What you are comparing
EU Inc would harmonise core company-law rules in member states. An OÜ is governed by Estonian company law. Both need to be understood alongside the rules where the business operates. The decisive difference today is availability: the EU Inc legislative file is still awaiting a committee decision.
| Question | EU Inc proposal | Estonian OÜ today |
|---|---|---|
| Can I register it? | No. No confirmed launch date. | Yes, once the relevant requirements are met. |
| Registration cost | Proposed maximum €100 for the qualifying fast track. | €265 official online registration fee. |
| Share capital | No minimum in the Commission proposal. | Minimum €0.01 per shareholder. |
| Digital setup | Proposed digital routes, including a conditional 48-hour fast track. | Online registration with supported digital IDs for the required signatories. |
| Selling across borders | Proposed common company-law rules; local obligations remain. | Cross-border business is possible; local obligations remain. |
| Employee equity | EU-ESO is proposed and under negotiation. | Existing national rules apply. |
Sources: Commission proposal, Estonian registration guide and OÜ requirements. Proposed EU Inc terms may change before adoption.
Compare total cost and total time
The official Estonian online registration fee is €265. The minimum capital contribution is €0.01 per shareholder. These figures are different kinds of payment: the fee pays for registration; capital belongs to the company. Digital identity, contact-person or address services, accounting and professional help can add costs. The official guide explains the filing process.
Do not compare a completed OÜ setup with only the proposed €100 EU Inc fee. Price the same scope on both sides. Our formation service fee is an estimate until the free plan gives you a fixed quote; government charges and any optional services should be itemised.
An online company application can be reviewed quickly once signatures, identity checks and documents are ready. Obtaining and collecting an e-Residency card is a separate step. A claim of "a company in days" does not include that earlier process or guarantee banking approval.
Tax depends on more than the company label
Estonia taxes distributed profits under its existing system. The Tax and Customs Board states a 22/78 rate on net dividend distributions from 2025. This is not a promise that a founder or a business managed elsewhere has no further tax obligations. Read the tax authority's guidance.
EU Inc would not provide a common corporate tax rate. For either structure, management, employees, activity and taxable presence in other countries need attention. Use the EU Inc tax guide to distinguish the proposal from existing obligations.
Build the full budget with first-year and annual company costs. Then use the post-registration checklist to plan the recurring work.
When registering now can make sense
Assess a current company form if you need to sign contracts, receive investment, employ people or apply for licences. Estonia may fit a business that can meet its digital and compliance requirements. It is one option among European jurisdictions, not the automatic answer for every founder.
If you are still testing an idea and have no current need for a company, you can follow the legislation before choosing. Use the verified milestones rather than treating an estimated year as a deadline.
Keep conversion as a later decision
An OÜ will not automatically become an EU Inc. The proposal includes conversion concepts, but access, procedure and approvals depend on the final rules. Choose a company that works for your business today. Review a possible conversion once the law and application date are known.
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Get your free planFrequently asked questions
Is Estonia e-Residency the same as EU Inc?
No. e-Residency is a digital identity used to access Estonian services. An OÜ is an Estonian private limited company. EU Inc is a proposed harmonised company form that cannot yet be registered.
Can an Estonian OÜ sell to customers in other EU countries?
Yes, subject to applicable tax, VAT, licensing and employment rules. Its national company form does not mean its customers must be in Estonia.
Does an Estonian company cost less than the proposed €100 EU Inc fee?
The official online OÜ registration fee is €265 at our source check. The proposed EU Inc €100 ceiling applies to a particular fast-track route and is not available today. Compare total costs, including digital identity, address, accounting and support.
Will an OÜ automatically become an EU Inc?
No automatic conversion is guaranteed. Any future conversion depends on the adopted rules, the company's eligibility and the required corporate approvals.