In short: an Estonian private limited company (OÜ) and an Australian proprietary company limited by shares (Pty Ltd) are both companies limited by shares that one person can own. They differ in the rules for directors and in when the company's profit is taxed. This page sets the facts of both side by side from the official texts; it does not say which is better for you.
The facts side by side
- The company and its owners
- Estonian OÜ: One founder with one share is a valid company (Commercial Code § 148(1)); a shareholder is not personally liable for the company's obligations (§ 135(2), (3))
- Australian Pty Ltd: A proprietary company limited by shares is one of the types of company the Act allows (Corporations Act 2001, s. 112(1)); a company needs at least one member (s. 114), and a proprietary company has no more than 50 non-employee shareholders (s. 113(1)); it comes into existence at the beginning of the day on which it is registered (s. 119)
- Directors
- Estonian OÜ: A board member living abroad is possible; the company then needs a contact person in Estonia if its address is abroad (Commercial Register Act § 24)
- Australian Pty Ltd: At least one director, who must ordinarily reside in Australia (s. 201A(1))
- Yearly filing
- Estonian OÜ: Annual report within six months after the end of the financial year (Commercial Code § 179)
- Australian Pty Ltd: Not covered by the official texts used here
- How company profit is taxed
- Estonian OÜ: Corporate income tax is paid when profit is distributed; no income tax is paid on profit while it stays in the company — see how Estonia taxes company profit
- Australian Pty Ltd: 25 percent of taxable income for a base rate entity, otherwise 30 percent (Income Tax Rates Act 1986, s. 23(2)); a base rate entity has no more than 80 percent passive income and an aggregated turnover below 50 million Australian dollars (s. 23AA)
- VAT number
- Estonian OÜ: An Estonian VAT number is an EU VAT number that customers can check in VIES
- Australian Pty Ltd: Australia is not a member state of the European Union
This is general information, not tax advice: in Estonia the tax becomes due when profit is distributed, and LexorCorp Global does not provide tax advice. The rule and its official sources are in the guide How Estonia taxes company profit.
What each route requires
- Estonia. Customer due diligence by the service provider, a registered address in the commercial register and, if the company's address is abroad, a contact person in Estonia (Commercial Register Act § 24). A ready-made company or a formation at a notary needs no e-residency.
- Australia. Registration as a proprietary company limited by shares (Corporations Act 2001, s. 112 and 119), at least one member (s. 114) and a director who ordinarily resides in Australia (s. 201A(1)).
How an Estonian company is obtained
- Choose the route: a ready-made company that already exists, a new company formed at a notary or by power of attorney, or online formation with an e-residency card.
- Order online and pay by card; the order form shows the total before you pay.
- Identification. As a provider licensed by the Estonian Financial Intelligence Unit (FIU000117) we identify every client first.
- Signing at a notary in Tallinn, by a power of attorney signed in your country, or digitally on the online route.
- Register entry and documents in PDF by email.
Documents
For an Estonian company you are asked for an identity document and proof of address of the board members and beneficial owners; on the remote route a power of attorney signed before a notary in your country, as a rule with an apostille.
Prices of the Estonian routes
- ready-made company: €900 Registered address and contact person service for one year are included. in person, €1,200 remote; with a VAT number €1,150 and €1,450;
- new company: €950 Registered address and contact person service for one year are included. in person, €1,250 remote;
- online formation for an e-resident: €950 Registered address and contact person service for one year are included..
The Estonian notary fees and state fees, the registered address and the contact person for the first 12 months are included in these prices. We do not form Australian companies, and this page states no Australian registration fee.
Timeline
The Australian texts used here set no number of days for the registration, and for Estonia this page states none either: the time depends on the notary's appointment, on customer due diligence and on the register. A ready-made company already exists, so only the transfer has to be done.
Limits of this comparison
- It compares formation, capital, share transfer, yearly filing and the company's own tax rate, not the tax result for you: where a company is taxed depends on where it is managed and where its owner lives. If you will run an Estonian company from Australia, see Estonian company run from Australia.
- Opening a bank or payment account is decided by the bank or payment institution in both countries.
- The figures are those of the compilations of the Corporations Act 2001 (19 September 2026) and the Income Tax Rates Act 1986 (1 July 2026); uncommenced amendments are not shown in them; read on 22 October 2026, and the figures can change.
Related service
If the Estonian route fits, start with the ready-made company packages or the list of companies for sale; ready-made or new compares the two Estonian routes.
Official sources
- Australia: Corporations Act 2001, sections 112, 113, 114, 119 and 201A (compilation of 19 September 2026); Income Tax Rates Act 1986, sections 23 and 23AA (compilation of 1 July 2026) — Federal Register of Legislation, read on 22 October 2026;
- Estonia: Commercial Code §§ 135, 136, 148, 149 and 179, Commercial Register Act § 24 — Riigi Teataja; company data — e-Business Register.
This guide is general information, not legal or tax advice for your specific situation.
Sources are named in the text, without links. To see which of our services your company needs, open the Business Navigator.