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An Estonian OÜ for a SaaS business

Estonia taxes company profit only when it is distributed, which suits software businesses that reinvest. Where the company is managed from still matters for tax.

Facts checked against official sources on 27 September 2026

The official rules that apply

  • Estonian companies pay income tax only when profits are distributed; the rate is 22/78 of the net distribution.
  • From 1 January 2025 the lower 14/86 rate on regular dividends was abolished; only 22/78 applies.
  • The planned corporate tax rate increase for 2026 was cancelled.

Registration basics in Estonia

Company typePrivate limited company (OÜ)
Registrye-Business Register
Government filing fee€265 — State fee in the e-Business Register.
Registration timeThe online registration process itself takes from 15 minutes to an hour once you have a digital ID.
Resident directorNo resident board member is required. If the board is abroad, the company needs an Estonian legal address and a contact person.
Visit, notary or lawyerFounders with e-Residency or an Estonian ID sign digitally; a notary is needed if a founder is a legal entity. Picking up the e-Residency card is done in person at a pickup point.
Registered addressThe legal address and contact person can be bought from a licensed service provider.
Minimum capital€0.01 per shareholder
Corporate taxNo corporate income tax on retained profit; distributed profit is taxed at 22/78 of the net amount.
Every yearAnnual report to the Business Register (not re-verified in this check).

Full step-by-step guide: company registration in Estonia.

Sources

  • emta.ee, checked 27 September 2026
  • emta.ee, checked 27 September 2026
  • emta.ee, checked 27 September 2026
FAQ · 3 questions

Frequently asked questions

Yes. No resident director is required, and the formation can be completed through a licensed provider. No visit is required.

Yes. A provider’s address is accepted as the registered office.

No. We compare the official requirements and, if you ask, introduce you to one licensed provider in Estonia. The provider handles the filing and gives legal or tax advice where needed.