What does company formation include?
The incorporation of a new Estonian private limited company (OÜ) with one person who is both its shareholder and its management board member: the incorporation documents, administrative assistance with the registration, the Estonian notary fee and the state fee for the registration, and a registered address and contact person for the first 12 months. On the remote package the sworn translation of the power of attorney in Estonia is also included; you pay only for signing the power of attorney in your own country. Each additional person has a fixed surcharge, calculated in the order form, and a person who is both shareholder and board member counts once; a shareholder that is a foreign company has its own surcharge, and its details are asked by email after the order. The prices are in the table on this page.
Do I need to be an e-resident to form a company?
No. A founder without Estonian e-residency can form the company through a notary, in person in Tallinn or remotely under a notarised power of attorney. An e-resident may also use the online company registration portal.
Is a VAT number included in the formation?
No. VAT registration is a separate application to the Tax and Customs Board, available as an add-on. The Board decides on the registration and may ask for evidence of the company's business activity; the registration is not guaranteed.
How long does the formation take?
Signing in person at a notary office in Tallinn is usually within 6–10 days of your order and payment, or within 1–3 days with the Express add-on; a remote formation adds the time to sign and courier the power of attorney. The registration itself is carried out by the registration department of Tartu County Court on its own schedule, so we cannot promise a registration date. We start as soon as the order is paid and keep you informed by email.
Does a management board member need a written agreement?
The law does not require one, but without it the terms of the board member's work — remuneration or none, termination, liability, non-competition — are left to the general rules of the Law of Obligations Act. A written service agreement sets them out and is especially important when the board member is not a shareholder.
Is the board member's agreement an employment contract?
No. In Estonian practice a management board member acts under a contract for services, not an employment contract. Remuneration for the board role is taxable; the tax consequences depend on the person and are not part of our drafting service.
Do we need a shareholders' agreement if we have articles of association?
Usually yes, when there are two or more shareholders. The articles are public and contain only what company law allows; a shareholders' agreement is a private contract that can regulate reserved matters, share transfers, drag-along and tag-along, deadlock and exit. The two documents are drafted to be consistent.
What does the starting price of the shareholders' agreement cover?
A questionnaire, a draft agreement in English and two rounds of amendments for the shareholders of one company. You order and pay for it in the order form. If the number of shareholders or the matters to be settled need more work, we tell you before the work starts, and additional work is done only with your written agreement. Negotiating with the other shareholders on your behalf is not included.
What does the annual company secretary service do?
For twelve months we keep your company's corporate calendar: email reminders of the annual report deadline and of the register data that must be kept current, one annual check of the company's commercial register and beneficial owner data, and a draft shareholder resolution approving the annual report. It does not include the annual report itself, register changes or accounting.
Can I order the company secretary service for a company I already own?
Yes. It is available on its own for any Estonian private limited company under our company services, and as an upgrade when you buy a ready-made company or form a new one.
Can I order the Certificate of Residence together with a ready-made company?
Yes. It can be ordered together with the purchase of a ready-made company, or with a new company, and for any Estonian company you already own.
Where does my Estonian company pay tax if I live abroad?
In Estonia, because it was established under Estonian law (Income Tax Act § 6); there its profit is taxed when it is distributed. But the country you live in may also count the company as its own when it is managed from there — Finland, Germany, Poland, Spain and Italy do, each by its own rule. When both countries count it as resident, their tax treaty decides. Our comparison page shows the five rules with their sources; ask a tax adviser in your country before you start.
Is my Estonian company taxed in Germany if I run it from Germany?
It can be. A company whose place of management (Geschäftsleitung) is in Germany is fully liable to German corporation tax on all its income (Körperschaftsteuergesetz § 1); the place of management is the centre of the company's top-level business direction (Abgabenordnung § 10). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). When both countries count it as resident, the Germany–Estonia double taxation agreement decides. Ask a German tax adviser before you form or buy the company; we handle the Estonian side, not German taxes.
Is my Estonian company taxed in Poland if I run it from Poland?
It can be. A company with its seat or management in Poland is liable to Polish corporate income tax on all its income (CIT Act, art. 3(1)); management is in Poland when the company's current affairs are run there in an organised and continuous way (art. 3(1a)). The Poland–Estonia tax treaty treats a company resident in both states as resident where its status derives from — Estonia for an OÜ (article 4(3)) — but a place of management in Poland can be a permanent establishment there, whose profit Poland may tax (articles 5 and 7). Ask a Polish tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Spain if I run it from Spain?
