Since 2014, Estonian e-Residency has been available to companies outside the country. This offers businesses the chance to register and operate a business from Estonia, and enjoy all the benefits that come from owning an Estonian business, while running their operations entirely from their own country.
Traditionally, registering a business would mean setting up a full business register, leasing office space and hiring employees. But with the e-Residency program, everyone from fresh-faced entrepreneurs to fully-fledged business owners can establish a European company entirely online. All you need is internet access to start operating an EU business from anywhere in the world.
The online application process makes Estonian e-Residency easy for new founders who want to launch their business with minimal hassle and cost. And the more you know about the process, the better! So, we've put together this handy guide to help you navigate setting up an Estonian from scratch.
About Estonia
Estonia has been a member state of the EU since 2004, and a Eurozone member since 2011, experiencing continuous growth throughout.
The Estonian economy is now one of the most liberal and competitive in Europe, offering a unique business environment with low taxes and a strong infrastructure.
Despite its modest size, Estonia has long been at the forefront of tech innovation. Its e-Residency program allows people from all around the world to set up a company and business account in Estonia and manage them remotely. And it's not just for tech companies - there's a huge variety of business types that can, and do, benefit from Estonian e-Residency.
By 2022, Estonia had over 1,300 active startups, 90,000+ e-citizens, and € 28 million of investment. These staggering figures prove how a small region can become a hub for ambitious entrepreneurs.
What is e-Residency?
E-Residency is a government-backed program that allows foreigners to start and run their Estonian businesses from anywhere in the world with minimal hassle. The advanced digital infrastructure of Estonia, including fast broadband, e-government services and a strong digital economy, makes it ideal for companies looking to operate online.
The Estonian government is fully behind the online revolution, so e-Residents can access every service they could possibly need from their computers. In fact, 95% of all Estonian tax declarations are filed via their e-tax system, making the system incredibly accessible to remote entrepreneurs. E-Residents can also use their digital signature to sign documents and contracts remotely, eliminating the need for physical signatures and making it easy to do business.
To become an e-Resident, you apply online and provide some personal information. Once approved, you'll receive a digital ID card that enables you to sign documents, access government services, and manage your business remotely.
Registering a company in Estonia is straightforward and can be done online in a few hours, with no minimum capital requirements. Registration fees are also relatively low, compared to other EU countries.
How to become an e-Resident
Becoming an e-Resident is simple. After all that's what makes it so appealing! To qualify, you only need to meet specific eligibility requirements and apply for the e-Residency program.
To be eligible, your business must:
- Be fully legal in Estonia
- Be connected to a valid business account (which is where wamo comes in!)
The rest of the process is straightforward and can be completed in just a few simple steps, outlined here:
Step 1: Gather your documents
First, you'll need to gather all of the documentation needed to prove that your business is legal in Estonia. This includes:
- A copy of your government-issued ID
- A passport-style digital photo
- A motivation statement
- Visa or MasterCard
Step 2: Submit your application
Submit your application online, along with the application fee (also known as the Pay State Fee) of €100-120.
Step 3: Application review
The Estonian Police & Border Guard Board will then conduct an initial verification of your documents. If everything looks good, the board will issue you a license and an e-Residency kit.
Step 4: Opening a business account in Estonia
Once you've received your business license, open an Estonian business account to start transacting. You can do this either by visiting an Estonian bank in person and opening a company account, or by using a financial provider like wamo. We offer SME-friendly business accounts without the hoops associated with trad banks.
A business account opening fee varies depending on the platform or institution, but it's usually somewhere around €100-130.
A wamo account, on the other hand, doesn't require an initial deposit. As with most business accounts, you have the security of paying a set subscription fee (choose the tier that's right for you) that keep fees to a minimum, gives you certain features for free, and provides personalized customer service.
How to start a company in Estonia
Once you're an official e-Resident, setting up your company in Estonia is straightforward.
To get started, you need to register your company. Again, this can be done entirely online, which is convenient for foreigners. Here's a list of documents you'll need to complete the application:
- A passport or residency card
- Proof of ID
- Your company's registration document (if applicable)
- Your company's Certificate of Incorporation
- A Memorandum of Association and Articles
- A business plan that outlines your business's goals and objectives
- Director and shareholder registration details
- Tax ID or business permit (if applicable)
- A bank statement
- Copies of your company's documents (if applicable)
- Your completed application form
- The business account opening fee (if applicable)
Once you've got your documents together, here's how the next stage of the process goes:
- Apply for e-Residency: As outlined above, you need to first become an e-Resident. Fill out an application form on the Estonian Police & Border Guard Board website.
- Submit your application: The Board will verify your identity and eligibility within two weeks. You'll also have to take a bio-metric test after booking an appointment with them.
