an address when founding a company (including for e-residents).
① Register a new Estonian company. ② Receive government or banking correspondence. ③ Keep personal and business mail separate.
Legal persons (companies, NGOs, partnerships)
• Mandatory “registered office” for the Commercial Register. • Boosts credibility with banks, investors, and customers. • Ensures a fixed location for service of legal documents.
① List on the Commercial Register and invoicing documents. ② Collect licences / permits that require a local address. ③ Receive official letters, court notices, and parcels.
Compliance & risk management
Estonian law (Commercial Code §63) obliges every company to maintain a local address for legal notices.
Certain regulated activities (e.g. fintech, crypto, FTS licences) require an in-country address before an application will be processed.
A dedicated address helps you avoid missed deadlines, fines, or dissolved-by-court actions triggered by undelivered mail.
Professional image Publishing a recognised business address—rather than a home or foreign location—signals permanence and transparency, especially to EU-based partners and payment providers.
Bottom line An address is not just somewhere to “park” mail or just a mailbox; it is a legal safeguard, a credibility booster, and a practical tool for staying organised—whether you are launching your first Estonian company or scaling an established enterprise.
Will be provided upon order or subscription renewal.
The address certificate is issued automatically once your order is confirmed—or whenever your subscription renews—and emailed as a PDF to the address you provided at checkout.
If you can’t locate the message (including in your spam or promotions folder), just let us know and we’ll resend the certificate right a
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
If there are some letters per year we will scan or onward them for free and charge only posting costs. We don’t wrestle with small packages, right now.
The address must be updated whenever your company’s legal address changes or you lose the right to use the existing one. The address recorded in the Commercial Register must always remain valid for receiving official notices.
Changing the address of an existing company
Prepare an amendment application in the e-Business Register.
Is the new address in the same municipality?
Yes → Submit the application only. No state-fee, no extra documents.
No (different city / county) →
Adopt amended Articles of Association (AoA) at a shareholders’ meeting.
Upload the signed AoA and the meeting minutes / shareholders’ resolution.
Pay the state fee shown in the e-service.
Pay the fee instantly via Estonian bank link (or use the bank details and reference number displayed at check-out). The Register will not process your filing until the fee is received.
Need help? If you hit a payment snag, let us know—we will settle the fee on your behalf free of charge.
Adding the address during company formation
In the e-Business Register formation wizard, the founder enters the address once; it automatically appears in the foundation decision, the AoA and the future registry card.
You can choose our address from the drop-down list or enter it manually—full instructions are included in your order confirmation.
Only a management-board member who holds a valid Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card can submit the address change online.
Every required signer must possess the same form of digital ID; if an owner or other authorised person lacks it, the change can still be completed either by granting a notarised power of attorney or by appearing in person to the Estonian notary.
You can download detailed step-by-step guides from your order confirmation, and if you can’t find them, we’ll resend them right away. Our team will then guide you through every step—from drafting the minutes to uploading the files—so your Tallinn business address appears on the registry card without delay.
Your mail is handled primarily via Omniva.ee, with DHL arranged on request, and every forwarded item receives a tracking code that we share with you by e-mail.
Package ONE – Each letter is opened, scanned or re-posted as agreed, and small parcels are forwarded to your chosen address.
Packages TWO & THREE – A fixed quota of letters and small parcels is included at no extra charge; once that limit is reached, additional items are forwarded at the current Omniva or DHL rate.
As soon as we receive a letter or parcel, we scan or ship it according to your instructions and send you the tracking code. Before we ship anything, we confirm the exact postage cost with you.
Just let us know via e-mail with an advance of 7 days, before the date of the subscription extension date and not having an invoice unpaid.
Also, you can log in to the customer area and close your subscription yourself.
What needs to be noticed is that the waiver does not have a retroactive effect, ie the period for which it has already been paid is valid until the end.
Also, it is very important to remember that the order ends permanently when the address and/or contact person has also been deleted from the Estonian Business Registry. Without it, the standing order is not completed.