It can be. An entity is resident in Spain if its place of effective management is there — where the direction and control of all its activities lie (Ley 27/2014, article 8(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Spain–Estonia tax treaty as modified by the multilateral convention, the two tax administrations settle such a double residence by mutual agreement, and without an agreement the company gets no treaty benefits (article 4(3)). Ask a Spanish tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Italy if I run it from Italy?
It can be. A company is resident in Italy if, for most of the tax period, it has its registered office, its place of effective management (where its strategic decisions are taken) or its ordinary day-to-day management mainly in Italy (Consolidated Income Tax Act, Legislative Decree 117/2026, article 82(3)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). When both countries count it as resident, the Italy–Estonia tax treaty decides. Ask an Italian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Ukraine if I run it from Ukraine?
It can be. A foreign company whose place of effective management is in Ukraine — for example, its executive body meets there most regularly or it is in fact managed mainly from Ukraine — is a Ukrainian corporate income tax payer (Tax Code of Ukraine, art. 133.1.5); a company treated as non-resident under a tax treaty is a non-resident taxpayer, and the Estonia–Ukraine treaty treats a company resident in both states as resident where its status derives from — Estonia for an OÜ (article 4(3)). A place of management in Ukraine can still be a permanent establishment there (articles 5 and 7), and an owner resident in Ukraine who holds more than 50 percent is a controlling person under the controlled foreign company rules (art. 39-2). Ask a Ukrainian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in the UK if I run it from the UK?
It can be. A company incorporated abroad is UK resident if its central management and control is in the UK — where the decisions of real importance are actually taken (HMRC International Manual INTM120060) — and a UK resident company is chargeable to corporation tax on all its profits (Corporation Tax Act 2009, section 5(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the UK–Estonia tax treaty the two tax administrations try to settle such a double residence by mutual agreement, and without an agreement the company gets no relief under the treaty (article 4(3)). Ask a UK tax adviser before you form or buy the company; we handle the Estonian side.
I am a US citizen — how is my Estonian company treated for US tax?
For US tax law a corporation organised outside the United States is foreign, wherever it is managed from (26 U.S.C. § 7701(a)(4) and (5)). If the OÜ is treated as a corporation and US shareholders own more than 50 percent, it is a controlled foreign corporation (§ 957(a)); each US shareholder of 10 percent or more includes his or her share of certain income in gross income for the year even without a distribution (§ 951(a)(1), (b)), and a US person who controls it files an information return — the penalty for not filing is USD 10,000 per year (§ 6038). Under the Estonia–US treaty the United States may tax its citizens as if the treaty had not come into effect (article 1(4)). Ask a US tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Turkey if I run it from Turkey?
It can be. A company whose legal seat or business centre is in Turkey — the centre where its business operations are in fact concentrated and managed — is taxed in Turkey on all its earnings (Corporate Tax Law No. 5520, article 3(1) and (6)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Turkey tax treaty the competent authorities decide such a double residence by agreement; without an agreement the company gets none of the treaty's benefits (article 4(3)). Turkish owners of 50 percent or more can also be caught by the controlled foreign company rule (article 7). Ask a Turkish tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Austria if I run it from Austria?
It can be. A company whose management or seat is in Austria is fully liable to Austrian corporate tax on all its income (Körperschaftsteuergesetz 1988, § 1(2)); the place of management is where the centre of its top-level business management lies (Bundesabgabenordnung, § 27(2)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Austria tax treaty the competent authorities decide such a double residence by agreement; without an agreement the company gets none of the treaty's benefits (article 4(3)). Austria's controlled foreign company rule names an Austrian company as the controlling owner (§ 10a). Ask an Austrian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Canada if I run it from Canada?
It can be. Under the common-law test the Canada Revenue Agency applies, a company is resident in Canada if its central management and control is exercised there — usually where its board actually meets (CRA, "Residency of a corporation"). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Canada tax treaty a company resident in both countries is deemed resident only of the state of which it is a national (article 4(3)) — for an OÜ, Estonia; Canada then deems it not resident (Canada's Income Tax Act, subsection 250(5)), but the CRA expects a company claiming treaty residence to show it is taxed comprehensively there. An office in Canada can still be a permanent establishment, and a Canadian resident owner of a controlled foreign affiliate includes its foreign accrual property income (subsection 91(1)). Ask a Canadian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Australia if I run it from Australia?
It can be. A company not incorporated in Australia is an Australian resident if it carries on business in Australia and has either its central management and control in Australia or its voting power controlled by Australian-resident shareholders (Income Tax Assessment Act 1936, section 6(1)); an Australian resident is taxed on its income from all sources (Income Tax Assessment Act 1997, section 6-5(2)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). There is no tax treaty between Estonia and Australia to settle such a double residence. An Australian owner with 10 percent or more of a controlled foreign company can also be taxed on part of its income (sections 340, 361, 456). Ask an Australian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Ireland if I run it from Ireland?
