{"id":27049,"date":"2020-03-20T02:01:15","date_gmt":"2020-03-20T01:01:15","guid":{"rendered":"https:\/\/www.thompsonstein.com\/?p=27049"},"modified":"2026-01-29T14:50:31","modified_gmt":"2026-01-29T13:50:31","slug":"ou-company-in-estonia","status":"publish","type":"post","link":"https:\/\/www.thompsonstein.com\/en\/ou-company-in-estonia\/","title":{"rendered":"How to set up an O\u00dc Company in Estonia"},"content":{"rendered":"

The O\u00dc company in Estonia<\/a> is a legal structure that allows owners to separate personal assets from business risks. In other words, the shareholders are not individually accountable for the company\u2019s obligations. An O\u00dc company in Estonia can be established by anyone, both Estonian resident and non-Estonian resident. The biggest advantage of running company in Estonia\u00a0is no\u00a0corporate\u00a0income\u00a0tax\u00a0on retained and reinvested profits. It is also worth noting that companies registered in Estonia are considered transparent and trustworthy by the Estonian authorities.<\/strong><\/p>\n

Shareholders and board members of O\u00dc company in Estonia<\/strong><\/h2>\n

There are currently no restrictions on the number of shareholders in O\u00dc company in Estonia, although at least one founder<\/strong> is required to establish a company in Estonia. The stakeholders of a company may include people from outside Estonia. Same applies to the board, which must consist of at least one member. It also may comprise both shareholders and people who are not affiliated with the company in Estonia. If a given person performs the function of a board member solely on the basis of a resolution of appointment, he or she is not covered by obligatory social and health insurance in this respect.<\/p>\n

If the company in Estonia intends to increase or decrease its capital, amend its articles of association or appoint a new board member, it should hold a general meeting of shareholders. We would like to emphasize that the crucial decisions for the company should be made in Estonia<\/strong>, so that the national tax authorities have no doubts about its actual tax residency.<\/p>\n

Share capital of the\u00a0company in Estonia<\/strong><\/h2>\n

When it comes to OU\u0308 company in Estonia<\/a> the minimum share capital is 2.5 thousand euros and it has to be paid up in full. It is quite an advantage when the shareholders are natural people because the deadline for paying up the capital is extended to 10 years or when the first dividend is paid.<\/p>\n

The registration as a VAT taxpayer<\/strong><\/h2>\n

According to Estonian tax law, a company in Estonia is required to register as an active VAT<\/a> payer when the turnover exceeds 40 000 euro. There is also a possibility to register as a VAT taxpayer from the beginning of the Estonian company\u2019s operations, which is widely used by entrepreneurs.\u00a0 It is worth mentioning that the VAT refund does not entail obligatory tax office inspection and takes place within a few days.<\/p>\n

Ways of establishing a company in Estonia<\/strong><\/h2>\n

People who want to start a company in Estonia, without travelling there, can use two ways of registering company in Estonia. One of them is the establishment of a company by e-residency<\/a> card. Second one, registration by power of attorney given to e.g. a law firm. Irrespective of your choice, establishing a company in Estonia with our help is a relatively easy process and allows to avoid additional costs associated with traveling to Tallinn. The most important factors are time of registration and company structure.<\/p>\n