CURRENCY
BUSINESS OPPORTUNITIES IN ESTONIA
ESTONIA




FLAG

ESTONIA
CAPITAL CITY

TALLINN

EURO

Language
Population

13.27 LAKHS
Country
Calling Code

+372
LOCATION:

EUROPE
BORDER COUNTRIES:
LATVIA
RUSSIA
ABOUT ESTONIA
Amongst all the countries in Europe, Estonia, officially the Republic of Estonia, is a digital pioneer located in Northern Europe, bordering the Baltic Sea. It is known for its vast forests, numerous islands, medieval old towns, and being one of the world’s most digitally advanced societies. Estonia is a beacon of e-governance, innovation, and startup culture. The capital of Estonia is Tallinn, which is its largest and most populous city, serving as the country’s primary economic, cultural, and political hub. According to the World Bank, Estonia is classified as a High-Income Economy, consistently recognized for its high level of digitalization, economic freedom, and strong performance in various global competitiveness indices. The currency of Estonia is the Euro (EUR), which it adopted in 2011. As of today’s exchange rates (June 2025), 1 Euro is approximately 89.85 Indian Rupees. The population of Estonia is estimated to be around 1.37 million in 2024. Its neighbouring countries are Russia to the east, Latvia to the south, and it shares maritime borders with Finland and Sweden across the Baltic Sea. The official language of the country is Estonian, with English widely spoken, especially among the younger generation, in business, and in the tech sector. The majority of the Estonian population identifies as non-religious, reflecting a secular society, with smaller communities of Eastern Orthodox Christians and Lutherans. Currently, Estonia has one major international airport, Tallinn Airport (TLL), which serves as the primary international gateway. As Estonia borders the Baltic Sea, it has several key commercial seaports, including Port of Tallinn (which encompasses multiple harbours like Muuga, Paldiski, Old City Harbour), which are vital for facilitating international trade and passenger traffic, connecting it to other Baltic Sea countries and beyond.
The corporate income tax system in Estonia is unique: corporate profits are not taxed at the company level when they are earned. Instead, corporate income tax (set at a standard rate of 22/78) is only paid when profits are distributed as dividends, fringe benefits, gifts, donations, entertainment expenses, or other non-business-related expenses. This “Estonian model” effectively means that reinvested profits are tax-free. This system provides a significant incentive for businesses to retain earnings and reinvest them into growth. Estonia also offers various incentives, such as R&D tax deductions, and grants for specific investments and job creation, particularly within its innovation clusters. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.
Establishing a business in Estonia is famously easy and highly digital, often taking just a few hours online, especially for e-residents. The Estonian Investment Agency (part of Enterprise Estonia) is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in Estonia can form various company types, with the most common being a Private Limited Company (OÜ) or a Public Limited Company (AS). A Private Limited Company (OÜ) is the most popular choice due to its simplicity, allowing 100% foreign ownership with a minimum share capital of EUR 2,500 (which can be deferred if necessary). Estonia’s e-Residency program further simplifies the process for foreign entrepreneurs to manage their Estonian companies remotely.
In case an investor is planning to establish an OÜ in Estonia or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Estonia and we will also guide you about how to follow the procedure while formulating your company in Estonia.
Types of Business which can be started in Estonia:
- Information & Communication Technologies (ICT) & Digital Services: Estonia is a global leader in digitalization and a thriving tech hub. Opportunities are vast in software development, cybersecurity, FinTech, e-governance solutions, AI, blockchain, and IT outsourcing. Its e-Residency program also creates opportunities for remote businesses.
- e-Governance & Smart Solutions: Given Estonia’s pioneering work in e-governance, there’s potential to develop and export solutions for digital identity, public services, smart cities, and data management.
- Cleantech & Green Technologies: With its commitment to sustainability, opportunities exist in renewable energy (wind, biomass), waste management, smart grid solutions, and sustainable building technologies.
- Smart Manufacturing & Industry 4.0: Focus on advanced manufacturing, automation, robotics, and the integration of digital technologies into industrial processes, leveraging a skilled workforce and innovation.
