Setting up your Estonian company with a virtual office or contact person service may seem simple: choose a provider, pay, and get started. But if you’ve already signed up for a business address service, you might have been surprised to see requests for identity verification, proof of address, and questionnaires about your business.

This process is called KYC (Know Your Customer), and it’s not optional bureaucracy — it’s the law in Estonia.

Why KYC Is Required

Under Estonia’s Money Laundering and Terrorist Financing Prevention Act (RahaPTS), providers of business address and contact person services are subject to regulation. That means they must carry out due diligence on all clients.

Licensed providers are required to:

• Verify the identity of the customer and beneficial owners.
• Understand the purpose and nature of the business relationship.
• Assess risk factors such as industry, origin of funds, or connections to higher-risk jurisdictions.

These requirements protect both you and Estonia from misuse of companies for fraud, money laundering, or sanctions evasion.

What Information You’ll Be Asked For

When signing up with a licensed provider, you should expect to provide:

• Government-issued ID (e-Residency card, passport, or national ID).
• Proof of residential address (utility bill, bank statement, or tax document).
• Details of your business activity (through a short questionnaire).
• Beneficial owner information, especially if there are multiple shareholders.

The process is usually fast — with Capture, verification takes typically just a few minutes.

Why You Should Trust Licensed Providers

It’s essential to recognize that licensed providers are only permitted to use this information for compliance purposes. They are legally bound to:

• Store it securely.
• Never use it for marketing or unrelated purposes.
• Present it only if required by the Estonian Financial Intelligence Unit (FIU) or authorities.

You can confirm if a provider is licensed by searching the official MTR register.

Capture’s Approach

At Capture, we believe compliance should be simple, transparent, and thorough.

• No hidden fees — due diligence is part of the service.
• Identity verification is entirely online and usually takes just minutes.
• Your data is protected under Estonian law and used solely for compliance purposes.
• We take the process very seriously. In some cases, we may ask more questions than other providers. This is because we strictly adhere to legal requirements and maintain high internal procedural standards.

Our goal is to make sure your company is compliant from day one, while keeping the process as smooth as possible.

What to Watch Out For

Not every provider follows the rules. Warning signs include:

• Basic KYC procedures, such as uploading copies of documents without verifying that the same person is behind the screen or asking very brief questions about the client that do not allow understanding their exact business activity, may not be compliant and could put your company at risk.
• Hidden compliance fees — charging extra for additional board members or shareholders isn’t a good practice.
• Mandatory contact person appointments, even if you are using an Estonian business address, create unnecessary admin and costs.

Conclusion

KYC and questionnaires aren’t a nuisance — they’re a safeguard. They ensure that your Estonian company is legally sound and trusted in the EU and beyond.

By choosing a licensed business address provider, you protect your company, avoid unnecessary risks, and enjoy peace of mind.

With Capture, you get a central Tallinn business address, licensed contact person (if needed), and full compliance support — starting from just €120/year.