Estonia has rapidly become one of the most Internet savvy and technologically advanced countries in the world. As a result, it has been the country that has been responsible for launching companies such as: Skype, TransferWise, and Pipedrive. One of the primary reasons that these companies have been so successful from launching in Estonia is the Estonian government’s relaxed approach to allowing foreign direct investment through eliminating bureaucratic hurdles to establish companies. Due to the startup tech boom, Estonia now regularly endorses e-Businesses for foreign nationals to be opened and operated digitally for registered entities in Estonia. In order to learn more about establishing an e-Business in Estonia, read the information below:
The Trend of Establishing e-Businesses in Estonia
Recently, the government in Estonia has made a substantial investment to establish an e-Residency programme, which enhances the country’s ease for foreign investors to become established. In the first two years of the e-Residency programme, more than 2,000 foreign investors have created companies. One of the primary targets has been startup technology companies from Gujarat, India. This option is enormously appealing for investors that want to reach the European Union consumer base from countries outside its Member States, particularly in the sectors of IT/ITeS, tourism, healthcare, e-commerce, and business/technology consulting. In the coming years, it is expected that this link between India and Estonia will grow along with investment from other countries with an aim of reaching the European Union.
Benefits of Establishing e-Businesses in Estonia
There are many benefits to establishing an e-Business in Estonia to include:
Competitively Priced Business Services
Since Estonia is a very technologically advanced country, there are a plethora of options available in terms of companies that can handle Human Resources, Accounting or Consulting Services for your business. Additionally, there will be many options available to you at competitive pricing for you to choose from.
Having a Global Company
Establishing a company in Estonia enables you to do business all over the world. Since Estonia is a part of the European Union, Estonia will enable those who have a company registered there to conduct business to countries around the globe with ease.
You Are Able to Be Your Own Management Board
According to Estonian Law, your company will need a management board; however, it is possible to put your own name down to serve as the Management Board to simplify your corporate registration process.
You Do Not Need to Learn Estonian
Estonia as a whole has a very high level of English. For those that establish companies in Estonia, they will find the services required to operate a business available in English.
Paying the Share Capital is Streamlined
The required minimum share capital to set up a limited company is €2,500; however, it is possible to defer the payment until later so long as your share capital does not exceed €25,000.
Modern Banking Options Available
Any e-Resident of Estonia has the option to complete all of their banking needs without traveling to Estonia. This makes it simple to conduct your business from anywhere in the globe.
Before establishing a company in Estonia, it is necessary to become an e-Resident through the e-Resident Program. Estonia is the first country in the world to offer the option to become a resident on the Internet. All that is required is to apply online and pay the fee. One month later, it is possible to collect your digi-ID from your closest Estonian embassy.
Simple to Establish a Business
After completing the e-Residency process, it is possible to establish a company online in one day so long as you have a legal Estonian address, which can be obtained from here. This makes Estonia quite competitive in contrast to countries such as China where establishing a corporate entity takes a considerable amount of time and comes with many bureaucratic hurdles for foreign direct investors.
Final Remarks on the Subject
The Estonian government has truly made incredible advances by allowing for foreign citizens to become e-Residents and later, establish e-Businesses. This will allow foreign direct investors that previously had difficultly affording the minimums to conduct business in the European Union to save considerably on startup costs while reaching a wider net of customers. What will continue to fuel Estonia’s economy is the low risk and travel that business owners in Estonia will have to conduct on a regular basis. The high level of English and availability of competitively priced business services makes Estonia even more appealing for fresh startup firms.
Lastly, the booming IT sector in Estonia will continue to produce innovative e-commerce and Internet solutions that will benefit consumers around the globe. It will be fascinating to see if other countries in the future will follow Estonia’s lead and “go digital” with e-Businesses of their own.