Estonia vs the UK: where to incorporate?
Both are cheap, fast and open to foreigners. The difference that decides it is timing: Estonia taxes profit only when it leaves the company, the UK taxes it the year you earn it
Estonia vs the UK: where to incorporate?
Both are cheap, fast and open to foreigners. The difference that decides it is timing: Estonia taxes profit only when it leaves the company, the UK taxes it the year you earn it
Estonia vs the UK: where to incorporate?
Both are cheap, fast and open to foreigners. The difference that decides it is timing: Estonia taxes profit only when it leaves the company, the UK taxes it the year you earn it
The short answer
The short answer
The short answer
Choose Estonia if
Choose Estonia if
Choose Estonia if
You reinvest most of what you earn, you sell into the EU and need an EU VAT number, or you want accounting, invoicing and contracts in one subscription.
Choose the UK if
Choose the UK if
Choose the UK if
Your customers are British, you invoice in pounds, you want the company to exist tomorrow rather than in a month, or you want dividends out with no tax withheld at source.
The number that decides it
On a €100,000 profit taken out in full, the tax is close either way. Leave it in the company and Estonia charges nothing while the UK still charges.
On a €100,000 profit taken out in full, the tax is close either way. Leave it in the company and Estonia charges nothing while the UK still charges.
Estonia and the UK at a glance
Estonia and the UK at a glance
Estonia and the UK at a glance
🇪🇪 Estonia
🇪🇪 Estonia
🇪🇪 Estonia
🇬🇧
🇬🇧
United Kingdom
United Kingdom
United Kingdom
Entity type
Osaühing (OÜ)
Osaühing (OÜ)
Private limited company (Ltd)
Private limited company (Ltd)
Minimum capital
€0.01, and you can defer paying it
€0.01, and you can defer paying it
£1
£1
State fee
€290 to register online — the €265 state fee plus the €25 registry API fee
€290 to register online — the €265 state fee plus the €25 registry API fee
£100 digital, £156 same-day
£100 digital, £156 same-day
Time to register
15 minutes to an hour — but the e-Residency card takes weeks
15 minutes to an hour — but the e-Residency card takes weeks
Usually within 24 hours
Usually within 24 hours
Can you do it remotely
Yes, fully — you collect the e-Residency card in person once
Yes, fully — you collect the e-Residency card in person once
Yes, but every director must pass ECCTA identity verification
Yes, but every director must pass ECCTA identity verification
Mandatory local roles
Legal address and contact person, both FIU-licensed
Legal address and contact person, both FIU-licensed
None — but a UK registered office and a registered email address are required
None — but a UK registered office and a registered email address are required
Tax on profit you keep
0%, for as long as you keep it
0%, for as long as you keep it
19–25% — the UK taxes profit whether you keep it or not
19–25% — the UK taxes profit whether you keep it or not
Tax on profit you take out
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
22/78 of the payout — 22% of the pre-tax pot, 28.21% on the net
No withholding tax on dividends to non-residents
No withholding tax on dividends to non-residents
VAT and threshold
24%, register above €40,000
24%, register above €40,000
20%, register above £90,000
20%, register above £90,000
Mandatory audit
Not at founder scale
Not at founder scale
Not at founder scale
Not at founder scale
Annual filings
One annual report to the Business Register; monthly returns with payroll or VAT
One annual report to the Business Register; monthly returns with payroll or VAT
Accounts and a confirmation statement (£50) at Companies House, CT600 at HMRC
Accounts and a confirmation statement (£50) at Companies House, CT600 at HMRC
Banking as a non-resident
EU IBAN through Estonian banks, or Wise and Revolut
EU IBAN through Estonian banks, or Wise and Revolut
High-street banks rarely onboard non-residents; Wise, Revolut Business and Airwallex do
High-street banks rarely onboard non-residents; Wise, Revolut Business and Airwallex do
Market access
EU single market, an EU VAT number, OSS and IOSS
EU single market, an EU VAT number, OSS and IOSS
UK domestic market and GBP invoicing — no EU VAT number, no OSS/IOSS
UK domestic market and GBP invoicing — no EU VAT number, no OSS/IOSS
Year-2 running cost
From €124 for the mandatory address and contact person, plus accounting
From €124 for the mandatory address and contact person, plus accounting
£50 to Companies House, plus registered office and accounting
£50 to Companies House, plus registered office and accounting
What each one is
What each one is
What each one is
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
🇪🇪 Osaühing (OÜ)
The Estonian private limited company. Registered fully online through e-Residency, taxed only when profit leaves the company, and inside the EU single market with an EU VAT number.