- Choose a service provider: As a foreigner, you must designate an Estonian point of contact with a service provider. This person will represent you if the Estonian authorities need to contact you.
- Register the company in Estonia: Register your company online at the e-Business Registry, for a fee of approximately €265.
- Apply for business account: Provide the necessary company documents and an application form to a bank or financial institution to apply for an Estonian business account. The bank may charge you a fee for this service, and may conduct additional document checks.
Why choose a wamo business account?
If you're registering a business in Estonia, you'll need an Estonian business account. Obviously, we recommend choosing wamo for that business account!
You can apply for a wamo business account through the app or on the browser in less than 10 minutes, and approval takes less than a day. A wamo business account gives you a fast, efficient and affordable way to make and take payments for your new business, simple.
You can open a wamo business account HERE.
wamo is specifically designed for SMEs and entrepreneurs, to meet their unique needs. It's quicker, more technologically advanced, and can pivot at the pace you need to succeed as a small business.
You can also, of course, apply for a business account through traditional institutions or other fintech service providers. If you do choose to down a traditional banking route, we advise you to make contact with more than one provider before making an application to get a better idea of their individual requirements.
Why is Estonia the best country for startups?
Estonia is a hub for startups due to its favorable business environment, spirit of innovation, and smart digital infrastructure.
The country has invested significantly in building a robust IT infrastructure, creating a highly connected and tech-savvy society. Estonia's simple tax system, low corporate tax rates, and minimal bureaucracy make it an attractive destination for entrepreneurs worldwide.
The country's thriving startup scene includes countless "accelerators" and "incubator" companies, that provide resources and support for new businesses. Government initiatives, like tax incentives and funding programs, promote entrepreneurship even more.
Which sectors can benefit from establishing a business in Estonia?
Estonia's diverse economy means loads of sectors can benefit from establishing an Estonian presence.
Some examples of sectors that can benefit from opening a business in Estonia:
IT: Estonia has a highly developed IT sector, with a strong focus on innovation and emerging tech. Estonia is home to countless software development companies and startups, specializing in areas like blockchain, AI and cyber-security.
E-commerce: With a well-established digital infrastructure and tech-savvy population, Estonia is an ideal location for e-commerce businesses.
Fintech: Estonia has a well-regulated financial sector, with a stable financial system and a growing fintech presence. It's home to many international banks and payment service providers already, making it easy for new fintech startups to get on the ladder.
Logistics: Estonia's strategic location, between Scandinavia and Central Europe, has made it an important transit point for cargo shipments. It's invested heavily in transport infrastructure, including seaports, airports, and rail connections, making it an attractive location for logistics and transportation companies
Healthcare: Estonia has a well-developed healthcare system, with a focus on digital health and e-health solutions. The country is home to many health-tech startups and telemedical and medical data management companies.
Creative industries: Estonia's vibrant creative spirit, full of talented artists, designers, and musicians, has built a thriving art and tech scene, so it's no surprise that it's full of game development, animation, and digital media startups.
Environmental technology: Estonia has a strong focus on sustainability, with heavy investment in renewables and waste management. It's also home to many companies specializing in solar energy, wind power, and waste-to-energy solutions.
How much does Estonia e-residency cost?
As of 2024, the costs for e-Residency are:
- E-Residency application fee: €100 if you choose to collect your digital ID card in Estonia. If collected from an Estonian embassy, or another designated pickup location outside of Estonia, the fee is €120.
- Company registration fees: There's a state fee of €265 to register a private limited company (OÜ) online. You'll need a legal address and a contact person in Estonia, which usually costs between €200-€400 per year, depending on the service provider and the package selected​.
- Ongoing costs: Accounting services typically start from €50 per month, with additional costs for legal, tax consulting, business advice, sales and marketing depending on your business needs​.
E-Residency itself has no annual or maintenance fees, and your digital ID card is valid for five years. The program is designed to facilitate business operations for digital entrepreneurs and location-independent business owners by providing access to Estonia's digital infrastructure without the need to physically reside in the country.
Can I live in Estonia with e-Residency?
E-Residency offers benefits for digital entrepreneurs and location-independent business owners, such as being able to establish and manage your business online. But it's essential to understand that e-residency does not grant you the right to live or work in Estonia.
E-Residency gives you a digital identity and permission to operate a remote business from Estonia. E-Residency does not permit your physical residency in Estonia, does not make you an Estonian citizen, and does not provide any visa benefits.
If you wish to emigrate to Estonia, you must apply for a residence permit through the appropriate legal channels, such as employment, study, or family reunification permits​.
For more detailed information, you can visit the official e-Residency website.
Deciding to open an Estonian company with e-Residency
If you're searching for new EU markets, opportunities to extend your company's network, and access to the Eurozone while saving on costs and time, e-Residency in Estonia might be the perfect way to get your business up and running. So, what are you waiting for?
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