When you establish a limited company in Estonia, you are also required to register its minimum share capital. This is referred to as your company's share capital contribution.
It’s important to remember that minimum share capital is not a fee. It’s your money that goes into your company to spend as your company chooses. Consider it an investment into your business that helps build greater confidence in both your company and the Estonian business ecosystem.
- According to the Estonian Commercial Code, the minimum required share capital is €2500.
- The minimum nominal value of a share is €1.
- It is possible to defer the payment of share capital up to 10 years. However, when doing so, all founders of the company will be held personally liable for the amount that has not yet been paid.
- Once the share capital has been transferred to your company’s bank account and registered in the Estonian Business Register, you may also use it for business activities.
- Dividends can only be paid once the share capital has been registered.
How to register share capital
Previously, your ability to register share capital was limited exclusively to Estonian banks. The good news is that since the Estonian Commercial Code was revised January 2019, share capital can also be registered at a credit or payment institution anywhere within the European Economic Area (EEA). You can learn more about this change here.
After you have registered your company, you can register your share capital contribution in the Estonian Business Register.
If you are unsure about registering your share capital, business service providers can advise and guide you through the process.
Learn more about share capital contribution on our blog.