company incorporation estonia

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Company Formation Estonia



The Share Capital in Estonia

Updated on Wednesday 05th February 2020

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The minimum share capital in Estonia depends on the chosen type of company. The lower limits are established by law and once this minimum amount is deposited, the shareholders decide upon the effective share capital of the company. This sum needs to be considered when establishing a company in Estonia.
The process of depositing the necessary minimum share capital in a bank account is essential for the company registration process in Estonia. Our local experts can help you throughout this process and advise you during the company incorporation phase. 

The share capital according to the type of company in Estonia

The private limited company (OÜ) and the public limited company are the business forms generally chosen by foreign investors in Estonia. They have different particularities, one significant difference also being the amount of capital necessary for incorporation
The private limited company needs a minimum share capital of 2,500 EUR while the public limited company needs at least 25,000 EUR in order to be incorporated. There are no minimum share capital requirements for the general partnership in Estonia and the contributions for this business form can be either monetary or non-monetary.
If the share capital of an OÜ does not exceed 25,000 EUR when the company is incorporated, the shareholders may decide that the founders do not need to pay their contributions at this early stage. However, the payment will be necessary in the future. This rule applies only when the founders are natural persons.

Other requirements for share capital and shares in Estonia 

The share capital of a private limited company is divided into shares. Their minimum nominal value cannot be lower than 1 EUR and they can be transferred between shareholders. For the public limited company the minimum value of one share must be no lower than 0,1 EUR. The shares of the public company must be registered with the Estonian Central Register of Securities. The individual who acquired shares in this company will have certain rights, as described in the company’s Articles of Association and as per the law in Estonia. 
Our Estonian specialists can help you with additional information about the company incorporation process as well as the tax and financial reporting obligations for each type of company.

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Call us now at +372 55658650 to set up an appointment with our consultants in Tallinn. As our client, you will benefit from the joint expertise of local advisors  for opening a company in Estonia.

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Francesco Dagnino, Partner of Lexia Avvocati