Public Limited Company (Aktsiaselts) in Estonia
AS · Formation from $285
Last verified: June 10, 2026
Corporate Tax
24.0%
State Tax
0.0%
Formation Cost
$285
Annual Fee
$0
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Large enterprises planning to raise capital through public stock offerings.
- Financial institutions, insurance companies, or businesses requiring a high-trust corporate structure.
- Companies with multiple investors needing complex shareholder rights and a supervisory board.
- Established foreign corporations setting up a major subsidiary in the EU.
Who Should Avoid This?
Scenarios where another structure may be better
- Solopreneurs, freelancers, and digital nomads (an OÜ is much better suited).
- Early-stage startups without significant initial funding or immediate plans to go public.
- Small businesses looking to minimize administrative and accounting costs.
Advantages
- +Ability to issue shares publicly and raise capital on the stock exchange.
- +High level of corporate prestige and trust among investors and large partners.
- +0% corporate tax on retained and reinvested earnings, maximizing growth potential.
- +Can be managed remotely via the Estonian e-Residency program.
- +Clear and robust corporate governance structure suitable for large-scale operations.
Disadvantages
- -High minimum share capital requirement of €25,000, which must be fully paid before registration.
- -Mandatory annual financial audit, significantly increasing operational costs and compliance burden.
- -More complex governance requirements, including a mandatory management board and a supervisory board with at least three members.
- -Higher administrative and accounting costs compared to a private limited company (OÜ).
Formation Steps
Apply for Estonian e-Residency (takes 2-5 weeks) to enable remote digital signing and company management.
Obtain a legal address and contact person service in Estonia from a licensed corporate service provider.
Draft the Memorandum and Articles of Association (Põhikiri) defining the governance structure and shareholder rights.
Open a temporary business bank account and deposit the €25,000 minimum share capital.
Submit the application to the Estonian Business Register and pay the €265 state fee.
Appoint the Management Board (Juhatus) and the Supervisory Board (Nõukogu) consisting of at least three members.
Register for VAT and as an employer with the Estonian Tax and Customs Board (EMTA) if applicable.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| e-Residency Application Fee | One-time | $160 |
| State Filing Fee | One-time | $285 |
| Registered Address & Contact Person | Annual | $215 |
| Accounting & Audit Services (Starting) | Annual | $3,200 |
| First year total | $3,860 | |
| Annual ongoing | $3,415 | |
Real-World Examples
Typical use cases for this entity type
- Tallink Grupp AS: A major Estonian shipping company listed on the Nasdaq Tallinn stock exchange, utilizing the AS structure for large-scale capital management.
- LHV Group AS: A prominent Estonian banking and financial services company that requires the strict governance and public trust of an AS entity.
- Merko Ehitus AS: A leading Baltic construction and real estate development company leveraging the AS structure to manage large projects and public investments.
Common Mistakes
Pitfalls to avoid during setup and operations
- Choosing an AS instead of an OÜ for a small business, leading to unnecessary compliance costs.
- Underestimating the cost and time required for the mandatory annual financial audit.
- Failing to appoint a Supervisory Board (Nõukogu) with at least three members, which is legally required.
- Not securing a licensed local contact person when the management board resides outside Estonia.
- Assuming the €25,000 share capital can be paid later (it must be fully deposited before registration).
Other entity types
Other formation options in Estonia
Private Limited Company (OÜ)
- Tax
- 22.0%
- Formation
- $305
Sole Proprietor (FIE)
- Tax
- 22.0%
- Formation
- $14
General Partnership (Täisühing)
- Tax
- 22.0%
- Formation
- $14
Limited Partnership (UÜ)
- Tax
- 22.0%
- Formation
- $15
Commercial Cooperative (Tulundusühistu)
- Tax
- 22.0%
- Formation
- $215
Branch (Filiaal)
- Tax
- 22.0%
- Formation
- $215
Non-profit Association (MTÜ)
- Tax
- 22.0%
- Formation
- $32
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇪🇪 Public Limited Company (Aktsiaselts)(AS) | 24.0% | $285 | $0 |
FAQ
What is the minimum share capital for an AS?
The minimum share capital is €25,000, which must be fully paid up before registration.
Do I need to visit Estonia to form an AS?
No, with an e-Residency card, you can form and manage the company 100% remotely.
Is an audit mandatory for an AS?
Yes, an annual financial audit is compulsory for all Public Limited Companies (AS) in Estonia, regardless of size.
How is corporate tax calculated?
Retained earnings are taxed at 0%. Tax is only paid when profits are distributed (e.g., dividends) at a rate of 22/78 (approx. 28.2% of the net dividend).
What is the difference between an AS and an OÜ?
An OÜ (Private Limited Company) requires only €2,500 capital and is for smaller businesses, while an AS requires €25,000, has a supervisory board, and can issue public shares.
Can a foreigner be the sole shareholder of an AS?
Yes, 100% foreign ownership is allowed, but you must appoint a local contact person if the board is outside Estonia.
How long does it take to register an AS?
With e-Residency, the actual registration takes 1-5 business days, but obtaining e-Residency takes 2-5 weeks.
Do I need a local director?
No, local directors are not required, but a licensed local contact person is mandatory if the management is abroad.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Estonia taxes corporate profits only upon distribution at a rate of 22% (calculated as 22/78 of the net distribution). Retained and reinvested profits are subject to a 0% corporate income tax.
Personal Income Tax (Top rate: 22.0%)
| From | To | Rate |
|---|---|---|
| $0 | $8,400 | 0.0% |
| $8,400 | No limit | 22.0% |
Estonia applies a flat 22% personal income tax rate. For 2026, a universal basic tax-free allowance of €8,400 per year (€700 per month) applies to all residents regardless of their total income.
