Business environment


The Republic of Estonia is showing the fastest growth rate in economy among the Eastern European region, according to the Wall Street Journal and Heritage Foundation’s Index of Economic Freedom 2017 Estonia is ranking at 6th out of 180 countries as one of the freest economies in the world. With a unique geographical position on the shore of the Baltic sea, Estonia has an attractive logistical centre position towards the northern, the western and the eastern markets which is a clear competitive advantage to make use of. In addition to strong trading activities, Estonia is a leading country in the field of information technology which is significantly adapted to citizens' everyday lives with the purpose of simplifying errand running, providing smooth business management and functioning related to acts on a daily basis. The advanced taxation system and clear legislation promotes a great environment in creating enhanced legitimate expectations having bound to effective support structures to engage in enterprise. Unlike most of countries Estonia levies income tax only on profits that are distributed providing reinvestments at a 0% tax rate and favourable conditions for business development. In addition, a lower corporate income tax rate of 14% applies to the amount of distributable profits which is less or equal to the average of distributed amounts over the previous three years for which the resident company paid income tax.

The government has made strong steps towards attracting foreign investors, the development of e-Residency is the latest innovative solution which allows non-citizens to ease matters regarded to records management in the Estonia’s e-services without physical presence, including in the e-Business environment.

Due to its attractive geological position the necessity for speaking different languages is essential thus in addition to Estonian there are always possible to run your errands in English, Russian or Finnish language.

Most widely used business entity is the private limited company (Osaühing - OÜ) having a minimum share capital requirement at EUR 2500, if a founder is a physical person the described requirement does not apply and the private limited company could be established without contributing the share capital.

If you find that you would like to set up your business in Estonia then we are here to help and guide you through, we provide the most flexible full-service available in the field of corporate services.