In Estonia, dividends can only be paid out from the previous financial year’s profit, not from the current year’s income. The company must first complete and submit its annual report to confirm the available distributable profit.
Before any dividends can be paid:
The share capital must be paid in — Estonia allows companies to be founded without immediate capital contribution, but dividends can’t be distributed until this requirement is fulfilled.
The payment must be registered in the Business Register and declared to the Estonian Tax and Customs Board (ETCB).
Once registered, the capital can be used freely for business activities (e.g., expenses, salaries); it doesn’t need to sit idle in the account.
Declaring the minimum share capital (€2,500) to the ETCB also gives a future tax advantage: if the company is liquidated, this amount can be withdrawn tax-free, reducing your tax liability.
Taxation of Dividends in Estonia
The standard corporate income tax is 24% on the gross amount of dividends (calculated as 20/80 on the net payout).
If dividends are received from a subsidiary or a foreign permanent establishment, they may be exempt from Estonian tax—especially if a double taxation treaty applies.
Reduced 14% Corporate Income Tax Rate
Estonia also offers a 14% reduced corporate tax rate, but it comes with specific conditions and applies only to regular profit distributions over time:
You can start using the 14% rate from the third financial year of the company’s operations—only if dividends were paid in the second year.
In the third year, 1/3 of the previous year’s dividends can be taxed at 14%, the rest at 20%.
In the fourth year, 2/3 of previously distributed dividends (from years 2 and 3) may qualify for the reduced rate.
The remaining portion continues to be taxed at the standard 20%.
If a company uses the 14% rate, and the recipient of dividends is a private person, then an additional 7% personal income tax is withheld. This tax can usually be credited in your home country, assuming a valid tax treaty is in place and proof of payment is obtained from the ETCB.
Summary:
✅ Dividends can only be paid from previous-year profit, after the annual report is filed.
✅ Share capital must be paid in and registered before paying dividends.
✅ Always declare share capital to ETCB for tax benefits during liquidation.
Lead-in: Paying dividends in Estonia is tax-efficient, but subject to strict timing and compliance rules. If you’re considering using the reduced tax rate, we strongly recommend consulting with an accountant to ensure you meet all conditions.
MOSS (Mini One Stop Shop) is a simplified EU VAT reporting scheme designed for companies selling digital goods and services to private individuals in other EU countries.
Instead of registering for VAT in every member state where your customers are located, MOSS allows you to report and pay all cross-border VAT through the Estonian Tax and Customs Board. This applies to services such as:
Website hosting
Software downloads
Streaming or downloaded media (music, apps, videos)
Online gaming
Access to digital databases
Distance learning or digital teaching services
If your Estonian company uses MOSS, you issue invoices with your Estonian VAT number, but apply the VAT rate of the customer’s country. The Estonian tax office then redistributes the VAT to the appropriate member states on your behalf.
Key conditions and obligations:
MOSS is only available to VAT-registered companies.
You must submit a special quarterly MOSS declaration (in addition to your regular monthly VAT returns).
You are still required to file monthly VAT declarations for domestic transactions.
To stay compliant, you must have a reliable system to track your customers’ locations and apply the correct country-specific VAT rates.
Lead-in: MOSS helps VAT-registered companies save time and avoid multiple VAT registrations across the EU—but only applies to digital B2C services.
Understanding tax treaties and separate obligations.
Double taxation refers to paying the same type of tax on the same income in two different countries—a situation that often affects cross-border business owners or shareholders.
This can usually be avoided if the country where your company is established (e.g. Estonia) and the country where you personally reside have signed a Double Tax Treaty (DTT). These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same profit.
However, if no treaty exists, double taxation may apply. For instance, since Estonia does not have a tax treaty with Russia, a company or individual may end up paying tax both in Estonia and in Russia on the same income.
It’s also important to note that corporate and personal income taxes are separate:
When a company distributes dividends, corporate income tax is paid on that amount.
