In short: an Estonian private limited company (OÜ) and a Canadian corporation under the federal Canada Business Corporations Act are both companies whose shareholders are not liable for the company's debts and that one person can form. 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))
- Canadian corporation: One or more individuals or bodies corporate incorporate it by signing articles of incorporation and complying with section 7; an individual incorporator is at least 18, not incapable and not bankrupt (Canada Business Corporations Act, s. 5(1) and (2)); the shareholders are not, as shareholders, liable for the corporation's liabilities, with listed exceptions (s. 45(1))
- 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)
- Canadian corporation: At least 25 percent of the directors must be resident Canadians, and if the corporation has fewer than four directors, at least one must be (s. 105(3))
- Yearly filing
- Estonian OÜ: Annual report within six months after the end of the financial year (Commercial Code § 179)
- Canadian corporation: 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
- Canadian corporation: Federal tax of 38 percent of the amount taxable (Income Tax Act, s. 123(1)(a)), less 10 percent of taxable income earned in a province (s. 124(1)) and less the general rate reduction of 13 percent on full-rate taxable income for days after 2011 (s. 123.4); the provinces levy their own corporate tax, which is not covered by the texts used here
- VAT number
- Estonian OÜ: An Estonian VAT number is an EU VAT number that customers can check in VIES
- Canadian corporation: Canada 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.
- Canada (federal corporation). Articles of incorporation signed by the incorporators (Canada Business Corporations Act, s. 5), and directors of whom at least a quarter, and at least one, are resident Canadians (s. 105(3)).
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 Canadian corporations, and this page states no Canadian filing fee.
Timeline
The Canadian texts used here set no number of days for the incorporation, 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 Canada, see Estonian company run from Canada.
- Opening a bank or payment account is decided by the bank or payment institution in both countries.
- It covers the federal Act only: each province has its own corporations act and corporate tax, and the figures above do not apply to them.
- The Canadian figures are those of the consolidated acts on the day they were read (22 October 2026) and 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
- Canada: Canada Business Corporations Act, sections 5, 45 and 105; Income Tax Act, sections 123, 123.4 and 124 — Justice Laws Website, both acts current to 30 September 2026, 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.