It can be. Ireland's Revenue writes that a company incorporated abroad and centrally managed and controlled in Ireland is resident in Ireland for tax purposes, and a company resident in Ireland is liable to corporation tax on its worldwide profits (Tax and Duty Manual Part 02-02-03). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Ireland tax treaty the competent authorities try to settle such a double residence by agreement; without an agreement the company gets none of the treaty's benefits (article 4(3)). Ireland's controlled foreign company rules charge only an Irish company as owner. Ask an Irish tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Switzerland if I run it from Switzerland?
It can be. Legal persons whose seat or effective management is in Switzerland are taxable there on the basis of personal attachment, and foreign legal persons are treated like the Swiss ones they most resemble (Federal Act on Direct Federal Tax, Art. 49(3) and 50). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Switzerland tax treaty the competent authorities settle such a double residence by agreement (article 4(3), as replaced by the 2014 protocol). Ask a Swiss tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in France if I run it from France?
It can be. France taxes the profits of businesses operated in France, and if a company's registered seat is fictitious the French tax administration retains its real seat — where its management, administration and control are in fact concentrated (BOFiP, BOI-IS-CHAMP-60-10-10 and -20). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–France tax treaty the competent authorities endeavour to settle such a double residence by mutual agreement; without an agreement the company gets none of the treaty's benefits (article 4(3)). France's article 123 bis rule does not apply to an entity in an EU state unless the arrangement is artificial. Ask a French tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Luxembourg if I run it from Luxembourg?
It can be. A company whose statutory seat or central administration is in Luxembourg is a resident taxpayer liable to the corporate income tax on all its income (Income Tax Law of 4 December 1967, article 159). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Luxembourg tax treaty the competent authorities settle such a double residence by mutual agreement (article 4(3)). Luxembourg's controlled foreign company rule names a company as the controlling owner (article 164ter). Ask a Luxembourg tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in the Netherlands if I run it from the Netherlands?
It can be. Where a body is established is judged by the circumstances (General Act on State Taxes, article 4(1)), and bodies established in the Netherlands are resident taxpayers of the corporate income tax (Corporate Income Tax Act 1969, article 2). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Netherlands tax treaty the competent authorities endeavour to settle such a double residence by mutual agreement; without an agreement the company gets only some of the treaty's benefits (article 4(3)). The Dutch controlled foreign company rule reaches only bodies in designated states, and Estonia is not one of them. Ask a Dutch tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Sweden if I run it from Sweden?
Partly, it can be. Sweden decides a company's residence by registration: an Estonian OÜ is a foreign legal person and a limited taxpayer, taxable in Sweden on income from a permanent establishment there (Income Tax Act, chapter 6, sections 3, 7 and 11). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). A Swedish owner holding 25 percent or more can be taxed on low-taxed income of a foreign legal person (chapter 39 a); Estonia is on the Swedish list except for financial and royalty income, and an EEA real establishment is excepted. Ask a Swedish tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Denmark if I run it from Denmark?
It can be. A company is resident in Denmark if it is registered there or has its seat of management there (Corporation Tax Act, section 1(6)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Denmark tax treaty the competent authorities endeavour to settle such a double residence by mutual agreement (article 4(3)). Danish CFC rules can reach a Danish parent company (section 32) and an individual who controls the company (Tax Assessment Act, section 16 H), with an exemption on request for a real establishment in the EU or EEA. Ask a Danish tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Norway if I run it from Norway?
It can be. A company is resident in Norway if it is founded under Norwegian company law or has its real management in Norway — board-level and day-to-day management (Tax Act, section 2-2(7)) — unless a tax treaty makes it resident in another state (section 2-2(8)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Norway tax treaty the competent authorities endeavour to settle such a double residence by mutual agreement (article 4(3)). Norway's NOKUS rules can tax a Norwegian owner on the profit of a Norwegian-controlled company in a low-tax country, with exceptions for treaty countries without mainly passive income and for real establishments in the EEA (sections 10-60 to 10-64). Ask a Norwegian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Czechia if I run it from Czechia?
It can be. Taxpayers are Czech tax residents if their seat or place of management — the address from which they are managed — is in Czechia, and they are taxed on income from Czech and foreign sources (Income Taxes Act, section 17(3)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Czechia tax treaty the competent authorities endeavour to settle such a double residence by mutual agreement (article 4(3)). Czechia's controlled foreign company rule names a Czech company as the controlling owner (section 38fa). Ask a Czech tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Portugal if I run it from Portugal?
