Introduction
Since its launch in 2014, Estonia’s e-Residency programme has attracted over 100,000 applicants from more than 170 countries, resulting in the creation of over 25,000 new companies managed entirely online.
Estonia is one of the most digitally advanced countries in the world. Through e-Residency, entrepreneurs across the globe can establish and manage a fully remote business inside the European Union. This unique initiative allows non-residents to create and run companies online, sign documents digitally, and access international business services — without ever setting foot in Estonia.
If you’re considering starting an e-Residency company, here’s a step-by-step guide.
1. Understanding Estonia’s e-Residency Programme
The e-Residency programme gives foreign entrepreneurs a digital identity issued by the Estonian government. With it, you can:
- Register a company in Estonia entirely online via the Business Register.
- Access EU business banking, payment providers, and digital services.
- Sign contracts and documents electronically with legal validity.
- Manage accounting and tax filing online.
It’s important to note that e-Residency does not grant Estonian citizenship, tax residency, or a physical residence permit. It is purely a business and digital identity programme.
2. Applying for e-Residency
The first step is to become an e-resident:
- Apply online at the official government portal (e-resident.gov.ee).
- Submit documents such as a copy of your passport, a photo, and your motivation for joining the programme.
- Pay the state fee (usually €100–120 depending on pickup location).
- Background check is conducted by the Estonian Police and Border Guard.
- Pick up your e-Residency kit (digital ID card, USB reader, instructions) at the chosen embassy or consulate once approved.
Processing usually takes 3–8 weeks.
3. Registering Your Company Online
After receiving your e-Residency card, you can start your business:
- Log into the Estonian Business Register with your digital ID.
- Choose a company name and legal form (most e-residents opt for a Private Limited Company, OÜ).
- Draft and upload articles of association.
- Pay the state registration fee (around €265).
In many cases, the company can be registered within 24 hours.
4. Legal Address, Contact Person & Banking
To operate legally, you’ll need:
- Legal Address in Estonia – required for all companies. Many service providers offer a virtual office.
- Contact Person – mandatory if your management board is outside Estonia. This is usually a licensed law or accounting firm acting as your official representative.
- Bank Account / Payment Solutions – you can open accounts with Estonian or EU banks, or use fintech solutions like Wise or Payoneer. Some banks may require an in-person visit.
5. Compliance & Ongoing Obligations
Running a company in Estonia is highly digital, but you must comply with regulations:
- Accounting & Annual Reports – must be filed every year, even if the company is inactive.
- Taxes – Estonia has a unique system: corporate income tax is 0% on retained earnings and only payable when profits are distributed (e.g., dividends).
- VAT Registration – required if your annual turnover exceeds €40,000 or if you sell goods/services inside the EU.
- Payroll & Social Contributions – apply if you hire employees or pay yourself a salary.
Most e-residents use local accounting firms to handle compliance.
6. Costs & Timelines
- e-Residency application fee: €100–120
- Company registration fee: €265
- Legal address & contact person service: €200–400 annually
- Accounting: varies, often €60–150 per month depending on volume
From application to a fully functional company, the timeline is usually 4–8 weeks, depending on your banking setup.
Conclusion
Estonia’s e-Residency programme makes it possible for global entrepreneurs, freelancers, and digital nomads to run a trusted EU business entirely online. With a straightforward application process, minimal bureaucracy, and innovative digital infrastructure, Estonia is a prime destination for location-independent entrepreneurs.
