Company formation in Estonia
Estonia taxes distributed profit only, runs entirely online and gives you an EU company in days. Its crypto licensing regime is now materially stricter than its reputation suggests — which favours serious applicants.
Tax on retained profit
0%
Tax on distributions
22% (approx.)
Formation time
1–5 days
Crypto regime
VASP / MiCA
The distributed-profit tax system
Estonian companies pay no corporate income tax on profits they retain and reinvest; tax arises on distribution, at roughly 22% on the gross amount, with a reduced rate historically available for regular dividends. For a growth business reinvesting cash flow, that is a genuine funding advantage rather than an accounting one. VAT registration applies above the threshold and immediately for certain cross-border services.
Incorporation requirements
- Osaühing (OÜ) — private limited company; share capital from EUR 0.01 per share in practice.
- One board member minimum; non-residents may serve, but a contact person in Estonia is required if the board sits abroad.
- Estonian registered address; e-Residency allows the whole process to be run remotely.
- Annual report filed with the Business Register; audit only above statutory thresholds.
- Licensed firms must show Estonian-resident management and a local office.
Crypto and payments licensing
Estonia tightened its virtual asset regime substantially: own-funds requirements, an Estonian-resident management board and compliance officer, audited accounts, detailed AML/CFT procedures and a real local presence. Under MiCA, authorised crypto-asset service providers passport across the EU, which raises both the bar and the value of a grant. Payment and e-money institutions are licensed by the Financial Supervision Authority.
Company formation, banking and licensing handled together
We form the entity, prepare the due-diligence file the way an onboarding committee reads it, and take the licence application through to grant where one is required. Ownership chart, licence scope, AML/KYC policy and expected flows by corridor are prepared before any bank sees the file.
Frequently asked questions
Is an Estonian crypto licence still easy to get?
No. The days of quick approvals ended years ago. Expect substantive capital, resident management, audited AML controls and a multi-month review — and budget for local substance.
Do I need e-Residency?
It is the most convenient route for remote management and signing, but not strictly required; formation can also proceed by notarised power of attorney.
Is Estonia genuinely 0% tax?
Only on retained profit. Distributions are taxed, and salaries to Estonian-resident staff carry payroll taxes. It is deferral, not exemption.
Considering Estonia for your structure?
We will confirm in writing whether it fits your regulator and your banks. Reply within 2 hours.
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