It can be. Entities with their seat or effective management in Portugal are resident and liable to IRC on all their income (Código do IRC, articles 2(3) and 4(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Portugal tax treaty the competent authorities decide such a double residence by mutual agreement (article 4(3)). Portugal's rule on clearly more favourable tax regimes reaches owners of 25 % or more — companies and individuals (Código do IRC, article 66; Código do IRS, article 20(3)) — but not an entity in another EU state with valid economic reasons and real activity (article 66(14)). Ask a Portuguese tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Brazil if I run it from Brazil?
Parts of it can be. Brazil taxes legal persons domiciled in Brazil and the branches, agencies or representations in Brazil of companies seated abroad (Income Tax Regulation, article 159). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). A Brazilian resident individual who controls the company declares its profits at 15% — every year if its own active income is under 60% of its total income or it is in a favoured-tax country, otherwise when the profits are made available (Law no. 14,754/2023, articles 2, 5 and 6). There is no tax treaty between Estonia and Brazil. Ask a Brazilian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in New Zealand if I run it from New Zealand?
It can be. New Zealand treats a company as resident if its head office or its centre of management is in New Zealand, or if its directors exercise control of it there (Income Tax Act 2007, section YD 2(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). If New Zealand residents control the company, it is a controlled foreign company, and an owner with an income interest of 10% or more can be taxed on its attributable income, unless that amount is less than 5% of its gross income (sections EX 1, EX 14, EX 21B and EX 21D). There is no tax treaty between Estonia and New Zealand. Ask a New Zealand tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in South Korea if I run it from Korea?
It can be. Korea treats a corporation as a domestic corporation if its headquarters, main office or actual business management place is in Korea (Corporate Tax Act, Article 2). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). An investor holding 10% or more of a foreign corporation whose actual tax burden is no more than 70% of Korea's maximum corporate tax rate can be treated as receiving its retained earnings as a dividend each year (Adjustment of International Taxes Act, Article 27). Under the Estonia–Korea tax treaty, the two tax authorities settle the residence of a company resident in both by mutual agreement (Article 4(3)). Ask a Korean tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Slovakia if I run it from Slovakia?
It can be. Slovakia taxes a legal person that has its seat or its place of effective management in Slovakia — where the essential management and business decisions for the company as a whole are taken (Income Tax Act 595/2003, § 2(d), point 2). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Slovakia tax treaty, the two tax authorities try to settle the residence of a company resident in both by mutual agreement; without agreement it gets no treaty benefits (Article 4(3)). The Slovak controlled foreign company rule names Slovak legal persons as the controlling owner (§ 17h). Ask a Slovak tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Croatia if I run it from Croatia?
It can be. Croatia counts as resident a company whose seat is registered in Croatia or whose place of actual management and supervision of the business is in Croatia (Profit Tax Act, Article 3(1)), and a resident is taxed on its profit made in Croatia and abroad (Article 5(2)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Croatia tax treaty the competent authorities decide such a double residence by agreement; without an agreement the company gets none of the treaty's benefits (article 4(3)). The Croatian controlled foreign company rule names Croatian taxpayers as the controlling owner (Article 30.b). Ask a Croatian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Slovenia if I run it from Slovenia?
It can be. Slovenia counts as resident a company that has its seat or its place of effective management in Slovenia (Corporate Income Tax Act ZDDPO-2, Article 5(1)), and a resident is taxed on its income from sources in Slovenia and abroad (Article 4(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Slovenia tax treaty the competent authorities try to settle such a double residence by agreement; without an agreement the company cannot claim the treaty's benefits (article 4(3)). The Slovenian controlled foreign company rule names Slovenian corporate taxpayers as the controlling owner (Article 67.h). Ask a Slovenian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Bulgaria if I run it from Bulgaria?
Only through a place of business there. Bulgaria counts as its own only companies incorporated under Bulgarian law (Corporate Income Tax Act, Article 3(1)); an Estonian OÜ is a foreign legal person, taxed in Bulgaria on the profit made through a place of business in Bulgaria (Article 4(2)). In Estonia the company is resident because it was established under Estonian law (Income Tax Act § 6), and under the Estonia–Bulgaria tax treaty a company resident in both states is resident where it was incorporated (article 4(3)). Bulgaria's controlled foreign company rule names Bulgarian taxable persons as the controlling owner (Article 47v). Ask a Bulgarian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Costa Rica if I run it from Costa Rica?