When a private person receives those dividends, they may also owe personal income tax—depending on their country of tax residency.
This is not considered double taxation, as it involves two different taxpayers (a legal entity and a natural person) and two different tax types.
Lead-in: Double taxation can significantly affect your company’s profits and personal income—but tax treaties between countries often provide a solution.
Estonia’s tax framework is renowned for its simplicity and growth-friendly incentives.
Zero corporate tax on retained earnings
Corporate income tax (20 % of the net amount, calculated as 20/80 on the distributed sum) is due only when you pay dividends or treat funds as non-business expenses. Profits that stay in the company can be reinvested tax-free for unlimited periods, accelerating growth and cash-flow planning.
Possibility of tax-exempt dividends in group structures
Dividends received from an Estonian or foreign subsidiary may be distributed further without additional Estonian tax if participation conditions are met. Likewise, profits allocated to a foreign permanent establishment are generally exempt.
No additional personal income tax for Estonian residents
If you are an Estonian tax resident, dividends you receive from your company are not subject to extra personal income tax, corporate tax settles the obligation. (Non-residents must follow the rules of their home country.)
Flat, transparent rates elsewhere in the system
Payroll taxes, VAT, and other levies use uniform rates with straightforward reporting, reducing compliance overhead.
Remember: The company (a legal person) and you (a natural person) are separate taxpayers. Keeping finances distinct avoids misclassification and ensures you benefit fully from Estonia’s business-friendly regime without risking penalties or double taxation abroad.
Understanding your payment options and tax obligations.
In Estonia, companies can compensate individuals in two primary ways: a regular salary or a board member’s fee. These payments are taxed differently and serve different purposes.
A regular salary is paid for active, value-creating work within the company (e.g. sales, development, marketing).
A board member’s fee is paid for fulfilling management or administrative duties.
If you are both the owner and employee of your Estonian company, you may choose to pay yourself one or the other—or a combination of both.
Taxation for Estonian tax residents
Regular salary is subject to:
24% personal income tax
33% social tax
1.6% employee unemployment insurance
0.8% employer unemployment insurance
2% mandatory pension contribution
Estonian residents are also entitled to a basic tax-free income allowance (up to €500/month), which gradually decreases as salary increases.
If you live and work in Estonia, you must pay both income and social taxes in Estonia. This gives you access to local health insurance and social benefits—which you can only receive from one country at a time.
Foreign residents and digital nomads
If the person receiving a salary is not an Estonian tax resident and does not work in Estonia, salary taxes should be paid in the country where they actually live and work.
Board member fees, however, follow different rules:
If the board member is not an Estonian tax resident, Estonia still requires 20% income tax on the board member’s fee.
Social tax is paid either in Estonia or in the board member’s country of residence—depending on where they claim social benefits.
Important note for digital nomads
If you’re a digital nomad without fixed tax residency, tax liability can become complex. You must still pay taxes somewhere. The general rule is: you should pay income and social taxes in the country where you physically stay and work. If you don’t, another country may later claim that you owe taxes under their jurisdiction.
Lead-in: In Estonia, whether you pay yourself a salary or a board member’s fee affects how—and where—your taxes are paid. Choosing the right structure depends on your residency, where you work, and which country you want to claim social benefits from.
E-residency in Estonia does not automatically mean tax residence. It only provides the opportunity to use the e-services that the Estonian state offers. Among them is the establishment of the company. If your turnover is less than EUR 40,000 per the calendar year, you don’t need to add VAT to your invoices. If the turnover is generated outside Estonia, you do not have to add VAT to your invoices if you exceed this amount. If the employees do not work in Estonia, the labour tax according to Estonian law does not have to be taken into account.
Accountant needs two separate sets of e‑service rights to act on behalf of your company:
Tax declarations & VAT, excise, customs, payroll – granted in the Estonian Tax and Customs Board (MTA) self‑service.
