Another way for a foreign company to permanently offer goods or services in its own name in Estonia is to establish a branch (filiaal). The business name of the branch of a foreign company consists of the business name of the company and the words Eesti filiaal (Estonian branch). The branch must be registered in the Estonian Commercial Registry through submission of an application and certain required documentation.
Certain entities such as foreign banks or insurance companies located in non-EU states must also obtain a required license. Banks and insurance companies from EU member states must simply notify the Estonian Financial Supervision Authority that they intend to commence activities in Estonia.
It should be considered that a branch is not a legal person and the foreign enterprise is liable for obligations arising from the activities of the branch. The foreign enterprise is also liable to appoint one or more directors that are accountable to the foreign enterprise. At least one director must be resident in an EU state or Switzerland.
Source: PricewaterhouseCoopers - Doing business and investing in Estonia