It can be. Costa Rica taxes profit-making activities of Costa Rican source (Income Tax Law 7092, article 1), and every enterprise carrying on such activities in Costa Rica is a taxpayer, whatever the place where it was constituted or where its board meets (article 2). An administrative centre in Costa Rica of a foreign company is a permanent establishment (article 2(b)); legal persons pay 30 per cent (article 15). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Estonia and Costa Rica have no tax treaty, so each country applies its own law. Ask a Costa Rican tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Uruguay if I run it from Uruguay?
It can be. Uruguay's business income tax is a tax on income from Uruguayan sources (Texto Ordenado 2023, Title 4, articles 1 and 16), at 25 per cent (article 23). Only companies constituted under Uruguayan law are resident (article 3), but a place of management in Uruguay of a foreign company is a permanent establishment (article 4) and pays the tax (article 18). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Estonia and Uruguay have no tax treaty, so each country applies its own law. Ask a Uruguayan tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Kenya if I run it from Kenya?
It can be. A body of persons is resident in Kenya if the management and control of its affairs was exercised in Kenya in the year of income (Income Tax Act, section 2(1)), and income tax is charged on income which accrued in or was derived from Kenya (section 3(1)), at 30 per cent for a company (Third Schedule, Head B, paragraph 2). A place of management is also a permanent establishment. In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Estonia and Kenya have no tax treaty, so each country applies its own law. Ask a Kenyan tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Peru if I run it from Peru?
It can be. Only companies constituted in Peru are domiciled there, but a place of management in Peru of an entity constituted abroad is a permanent establishment (Income Tax Law, article 14-B), domiciled and taxed on its income from Peruvian sources (articles 6 and 7(e)) at 29.5 per cent (article 55). Domiciled owners of more than 50 per cent of a low-taxed foreign company can be taxed on its passive income (articles 111 to 114). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Estonia and Peru have no tax treaty, so each country applies its own law. Ask a Peruvian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Indonesia if I run it from Indonesia?
It can be. A body established or domiciled in Indonesia is a domestic taxpayer, and the Director General of Taxes determines a body's domicile according to the actual circumstances (Income Tax Law, article 2(3)(b) and 2(6)); a place of management in Indonesia of a foreign company is a permanent establishment (article 2(5)(a)). The rate is 22 per cent (article 17(1)(b)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Estonia and Indonesia have no tax treaty, so each country applies its own law. Ask an Indonesian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Argentina if I run it from Argentina?
It can be. A company is resident in Argentina only if it was constituted there, but a place of management or administration in Argentina is a permanent establishment of a foreign company (Income Tax Law, article 22), taxed on the scale of 25, 30 and 35 per cent plus 7 per cent when profit is remitted (article 73). Argentine residents who control a foreign company with mainly passive income and low tax can be taxed on their share of that income (article 130(f)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Estonia and Argentina have no tax treaty, so each country applies its own law. Ask an Argentine tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Malaysia if I run it from Malaysia?
It can be. A company carrying on a business is resident in Malaysia if at any time in the basis year the management and control of its business is exercised in Malaysia (Income Tax Act 1967, section 8(1)(b)), and income tax is charged on income derived from Malaysia or received in Malaysia from outside Malaysia (section 3), at 24 per cent for a company (Schedule 1). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Estonia and Malaysia have no tax treaty, so each country applies its own law. Ask a Malaysian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Cyprus if I run it from Cyprus?
It can be. Since the 2026 reform a company whose control and management is exercised in Cyprus is resident in Cyprus (Income Tax Law, section 2, as replaced by Law N.244(I)/2025), and the corporate rate is 15% from 2026 (Second Schedule). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Cyprus tax treaty the competent authorities settle such a double residence by mutual agreement, with regard to the place of effective management (article 4(3)). The Cypriot controlled foreign company rule is written for Cypriot resident companies (section 36A). Ask a Cypriot tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Oman if I run it from Oman?
It can be. Oman charges tax on Omani companies and on permanent establishments, and a place of management in Oman is a permanent establishment (Income Tax Law, Articles 1, 2 and 39), at 15% (Article 112); a legal person with its main or effective headquarters in Oman is also an Omani tax resident (Article 18bis). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Oman tax treaty the competent authorities try to decide such a double residence by agreement; without one the company gets no treaty relief (article 4(3)). Oman has no controlled foreign company rule. Ask an Omani tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Qatar if I run it from Qatar?
