Registration of an OÜ in Estonia: e-Residency or notarized?

We have already discussed many business opportunities in Estonia, but for many clients, the question remains: What is the best way to register an OU in Estonia?

There are two ways to register a company in Estonia: 

• by obtaining e-Resident status,
• by notarisation. 

Let’s take a quick and thorough look at this issue. 

The speed of opening an OÜ

For Ukrainians, registering an OÜ through the e-Residency program is much faster and easier, as it allows Ukrainians to register a company online without the need to visit Estonia. This simplifies logistical issues during the war, and, of course, the registration process takes an average of 3 days, provided you have an e-Resident card. As for the period of obtaining the card, the whole process can take up to 1.5 months (verification of the applicant by the Estonian police, card production, and delivery). In addition, the resident should think in advance about how to pick up the card at the Estonian consulate/embassy, as they are issued exclusively to the holder. 

As for the option with a notarised power of attorney, the average registration time from receipt of the power of attorney is 10-12 business days. With a notarized power of attorney, you do not need to visit Estonia. Delivery of documents to Tallinn takes 3-5 days. But very often, business owners register a company with a notary and simultaneously order e-Residency cards. This lets you quickly get a registered business and transfer the entire administration process to digital services.

EU citizens can also take advantage of e-Residency to simplify the registration process. The terms for receiving documents are the same. However, residents of the European Union currently have the opportunity to physically visit Estonia and open a company on the spot, in addition to notarising the company.

The cost of registering an OÜ with e-Residency and notarially

The total cost of registration through the e-Residency program is significantly lower than that of the notarial method. Due to additional notary fees and duties, the average difference in cost can range from €300 to €500. 

Regarding the financial side for Ukrainians:

As of 2024, the government has introduced the possibility of a refund of the EUR 265 state fee for registering a company in Estonia. To receive a refund, you must ensure that your registrar is a program partner and provides such a refund. 

For Ukrainians, the best option for registering an OÜ is through the e-Residency program.

Does the method of business registration in Estonia affect the opening of a bank account?

Unfortunately, regardless of the registration method, it is difficult for non-residents of Estonia to open a bank account with Estonian banks due to strict rules and requirements for customer verification. However, if a business has an office, employees, and counterparties in Estonia, the bank will be more loyal to consider an application for opening an account. In our experience, some Estonian banks, such as LHV bank, allow e-residents to log in via e-Residency and apply for a bank account remotely.

The best alternative to banks for non-residents is to open an account with an international payment system such as Payoneer payment system or to open a bank account in another European jurisdiction. 

When choosing between e-Residency and notarial registration of an LLC in Estonia, a lot depends on your citizenship, desire to speed up the process, and budget.

It is worth noting that e-registration costs are independent of the number of business owners. However, the cost of notarial registration may increase depending on the number of owners, as you will need to pay for translation services and notarial procedures.

Considering the convenience and savings, the e-Residency program often seems to be a more favorable option, which our team recommends to those entrepreneurs who not only want to start a business in Estonia but also receive additional benefits for the program participants: 

• Online registration of a VAT number – 1 day (notarization of this process takes up to 10 working days from the moment a notary in Tallinn receives a power of attorney)
• e-Residents get the opportunity to do business in the European Union from anywhere in the world using Estonian digital solutions
• you become a part of a global community of entrepreneurs, including more than 80,000 people from more than 170 countries, who can share knowledge and experience
• e-Residents get access to tools for the electronic signature of documents, which greatly simplifies business operations
• the program allows entrepreneurs to expand their operations to other EU countries easily. The e-Resident card allows you to register a business and sign reports, contracts, and amendments to the charter.

The only drawback of the Estonian e-Residency program is the inability to obtain the right to reside in Estonia or tax residency status. Also, the e-Resident card is not an identity document.

All this makes e-Residency not only profitable but also a strategic choice for many entrepreneurs around the world. Our team will be happy to assist you with your incorporation in Estonia. We are officially present on the e-Residency Marketplace and cooperate fruitfully with the program team. Please leave a request through the form below Viber, Telegram bot, WhatsApp chat.