Set Up an OÜ in Estonia: Private Limited Company Guide

Setting up a private limited liability company (Osaühing or OÜ) in Estonia is the fastest way to start a business in this country. If you want to open a company in Estonia and decide on an OU, you can rely on our company registration agents for assistance in its incorporation.

Quick Facts
Applicable legislation	Estonian Commercial Code (Äriseadustik).
Minimum number of shareholders	1
Minimum number of directors	1
Resident director required (YES/NO)	No, the director is not required to be an Estonian resident.
Local legal address required (YES/NO)	Yes, the legal seat of the private limited liability company must be in Estonia.
Minimum share capital	EUR 0.01 per shareholder (since 1 February 2023).
Local bank account required (YES/NO)	Yes, the company must also have an Estonian bank account.
Best used for	All types of activities, including for setting up subsidiary companies by foreign enterprises.
Liability of the shareholders	Limited to their contribution to the capital.
Visit required for incorporation (YES/NO)	No, our Estonian company formation agents can handle the procedure.
Possibility to incorporate through Estonian e-residency (YES/NO)	Yes, this type of company can be created after obtaining Estonian e-residency.
Corporate tax rate	22% on distributed profits (since 1 January 2025).
Audited financial statements required (YES/NO)	Based on the size, value of assets and number of employees a company may be subject to annual audits.
Incorporation time frame (approx.)	Approx. 5 days.
Assistance in setting up an OU Estonia (YES/NO)	Yes, we can help investors register private limited liability companies in Estonia.

What are the main characteristics of the Estonian OU?

The following:

it is a separate entity from the shareholders;
the owner has limited liability for the debts and obligations of the company;
it can be used to undertake various activities in Estonia.

If you are interested in creating a private limited company in Estonia, you can rely on us. If you need assistance for opening a company in Belize, we can put you in contact with our partners.

From a structural point of view, the Estonian OU is a type of company that requires:

at least one shareholder;
at least one director;
no specific share capital (the shareholder decides the amount necessary for the business);
an Estonian registered address (we offer virtual office services starting at EUR 500/year).

Is full foreign ownership available when opening an OU in Estonia?

Yes. The shareholder can be a natural person or company. The OU can also be used to create a subsidiary in Estonia.

Can I register a private limited liability company in Estonia remotely?

Yes, through our dedicated services that start at EUR 2,000.

NOTE: We can also assist in obtaining e-residency in Estonia for this purpose.

We also have partners in many offshore jurisdictions, and businessmen who are interested in this investment option are invited to contact our partner BridgeWest BVI company formation firm or ask for the help of our affiliates in the Isle of Man.

What are the steps to register a limited liability company in Estonia?

The company formation process of an OU in Estonia in 2026 must follow the next steps:

finding a legal address for the company in the Estonian city it will operate in;
reserving a trade name with the Estonian Companies Register (the name must be unique);
having the company’s incorporation documents prepared and filed with the Trade Register;
appointing the company’s directors and filing their personal information with the Trade Register;
opening the company bank account and depositing the share capital (we offer bank account opening services for EUR 1,200);
applying for a tax number and registering for VAT with the tax authorities;
applying for the necessary business permits and licenses with the competent authorities.

We have also created a scheme with the requirements related to the creation of an OU in Estonia:

What documents are required to open an OU in Estonia?

We will need the following:

your passport copy;
proof of residence (a recent utility bill);
your CV;
the desired business name (we recommend making at least 3 proposals and highlighting the desired one).

Based on them, we will draw up the Articles of Association and submit them to the Trade Registry.

Our Estonian company formation consultants can draft the incorporation documents of your OU. They can also help in preparing the other documents needed for starting a business in Estonia.

How long does it take to register an Estonian OU?

Around 3 weeks, if you are not an e-resident. If you have e-residency, the procedure is completed in a few days.

How is an Estonian OU taxed?

The following taxes need to be considered when setting up an OU in Estonia:

the corporate tax, which is levied at a rate of 22%;
the dividend tax rate of 14% for regular dividends (from 2019) was abolished on 1 January 2025, so all distributions are now taxed at 22%;
the social contributions a company must pay are the 33% social tax and the 0.8% unemployment insurance tax on the gross salary of an employee.

For support in tax-related matters, clients can always rely on our partners, lawyers in Estonia. Clients who want to start a company in an Asian jurisdiction can be put in contact with our partners from Uzbekistan.

For more information regarding the establishment of a limited Liability company in Estonia, please watch the film below:

In case you need assistance for setting up a company in Thailand, we recommend our partners – ThaiCompanyFormation.com.

For any other questions related to how to open and conduct a limited liability company in Estonia, please feel free to contact our company formation specialists.