Basics
What 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 (https://help.companio.co/en/article/understanding-the-obligation-to-open-a-corporate-bank-account-best-opFew readersIs It Legal to Have a Company in Estonia?
Absolutely, it's entirely legal. Estonia isn't a tax haven or an offshore financial center. In fact, it's a country with a strong reputation within the European Union, featuring a corporate tax rate similar to most other EU nations. Estonia boasts one of the world's most transparent business environments. Furthermore, all corporate and tax-related information is publicly available. Under specific circumstances, your company might need to fulfill some tax obligations outside of EstoFew 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 readersWhat’s a Politically Exposed Person?
A politically exposed person is an individual with a high profile political role, or someone who performs a prominent public function. They usually present a higher risk of involvement in money laundering, bribery or corruption because of their position. Companio does not offer its services to politically exposed persons. If you have any questions about this, you can contact us here.Few readers
Companio
What 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 readersDoes Companio Support Consulting Activities?
Your activity is perfectly valid as long as your services are “online” or can be performed without a permanent establishment. That is, as long as your activity is not linked to a physical location and cannot trigger a permanent establishment in any other country. Consulting services usually fall into that category. If your consulting activity is related to medical information, or any other activity that deals with sensitive data, you may face additional challenges when opening a bank accounFew 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 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? If you have an online store that follows the dropshipping busFew readersCan 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. The providers of the goods, in charge of sending the goods to the final customer, must be a company or a provider (or a limited number of them). The provider of the goods cannot be individuals or physical persons. YoSome 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 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 readers
Activities
What Kind of Businesses and Activities Does Companio Global 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, digital, or can be performed in a location independent way, without facilities, offices, or permanent establishments outside of Estonia. The crucial point is that this activity can be carried out regardless of your country of rFew 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 (htFew 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 may or may not need a license (https://Few 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 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 readersHow to Invest With My Company Through a Broker or Regulated Investment Platform?
To invest with your company through a broker or regulated investment platform, you will have to do this: Provide a receipt or ticket: When you upload funds to the platform or broker, make sure to obtain a receipt or ticket confirming the transaction. Keep records of withdrawals: Similarly, when you receive money back into your accounts from your investments, retain the receipt or ticket as proof of the transaction. Monthly account statements: It's essential to maintain a recFew readersCan 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 readersDoes Companio Support Crypto Wallets Or Transactions?
Companio supports businesses with a specific set of crypto activities or performing certain crypto transactions in our PREMIUM plan. It is important for you to understand the conditions in which you can operate with crypto, and the transactions and activities supported. Join the PREMIUM plan First, crypto activities are only allowed in the PREMIUM plan, so make sure to contact our Customer Support team and ask them to upgrade to the PREMIUM plan. If you planFew 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 tSome 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 readersDo I Need a Physical Office or Address in Estonia?
You don't need to have a physical office in Estonia unless it's really necessary for your business operations. However, what is an absolutely essential legal requirement is that your company has a contact person and a registered address. Check out ourFew 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 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