Only on its income from sources in Qatar. Qatar counts as a resident entity only one that is established in Qatar and has its main and actual place of management and control there (Income Tax Law, Article 1), so an Estonian OÜ is not a Qatari resident entity; but tax is imposed on income arising from sources in Qatar, which includes income from an activity carried on in Qatar (Articles 2 and 3), at 10% (Article 9). In Estonia the company is resident because it was established under Estonian law (Income Tax Act § 6). The Estonia–Qatar tax treaty is signed but not in force, so each country applies its own law. Ask a Qatari tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Albania if I run it from Albania?
It can be. Albania counts as resident an entity whose management and control is exercised in Albania at any time in the tax year (Income Tax Act, Article 28(1)), and deems this so when board meetings are held there or two of three conditions are met: day-to-day decisions taken in Albania, at least half of the directors resident there, at least half of the capital or votes held by residents (Article 28(2)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Albania tax treaty the competent authorities settle such a double residence by mutual agreement (article 4(3)). Albania's controlled foreign entity rule can add the passive undistributed profit of a low-taxed company to its individual owner's income (Article 19). Ask an Albanian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in China if I run it from China?
It can be. China counts as a resident enterprise an enterprise established under foreign law whose actual management body is in China, and a resident enterprise is taxed on its income from inside and outside China (Enterprise Income Tax Law, Articles 2 and 3). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–China tax treaty the competent authorities try to settle such a double residence by mutual agreement (article 4(3)). China's controlled foreign company rules can reach a low-taxed company that keeps its profit without a reasonable business need, when Chinese resident enterprises or resident individuals control it (Enterprise Income Tax Law, Article 45; Individual Income Tax Law, Article 8). Ask a Chinese tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Liechtenstein if I run it from Liechtenstein?
It can be. Liechtenstein taxes a legal person without limit on all its income if its seat or its place of actual management is in Liechtenstein (Tax Act, Article 44(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Liechtenstein tax treaty the competent authorities try to decide such a double residence by agreement, having regard to the place of effective management and of incorporation; without an agreement the company gets no treaty relief (article 4(3)). Liechtenstein has no controlled foreign company rule, but a dividend from a low-taxed foreign company with mostly passive income is not exempt for a Liechtenstein company (Article 48(3)). Ask a Liechtenstein tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in the UAE if I run it from the UAE?
It can be. Under UAE corporate tax a company incorporated abroad is a resident person if it is effectively managed and controlled in the UAE (Federal Decree-Law No. 47 of 2022, Article 11(3)(b)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–UAE tax treaty only a company incorporated in the UAE is a UAE resident (article 4(1)), so an Estonian OÜ is an Estonian company for the treaty and the UAE can tax the profit of a permanent establishment there, which includes a place of management (articles 5 and 7(1)). The UAE law has no controlled foreign company rule. Ask a UAE tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Serbia if I run it from Serbia?
It can be. Serbia counts as resident a legal person that is founded in Serbia or has its place of actual management and control there, and a resident is taxed on its profit made in Serbia and abroad (Corporate Profit Tax Act, Article 2). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Serbia tax treaty the competent authorities decide such a double residence by agreement, having regard to the place of its highest management body (article 4(3)). Serbia's controlled foreign company rule is adopted but applies only from Serbia's accession to the EU. Ask a Serbian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Romania if I run it from Romania?
It can be. Romania counts a foreign company as resident when its place of effective management is in Romania: it carries on real operations and either its strategic decisions are taken in Romania by its directors or at least 50% of its directors or board members are Romanian residents (Fiscal Code, Article 7, points 18 and 37). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). When a company is resident in both, the Estonia–Romania tax treaty applies and the two tax authorities try to settle its residence by mutual agreement (Fiscal Code, Article 8^1; treaty Article 4(3)). Ask a Romanian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Thailand if I run it from Thailand?
It can be. Thailand taxes a company incorporated under foreign laws on the net profits from business carried on in Thailand, and a foreign company with an employee, an agent or a go-between in Thailand that receives income there is deemed to carry on business in Thailand (Revenue Code, Sections 66 and 76 bis). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Thailand tax treaty, a company resident in both countries is resident where it was incorporated — for an OÜ, Estonia (Article 4(3)); Thailand can still tax the profits of a permanent establishment there. A Thai resident pays tax on income from abroad when it is brought into Thailand (Section 41). Ask a Thai tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Pakistan if I run it from Pakistan?
It can be. Pakistan treats a company as resident when the control and management of its affairs is situated wholly in Pakistan at any time in the year (Income Tax Ordinance, section 83), and a resident is taxed on foreign-source income too (section 11(5)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Pakistan tax treaty, the two tax authorities settle by mutual agreement where a company resident in both countries belongs; without that agreement it gets no treaty relief except as they agree (Article 4(3)). A Pakistani resident who holds the company can also fall under the controlled foreign company rule (section 109A). Ask a Pakistani tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Armenia if I run it from Armenia?
