Estonian Company Kit by Tech Ale OÜ

Do you need a company, or can you invoice without one?

If you work alone, don’t plan to hire and take out what you earn, invoicing without a company may be enough. Partners, employees or keeping profit in the business point towards a company. Answer five questions to see which fits and why.

General information only, not tax or legal advice. The tool runs in your browser; nothing you enter is sent anywhere. This site is not affiliated with, endorsed by or operated by the Republic of Estonia or the e-Residency programme.

Will you run the business alone or with partners?
Do you want to keep profit in the business to use later?
Do you plan to employ people through the business?
What yearly revenue do you expect?

Compared with the Estonian VAT registration threshold of €40,000.

Do your clients expect an invoice from a company?
Your result appears here, with every figure linked to its source. You can copy a link to it or print it.

How the answer is worked out

There are three possible answers:

  • Invoicing without a company may be enough. For example, Xolo Go.
  • A company is likely a better fit. For example, Xolo Leap.
  • It depends — here's what to check.

Each answer you give adds weight to one option, for a stated reason. Sharing ownership or employing people weighs heavily towards a company, because invoicing without a company is designed for one person billing their own work. Keeping profit in the business also points to a company: in Estonia, profit kept in a company is not taxed until it is distributed. Working alone, taking out what you earn and serving clients who accept invoices from an individual point towards invoicing without a company.

One option has to lead clearly before the tool names it. If the answers pull both ways, or several are still open, you get "It depends", with what to check. The tool says so when invoicing without a company may be enough, whatever the site might earn from either option.

Worked example

A freelance designer works alone, takes out what they earn, doesn't plan to hire, expects revenue below the VAT threshold, and their clients accept invoices from an individual.

Result: Invoicing without a company may be enough. The reasons:

  • You would be the only person behind the business, which is the situation invoicing without a company is designed for.
  • You plan to take out what you earn, so the ability to keep profit in a company matters less for you.
  • You do not plan to employ anyone, so you do not need an employer set-up.
  • At revenue below the VAT registration threshold, the fixed running costs and administration of a company make up a larger share of what you earn.
  • Your clients accept invoices from an individual.

If the same designer planned to share the business with a partner ("With one or more partners who would co-own it"), the result would be: A company is likely a better fit.

What to check next

  1. Whether you want to keep profit in a business or take out everything you earn
  2. Whether any client needs to contract with a company
  3. Whether you expect to share ownership or employ people
  4. Where the company would be considered tax-resident, given where you make decisions

Terms used here: OÜ , Service provider , Corporate income tax on distributions .

Sources

Figures last checked: 3 October 2026. Each figure links to its source; see all sources and dates.