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Company Formation Estonia



Company Formation in Tartu

Updated on Monday 08th January 2018

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Tartu is Estonia’s second largest city, after its capital, Tallinn. The University of Tartu is the city’s focal point and Tartu is best known as a university town. Many companies have chosen to open offices in Tartu

Open a company in Tartu

If you want to open a company in Tartu, first you need to choose one of the available types of legal entities in Estonia.
There are five types of companies that can be opened in Tartu, and each has its particular advantages. Foreign investors that are interested in starting a business in Tartu should decide from one of the following types of companies in Estonia:
  • - private limited liability company: has a minimum share capital and a minimum value per share; it cannot sell its shares to the public.   
  • - public limited liability company: they are among the most popular business structures in Estonia; small and medium sized companies usually choose this type of legal entity;
  • - general partnership: formed between at least two individuals or legal entities;
  • - limited partnership: the liabilities of the partners involved are different from the general partnership;
  • - sole proprietorship: no legal distinction is made between the owner and the company.
Our company formation consultants in Tartu can offer you more information about legal entities if you want to open a company in Estonia.

Open a branch or a subsidiary in Tartu

branch in Tartu is not considered a legal entity and the parent company is fully liable for its actions. However, foreign investors choose to open a branch because it is much easier to set up a branch and to manage it afterwards.
Branches, like all other forms of legal entities, need to be registered in the Estonian Commercial Register.
Subsidiaries in Tartu are usually the choice if investors desire a higher degree of autonomy. A subsidiary is set up by a foreign company and the parent company owned the majority of its shares.   

Managing a company in Tartu

After choosing their preferred type of business foreign investors need to consider the taxes applicable in Tartu.  The standard VAT rate in Estonia is 20% and a few exceptions apply to certain product categories. There are no taxes in dividends in Estonia.
Company owners in Tartu should know that certain real estate and land taxes apply in Estonia. Also, in certain areas of the country, there are special local taxes imposed by the municipality.
To make sure that your company in Tartu complies with all of the applicable laws and regulations, our company registration specialists in Tartu are ready to provide you with assistance with company management in Tartu.
Please contact us for more information and a personalized offer. 


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