What are the Advantages of Establishing a Company in Estonia?

By February 4, 2021 No Comments

There are many advantages provided by the state for establishing a company in Estonia . The most important advantage of the Estonian government to citizens is e-citizenship over the internet. For the right to citizenship, it is not necessary to purchase real estate as in other European countries. Individuals who can obtain e-citizenship can establish a company over the internet. In addition, a bank account must be opened for the company established in Estonia . Company payments can resort to payment system ways such as Paypal. Businesses of companies established in Estonia are generally on software, e-commerce, informatics and consultancy. The advantages of establishing a company in Estonia are:

  • Fixed Income Tax: The income and corporate tax rate determined by the Estonian government for business establishments in Estonia is 20%. This tax rate is always fixed when the established company distributes profits.
  • European Union Membership: Estonia is a member state of the European Union. Those who establish a company in Estonia can enter the European and American trade markets thanks to this membership. The product to be sold can reach approximately 500,000 million consumers.
  • Company Development: Persons establishing companies in Estonia can purchase real estate and invest in startups to develop their companies.
  • Paypal Account Facility: Estonia provides entrepreneurs with Paypal payment system, which is not allowed in many other countries. People who want to open a company in Estonia can open a paypal account.
  • Company Expenses: There is no need to go to Estonia to establish a company in Estonia. Since the work can be done remotely, they do not need to incur any travel expenses or office supplies.
  • Financial Technology Advantage: Since Estonia is a member of the European Union, it is possible to benefit from the financial technology service available in the laws of the European Union.
  • E-citizenship: To establish a company in Estonia, e-citizenship must be obtained. Thus, entrepreneurs can set up their companies without going to Estonia.

How to Apply for E-citizenship when Establishing a Company in Estonia?

Application for e-citizenship in Estonia is made by foreign citizens who want to establish a company. The Estonian government has created this system in order not to make it compulsory for people who want to establish a company to come to the country. Application for e-citizenship is made online. Those who make this application and are accepted can benefit from establishing a company, tax payment system on the internet, e-banking and digital signing.

What are the Documents Required for E-citizenship Application in Estonia?

Required documents for applying for e-citizenship in Estonia are:

  • A motivation letter written in English
  • Identity image in digital environment
  • Digital passport image
  • Certificate of residence
  • Post code
  • E-mail address
  • A color photograph measuring 1300×1600 pixels, taken no more than 6 months ago (The most important thing in the application is the photograph)
  • digital resume
  • Criminal record
  • Information text about the company to be established
  • Social media accounts

What is the Application for Company Establishment in Estonia?

The first stage for company formation in Estonia is e-citizenship. For company formation in Estonia, a specific address must be specified and a consultant must be present. If a turnover of 40,000 euros cannot be achieved one year after the establishment of the company, VAT registration with the government is not required. Establishment of the company takes 1 day after the necessary documents for company formation are provided in Estonia.

What is the Application for Bank Account and Paypal Payment Systems at Company Establishment in Estonia?

There are 3 different banks to open a bank account at company formation in Estonia . These virtual banks are SEB, LHV and SwadBank. If the request is rejected by these banks, an account can be opened from fintech institutions such as Transferwise or Holvi, even if it is not a real bank. After establishing a company in Estonia , a bank account must be opened. Finally, expenses can be paid from payment systems such as Paypal, Payoneer, PaymetWall or Paymill.[/vc_column_text][/vc_column][/vc_row]

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