Company formation in Estonia: real costs, steps and what to watch out for

First-year cost items

Amounts from official sources as of 13 Sep 2026. Provider fees depend on the package; the range below is only an example.

The one-off official cost is about €415 (e-Residency plus the registration fee). When comparing offers, look at the three-year total, not the formation price: address, contact person and accounting are paid again every year. Marketplace packages differ widely in what they cover (number of transactions, VAT returns, annual report). (Opinion: an offer that makes formation look cheap but does not publish the accounting price hides the real cost until the first invoice.)

Step by step: from formation to the end of year one

1. e-Residency application. You apply online and pay €150; once approved, the digital ID card is collected in person at the pick-up point chosen in the application. e-Residency is not the only way to form a company: it can also be registered through a notary in Estonia (notary fees apply separately).
2. Address and contact person. The company must have a legal address in Estonia. If the management board members’ addresses are abroad, the company must appoint a contact person, who has to belong to one of the categories in the law (notary, attorney, sworn auditor, tax representative or a company service provider licensed by the FIU). This service is chosen before applying, because the application asks for it.
3. Registration application. In the e-Business Register company portal you enter the company name, field of activity (EMTAK code), share capital, management board, address and contact person, pay the €265 fee and sign with your digital ID.
4. Bank or payment account. e-Residency does not guarantee an account; banks and payment institutions decide under their own rules, looking in particular at where the shareholders live.
5. Tax board (e-MTA). The company’s tax account is in e-MTA; if you authorise an accountant, record the scope of that authorisation and how to revoke it. VAT registration becomes mandatory once taxable supplies in Estonia exceed €40,000 a year.
6. Every year. A company with a calendar financial year files its annual report by 30 June of the following year; failing to file can lead to registry fines and, if it drags on, to deletion proceedings. The contact-person appointment is for a fixed term and must be extended before it expires. To file the report yourself: annual report guide.

What e-Residency does not give you

e-Residency is a digital identity that gives access to Estonia’s e-services. According to the official e-Residency programme:

• It does not give citizenship, a residence permit or the right to enter Estonia or the EU; the card is not a travel document.
• It does not change your tax residency; as an individual you remain taxable where you live.
• It does not guarantee a bank account.

Where the company is taxed does not depend only on it being registered in Estonia either: where the company is actually managed from can also create tax obligations under the rules of your own country. Ask a tax adviser in your country of residence before forming the company. (Opinion: pitches summed up as “form in Estonia, pay no tax” skip this detail; the problem usually surfaces with the first profit distribution.)

Full guide: What is e-Residency

Source: e-Residency – What is e-Residency

Before you pay: check the provider’s public record

Formation, address, contact person and accounting are often bought from one provider, and your company stays tied to it for years. A five-minute check before paying:

1. Open the company that will invoice you on ariregister: has it filed its own annual reports on time, what are its capital and employee count, where is it registered?
2. Look up the licence in the MTR: is it held by the company that invoices you, or by another company in the same group?
3. Is the accounting price published? If an offer lists only the formation and address price and leaves accounting “depending on the package”, ask for the total cost in writing.
4. Ask for a written contract with refund and termination terms; pay in advance only if these are in writing.
5. Get an exit plan in writing from the start: how are the contact person and documents transferred to another provider?

A real-life example of these checks is on this site: the Global Estonia company network (nine companies, the licence in one of them, six without a 2025 report), the financial statements and Aşkın Yıldız. Full list: 12 checks before choosing an accountant.

Commonly reported problems

The complaints collected on this site fall into five types that appear in the years after formation:

• Pricing: no published accounting price, increases at renewal, fees added later.
• Contract & refund: nothing in writing, advance payments not refunded.
• Communication: replies slow down after payment, the accountant’s name is not given.
• Objections & pressure: sanction talk towards customers who dispute a fee.
• Register & licence: gaps in the provider’s own records.

If something goes wrong: where to complain.

Frequently asked questions

How much does it cost to form a company in Estonia?

The official fees are €150 for e-Residency (€165 from 1 January 2027) and €265 for registering the company. On top of that come the legal address, the contact person (mandatory if the management board is abroad) and accounting every year; on the first page of the e-Residency Marketplace, monthly packages including address and contact person start at €15, and comprehensive ones exceed €300. Compare offers by their three-year total.

Can I form an Estonian company without e-Residency?

Yes. e-Residency makes it easier to form and run the company online but it is not the only way; the company can also be registered through a notary in Estonia. To manage the company online afterwards you still need a digital ID recognised in Estonia.

Does e-Residency give a residence permit or visa?

No. According to the official e-Residency programme, it does not give citizenship, a residence permit, tax residency or the right to enter Estonia or the EU; the card is not a travel document.

Is a contact person mandatory?

Yes, if the management board members’ addresses are abroad. The contact person receives official correspondence on the company’s behalf and must belong to one of the categories in the law; the appointment is for a fixed term and lapses if not extended. How to change it: changing the contact person.

Do I pay no tax once I have an Estonian company?

In Estonia, corporate income tax is not paid until profit is distributed; the rate on distributions is 22/78. Your personal tax residency does not change, however, and the country the company is actually managed from may also claim tax. Ask a tax adviser in your country. Details: Estonian company tax.

How should I judge reviews of company formation providers?

Do not rely on reviews alone; open the provider’s public record yourself: the invoicing company’s annual reports, its capital and which company holds the licence. How to do it: how to read ariregister. This site includes one provider’s records and reported complaint types as an example: Is Global Estonia legit?