Updated: Nov 6, 2020
Here are the most common myths we get to come up against now and then.
Myth # 1 I need a lawyer to register a company and apply for licenses.
Reality: Not true. An good consultant is more efficient and very often more experienced than a lawyer. Before engaging a lawyer, ask how many licenses he has helped to obtain. Most consulting companies have lawyers in their teams who take care of legal things - drafting AML documentation, T/C, privacy policies, token legal opinions, etc.
Myth # 2 New company is better than a ready-made one.
Reality: Not true. A ready-made company is a good choice if you do not want to wait 60-120 days for license transfer. The purchase of the ready-made company is swift, and you can start your operations immediately while the transfer of licenses is still in progress. The license follows the company. All ready-made companies have registered already registered share capital, meaning you do not have to deposit 12,000 Eur.
Myth # 3 When changing a shareholder, the license will be permanently suspended by FIU.
Reality: Not true. When changing a shareholder, the notice to the Register of Economic Activities has to be sent together with all the required documentation. If the new shareholder is compliant with the existing requirements, the license update will be approved by the Regulator.
Myth # 4 Local Director has to be an Estonian citizen.
Reality: Not true. The Local Director has to reside in Estonia and preferably have a tax residency in Estonia.
Myth # 5 Local Director is allowed to manage only 1 licensed company.
Reality: Not true. FIU allows having one director to manage up to 2-3 companies.
Myth # 6 FIU can revoke my license without any reason.
Reality: Not true. The license has no expiration date. Once you already have a license, the FIU only suspends your license for a reason. The reason for suspension can be failing to report on time, not answering an inquiry, not starting operations within six months from the issue of the license, or when your activity has been reported to the FIU, and so on.
Myth # 7 I will be able to open a bank account for my regulated company in Estonia.
Reality: Unfortunately, not true. The Estonian banks are not ready to take their risks with virtual currency service providers. We recommend opening a bank account with an e-money institution or payment institution that has been established in the European Economic Area and provides cross-border services in Estonia;
Consulting24.co has been helping with company registration in Estonia and a crypto license in Estonia since 2018. We have helped our clients to obtain over 300 licenses, assisted at numerous interviews with FIU, and have constant communication with a regulator.