Estonia e-Residency program has garnered significant attention for its innovative approach to attracting global entrepreneurs. Here is a detailed breakdown of the process, costs, and benefits:
Estonia e-Residency Registration
Steps:
1. Apply Online: Go to the official e-Residency application portal.
2. Fill in the Application: Provide personal information, a passport photo, and a brief motivation for applying. The application process will take approximately 30 minutes if you have prepared all the documents. See the guidelines for applying.
3. Payment: Pay the application fee.
4. Wait for Verification: The Estonian Police & Border Guard Board will conduct a background check which typically takes a few weeks.
5. Pick up the e-Residency kit: Once approved, you can collect your digital ID card and card reader from an Estonian embassy or consulate, or inside Estonia.
Cost: As of my last update in 2023, the application fee is 120€.
Time: The approval process usually takes a few weeks, but picking up the e-Residency kit can depend on your location and appointment availability at the chosen pickup point.
Registering an Estonian Company
Steps:
1. Choose a Business Name: Make sure your desired name is available. Check available names in our website for free.
2. Determine Business Structure: The most common is a private limited company (OÜ).
3. Register the Company: This can be done online using the e-Residency card. Submit the application with all necessary information and documents. In our website filling in the application takes 5-10 minutes if you have prepared all the documents (Beneficial owner information, company name, contact details and field of activity).
4. Open a Business Bank Account: You can open an account with an Estonian bank or use one of the e-residency supported fintech platforms. We do reccommend our official partner Wise.
5. Hire a Contact Person/ Legal Address: If you don’t reside in Estonia, you're required to designate a local contact person and have an Estonian legal address. Check out out Legal Address Service and Contact Person Service.
Cost: Company registration: Around €265 (state fee).
Legal address & contact person: Prices vary depending on service providers but expect to pay around €200-500/year. Our service fee is €185/year each.
Additional costs may arise for banking services, accounting, or other auxiliary services.
Time: The company registration can be done within a day if all documents are prepared. However, the entire process including bank account setup and other logistics might take a few days to a couple of weeks.
Biggest Benefits of Registering an Estonian Company:
Digital Administration: Manage your company from anywhere in the world with the digital ID provided by the e-Residency program.
EU Market Access: Your company is registered in the EU, giving you easier access to the European market.
Transparent Tax System: Estonia has a unique system where corporate income tax is deferred until profits are distributed. This can be beneficial for reinvesting into your business.
Credibility: Having an EU-based company can offer a perception of trustworthiness and stability to potential clients or partners.
Simple Business Environment: Estonia is known for its ease of doing business, with straightforward regulations and a supportive ecosystem for startups and SMEs.
However, it's essential to keep in mind the ongoing obligations, such as annual reports and taxes. Additionally, while the e-Residency program provides the tools to manage a business digitally, it doesn’t grant tax residency, visa rights, or physical residency in Estonia. Before making a decision, consider consulting with a local expert or legal professional familiar with Estonian regulations.
Want to know more about your options? Interested in accessing the EU free market? You are always welcome to book a free 30 minute consultation with us here. Contact us via email at info@nomadbusinesssolutions.eu or visit our website here.