Capital Gains Tax
22.0%
Capital gains are not taxed separately but are treated as ordinary income. For companies, gains are tax-exempt until distributed; for individuals, they are taxed at the standard 22% personal income tax rate.
VAT / GST
24.0%
Registration Threshold: EUR40,000
Non-resident businesses providing digital services to Estonian consumers must register for VAT under the OSS scheme or locally, with no registration threshold.
Withholding Tax
Estonia does not levy withholding tax on dividends or on interest paid to non-residents. Royalties paid to non-residents are subject to a 10% withholding tax, which may be reduced or eliminated under applicable double tax treaties or the EU Interest and Royalties Directive.
Payroll & Social Security
Employers pay a 33% social tax (subject to a minimum monthly base of €886 in 2026) plus a 0.8% unemployment insurance premium. Employees contribute 1.6% for unemployment insurance and a mandatory funded pension contribution of 2%, 4%, or 6%.
Other Taxes
Fringe Benefits Tax
Fringe benefits provided to employees are subject to 22% corporate income tax (calculated as 22/78 of the net benefit) and 33% social tax on the grossed-up amount.
Land Tax
A state tax levied on the assessed value of land, with rates determined by local municipalities typically ranging from 0.1% to 2.5% annually.
Incentives & Support
0% Corporate Tax on Retained Earnings
Estonia levies no corporate income tax on profits that are retained and reinvested in the company. Tax is only applied upon distribution (e.g., dividends).
Allows companies to grow tax-free and maximizes reinvestment capital.
Eligibility: Available to all Estonian resident companies, including AS.
e-Residency Program
A government-issued digital identity that allows non-residents to securely authenticate online and digitally sign documents.
Enables 100% remote management of the Estonian AS, including banking, tax filing, and contract signing.
Eligibility: Available to foreign entrepreneurs and investors who pass a background check.
Formation Requirements
Minimum Capital
EUR 25,000
The minimum share capital for an AS (Aktsiaselts - Public Limited Company) is €25,000, which must be fully paid up before registration.
Local Director
Not Required
A local director is not required, but if the management board is located outside Estonia, a licensed local contact person must be appointed.
Registered Office
Required
Virtual office allowed. €100 - €300 per year (often bundled with contact person services)
Notarization Required
Yes
Power of Attorney (Remote)
Required
Required only if the founders do not use the Estonian e-Residency digital ID to sign documents online. If using a notary via proxy, the PoA must be notarized and apostilled.
Timeline
Standard: 5-10 business days days
Expedited: 1-5 business days (with e-Residency) days ($265)
Required Documents
- 1Passport copies of shareholders and board members
- 2Proof of residential address (e.g., utility bill or bank statement)
- 3Memorandum of Association (Asutamisleping)
- 4Articles of Association (Põhikiri)
- 5Bank certificate proving share capital deposit of at least €25,000
- 6Power of Attorney (if incorporating remotely via a representative without e-Residency)Apostille needed
Compliance & Reporting
Annual Filings
Annual Report (Majandusaasta aruanne)
Penalty: Failure to file can result in fines, loss of good standing, and compulsory dissolution by the Business Register.
Income and Social Tax Return (TSD)
Penalty: Late filing penalties and interest on unpaid tax amounts (0.06% per day).
Audit Requirement
Required
An audit is compulsory for all Public Limited Companies (AS) by law, regardless of turnover, assets, or employee count.
Accounting Standard
Estonian GAAP or IFRS
Tax Return Deadline
Monthly by the 10th for Income/Social Tax (TSD); Monthly by the 20th for VAT (KMD).
VAT Filing Frequency
Monthly
Data Protection
Must comply with the EU General Data Protection Regulation (GDPR).
Banking & Payments
LHV
A leading Estonian bank highly supportive of e-residents, though opening an account for an AS typically requires a physical visit and a clear business connection to Estonia.
Wise
Remote-friendlyA top choice for e-residents and international founders. Offers fully remote account opening, multi-currency support, and an Estonian IBAN.
Revolut Business
Remote-friendlyProvides comprehensive digital banking services, corporate cards, and multi-currency accounts with a fully remote onboarding process.
Swedbank
The largest traditional bank in Estonia. Excellent local services and credit options, but strict onboarding requirements for non-residents.
Payoneer
Remote-friendlyA solid alternative for global B2B payments and receiving funds from international marketplaces.
Payment Gateways
Stripe, PayPal, Montonio, Maksekeskus (MakeCommerce), Adyen
Currency
EUR
Multi-Currency: Supported
Account Opening
Opening a traditional bank account (e.g., LHV, Swedbank) for an AS requires a physical visit and proof of a strong business connection to Estonia. However, non-resident founders and e-residents can easily open fully remote business accounts with fintechs like Wise, Revolut Business, or Payoneer to manage their share capital and daily operations.
Practical Information
Timezone
UTC+2 (EET) / UTC+3 (EEST)
Business Language
Estonian (official), English (widely used in business), Russian
Legal System
Civil law
Ease of Doing Business
#18
IP Protection
Strong intellectual property protection aligned with EU directives and international treaties (WIPO, TRIPS). Trademarks and patents can be registered locally via the Estonian Patent Office or EU-wide.
Double Tax Treaties
66 countries
Notable treaties: United States, United Kingdom, Germany, France, Canada, United Arab Emirates
Visa & Residency Options
Startup Visa
Allows non-EU founders to relocate to Estonia to build a scalable, tech-based startup. Requires approval from the Startup Committee.
Digital Nomad Visa (DNV)
Permits remote workers and entrepreneurs to live in Estonia for up to a year while managing their foreign or Estonian company, provided they meet the minimum income threshold.
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Changelog
Data updates and changes on this page
Verified 2026 state fees, e-Residency costs, and mandatory audit requirements for Estonian AS entities.
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