- Timber & Wood Processing: Estonia has extensive forest resources. Opportunities lie in sustainable forestry, wood processing (lumber, pulp, furniture), and value-added wood products, including biomass energy.
- Logistics & Transport: Leveraging its strategic location as a gateway between East and West, and its well-developed ports (e.g., Port of Tallinn), opportunities are in logistics, warehousing, intermodal transport, and cold chain solutions.
- Tourism & Hospitality: Estonia offers cultural heritage (Tallinn’s Old Town), natural beauty, and a growing cruise ship industry. Opportunities exist in specialized tourism (e.g., eco-tourism, health spas), boutique hotels, and digital solutions for the tourism sector.
Advantages of Starting Business in Estonia:
- Highly Digitalized Society & E-governance: Almost all public services are online, offering unparalleled ease of doing business and minimal bureaucracy.
- Unique Corporate Tax System: Reinvested profits are tax-free, providing a significant incentive for growth and expansion.
- e-Residency Program: Enables non-residents to establish and manage an EU company fully online, providing access to the EU market.
- Innovation & Startup Ecosystem: A vibrant startup scene, supportive government policies, and access to venture capital.
- Strategic Location: Positioned between the Nordics and Central Europe, with direct access to the Baltic Sea.
- Skilled & Multilingual Workforce: A highly educated, tech-savvy, and English-speaking talent pool.
- EU & Eurozone Membership: Provides seamless access to the vast EU single market and eliminates currency risk.
Business Opportunities for Indians in Estonia:
There are excellent business opportunities in Estonia for new investors who are planning to start their business abroad. Estonia’s digital-first approach, innovation focus, and attractive tax system make it a compelling destination for Indian entrepreneurs and companies, especially in the IT and digital sectors. Indian investors with strengths in IT services, cybersecurity, FinTech, e-governance solutions, and potentially in specialized manufacturing or cleantech, can find significant avenues for investment, R&D partnerships, and market entry into Europe, leveraging the e-Residency program for remote operations.
Imports & Exports:
Many goods are imported and exported from Estonia. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.
Major items which are exported from Estonia to India:
- Machinery and mechanical appliances
- Electrical machinery and equipment
- Wood and articles of wood
- Mineral fuels, oils, distillation products
- Chemical products
- Optical, photographic, cinematographic, measuring instruments
Major items which are imported in Estonia from India:
- Pharmaceutical products
- Organic chemicals
- Textile yarns and fabrics, articles of apparel
- Machinery and mechanical appliances
- Plastics and articles thereof
- Cereals (e.g., rice)
- Vehicles and parts
Manufacturing:
Opportunities in manufacturing are increasingly focused on smart manufacturing, automation, and high-tech production. This includes electronics, machinery, metal products, and specialized wood products. The focus is on leveraging technology and a skilled workforce rather than purely low-cost labor.
Mining:
The mining sector in Estonia is primarily focused on the extraction of oil shale (used for energy production and oil extraction) and peat. While significant for domestic energy, it is not a major area for new foreign investment, especially as Estonia shifts towards greener energy sources. Other extracted materials include limestone, sand, and gravel for construction.
Major Indian companies which are currently working in Estonia:
While large-scale manufacturing units of major Indian conglomerates might be less common, Indian IT and digital services companies, as well as pharmaceutical firms, have a growing presence or strong trade ties in Estonia, often leveraging its digital ecosystem.
- IT Service Providers: Some Indian IT service companies might be engaged with Estonian tech firms or have smaller operations.
- Pharmaceutical Companies: Indian pharmaceutical products are distributed in the Estonian market.
- Startups/Entrepreneurs: Many Indian entrepreneurs utilize Estonia’s e-Residency program to set up and run their businesses, particularly in the digital services and tech sectors.
- Trade: Indian companies are active in bilateral trade, facilitating the import of Estonian wood products and machinery and the export of Indian pharmaceuticals and textiles.
- GDP = $42.5 billion (2024 est.)
- GDP Growth = 2.0% (2024 est.), 2.8% (2025 est.)
- Ease of doing business rank = Not directly ranked by the World Bank’s ‘Doing Business’ report (discontinued), but widely recognized for its high ease of doing business through various other global indices, particularly in digital aspects.
- GDP per Capita = $31,000 (2024 est.)
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