Preparation and submission of the annual report – granted in the Business Register (Rik.ee) environment.
Below you will find step‑by‑step instructions for both systems. (If you prefer a video, see the MTA walkthrough at the end of this article.)
1. Give an accountant access in the MTA self‑service
Prerequisites • The board member has an Estonian ID‑card, Mobile‑ID or e‑Residency digital ID. • You know the accountant’s Estonian personal identification code (isikukood).
Choose your company from the top‑right drop‑down menu (if you have more than one).
In the left‑hand menu click Settings → Access permissions → Access permissions of representatives → New access permission.
Enter the accountant’s personal ID‑code and (optionally) set an expiry date.
Select rights:
Package method – scroll to the bottom, press Search, tick e.g. Accountant Package (includes submission of all tax returns) and press Add.
Separate rights – open the Separate access permissions tab if you need custom scope (e.g. only VAT returns). Most useful rights are grouped under “Over‑areas”.
(Optional) To allow your accountant to manage further user rights, search for “right of the representative … to administer user rights” and add it.
Press Save. Access is active immediately.
### Troubleshooting
If the person is not found, double‑check the ID‑code or ask the accountant to log in to MTA once (this creates a user profile).
Remember to update or revoke rights if you switch service providers.
2. Authorise the accountant in the Business Register (for the annual report)
This guide is for general information only and does not constitute legal advice. Procedures may change – always refer to the latest instructions on the official websites of the MTA and the Business Register.
Keeping your residence information up to date in the Population Register is a legal obligation.
To register your residence in Estonia, you must submit a notice of residence to the city or rural municipality government of your place of residence. This ensures that your address is correctly recorded in the Estonian Population Register, as required by law.
You can submit your notice of residence in the following ways:
Online via the e-population register (requires Estonian ID-card, Mobile-ID, or e-Residency). You can also track the status of your submission there.
By e-mail to your local city or rural municipality government (in Tallinn, to the district government). The form must be digitally signed.
By post, including a signed notice and a copy of your ID showing your personal data.
If you have multiple permanent addresses, one must be designated as your main residence—the address with legal effect in the register. Other addresses may be submitted as additional residences, but the main one must always be accurate and up to date.
Whenever you move within Estonia, relocate abroad, or return from abroad, you are legally obligated to update your residence address in the Population Register.
Clarifying taxation rules for e-residents and Estonian companies.
According to Estonian tax law, e-residents are considered non-residents for tax purposes. This means that only income earned in Estonia is taxed in Estonia. If there is no Estonian-sourced income or activity, you must pay taxes in the country where the service is provided or the income is earned. E-Residency alone does not create tax residency—neither in Estonia nor elsewhere.
An Estonian company established by an e-resident is automatically considered an Estonian tax resident company, and subject to Estonian corporate tax rules. However, the personal tax residency of the e-resident does not change simply because they hold an e-Residency card.
It’s a common misconception that e-Residency provides residency or tax residency status—it does not. E-Residency is a digital identity, not a visa, residence permit, or travel document. It allows you to manage a company remotely, but it has no impact on where you pay personal taxes.
Keep in mind:
Your personal tax residency is determined by factors such as physical presence (e.g. more than 183 days in a country) and centre of economic or personal interests.
Your personal tax residency may also trigger permanent establishment rules, which could lead to tax obligations for your Estonian company in your country of residence.
Lead-in: E-Residency gives you access to Estonia’s digital business environment—but it has no effect on your personal or corporate tax residency, which are determined by entirely separate legal criteria.
Yes, a foreign company can register for VAT in Estonia.
To do so, the company must submit a VAT registration application along with an extract from the commercial register of its home country.
The application must include a clear explanation of the company’s business activities and their connection to Estonia—for example, the sale of goods or services in Estonia, or having a fixed establishment or taxable presence.