It can be, through a permanent establishment. Armenia decides a company's residence by its place of state registration, so an OÜ registered in Estonia is not an Armenian resident organisation (Tax Code, Articles 22 and 23); but a place of business in Armenia, such as any place of management, can be a permanent establishment whose profit is taxed in Armenia (Articles 27 and 125). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). An Armenian resident — 183 days in Armenia or the centre of vital interests there — is taxed on income received abroad, with a credit for foreign tax (Articles 25 and 20). Ask an Armenian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Azerbaijan if I run it from Azerbaijan?
It can be. Azerbaijan counts a legal entity as resident when its place of management is in Azerbaijan — where the commercial decisions are taken and day-to-day management is carried out (Tax Code, Article 13.2.5.3); the profit tax is 20 percent (Article 105.1). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Azerbaijan tax treaty, the two tax authorities decide by mutual agreement how the treaty applies to a company resident in both countries; without agreement it gets no treaty benefits (Article 4(3)). An Azerbaijani resident who controls the company can also fall under the controlled foreign company rule (Article 14-2). Ask an Azerbaijani tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Colombia if I run it from Colombia?
It can be. Colombia treats a company as national when its effective place of management — where the day-to-day commercial and management decisions are actually taken — is in Colombia during the tax year (Estatuto Tributario, article 12-1), and a national company is taxed on income from everywhere at 35 percent (articles 12 and 240). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). There is no tax treaty between Estonia and Colombia, so no treaty decides a company resident in both. A Colombian resident who controls the company can also be taxed every year on its passive income under the controlled foreign entity rules (articles 882 to 886). Ask a Colombian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Chile if I run it from Chile?
It can be. Chile taxes every person domiciled or resident in Chile on income from any source (Ley sobre Impuesto a la Renta, article 3), and a foreign entity through a permanent establishment — a place such as an office used permanently or habitually for its business (article 2, number 12); the first category tax is 27 percent (article 20). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). There is no tax treaty between Estonia and Chile, so no treaty decides a company resident in both. A Chilean resident who controls the company must also count its passive income as their own (article 41 G). Ask a Chilean tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in the Philippines if I run it from the Philippines?
It can be. The Philippines decides a corporation's status by where it was created, so an OÜ is a foreign corporation (National Internal Revenue Code, Section 22(C) and (D)); but a foreign corporation engaged in trade or business in the Philippines is a resident foreign corporation and pays 25 percent tax on its Philippine-source income (Sections 22(H) and 28(A)(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). A Filipino citizen living in the Philippines is taxed on income from everywhere, a foreign individual only on Philippine-source income (Section 23). There is no tax treaty between Estonia and the Philippines. Ask a Philippine tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Sri Lanka if I run it from Sri Lanka?
It can be. Sri Lanka treats a company as resident when the management and control of its affairs are exercised in Sri Lanka at any time during the year (Inland Revenue Act, section 69(4)), and a resident is taxed on income wherever its source arises (section 4); the company rate is 30 percent (First Schedule, paragraph 2(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). There is no tax treaty between Estonia and Sri Lanka, so no treaty decides a company resident in both. An individual who lives in Sri Lanka or is present for 183 days in a twelve-month period is resident (section 69(1)). Ask a Sri Lankan tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Malta if I run it from Malta?
It can be. Malta counts a body of persons as resident in Malta when the control and management of its business are exercised in Malta (Income Tax Act, Chapter 123, article 2). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Malta tax treaty, the two tax authorities try to settle the residence of a company resident in both by mutual agreement; without agreement it gets no treaty benefits (Article 4(3)). The Maltese controlled foreign company rule applies to companies taxed in Malta (S.L. 123.187, regulation 7). Ask a Maltese tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Singapore if I run it from Singapore?
It can be. Singapore counts a company as resident when the control and management of its business are exercised in Singapore (Income Tax Act 1947, section 2(1)), and it taxes income accruing in or derived from Singapore or received in Singapore from outside Singapore (section 10(1)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Singapore tax treaty, the two tax authorities try to settle the residence of a company resident in both by mutual agreement; without agreement it gets no treaty benefits (Article 4(3)). Ask a Singapore tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Georgia if I run it from Georgia?
It can be. The Tax Code of Georgia counts an enterprise — including a company established under foreign law — as a Georgian enterprise when its place of business and/or management is in Georgia (Articles 21 and 22); the place of management is where the board exercises managerial functions, or where a natural person who manages the company lives (Article 28). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Georgia tax treaty, the two tax authorities try to settle the residence of a company resident in both by mutual agreement; until then it cannot claim treaty benefits (Article 4(3)). Ask a Georgian tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Kazakhstan if I run it from Kazakhstan?
