14 July 2026
Establish a Branch in Estonia
Read about the procedure for registering a branch (filiaal) of a foreign company in Estonia. Our company formation specialists can help you set up the branch.
We invite you to read about the procedure for registering a branch office in Estonia. Our company formation specialists in Estonia can help you set up a branch office for your foreign company.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Foreign country |
Best Used For | Highly regulated activities, such as financial ones |
Minimum share capital (YES/NO) | no |
| Time frame for the incorporation (approx.) | Approx. one week |
| Documents to be filed by parent company | Parent company's Registration Certificate and statutory documents, branch registration application form, proof of legal address in Estonia, resolution for opening the branch office. |
| Management (Local/Foreign) | Local |
| Legal representative required (YES/NO) | yes |
| Local bank account (YES/NO) | yes |
| Independence from the parent company | Fully dependent on the parent company |
| Liability of the parent company | Liable for all branch office's obligation |
| Corporate tax rate | 22% (on profits distributed/transferred from the branch) |
| Annual accounts filing requirements | Audited annual income reports must be filed |
| Possibility of hiring local staff (YES/NO) | yes |
| Travel requirements for incorporating branch/subsidiary (YES/NO) | no |
| Double tax treaty access (YES/NO) | Yes, approx. 60 double tax treaties are enforced |
| Special requirements related to the trading name (YES/NO) | Yes, the branch must have the same name as the foreign company. |
Activities permitted | It can undertake various types of activities. |
Restrictions (if any) | It cannot engage in other operations than the parent company's. |
| Special licensing requirements (if any) | Yes, depending on the commercial activities undertaken. |
| Local address required (YES/NO) | Yes, this is a mandatory requirement to set up a branch in Estonia. |
| Authority to be registered with | Estonian Companies Register |
| Employment registration requirement (YES/NO) | Yes, if the branch has employees. |
| Option to transfer employees from the headquarters (YES/NO) | Yes |
| VAT registration requirement (YES/NO) | Yes, when reaching an annual turnover of EUR 40,000. |
| Audit requirements (if any) | No, the branch is not subject to audit. |
| Online registration availability (YES/NO) | Yes, including through professional company registration services. |
| Applicability of the corporate tax | The corporate tax applies to the income generated in Estonia. |
| Access to tax benefits (YES/NO) | Only to double tax treaties |
| Advantages | – easy to register, – low maintenance costs, – access to the EU market. |
| Incorporation services availability (YES/NO) | Yes, we offer support in setting up an Estonian branch office. |
Who can set up a branch office in Estonia?
The branch office is a business form available for foreign companies seeking to expand their activities in Estonia.
What are the main features of an Estonian branch?
Estonian branch offices have the following features:
- they are permanent business forms which can be used for completing various activities in Estonia;
- they have the same responsibilities as their parent companies in terms of taxation in Estonia;
- the parent companies are also required to file specific financial documents with the tax authorities in Estonia;
- the parent companies must appoint representatives when opening branch offices in Estonia;
- from a taxation point of view, branches are taxed as local companies only on the income generated in Estonia.
What are the steps to open a branch in Estonia in 2026?
The following:
- trading name reservation;
- documents drafting and submission;
- tax registration;
- bank account opening;
- licensing.
You can also see our scheme on how to create a branch in Estonia:
What are the documents to file with the Estonian Trade Register to open a branch?
The following:
- an extract of the registration of the parent company in its home country or a copy of its Certificate of Registration;
- a copy of the Memorandum and Articles of Association of the parent company;
- the consent letter or license application for opening a branch, if required by law;
- the letter of appointment or the letter of authorization of the director;
- the contact details of the parent company;
- notarized specimen signatures of the director.
IMPORTANT! Foreign documents must be translated into Estonian.
If you want to open a company in Estonia and are considering operating it as a branch office, our local consultants can help you prepare all the necessary documents in order to register it with the Companies Registrar.
What are the management requirements for an Estonian branch?
The branch must have at least one director. If at least half of the directors do not reside in Estonia, another EEA state or Switzerland, the parent company must designate a local representative as a contact point for the local authorities.
Is it mandatory for an Estonian branch to register for VAT?
Yes, a branch office must register for VAT in Estonia once its taxable turnover exceeds EUR 40,000 in a calendar year (voluntary registration is possible earlier).
Can I expand my operations through a branch if I am an Estonian e-resident?
Yes, you can. You can use our local agents for representation in this case.
How long does it take to register a branch in Estonia?
The registration procedure takes 5 working days to complete after filing the documents.
Can I hire employees in an Estonian branch?
Yes, just like in a domestic company. Moreover, you can transfer employees to the country of origin of the parent company.
We invite you to watch our video on how to establish an Estonian branch:
How are Estonian branches taxed?
In the case of branch offices created by foreign companies, the taxation will occur on the activities completed on the Estonian territory. The corporate tax, which needs to be paid by an Estonian branch office, is set at a rate of 22%.
We can also help with dedicated accounting services in Estonia, should you need us to. We can also help with obtaining EORI numbers in Estonia. Our accountants in Estonia can offer a variety of services that will increase the standard of your company.
If you want to set up a company in Estonia and don’t know if the branch office is the right option for expansion, our local advisors can help you decide. Also, in case you want to extend your company in another country through a branch office, such as Albania, our partners – BridgeWest Albania are at your disposal. The time frame for registering a company in Albania is 1-2 working days.
Our company formation specialists in Estonia are ready to provide you with the necessary consultancy and a personalized offer, perfectly adapted to your business need. Contact us to see how we can help you.