How to Register a Business in Tallinn: A Step-by-Step Guide

By Urmas Rooba

Starting a business in Tallinn, Estonia, is an exciting opportunity for entrepreneurs, thanks to its business-friendly environment and digital advancements. Whether you're a local or a foreign entrepreneur, registering a business in Tallinn can be a straightforward process if you follow the right steps. This guide will walk you through the process, ensuring you're well-prepared to launch your venture in this vibrant city.

Step 1: Choose Your Business Structure

The first step in registering your business in Tallinn is deciding on the appropriate business structure. The most common types are:

  • Private Limited Company (OÜ): Suitable for small to medium-sized businesses with limited liability.
  • Sole Proprietorship: Ideal for individuals running a small business independently.
  • Public Limited Company (AS): Best for larger businesses that plan to go public.

Your choice will depend on factors such as the number of owners, liability considerations, and future growth plans.

business structure

Step 2: Register Your Business Name

Once you've chosen your business structure, the next step is to select and register your business name. It's crucial to pick a unique name that represents your brand and complies with Estonian naming regulations. You can check the availability of your desired name through the Estonian Business Register's online portal.

Remember that your business name must include the type of business structure, such as "OÜ" for private limited companies. This ensures clarity and compliance with legal requirements.

Step 3: Prepare Necessary Documentation

Before you can officially register your business, you'll need to gather and prepare several important documents. These typically include:

  1. Founding Agreement: A document that outlines the foundation of the company.
  2. Articles of Association: Details the internal rules and regulations of your company.
  3. Shareholder Agreement: If applicable, this document outlines the rights and responsibilities of shareholders.

Ensure that all documents are properly signed and meet the legal standards required by Estonian law.

business documents

Step 4: Register with the Estonian Business Register

With your documentation ready, you can proceed to officially register your business through the Estonian Business Register. This can be done online via the e-Business Register portal or by visiting a notary. The online option is highly efficient, especially if you have an Estonian e-Residency card, which simplifies the digital signing process.

During registration, you'll need to provide details such as the business address, board members, and share capital information. Once submitted, your application will be reviewed and approved by the authorities.

Step 5: Register for Value Added Tax (VAT)

If your business's annual turnover is expected to exceed 40,000 euros, it's mandatory to register for VAT in Estonia. The registration can be done through the online portal or by submitting an application to the Estonian Tax and Customs Board. This step is crucial for compliance and allows you to charge VAT on your goods and services.

tax registration

By following these steps, you can successfully register your business in Tallinn and begin operating in one of Europe's most innovative cities. With its supportive infrastructure and thriving entrepreneurial ecosystem, Tallinn offers numerous opportunities for growth and success. Remember, thorough preparation and understanding of the requirements will make the registration process smoother and more efficient.

If you're considering establishing a business in Tallinn, now is the perfect time to take action. With its strategic location and digital innovation, Estonia continues to attract entrepreneurs from around the world. Good luck with your business venture!