It can be. The Tax Code of Kazakhstan counts a legal entity created under foreign law as resident when its place of effective management is in Kazakhstan — where its board of directors or similar body meets, exercises management and/or control and takes the decisions needed for its business (Article 223). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Kazakhstan tax treaty, the two tax authorities try to settle the residence of a company resident in both by mutual agreement (Article 4(3)). A Kazakh resident holding 25 percent or more of a low-taxed foreign company can be caught by the controlled foreign company rules (Article 332). Ask a Kazakh tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Uzbekistan if I run it from Uzbekistan?
It can be. The Tax Code of Uzbekistan counts a foreign legal entity as a tax resident when its place of actual management is Uzbekistan, unless a tax treaty provides otherwise — for example when its executive body regularly acts from Uzbekistan or its senior officers mainly manage it there (Articles 33 and 34). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Uzbekistan tax treaty, the two tax authorities try to settle the residence of a company resident in both by mutual agreement; without agreement it gets no treaty benefits (Article 4(3)). An Uzbek resident with more than 25 percent of a foreign company is a controlling person under the controlled foreign company rules (Article 40). Ask an Uzbek tax adviser before you form or buy the company; we handle the Estonian side.
Is my Estonian company taxed in Jersey if I run it from Jersey?
It can be. Jersey regards a company incorporated outside Jersey as resident in Jersey if its business is managed and controlled in Jersey (Income Tax (Jersey) Law 1961, Article 123(1)(b)). In Estonia the company stays resident because it was established under Estonian law (Income Tax Act § 6). Under the Estonia–Jersey tax agreement, the two tax authorities settle the residence of a company resident in both by mutual agreement, having regard to the place of effective management and the place of incorporation (Article 4(3)). Ask a Jersey tax adviser before you form or buy the company; we handle the Estonian side.
Can I form an Estonian company remotely?
Yes. With an e-residency card or an Estonian ID you sign digitally. Without one, the remote package uses a notarised power of attorney signed in your home country, as a rule with an apostille (not needed in Latvia, Lithuania, Poland or Ukraine).
What can delay the formation?
An unavailable business name, missing due diligence documents, or questions of the registration department. We check the name before filing and tell you at once if the court asks for anything.
What happens if the registration department refuses the application?
The court explains the reason. Most issues — a name, an activity code, a missing signature — can be corrected and the application filed again; we do that as part of the formation.
Does owning an Estonian company give me the right to live in Estonia?
No. Owning or managing an Estonian company does not by itself give a right of residence. A residence permit is a separate application decided by the Police and Border Guard Board; we can help with the application as a separate service.
How is an Estonian company taxed?
An Estonian company pays corporate income tax only when it distributes profit, for example as dividends; profit kept in the company is not taxed. The rates are set by the Income Tax Act. This is general information, not tax advice for your situation.
What is the full first-year cost of a new Estonian company?
The package price already covers what the law requires for the formation: the state fee, the Estonian notary fee, the registered address and the contact person for the first 12 months. In the first year you add only what your business needs: a VAT number if you will trade with VAT, accounting, and the annual report after the financial year. Their prices are in the table on this page.
How much share capital does an Estonian OÜ need?
The founders decide the amount of the share capital; the smallest possible share is one cent (0.01 euro), and since 1 February 2023 there is no 2,500-euro minimum. The capital is paid in full before the company is registered (Commercial Code § 140(2)). The share capital is not a fee: it is the company's own money and stays with the company.
Can a foreigner be the management board member of an Estonian company?
Yes. The law does not require Estonian citizenship or residence: a management board member must be a natural person with active legal capacity (Commercial Code § 180(2), checked 16 October 2026) who is not banned from acting as a board member (§ 180(3¹)). A company whose address is abroad must have a contact person in Estonia (Commercial Register Act § 24(2)). Being a board member gives no right to live in Estonia; a non-EU national who wants to live here and manage the company needs a temporary residence permit for enterprise or a visa.
How do I check whether my company name is free?
Use our free company name check: it compares the name with every name in the Estonian commercial register at once and tells you whether it is taken, too close to another name or not found. The registrar makes the final decision on the name (Commercial Code § 11(2)).
Do I need to travel to Estonia?
No. Formation by notarised power of attorney, online formation for e-residents, buying a ready-made company and the services for an existing company are all done remotely, without travelling to Estonia. An applicant for a residence permit gives the biometric data in person.