🇬🇧
🇬🇧
Private limited company (Ltd)
Private limited company (Ltd)
Private limited company (Ltd)
A private company limited by shares, registered at Companies House. The default vehicle for trading in Britain, open to non-resident owners and directors.
Setting the company up
Setting the company up
Setting the company up
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
United Kingdom
Filed online with Companies House, usually registered within 24 hours. Every director must pass ECCTA identity verification — new directors since 18 November 2025, existing ones by 18 November 2026 — done remotely through GOV.UK One Login or an authorised provider.
How incorporation works
Estonia
Fully remote through e-Residency: the company is filed in the e-Business Register in 15 minutes to an hour. The one physical step is collecting the e-Residency card at an embassy, which takes weeks.
United Kingdom
Filed online with Companies House, usually registered within 24 hours. Every director must pass ECCTA identity verification — new directors since 18 November 2025, existing ones by 18 November 2026 — done remotely through GOV.UK One Login or an authorised provider.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
United Kingdom
£100 to file digitally, £156 for the same-day service, £1 of share capital. No provider is strictly required, so the cost can genuinely be the state fee alone.
Setup cost and timeline
Estonia
€290 state fee online and €0.01 of share capital that can be deferred. With Enty, €350 including the state fee, and the company is usually registered the same day.
United Kingdom
£100 to file digitally, £156 for the same-day service, £1 of share capital. No provider is strictly required, so the cost can genuinely be the state fee alone.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
United Kingdom
None. No local director, secretary or shareholder. You do need a UK registered office address and a registered email address, and both are filed publicly.
Local roles you must appoint
Estonia
No local director needed, but two licensed services are mandatory: a legal address and a contact person. From €124 a year, included in Enty’s paid plans.
United Kingdom
None. No local director, secretary or shareholder. You do need a UK registered office address and a registered email address, and both are filed publicly.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
United Kingdom
Any number of shareholders, no nationality limits. Regulated activities need FCA permission, and a few sectors are closed to companies without UK-resident officers.
Business types and ownership
Estonia
Single and multi-shareholder OÜs with no nationality limits, including e-commerce and crypto models that many providers refuse.
United Kingdom
Any number of shareholders, no nationality limits. Regulated activities need FCA permission, and a few sectors are closed to companies without UK-resident officers.
Money, tax and filings
Money, tax and filings
Money, tax and filings
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
United Kingdom
19% up to £50,000, 25% above £250,000, marginal relief in between — charged in the year the profit is earned, whether or not you take it out.
Tax on profit you keep
Estonia
0%. Retained profit is not taxed at all, for as long as it stays inside the company — that is the whole mechanism.
United Kingdom
19% up to £50,000, 25% above £250,000, marginal relief in between — charged in the year the profit is earned, whether or not you take it out.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
United Kingdom
No UK withholding tax on dividends to a non-resident shareholder. What you owe on them is settled in your own country of residence.
Tax on profit you take out
Estonia
22/78 of the payout: 22% of the pre-tax pot, or 28.21% expressed against the net sum you receive. Charged inside the company before the money reaches you.
United Kingdom
No UK withholding tax on dividends to a non-resident shareholder. What you owe on them is settled in your own country of residence.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
United Kingdom
20%, registration from £90,000 of turnover. No EU VAT number and no access to OSS or IOSS after Brexit, so selling to EU consumers means handling EU VAT from outside the union.
VAT and thresholds
Estonia
24% since 1 July 2025, registration from €40,000 — a lower ceiling than most, but it comes with an EU VAT number plus OSS and IOSS.
