Estonia offers a business-friendly environment, digital governance, and low bureaucracy, making it one of the top destinations for entrepreneurs.
However, choosing the right legal structure is key to tax efficiency, liability protection, and smooth operations.
1. Private Limited Company (OÜ)
The most popular form for startups, freelancers, and SMEs.
- Share Capital: €0.01, flexible to increase later
- Liability: Limited to share capital
- Ideal for: IT, consulting, e-commerce, global entrepreneurs
Most foreign founders establish an OÜ via e-Residency without visiting Estonia.
2. Public Limited Company (AS)
Suitable for larger businesses or those planning to attract investors.
- Share Capital: Minimum €25,000
- Board & Supervisory Requirements: Mandatory
- Ideal for: Growing companies, corporate groups, stock-listed firms
3. Sole Proprietorship (FIE)
A simple structure for local freelancers.
- Taxes: Personal income tax + mandatory social tax
- Liability: Unlimited (personal assets at risk)
Not recommended for international business or higher-risk operations.
Which Structure Should You Choose?
For most entrepreneurs and digital-first companies, OÜ is the optimal balance of cost, liability protection, and tax efficiency. If your business plans major funding rounds, consider transitioning to AS
How LKS Consult Helps
We assist with:
- Company formation & e-Residency
- Accounting, payroll, and tax compliance
- Annual reports & corporate governance
We ensure your structure aligns with your growth and tax strategy.
Ready to Start Your Company in Estonia?
Contact LKS Consult today to schedule a free consultation and receive a tailored setup plan based on your business model and residency situation.
FAQs
Can non-residents open an OÜ?
Yes — 100% remotely via e-Residency.
Is share capital of €1 acceptable long-term?
Yes, but increasing it improves business credibility and protects withdrawals.
Do I need a physical office?
No, a legal address and contact person in Estonia are sufficient..
