Setting up a Business in Estonia

Setting up a business in Estonia is fast, affordable and convenient, but becoming anentrepreneur is not all about a good business idea and favourable national conditions. You also have to take into consideration all legal and business aspects, that go along with establishing, developing and managing a business in Estonia. Whatever you’re planning to do business wise, contact Claudius Law Office before you decide and get into it!


What does fast, convenient and affordable really mean?

Fast – establishing a business electronically takes up to 2 hours, notarial procedure takes up to a week.

Affordable – low state fees. Expedited procedure to found a company costs 190 Euros. State fee for registering a private or public limited company, commercial association or foreign franchise is 145 Euros. Founding a self-employed person, general partnership, limited partnership is 13 Euros. Notarial procedures require additional fees, that are dependant of the share capital and how many founders are involved. An example: establishing a company with a share capital of 2500 Euros and one founder – 40 Euros (value added tax included), state fee 145 Euros. Capital can be monetary or non-monetary (transferable asset or proprietary right), in addition, down payments on certain incorporate entities can be made later. We ask you to contact the lawyer of Claudius Law Office to determine additional conditions. Every case of establishing, developing and managing a company is individual and depends on several factors, including economical and business environment, proposed business activity, business model and strategies.

Convenient – we establish your business regardless of your location. Thus you can live abroad and authorize your lawyer to take care of matters in Estonia, take a vacation and resolve conflicts without interrupting your vacation or just receive quality legal and business advice in relevant matters in the most convenient way possible – without leaving your Office or your home via Internet (e-mail, Skype) and phone.


How can Claudius Law Office be of assistance?

  • § We set up your business in a fast, affordable and convenient manner
  • § We conduct the necessary proceedings (various registrations, contracts, etc.), provide necessary services (hosting your business address, accounting, recruiting, etc.) and assist in finding contacts you need
  • § We advise in all legal and business matters related to establishing a company, developing and managing a business


Claudius Law Office provides the following legal services:

  • § General business activity matters – choosing the form of business, registrations and activity licences, various contracts (clients, partners, employees), etc;
  • § Partners and shareholder relations – company’s regalement, management and supervisory board rights and obligations, emission of stocks, accessions, divisions, etc;
  • § Employment law – staff documentation, living and work permits, occupational health and safety, disputes with employees, etc;
  • § Consumer law – sales conditions, liability of producer, general requirements of advertising and good/services of which advertising is prohibited, etc;
  • § Investments and tax laws – renting or buying equipment, loan documents, investments, dividents, taxes, costs, etc;
  • § Intellectual property – copyrights, patents, trademarks, etc.

In addition, Claudius Law Office helps out in your other major concerns. To better serve you, don’t hesitate to contact our lawyer!


Claudius Law Office offers clients the following additional services:

  • § Business address hosting service;
  • § Accounting and financial management;
  • § Translation of documents and interpretation in negotiations, administrative proceedings;
  • § Consultations – business development, management, business culture, sales and marketing, e-marketing;
  • § Procurements – organizing and participating in procurements;
  • § Training – individual trainings for company’s employees and managers, in addition, our lawyers and specialists lecture trainings you organize and/or carry out;
  • § Staff – managing the recruiting process, pre-selection of candidates, organization of staff;
  • § Websites - setup and modifications, design, consultatation regarding web hosting and/or domains;
  • § Setting up office IT and communication devices, remote working networks to share projects with partners and clients from anywhere in the world and access your office computer from home or mobile. 

For further information and queries contact the lawyer of Claudius Law Office via our contact form, e-mail or by calling (+372) 53 477 636.


Good to know about Estonia:

  • § VAT rate: 20% 
  • § Income tax rate for employees: 20% (flat) 
  • § Corporate profit tax: 0%


Check out what is legal audit and why you might need it 

Check out the legal aid packages for entrepreneurs

Check out the legal services of obligation and contract laws

Check out the corporate legal services

Check out the legal services regarding associations and cooperatives

Check out the conditions of providing legal aid and price list


Facts about Estonia and Tallinn

  • § On 2013. the Intelligent Community Forum (ICF) acknowledged Tallinn as the world’s 7-th most innovative communities. Source: Intelligent Community Forum
  • § In the Global Competitiveness Report compiled by the World Economic Forum, Estonia ranks 33rd of 140 countries. As in previous years, the strength of the country’s competitiveness is based on several general features – excellent education and efficient, well-developed goods, labour and financial markets, as well as a strong commitment to advancing technological readiness. Estonia’s 33rd ranking reflects trustworthy institutions and well-managed public finances.
  • § In fDi Magazine’s ranking, European Cities and Regions of the Future 2012/13. Tallinn ranked 8th in the following category: Small European Cities: Cost Effectiveness.
  • § According to the Heritage Foundation for 2012, Estonia ranks 13th among 185 countries and 4th among 43 European countries. The evaluation is based on trade policy, government intervention, financial policy, the relative importance of the black market in the economy, etc.
  • § In the 2012 Bertelsmann Transformation Index (BTI), Estonia is assigned 5th place among 128 countries. The Index characterises the development of the market economy and democracy in the given country based on the speed and efficiency of the reforms related to these developments.
  • § Freedom House ranked Estonia first in the world for Internet freedom. The report compared the Internet freedom trends in 47 countries based on 22 indicators. 
  • § Estonia places 34th among 187 countries in the international Human Development Index compiled by the United Nations. The index considers the population’s educational level, life span and level of economic development.
  • § Safe and user-friendly mobile and e-solutions have created the reputation of an advanced IT-country for Estonia. Estonia is a suitable location for providers of international finance services to establish research and development centres.
  • § Estonia is considered to be a country with the highest percentage of start-ups per capita.
  • § Estonia is in a leading position in the world in the development and promotion of information society. This is based on the implementation of existing and new technologies, a process that has been lead by the public sector. The level of activity in the utilization of e-solutions and services is unique to Estonia.
  • § According to the WHO survey on air quality conducted in 2011, Estonia’s air is the cleanest in the world. 

Source: Tallinn. Facts & Figures 2013

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