United Kingdom
20%, registration from £90,000 of turnover. No EU VAT number and no access to OSS or IOSS after Brexit, so selling to EU consumers means handling EU VAT from outside the union.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
United Kingdom
High-street banks rarely onboard non-resident directors. In practice UK companies run on Wise, Revolut Business or Airwallex; Tide and Monzo expect a UK-resident director.
Banking as a non-resident
Estonia
Estonian banks onboard founders with a real connection to the country; everyone else runs on Wise or Revolut with an EU IBAN.
United Kingdom
High-street banks rarely onboard non-resident directors. In practice UK companies run on Wise, Revolut Business or Airwallex; Tide and Monzo expect a UK-resident director.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
United Kingdom
Annual accounts at Companies House, a confirmation statement with a £50 digital fee, and a CT600 at HMRC — three deadlines at two bodies, plus VAT returns above £90,000.
Annual filings
Estonia
One annual report to the Business Register, plus monthly returns once there is payroll or a VAT number. Audit does not apply at founder scale.
United Kingdom
Annual accounts at Companies House, a confirmation statement with a £50 digital fee, and a CT600 at HMRC — three deadlines at two bodies, plus VAT returns above £90,000.
Which one fits your business
Which one fits your business
Which one fits your business
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
🇪🇪 Estonia fits if
You reinvest instead of paying yourself
You reinvest instead of paying yourself
Profit left in the company is not taxed at all, so every year you do not distribute is a year you do not pay.
You sell into the EU
You sell into the EU
An EU VAT number plus OSS and IOSS access is something a non-EU company cannot give you.
You want one bill for the back office
You want one bill for the back office
Accounting, invoicing, contracts and e-signing in one subscription instead of four suppliers.
🇬🇧
🇬🇧
United Kingdom
United Kingdom
United Kingdom
Your customers are British
Your customers are British
A UK company invoicing in pounds removes a currency conversion and a conversation from every deal you close in Britain.
You need the company today
You need the company today
Companies House usually registers within 24 hours, and there is no card to collect first.
You take profit out every year anyway
You take profit out every year anyway
If nothing is ever reinvested, Estonia’s central advantage never activates — and the UK is cheaper to register.
Where Estonia loses
Where Estonia loses
Where Estonia loses
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
Three places where the other country is simply better. If they matter more to you than untaxed retained profit and the EU single market, go there.
Speed
Speed
Registered within 24 hours, against the weeks an e-Residency card takes to reach an embassy.
Cost of getting started
Cost of getting started
£100 against €265 — and no mandatory legal address or contact person on top of it.
Local credibility
Local credibility
A UK Ltd is unremarkable to British customers and British banks in a way an Estonian OÜ is not.
How incorporation with Enty works
How incorporation with Enty works
How incorporation with Enty works
Open with e-Residency
Open with e-Residency
1-3 days
€60
+ €290 state fee
1
5-minute application on Enty
2
We file directly with the Estonian registry
3
Company registered!
1-3 days
Plan to get an e-Residency card? Buy incorporation now and get €150 off
We lead you through the whole process
No e-Residency yet
No e-Residency yet
14 days
Fastest formation with a notary on the market
€1,000
+ €290 state fee
1
10-minute application on Enty
2
20–30 min video call — identity check and notarisation, fully online
3
We file directly with the Estonian registry
4
Company registered!
14 days
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Several shareholders, crypto or e-commerce? We take the complicated cases too.
Methodology and sources
Methodology and sources
Methodology and sources
Estonian state fee of €290 — the €265 registry fee plus a €25 API fee. Estonian tax treatment from the Estonian Tax and Customs Board; the 2% defence tax was scrapped on 19 June 2025 and never applied. Cost comparisons are computed in our own cost model, not quoted from third parties.
Figures verified
Frequently asked questions
Frequently asked questions
Frequently asked questions
Is it cheaper to register a company in the UK or Estonia?
The UK: £100 to file digitally with Companies House against €290 for the Estonian e-Business Register — the €265 state fee plus a €25 registry API fee.
