How Consulting24 Is Helping Entrepreneurs Set Up Businesses In Estonia
Popular Successful startups that kicked off business in Estonia include Transferwise, Skype, andPipedrive. The European country has a population of only 1.3 million people and has become adestination for internet and blockchain entrepreneurs. Most online entrepreneurs, for instance,have been stuck in businesses limited by complicated bureaucracies. One such case is that ofIgnacio, who relocated to Estonia to start a digital nomad business as a freelance developer.
Ignacio felt the tax environment of his home country - Spain was exploitive; even after working55 - 60 hours a week and earning lots of money, his salary would only be slashed by Spain'smassive taxation laws. Ignacio relocated his digital nomad business to Estonia and is nowamong thousands of success stories of internet entrepreneurs that have already relocated andbegun businesses in the nation.
What sets Estonia apart is its E-Residency, which allows anyone to start and finance theirbusiness regardless of their country. The e-Residency enables successful applicants to accessthe nation's advanced digital infrastructure and equal rights with Estonian citizens to set upbusinesses. While the vast majority of these startups are freelancers, digital nomads,contractors, and self-employed entrepreneurs, a dozen startups are as big as Skype.
Estonia company setup is simple compared to other business setup procedures in top destinations such as Switzerland and Malta. Low administration costs, simple taxation, and a readily available market from companies already set up in the nation; make it attractive for entrepreneurs that want to administer their business from any location in the world.
Setting up a business in Estonia requires one to obtain the necessary licensing. The entire process is straightforward, and the first step is to sign up for an e-Residency. This e-Residency program allows individuals to open a business remotely and run it entirely electronically or online, including the business's banking operations.
The Estonian e-Resident programs issue successful applicants with an Identification Card containing a digital chip. This chip allows them to identify themselves securely with the country's administration, sign electronic documents, and create accessible and manageable businesses from one's personal computer.
Steps for Setting up a Business in Estonia
1. Obtain the e-Residency
After applying for your e-Residency online, the next step is picking up from the nearest Estonia Embassy. The program has also organized several special collection points, where one could pick up the card. While collecting the e-Residency Card, embassy officials will request for one's fingerprints. The program costs a meager EUR 100 one-off fee. We consider this an excellent value for money, given that an individual or business will gain access to the world's most advanced digital ecosystem.
Note the e-Residency applies to anyone in the world and has been known for its 99%
acceptance rate. Nonetheless, an individual should have no criminal records and must be 18 years and above.
Initially, the e-Residency was only a way for the country's friends to show their support for Estonia. However, the vast majority of applicants presently fall into entrepreneurs who want to start their businesses.
2. Apply for an Estonian Address
All businesses require an official address or office. The address could be physical or virtual. The best part about this is you do not have to board a plane to register for a legal address. You can obtain a legal address remotely, and this even works better when your business only requires a virtual office to run a global business.
Consulting24 also takes care of all office needs, including setting up an office in Tamil and purchasing office equipment. In addition to the recruitment of a local director.
3.Conduct a Company Name Search
The equivalent of a limited company in Estonia is Osauhing. At the end of your legal company name, Osauhing abbreviates to OU, in the very way that Limited Company shortens to LTD or LLC. The Estonian Company name must be in the Latin alphabet and most preferably shouldn't have special symbols.
As a result, most businesses usually have more name options compared to their home country.Conduct a name search and double-check whether it's not being used as a trademark for other companies. Considering that Estonian Companies are European Union companies, one has to ensure their name is unique.
It is a hard target since the European Union houses more than 500 million consumers, a massive number of entrepreneurs. Therefore, the chances that a company name is unique are unlikely.
Payment of Share Capital
The minimum share capital for setting up a business in Estonia is EUR 2,500. In cases where the amount is presently not available when doing the registration, one can defer the payment to a later date, as long as the payment is less than EUR 25,000. Payment of the deferred share capital should, however, take place before paying any dividends. Furthermore, an individual will be personally liable for their business to the amount of share capital that is yet to be paid.
How Consulting24 is Helping Entrepreneurs Set up Business in Estonia
Consulting24 is Estonias's fastest-growing consultancy firm by volume and has been opening crypto companies for clients. So far, the firm has obtained more than 300 licenses for crypto business and is still counting. Apart from helping entrepreneurs start their businesses, Consulting24 creates tailor-made companies that are readily available for sale.
While the entire process for registering and starting a company in Estonia are accessible online, Consulting24 will take care of the whole registration procedure and all associated compliance requirements. Such compliance requirements include opening a bank account, hiring an AML officer and local director, opening an office, and supplying office equipment.
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