How to open a business in Estonia
Today’s world is undeniably digital. However, many countries still hinder the entire management of a company online, to solve it, however, it is as easy as to start a company in Estonia.
What’s it going to take?
- Becoming E-resident in Estonia (electronic resident)
- Counting an online management and accounting service
- Create the formal company request with a Contact Person Address and Digital Accounting service
- Mail domain, web and office tools
How do I get E-resident?
To set up a company in Estonia, first of all, you have to get the E-residence. To do this, we have two cases
- Citizens of the European Union: We request it, and within approximately one month, we will be notified that our ID is available at the collection point. “Almost no questions”
- Citizens of other countries: We fill out the form, pay the fee, and wait for more documentation. In this case it will take a little longer, but it should remain relatively little, and with few sticks.
In both cases, the e-residence is requested in the same way: visiting https://e-resident.gov.ee/ filling out the form, and carrying the necessary documentation, choosing a delivery point of the ID card as E-resident (embaja or Estonian consulate in the desired country), and finally paying a fee of about 100 euros.
In short, in order to become electronic residents and to be able to set up a company in Estonia, we have to provide the following data and documentation:
Personal data (as indicated on your travel document)
- Own Names
- Last Name(s)
- Country of birth
- Previous Citizenship / Other
- Date of birth
- Previous names and aliases
- Personal identification code
- Contact information
- Zip code
onMake sure the chosen pickup location is in a country or region where you are entitled to enter. Collecting your electronic residence electronic identification card cannot be used as a reason or purpose to apply for a visa and we will not issue any supporting documents in case you need a visa or any other authorization to travel to your place of travel picked pickup.
ailsIdentification documents accepted by Estonian Police and the Border Guard Board are the passport and European Union ID. Other documents are not accepted.
- Type of travel document
- Document Number
- The issuing authority
- Date of issue
- Expiration date
- Issuing country
- Upload photo
- Additional Information
- Social media
- Criminal history
- Business activity
- Business and commercial prohibitions
- Reason for the request.
- Main motivation
- Describe your main motivations for becoming an electronic resident.
Cheer up and a month of patience. Think we’re getting a new city, but that’s digital. Valid only for business, not for crossing borders.
Which management service do I choose?
Having achieved E-residency in Estonia, we can already act in the business world of this country as any other citizen of it would.
Now it’s time to choose who will make our business creation request, and finally provide us with a physical address, a physical represantatnte and an accounting service.
For all this, we have all the options:
Virtual Office only: Services like Xolo will do wonders
Virtual Office with Tax Advice: yourcompanyinestonia.com is a great example
Below you can see a compilation of all of them:
Which Bank do I choose?
Actually, it depends on your business. If you want to create a company in Estonia to sell a SaaS subscription, for example, with a recurring payment manager like stripe, you’ll have more than enough.
If, on the other hand, you want to offer professional B2B services as a consultancy or similar, we strongly recommend that you use a full bank, the largest and the best in Estonia is LHV.
Despite raising this list, we will realize in the process that, in the end, our virtual office will give us the options with which they work (and most will guide us to LHV, being a complete bank.
What information do I need to provide to create my company in Estonia?
The process of setting up your company in Estonia with, for example, Xolo Leap is very simple and can be done completely remotely.
Xolo has created an easy-to-step onboarding process that requires you to complete some forms and digitally sign some contracts. You sign the agreements with your electronic residence IDENTITY card, so you must first register as an Estonian electronic resident. (Anyone can do this regardless of nationality).)
The whole setup process with Xolo Leap took us only about 5 business days. Usually, it involved completing some details or simply clicking an accept button, then waiting for the next step while Xolo set things up in the background.
If you’ve ever experienced a lot of bureaucracy or physical paperwork before, then you’ll probably be delighted by how easy it is with Estonian and Xolo Leap electronic residence.
Well, and that’s it, once we’re confirmed that our company has been successfully created, it will only be left to contribute the capital of 2400 euros (which we can postpone for a few years, although in the meantime our commercial responsibility will not be limited to the company’s assets)
However, we will already have access to an online service (dashboard and company details, among others), a service to create invoices, and an online bank for our money. We will do business, while someone takes the accounting there, but our businesses can happen in the world…
When we do B2B (between companies) businesses within the Union, we will have access to a VAT of 0%, yes, 0%.
What exact package do we recommend to create a simple but complete company in Estonia?
A Google Apps or Microsoft Office 365 account with our own domain.
The bad part, it’s true, but, if we already have a business that we want to digitalize or regularize, it’s cheap for what we’re going to get.
Once paid: 100 euros for the e-residence
Recurring monthly payment
Xolo Leap: 49o/month until it reaches a revenue of 2000 euros, 90o/month from there.
LHV Pank: 10euros/month
Microsoft Office 365 with domain (‘tuempresa.com): 10.50/month
Total: 110.50 euros/month
Total First Year: €1,426.00
Voilá, a fully digital company, headquartered in Estonia and access to the entire European market, accessible from all over the world.