Is it cheaper to register a company in the UK or Estonia?
The UK: £100 to file digitally with Companies House against €290 for the Estonian e-Business Register — the €265 state fee plus a €25 registry API fee.
Is it cheaper to register a company in the UK or Estonia?
The UK: £100 to file digitally with Companies House against €290 for the Estonian e-Business Register — the €265 state fee plus a €25 registry API fee.
Do I need to be a UK resident to be a director?
No. There is no residency requirement for directors or shareholders of a UK Ltd.
You do need a UK registered office address and a registered email address, and every director must pass Companies House identity verification.
Do I need to be a UK resident to be a director?
No. There is no residency requirement for directors or shareholders of a UK Ltd.
You do need a UK registered office address and a registered email address, and every director must pass Companies House identity verification.
Do I need to be a UK resident to be a director?
No. There is no residency requirement for directors or shareholders of a UK Ltd.
You do need a UK registered office address and a registered email address, and every director must pass Companies House identity verification.
What is ECCTA identity verification and does it apply to me?
It is the mandatory identity check introduced by the Economic Crime and Corporate Transparency Act.
It has applied to all new directors since 18 November 2025 and applies to existing directors by 18 November 2026, including those living abroad. It is done remotely, through GOV.UK One Login or an authorised corporate service provider.
What is ECCTA identity verification and does it apply to me?
It is the mandatory identity check introduced by the Economic Crime and Corporate Transparency Act.
It has applied to all new directors since 18 November 2025 and applies to existing directors by 18 November 2026, including those living abroad. It is done remotely, through GOV.UK One Login or an authorised corporate service provider.
What is ECCTA identity verification and does it apply to me?
It is the mandatory identity check introduced by the Economic Crime and Corporate Transparency Act.
It has applied to all new directors since 18 November 2025 and applies to existing directors by 18 November 2026, including those living abroad. It is done remotely, through GOV.UK One Login or an authorised corporate service provider.
Will the UK withhold tax on my dividends?
No. The UK applies no withholding tax to dividends paid to non-resident shareholders.
What you owe on them is decided by your own country of tax residence.
Will the UK withhold tax on my dividends?
No. The UK applies no withholding tax to dividends paid to non-resident shareholders.
What you owe on them is decided by your own country of tax residence.
Will the UK withhold tax on my dividends?
No. The UK applies no withholding tax to dividends paid to non-resident shareholders.
What you owe on them is decided by your own country of tax residence.
Can a UK company sell to EU customers as easily as an Estonian one?
Not quite. A UK company has no EU VAT number and no access to the EU’s OSS and IOSS schemes, so selling to EU consumers means handling EU VAT from outside the union.
An Estonian OÜ is inside it.
Can a UK company sell to EU customers as easily as an Estonian one?
Not quite. A UK company has no EU VAT number and no access to the EU’s OSS and IOSS schemes, so selling to EU consumers means handling EU VAT from outside the union.
An Estonian OÜ is inside it.
Can a UK company sell to EU customers as easily as an Estonian one?
Not quite. A UK company has no EU VAT number and no access to the EU’s OSS and IOSS schemes, so selling to EU consumers means handling EU VAT from outside the union.
An Estonian OÜ is inside it.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Can a non-resident own an Estonian company outright?
There is no residency or nationality requirement for shareholders or board members of an OÜ.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Do I have to travel to Estonia?
No. With an e-Residency card everything is online; without one, a 20–30 minute video identity call replaces the trip.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
Is an Estonian OÜ tax resident in Estonia?
The company is. You are not — your own tax residency is decided by where you live, and Estonia does not change it.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
When do I have to pay in the share capital?
Not at registration. It can be deferred, and the minimum is €0.01.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
Which bank will my company use?
We help you open an account with one of our EU banking or payment partners, including Wise and Revolut, at no extra fee from us.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
What does Enty actually do?
Registration, the mandatory legal address and contact person, accounting, invoicing, contracts and e-signing, in one subscription from €33 a month.
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported
Start today in Estonia. Running in 1 to 14 days
No credit card to start
No e-Residency required
Complex cases supported