Advantages of Establishing a Company in Estonia for Entrepreneurs

By February 11, 2021 No Comments

Estonia, the E-Residency program provides entrepreneurs all over the world the opportunity to establish a company in Estonia online. We will explain 10 advantages of starting a company in Estonia.

1) Estonia’s privatized tax system

According to the OECD (Organization for Economic Development and Cooperation), Estonia is the country with the most competitive tax system in the world. Estonia’s corporate tax system offers business owners a very special opportunity like no other country in the world. Company owners do not pay any tax on their annual income that they invest or the income they do not deduct from the company account. A fixed 20% tax is payable on income (dividend distribution) removed from the company. Estonia is a country that has a certain reputation in the European Union and offers important investment opportunities to business owners. In this sense, owning a company in Estonia is much more privileged than owning an ordinary offshore company. With your company you established in Estonia, you can make tax-free investments in real estate, start-ups and many more.

2) Low setup fees and operating costs

You can set up a Limited Company, which is the most established company type in Estonia, with a share capital commitment of only 2,500€ and it is not mandatory to invest this share capital in your company when establishing your company. (You can deposit within 1 year). For example; 25,000€ if you want to establish the same type of company in Germany (x10 times) investment capital must be ready at the time of installation. Considering the annual costs required for the management of your company (virtual office, local representative, consultancy, accounting, etc.) , you can carry out all your work remotely with advist.eu with a monthly average of 100 – 150 € .

3) Location-independent company management

Wherever you are in the world, thanks to your digital identity card, you can establish your company without coming to Estonia. You can run all your company business online from start to finish. Like many internet entrepreneurs who set up a company in Estonia, you can follow your business online through your company you established in Estonia while you are enjoying yourself on a tropical island. The age we live in and the technological opportunities we have are enough to give you the freedom you want while growing your business, even if you are starting from scratch. You can turn your skills into income online with very small investments, without the need to unhappily confine yourself to 9 – 5 shifts.

4) Common European Union market

The European Union market is the largest economic market in the world and has a common market due to the free trade permit between the countries included in the union. Owning a company in Estonia means being able to do business and reach around 500 million consumers in all European Union countries. You can trade duty-free between countries in the European Union, just as you sell products between cities in Turkey. Entrepreneurs, especially those who sell in market places such as Apple , can establish a company in Estonia and present their products to the 500 million European market.

5) Access to alternative payment systems

By establishing a company in Estonia, you can access international payment systems. In this way, the restrictions in Turkey will not interfere with your business. For example; One of the problems on the agenda is that many online sellers in Turkey are unable to open a PayPal Business account, so they cannot receive payment from their customers and lose thousands of liras per month. By opening a company in Estonia, you can open a PayPal Business and Stripe account with the methods we will explain to you in detail and receive your payments from your customers legally.

6) Estonia’s global digital reputation

Having the headquarters of your digital-based business in Estonia will greatly add credibility to your business due to Estonia’s digital reputation. For example, many software companies or freelancer software companies in Singapore have the opportunity to work with companies in Europe thanks to the reliable image they have acquired after establishing their software companies in Estonia. In addition, many start-ups in different countries of the world find the opportunity to access European and American-based investments by establishing their companies in Estonia.

7) Stable environment

As a company owner in Estonia, you get the opportunity to do business in the stable environment of Estonia and the European Union. This situation removes the anxiety of what will happen tomorrow for many businessmen. For entrepreneurs who produce services in the field of technology, being in a stable environment is a much more important requirement because a small change or restriction in the law can lead to huge negative consequences. In Estonia, this situation works on the contrary, because the state gives a lot of support to technology and entrepreneurs and all innovations result in favor of entrepreneurs.

8) Access to new generation online banking systems

As a company owner in Estonia, you gain access to new generation online banking systems. In this way, you do not even need a traditional banking account. Online banking systems belong to technology companies that do not have physical branches and offer 100% online banking services. Within 2-3 working days after your company and personal information in Estonia are verified, you can open your company’s IBAN accounts and even place a MasterCard order to your address in Turkey for your expenses. Accounting and tax declaration services can be done with the summaries of the accounts you have on these platforms.

9) Growing ecosystem and increasing job opportunities

Thousands of foreign companies move their headquarters to Estonia every year due to Estonia’s digital infrastructure, rapidly growing start-up ecosystem, and policies that support business owners and investors. Especially the ecosystem of technology-based businesses is growing very fast and considering the government’s target of 10 million e-citizens by 2025, it is inevitable that there will be huge business opportunities among all these companies.

10) Establishing a company in Estonia also allows obtaining a residence permit.

After establishing a company in Estonia, you can apply for a residence permit through your company and have the opportunity to live/work for 2 to 5 years in the first application. For this, it is enough to have an innovative business idea and a company.

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