The Costs of Running a Company in Estonia

If you are thinking about opening a company, it's vital to understand which administrative and other costs you will face throughout the lifecycle of your legal entity. Sure, there is no way to count all possible costs as there might be some unpredictable things, regulation might change and you could find a "gold mine" which will require your company to hire 1000 employees (which is about 0.07% of the Estonian population).

But even without gold mines, it's difficult to find a better jurisdiction to incorporate a company than Estonia. The first reason for such attractiveness has to do with taxes — Estonia is the only EU member to offer an absolute 0% corporate tax on retained or reinvested profits and at the same time, Estonia isn't an offshore jurisdiction.

Given that this statement is often misunderstood by our clients and might be misinterpreted by some companies operating in the incorporation field, we ask you to notice that 0% corporate tax on retained or reinvested profits doesn't mean that you won't pay taxes as some of our competitors claim (so yeah if you heard it from someone, please keep in mind that some other promises or advices might not be 100% correct or honest as well).

So, now that we've talked a bit about benefits, let's get back to actual costs. Please notice that in this article we will focus on costs with Enty.

No matter how you decide to open your company, the first cost that will arise is the state incorporation fee of €290, which is included in the incorporation fee with us. However, there are 2 ways how you can open a company with enty:

• Open a company fully online;
• For those who have already obtained an e-Residency card;
• Each shareholder and Director must have an e-residency card;

We do not charge anything for the assistance with obtaining your card, however, there is a government fee of €100 and an additional €20 for the package delivery. You can apply for it on the government website.

• Incorporation via Power of Attorney;
• To open a company you will need to visit a notary office at your place of residence with a documents package that we will send to you (Statement, Power of Attorney + your ID or International Passport);
• If you wish to open a company with more than one shareholder, you will need to ask each person to go to the notary at their place of residence as well. (+€100 each)

The translation is included only for the notary certification. If an additional translation is required, we will bill you separately.

Another one-time cost that will appear after incorporating a company is a bank account opening. If opening a bank account itself is free in most banks, while banks might charge from €50 to €200 on average for processing your application. As some banks may not open a bank account for some companies due to the nationality of company owners.

So it might lead you to open an alternative business account in alternative institutions. The cost will depend on your needs and data, in order to ease up the process for you, we have launched a solution that will help you make the right choice and will be able to consult you on a suitable solution as well. Outside of that, we prepared an article to help you choose the most suitable fintech provider for your company

Each company in Estonia is obliged to have a Virtual office (contact person and legal address). Also, you'll have to file annual or monthly reports, obtain a VAT number, get OSS, IBAN, issue invoices and much more. These services of company maintenance are already included in our single subscription.

Lite subscription starts from €25 / month and gives you full access to our services except for accounting
Standard subscription starts from €42 / month and provides you with annual accounting
Pro subscription starts from €85 / month and gives you access to monthly accounting and declarations
E-commerce subscription starts from €93 / month and provides your company with special accounting for e-commerce businesses

The final price depends on the number of needed documents and type of business