What are the 7 Advantages of Doing a Business Based in Estonia?

By February 2, 2021 No Comments

Establishing a company in Estonia is very advantageous compared to other countries. These benefits are not only available to Estonian citizens, but to citizens all over the world. To establish a company in Estonia, the first step is to obtain e-citizenship approved by the Estonian government. E-citizenship is a digital identity card obtained over the internet for people who want to venture in Estonia. An entrepreneur applying for e-citizenship to establish a company in Estonia does not need to purchase any real estate as in other European countries. After obtaining e-citizenship approval by the state in Estonia, a bank account must be opened to establish a company. This bank account can be opened through a virtual bank. With the bank account opened, company owners can make expense payments with payment systems such as Paypal. Here are the 7 advantages of doing a business based in Estonia :

  • Fixed Tax System Specific to Estonia: Estonia is the country with the most competitive tax system among the member states of the European Union. Thanks to the tax system established by the Estonian government, a great advantage has been provided to the entrepreneurs in the country. Entrepreneurs who want to do business in Estonia are obliged to pay 20% income tax set by the Estonian government. This income tax rate set by the Estonian government is fixed and cannot be changed. If the profit distribution is realized when the company is established, this income tax rate remains constant. People who start a business in Estoya can make their investments tax-free. This low income tax rate is one of the most important advantages of doing business in Estonia.
  • Low Company Costs: The most common type of company established in Estonia is the Limited Company type. Entrepreneurs only need 2,500 euros to set up a limited company. This capital for establishing a company in Estonia can be paid not only at the establishment of the company, but also within one year. To set up a company in Estonia , digital platforms such as e-banking, consulting are needed and their cost varies between 100 and 150 euros. There is no need to go to Estonia to do a business in Estonia. Job setup and follow-up can be done online. Therefore, no office expenses or travel expenses are incurred.
  • European Union Market: Estonia is a country that is a member of the European Union. The European Union, on the other hand, has the largest trade market in the world, together with the United States. Entrepreneurs who want to start a business in Estonia enter the European and American markets thanks to the European Union membership. Thus, entrepreneurs have the opportunity to reach approximately 500,000 consumers. By establishing a business in Estonia, duty-free trade can be carried out in all European Union member countries.
  • Virtual Payment Systems: Since Estonia is a member state of the European Union, the payment system becomes international when a company is established in this country. The Estonian government has approved the virtual payment system, such as the Paypal payment system, which some countries in the world do not allow. Entrepreneurs who have established a company to do business in Estonia can sell through digital platforms and receive payments from their customers through virtual payment systems.
  • Virtual Banking System: When starting a business in Estonia, individuals are required to open a bank account after obtaining e-citizenship. The e-banking system in Estonia has developed in the country, as business establishments are usually carried out remotely and over the internet. There is no physical branch in virtual banking, the whole banking system depends on financial technology.
  • E-citizenship: The most important advantage of doing a business in Estonia is e-citizenship. Entrepreneurs can start a business in Estonia thanks to this digital identity issued by the Estonian government. Thanks to e-citizenship, entrepreneurs are granted visa-free travel and residence permits in Estonia. Individuals who obtain e-citizenship usually receive a residence permit between 2 and 5 years on their first application.
  • Company Development and Job Opportunity: Since there is a digital infrastructure in Estonia, the investment ecosystem in the country is expanding day by day. The policy followed by the Estonian state supports investors. Especially in the field of technology and software, great developments are seen in the country. When a business is done in Estonia, job opportunities are created for people in the country.

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