Documents can be submitted in one of the following ways:
By a legal representative or
By an authorised person holding a notarial power of attorney, either:
in person at the Estonian Tax and Customs Board (ETCB) service office,
by post, if the signature is notarised, or
by e-mail to emta@emta.ee with a valid digital signature (e.g. Estonian ID-card, e-Residency, Smart-ID).
Once approved, the company will receive an Estonian VAT number and must comply with local VAT rules, including invoicing, reporting, and periodic declarations.
Registering a trademark gives you exclusive rights to use the brand name or logo in your specific field—whether in Estonia, the EU, or both. No one else can legally use or register the same mark without your permission.
A registered trademark is one of the most effective ways to protect your brand from unfair competition. It helps you prevent others from using your name or copying your identity for commercial gain.
It’s also cheaper and easier to register your trademark than to prove ownership in court later. In fact, several EU countries—including Estonia, Germany, and Spain—already check the EUIPO trademark database before allowing company names to be registered. This means that if your company name is already registered as a trademark, others cannot use it unless you allow it.
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
The Import One-Stop Shop (IOSS) is an EU-wide electronic system.
The IOSS platform enables suppliers and electronic interfaces that sell imported goods to buyers in the EU to collect, declare, and pay VAT to the relevant tax authorities. This eliminates the need for buyers to pay VAT at the moment the goods are imported into the EU, which was previously required for goods valued over 22 EUR.
Launched on to simplify VAT compliance for businesses involved in distance sales of imported goods to EU consumers.
Through the IOSS, sellers and online marketplaces can collect, declare, and pay VAT for goods imported into the EU—directly to the relevant tax authorities—at the point of sale. This eliminates the previous requirement for buyers to pay VAT upon importation (which applied to goods valued over €22).
Benefits for sellers:
Centralised VAT registration for all EU countries.
Simplified VAT reporting and payment.
Improved customer experience by avoiding customs delays and unexpected charges.
Benefits for buyers:
VAT is included upfront in the purchase price.
No hidden fees or customs handling charges at delivery.
Faster and smoother shipping process.
If a seller is not registered with the IOSS, the buyer must pay VAT upon delivery, and may also face customs clearance fees from the courier or postal service.
The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:
Estonian, Latvian, Lithuanian, and Belgian ID cards
Estonian e-Residency cards
Estonian Smart-ID
Estonian and Lithuanian Mobile-ID
For the most up-to-date list and technical requirements, visit www.id.ee. Please note that accepted identification methods may change over time, so it’s important to stay informed of any updates.
An authorisation sets the limits for a representative’s actions.
An authorisation is a defined set of rights that determines the scope within which a representative may legally act on behalf of the principal. It outlines what actions the representative is permitted to take and under what conditions, ensuring legal clarity and accountability for both parties.
It is essential for the Estonian Tax and Customs Board that the content of authorization would be understandable and the person granting the authorization and the authorized person would be identifiable.
The main and also the most convenient and practical way to transfer the right of representation is to do it through a suitable digital identification channel. These are Mobile ID, Estonian ID, e-resident ID, and Smart ID. European Union country ID cards are also suitable. It is important to have the right to log in to the systems of the Estonian state.
If necessary, other less convenient and more expensive methods can also be used: power of attorney, lawyer’s client agreement, etc.
Yes, a foreign company can register for VAT in Estonia.
To do so, the company must submit a VAT registration application along with an extract from the commercial register of its home country.
The application must include a clear explanation of the company’s business activities and their connection to Estonia—for example, the sale of goods or services in Estonia, or having a fixed establishment or taxable presence.
Documents can be submitted in one of the following ways:
By a legal representative or
By an authorised person holding a notarial power of attorney, either:
in person at the Estonian Tax and Customs Board (ETCB) service office,
by post, if the signature is notarised, or
by e-mail to emta@emta.ee with a valid digital signature (e.g. Estonian ID-card, e-Residency, Smart-ID).
Once approved, the company will receive an Estonian VAT number and must comply with local VAT rules, including invoicing, reporting, and periodic declarations.
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