In short: the private limited company (OÜ) is the most common business form in Estonia. Shareholders are not liable for the company's obligations with their personal assets, it can be founded in the company registration portal in a few hours, and since 2023 the minimum share capital is just 1 cent.
Last updated: 16 October 2026. Tax rates may change; before making a bigger decision, check the latest information from the Tax and Customs Board or ask us.
Why choose an OÜ?
- Limited liability. As a rule, a shareholder isn't liable for the company's debts with their personal assets.
- Simple and fast founding in the e-Business Register's company registration portal.
- Profit is taxed only when it's paid out. No income tax is paid on profit retained in the company; when dividends are paid out, income tax is 22/78 of the net dividend.
- A trusted business form in the eyes of banks, partners and investors.
Share capital in 2026
Since 1 February 2023, the minimum share capital of an OÜ is €0.01. Since then, an OÜ can no longer be founded without paying in the share capital: the share capital must be paid in before submitting the application for entry in the Business Register.
A small share capital is allowed, but think about whether it suits your company. A bank, partner or financier may see very small share capital as a sign of weakness.
Think it through before founding
- Field of activity. Choose your main field of activity according to the Estonian Classification of Economic Activities (EMTAK).
- Business name. Check that the name is available with a name search in the e-Business Register.
- Shareholders and board members. Who owns the company and who runs it?
- Amount of share capital.
- Address and contact person, if the board is not located in Estonia.
How do you found an OÜ?
- Log in to the company registration portal with your ID card, Mobile-ID or Smart-ID.
- Choose the expedited procedure and the standard articles of association. The standard articles then replace a notarised memorandum of association.
- Enter the shareholders, board members, share capital, field of activity and address.
- Pay in the share capital and the state fee.
- If you wish, register the company for VAT straight away as well.
- Sign the application digitally. In the expedited procedure, the company is usually registered within one working day.
If there are several founders and you want custom articles of association or a non-monetary contribution, the memorandum of association generally has to be notarised.
What to do after registration?
- Open a company bank account if you don't have one yet.
- Choose an accountant or accounting software, because accounting must be kept from day one.
- Register employees in the employment register (TÖR) no later than the day they start work.
- If turnover exceeds €40,000 in a calendar year, register for VAT within three working days.
- If your field of activity requires it, apply for an activity licence.
- Submit the annual report within six months of the end of the financial year.
Frequently asked questions
How large does an OÜ's share capital have to be?
At least €0.01. The share capital must be paid in before registration.
Can an OÜ be founded without a contribution?
No, not since 1 February 2023.
Does an OÜ owner have to pay themselves a salary?
The law doesn't require a specific amount, but if you earn income for the company through your own work, the absence of remuneration must be justifiable. See also our page for start-ups.
Starting a company?
We help you choose accounting software and set up the bank connection and expense document app. The Basic package from €89 per month suits start-ups.
Sources: e-Business Register, Commercial Code (Riigi Teataja), eesti.ee.