Private Limited Company (PLC)

Benefits of Estonia PLC Registration


    1 Director, 1 Shareholder Required, No Locals


    Access to the EU market


    European Union VAT number


    Great Banking Opportunities


    Incorporation in 2-3 days


    Legal System Based on Civil Law


    Network of Double Tax Treaties

Estonia PLC’s activities

Under the  Estonia legislation,  Private Limited Company  is an independent legal personality and has the same capacity to engage in any business provided that the activity is allowed by its memorandum and articles of association, the Laws of Estonia and the European Union regulations do not require a license such as bank, insurance, assurance, collective investment schemes etc.

Estonia PLC is optimal for:

  1. International Business
  2. EU Trading Activities;
  3. E-commerce
  4. Web-business
  5. Crypto-related Activities
  6. Financial Services

Private Limited Company incorporation checklist

If you are considering the incorporation of the Estonia PLC, you should take into consideration the following points:

Company’s name

It must not contain sensitive words that imply criminal activity or contradict to the standards of public morality. The words such as Assurance”, “Bank”, “Insurance” are the subject of licensing.

The name of the company may not create any associations with governmental bodies, agencies and departments.

The company’s name must not be very similar to existing names on the registrar and it must not contain improper or objectionable words. It must be written in Latin letters and contain the abbreviation “OÜ” which means limited liability.

Registered office

Estonia PLC is required to have a registered office address in Estonia.


One director is the minimum required. There is no requirement for them to be locals, but there is a requirement to hold the meetings of directors within the territory Estonia.

Corporate persons cannot become directors as well as the shareholders. The directors’ details are registered on the public record and can be accessed by the public.


The appointment of a secretary is not mandatory, but optional.


One shareholder is the minimum required. There is no requirement for them to be locals and corporate persons can become shareholders. There is no requirement regarding the place of the shareholders’ meetings, but the frequency should not be less than 1 year.

The director and shareholder cannot be the same person. The shareholders’ details are registered on the public record and can be accessed by the public.

Beneficial owners

The beneficial owners’ details are registered on the public record according to the EU legislation requirements.

Authorized capital

The owners of an PLC are free to determine any amount as the authorized capital at incorporation, but it should not be less then €2.500 EUR. The authorized capital is the maximum amount of capital that the company is authorised by its constitutional documents.

An Estonia PLC may issue the shares with the minimum value of €1 EUR. The shares may be with or without voting rights, preferential and common.

Paid up capital

There is a requirement to have the authorized capital of the company fully paid up. This means that the owners of an PLC are required to pay their contributions during the incorporation. However, this is applicable only when the authorized capital is more than €25.000 EUR.

Incorporation period

The incorporation period in Estonia may be 2-3 days.

Shelf companies

Ready-made but unused PLCs are available in Estonia, in case you are in need of a quicker incorporation process.

Economic substance

Estonia legislation does contain any requirements regarding the economic substance of the Limited Liability Companies. This means that the company is not demanded to have premises and an adequate number of employees, the number of expenditures to support its activity in Estonia. Private Limited Company must have an address within the territory of Estonia that will be registered as a company’s address.

Accounting records and annual returns

Private Limited Company incorporated in Estonia is obliged to prepare and file accounting records. Also, a tax return should be lodged to the tax authorities as well. Certain companies with certain turnover should undergo through the audit.


The corporate tax rate in Estonia is 20% but in certain cases it can be reduced to 14%.  Note that this corporate tax rate is to be applied only when PLC is distributing the profits to the owners. All other taxes such as capital gain taxes, taxation of the interests, royalties etc. are included into the corporate tax. In other words, the corporate tax rate is applied to the profits distribution only. Also, Estonia has a huge number of double tax avoidance treaties and due to being a member state of the EU, Estonia PLC is entitled to the tax benefits that are established on the EU level. VAT tax rate is 20% but in certain cases can be reduced to 9% and 0%. The threshold for the VAT registration is over €40.000EUR of turnover.

Disclaimer: Buy Now Companies and its affiliates do not provide tax, legal, or accounting advice. Materials provided by Buy Now Companies and [insert domain name] have been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, or accounting advisor with regard to your own tax, legal, or accounting scenario. Nothing on this webpage shall be construed as a contractual commitment or as a warranty. Services conditions are governed by the applicable terms and conditions.

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