Setting up a business in another country often means months of paperwork, in-person trips to the new jurisdiction and potentially expensive consulting rates. Not so with Estonia, where you can start an EU company online through e-residency for $1,900. This article will cover the process and benefits of starting an Estonian company, as well as some reasons why you should consider it.

Introduction

If you're thinking about starting a company in Estonia, you're in luck. The country has been ranked as one of the easiest places to do business, and it's also home to a number of innovative startups. What's more, thanks to Estonia's e-Residency program, it's possible to start an EU company entirely online. In this blog post, we'll show you how to get started.

Estonia has a flat tax rate of 20%, which is attractive for businesses. In addition, the country has a network of double taxation treaties, which can help your business save on taxes.

The first step in setting up your company is to choose a business structure. If you're planning on doing business in Estonia, it makes sense to set up as an Estonian private limited company (OÜ). This type of company is similar to a limited liability company (LLC) in the US.

Once you've decided on your business structure, you'll need to register your company with the Estonian Commercial Register. This can be done online, and you'll need to provide some basic information about your company, such as its name, registered address, and contact details. You'll also need to

How to apply for e-residency in Estonia

Are you looking to start an EU company, but not quite sure how to go about it? If so, you may want to consider applying for e-residency in Estonia.

E-residency is a unique digital ID that allows entrepreneurs to start and run an EU company entirely online. As an e-resident, you’ll have access to a number of useful business services, including the ability to open a bank account and file taxes.

Applying for e-residency is relatively simple and can be done entirely online. Just head over to the e-Residency website and fill out the application form. Once you’ve been approved, you’ll receive your e-residency card in the mail.

If you’re interested in starting an EU company, e-residency is definitely worth considering. It’s a quick and easy way to get everything set up and will allow you to run your business from anywhere in the world.

Requirements for e-resident status

E-residents of Estonia are able to start companies online without ever having to visit the country. All that is required is a valid e-resident ID card, which can be applied for online.

To become an e-resident of Estonia, you must:

• 1. Be at least 18 years old;
• 2. Have a clean criminal record;
• 3. Have a current passport or other valid travel document;
• 4. Pay the e-residency application fee (€100);
• 5. Schedule and attend an appointment at an Estonian embassy or consulate to submit your biometrics (photos and fingerprints).

Benefits of e-residency

E-residency offers a number of benefits for entrepreneurs looking to start a company in Estonia. First and foremost, it enables entrepreneurs to establish and run their business entirely online – from anywhere in the world. This is a huge advantage for those who want to set up a company but don't want to physically relocate to Estonia.

Another key benefit of e-residency is that it provides access to Estonia's e-services, which are among the most developed in the world. This includes e-banking, e-tax, e-customs, and e-health – all of which make doing business in Estonia much easier and more efficient.

Finally, e-residency also gives entrepreneurs access to a community of like-minded individuals and businesses. This can be invaluable for networking and finding collaboration opportunities.

How to create a company in Estonia

Estonia is one of the most business-friendly countries in the European Union, making it a great place to start a company. The process of setting up a company in Estonia is relatively simple and can be done entirely online.

Here are the steps you need to take to start a company in Estonia:

1. Choose a business structure. The most common types of businesses in Estonia are sole proprietorships, limited liability companies (LLCs), and partnerships.

2. Register your business. You can register your business online through the Estonian Business Register.

3. Obtain a business license. Depending on the type of business you are running, you may need to obtain a special license or permit from the Estonian government.

4. Open a bank account. Once you have registered your business, you will need to open a bank account in Estonia in order to receive payments from customers and make tax payments to the government.

5. Hire employees. If you plan on hiring employees, you will need to obtain work permits for them from the Estonian government.

6. Comply with taxation requirements. All businesses in Estonia are required to pay taxes, including corporate income tax

Tax implications

When it comes to starting an EU company in Estonia, there are a few things to keep in mind in terms of tax implications. First and foremost, it's important to note that Estonia is a member of the European Union, which means that companies based here have access to the single market. This is a huge benefit, as it allows for free movement of goods and services between member states. However, it's also important to be aware of the VAT rules within the EU. Estonia has a standard VAT rate of 20%, but there are a few exceptions. For example, reduced rates apply to certain goods and services such as food, books, and children's clothing. It's also worth noting that if your company provides digital services to customers outside of Estonia, you may be eligible for the 'mini one-stop shop' (MOSS) scheme. This scheme simplifies the process of VAT registration and returns for companies providing digital services to consumers in other EU countries. When it comes to corporate tax, Estonia has a flat rate of 20%. This applies to both resident and non-resident companies. Resident companies are those that are registered in Estonia, while non-resident companies are those that are registered in another country but do business in Estonia.

Conclusion

Estonia is a great country to consider starting an EU company due to its pro-business environment and ease of setting up an online company. By following the tips in this article, you can be well on your way to starting your own successful EU company in Estonia. good luck!