Types of Estonian Companies: Legal Forms Compared

Our company formation agents in Estonia have prepared a detailed presentation on the main types of companies that can be registered here. We can also assist with professional advice and assistance on company registration in 2026 in this country.

Quick Facts
Types of entities available for registration	– Sole trader, – limited liability companies, – partnerships.
Requirements to set up an Estonian sole trader	– Having legal residency in Estonia, – carrying out an activity in accordance with the Estonian Classification of Economic Activities, – obtain a business license for specific operations.
Types of partnerships	– General, – limited.
Types of limited liability companies	– Private, – public.
Other types of companies	Commercial associations and non-profit organizations.
Most popular types of companies in Estonia	Private limited liability company.
Legal forms available for foreign companies	– Branch office, – subsidiary.
Most employed legal form by foreign investors	The private limited liability company.
Full foreign ownership availability (YES/NO)	Yes.
Special requirements for foreign shareholders (if any)	No, there are no specific requirements that apply to foreign shareholders.
Simplest type of company to incorporate	The private limited liability company.
Possibility for foreign companies to act as shareholders (YES/NO)	Yes, in branches and subsidiaries.
Requirement of specific share capital	Yes, for private and public limited liability companies.
Average timeframe to register a company	Approx. one week.
Assistance in starting a company in Estonia (YES/NO)	Yes, we offer company formation services in Estonia.

What are the main business forms available in Estonia?

According to the law, the following types of legal entities can be incorporated in Estonia:

the general partnership;
the limited partnership;
the private limited company;
the public limited company;
the commercial association;
sole proprietorship.

What do I need if I want to work as a sole trader in Estonia?

The sole proprietorship can be registered only by a natural person who can work on his/her own. You cannot set up this type of business form if you are a non-resident, as such, you will not qualify for it if you obtain Estonian e-residency, for example, as you need to be present in the country to provide your services or sell your goods here.

What are the main characteristics of the private limited liability company in Estonia?

The OU, as it is known:

must have at least one shareholder and one director, who need not be residents;
must have at least EUR 0.01 per shareholder as share capital (since 1 February 2023), which must be paid in before registration;
must have a legal address in Estonia;
the shareholders have limited responsibility for the debts and obligations of the entity.

Can I set up an OU as an e-resident in Estonia?

Yes, in fact, this is the most popular option among e-residents.

Here is also an infographic on this subject:

What are the main features of the public company in Estonia?

If you want to register an AS in Estonia, you:

can be the sole shareholder;
must appoint at least 3 members (directors) who will form the supervisory board;
must also appoint an auditor;
will ensure a minimum capital of EUR 25,000 for the company;
the liability of the shareholders is limited to their contribution to the capital of the company;
must secure a local legal address for the AS.

What are the main characteristics of the general and limited partnerships in Estonia?

The general partnership or TU:

must have at least two founding members;
must also have an Estonian registered address;
all members have unlimited liability for the debts of the business;
the founders also have equal decision-making rights in the enterprise;
does not have a minimum share capital imposed by law.

Similar requirements apply for the limited partnership (UU); however, at least one of the members will have limited liability towards the debts and obligations of the entity. Also, the same partner will not have the managing decision in the business.

What are the business forms available for foreign companies in Estonia?

Foreign businesses can operate through:

subsidiaries: if they want to register businesses that are treated as domestic companies;
branches: if they want to retain full control over the operations of the Estonian entities;
liaison or representative offices: if they want to test the Estonian market or promote their operations.

We also have a short video presenting the main types of Estonian business forms in 2026:

What are some of the requirements to start a business in Estonia in 2026?

These are:

at least one manager in the case of private and public companies in Estonia;
in the case of partnerships and sole proprietorships, the manager will be one of the partners, respectively, the sole trader;
all types of companies must register with the Estonian Trade Register based on specific documents;
all companies are subject to various accounting regulations and submission of specific financial statements.

If you need more information about the incorporation process for each company type, as well as tax obligations in Estonia and requirements for financial reporting, you can ask our company registration experts in Estonia. Also, if you are interested in setting up a company in another European country, for example, in Ireland, our partner law firm can provide you with assistance.

Our company registration advisors in Estonia can offer guidance in all the aspects related to buying a ready-made business, including with due diligence procedures which will help them make the right decision, so do not hesitate to contact us.

For detailed legal information and legal consultancy, we recommend our partner law firm in Estonia.

Companyincorporationestonia.com is a part of Bridgewest.eu, an international network of specialists in offshore company formation and setting up offshore bank accounts, which has affiliated partners throughout the world, including Dutch lawyers who can provide local legal assistance to foreign investors, and also company formation specialists in countries like Luxembourg, Switzerland, Belarus or Lithuania who can handle all needed legal procedures when opening a company in the related country. We can also recommend our partners from Slovakia, who are experts in company incorporation matters and can help you start a company in this country. In case you are interested in starting a business in an Asian country, such as Thailand or Malaysia, our consultants from ThaiCompanyFormation.com can handle the company formation procedure for you.