Basics
I'm a Tax Resident in a Country with CFC Rules – Can I Open an Estonian Business?
Yes, that is perfectly possible. However, you need to be aware of how CFC rules may affect your business. Our advice is to ask a local tax advisor about your specific situation.Some readersWhat Are the Requirements to Have an Estonian Company with Companio?
The e-Residency program is open to any citizen of the world and all international businesses, regardless of nationality or country of residence. These are the main requirements if you want to open a company with Companio: The main requirement is that your business is digital or can be performed without a specific location or permanent establishment, if you are a location independent entrepreneur, professional offering online services, international company, online agency, SaaS paltform oSome readersCan I Legally Have a Company in Estonia With Companio?
Yes, it is completely legal. Estonia is not a tax haven or offshore destination. It is, in fact, a reputable country of the European Union with a corporate tax equivalent to most other EU countries. Estonia has one of the most transparent business systems in the world and all the corporate and tax information of businesses is publicly available. Under certain circumstances, your company may be liable to fulfill some tax obligations outside of Estonia. That is the case if the majorityFew readersCan My Estonian Company Do Different Activities?
In Estonia, unlike many other countries, a business can perform multiple activities simultaneously without additional paperwork or having to open multiple companies. The Estonian Business Registry asks you to define the main activity of the business for statistical reasons only. That said, there are occasions where it may be advisable to have two companies. This is especially true when company activities are completely unrelated or subject to different tax regimes, such as dropshipping / FBFew readersI am a digital nomad, can I open a business in Estonia with Companio?
If you are a digital nomad, and you do not have a formal tax residence (Eg. you do not spend more than 183 days in a specific country) having an international business in Estonia is the perfect option for you, as it allows your business to travel with you, without worrying about where you live now or where you are going to travel tomorrow. You will get rid of all paperwork, bureaucracy, and the need to physically visit offices. Everything can be done completely online.Few readers
Activities
Can I Open an Investment Company in Estonia?
Yes, although depending on your activity, you may need a license. Hence, it is very important to understand the activity of your company. There are, generally speaking, two scenarios, depending on if your company performs the activities by itself or not: Scenario 1 Your company is going to perform one or more activities by itself. The activities are the same we mentioned in the FAQ Can I Launch a Company That Acts as a Financial Institution in Estonia? (https://help.companio.co/en/artSome readersCan I Launch a Company That Acts as a Financial Institution in Estonia?
Yes, but your business may need a license to operate. In the context of financial activities, there are two main scenarios: Scenario 1 Your company is going to offer one or more of the following services to third parties: Foreign currency exchange (or forex). Investment advice to clients. Performing borrowing or lending operations. Performing Leasing transactions. Money broking or acting as a broker. Offering monetary guarantees or commitments. Performing transactions orFew readersWhat Kind of Businesses Does Companio Support?
While the e-Residency program of Estonia may be a good fit for all kinds of international businesses, it is specially beneficial for online businesses, or those doing a location independent activity. Companio supports all businesses whose activity is online or digital, or can be performed in a location independent way, without facilities, offices, or permanent establishments outside of Estonia.Few readersCan I Act as a Tour Agent or Own a Travel Agency?
An Estonian company acting as a tour agency needs to apply for a specific tour-agent license before being able to start its activity. This license has an extra cost, not included in the company registration price. If your company is not offering the tours itself but is essentially a reseller of other(s) tour operator(s), you don’t need a license, and there is a particular VAT scheme applied to your company. We should mention here that the license needs to be obtained from a legal firm, that weFew readersCan Startups Have a Company in Estonia?
The e-Residency program favors global startups whose members may live in different parts of the world or want to expand internationally, without being limited by geographical limitations. Why? As members of the digital nation, the board members of an Estonian company can sign legal validity documents with their e-resident cards, including binding agreements for your company, hiring people, or making strategic decisions. Wherever you are, you can manage your company. Estonia’s startupFew readersCan I Open a MTU With Companio?
If you want to open a company in Estonia as MTU (non-profit organization), we cannot offer you our services. At the moment we only support OÜ companies.Few readersIs It Mandatory to Have a LEI Code?
Not, it is not mandatory to have a LEI code, but some platforms ask for it. Normally it will be enough to say that it does not have a LEI code because the company does not invest on its own, but if it is mandatory you will have to get it on your own, as this is not a service we offer currently.Few readers
Living Abroad
Can I Have a Company in Estonia While Residing in Spain or Another Country?
Yes, it is possible to establish and operate a company in Estonia while residing in any other country. As long as the activity is 100% online and there is no permanent establishment in the country of residence, there should be no problem in having your company in Estonia. However, we recommend consulting with a local tax advisor to confirm your tax obligations in that country. With Companio One Spain, we provide you with all the necessary information tFew readersDo I Need a Physical Office or Address in Estonia?
You only need a physical office in Estonia if it is necessary for your business operations. What you do need is a contact person and a legal address. At Companio, we offer virtual office services that include a contact person, legal address, mail forwarding, and document digitization.Few readersHow Can I Manage My Company in Estonia 100% Online?
Managing a company in Estonia from anywhere is possible thanks to the digital infrastructure of the Baltic country and the e-Residency program, which allow you to: Utilize a wide range of electronic services and digital platforms for streamlined company administration. Seamlessly sign and submit electronic documents for efficient processing. Collaborate with trusted service providers such as Companio to receive comprehensive support in handling administrative tasks.Few readersUnderstanding the Tax Implications: What Do I Need to Know?
Estonia has Europe's most competitive tax system, but this does not mean it is a tax haven. Hence, Estonia will not be suitable if you want to avoid taxes. The great news is that you will not pay taxes on your company's money. All the money you reinvest in the company or legitimate business expenses is tax-free. You will only pay taxes when you withdraw money from your company and transfer it to your personal accounts, such as when paying yourself a salary or distributing dividends. YoFew readersWhat Are the Challenges of Managing a Company in Estonia 100% Online?
Despite the advantages of remotely managing a company in Estonia, there can be challenges, such as: Communication and coordination of the remote team can be more difficult due to physical distance. The time difference can affect meeting scheduling, response times, and real-time collaboration. Building a strong company culture and cohesive work environment may be more challenging. Monitoring and managing employee productivity and performance remotely can be a challengFew readersWhat Are the Legal Requirements to Open a Company in Estonia?
These are the legal requirements to open a company in Estonia: Apply for e-Residency, the digital identity allowing you to launch and manage your company in Estonia 100% online. You will need a contact person and a legal address. Register your company in Estonia. Open a bank account. It is unnecessary to visit Estonia for this, as dFew readersIs There Any Support Available for Foreign Entrepreneurs in Estonia?
Estonia has a very active community of over 100,000 entrepreneurs. Thanks to the e-Residency program and its community, you can join a network of trusted service providers and fellow e-resident entrepreneurs like yourself. Additionally, e-Residency organizes events and provides information about networking opportunities with other professionals.Few readers
Dropshipping & FBA
Can I Start a Dropshipping Business in Estonia With Companio?
Yes! The main requisite is that the business model follows this “pure” dropshipping model: You DON’T import/export the goods. The supplier/provider sends the goods directly to the customer. You DON’T keep stock, buy or sell anything directly. You don’t have a warehouse (except if the warehouse is in Estonia). Your company should act as a mere online sales facilitator. If you’re planning to run a dropshipping business you can learn more about how we can help you here (https://companiFew readersDoes Companio Support Companies That Manage Physical Goods?
In general, we don’t support companies dealing, selling, buying, managing, exporting, or importing physical goods. We don't recommend to have an Estonian company if the goods, warehouses, or facilities of the company are kept outside of Estonia. If you have an online shop following the dropshipping business model, then Companio supports your activity and you can start your business with us. What is a dropshipping business model? You DON’T import/export the goods. The supplier/providerFew readersCan I Sell on Amazon from my Estonian Company?
Yes, you can do it through Fulfillment by Amazon (FBA), which is a program – similar to a class dropshipping system– that allows anyone to open an online store and sell products to customers internationally. The only requirement is having a company that serves as a legal framework for the activity. We support dropshipping and FBA online shops as long as the Estonian company acts as a digital gateway for the sales. That means that it does not have facilities outside Estonia or warehouses cFew readers