Establishing a company in Estonia is very advantageous compared to other countries. These benefits are provided not only 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 online for people who want to start an enterprise in Estonia. An entrepreneur who applies for e-citizenship to establish a company in Estonia does not need to purchase any real estate, as in other European countries. In Estonia, a bank account must be opened to establish a company after e-citizenship approval is received by the state. This bank account can be opened through a virtual bank. With the bank account opened, company owners can make expense payments using payment systems such as Paypal. There are 7 advantages of doing a business based in Estonia:
Flat Tax System Special to Estonia: Estonia has the most competitive tax system among the member countries of the European Union. Thanks to the tax system established by the Estonian government, entrepreneurs in the country have been provided with a great advantage. Entrepreneurs who want to do a business in Estonia are obliged to pay 20% income tax determined by the Estonian government. This income tax rate determined by the Estonian government is fixed and cannot be changed. If profit distribution occurs 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 a business in Estonia.
Low Company Costs: The most commonly established company type in Estonia is the Limited Company type. Entrepreneurs need only 1 euro 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 establish a company in Estonia, digital platforms such as e-banking and consultancy are needed and their cost varies between approximately 450 and 500 euros. There is no need to go to Estonia to do business in Estonia. Job setup and tracking can be done over the internet. Therefore, there are no office expenses or travel expenses.
European Union Market: Estonia is a European Union member country. The European Union, along with America, has the largest trade market in the world. Entrepreneurs who want to start a business in Estonia can enter the European and American markets thanks to its membership in the European Union. Thus, entrepreneurs have the opportunity to reach approximately 500,000 consumers. By establishing a business in Estonia, you can trade duty-free in all European Union member countries.
Virtual Payment Systems: Since Estonia is a member of the European Union, when a company is established in this country, the payment system becomes international. The Estonian government has approved a 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 thanks to virtual payment systems.
Virtual Banking System: When establishing a business in Estonia, people must open a bank account after obtaining e-citizenship. Since business establishments in Estonia are generally done remotely and over the internet, the e-banking system has developed in the country. There is no physical branch in virtual banking, the entire banking system depends on financial technology.
E-citizenship: The most important advantage of doing business in Estonia is e-citizenship. Thanks to this digital identity issued by the Estonian government, entrepreneurs can do a business in Estonia. Thanks to e-citizenship, entrepreneurs are granted visa-free travel and residence permits in Estonia. People who receive e-citizenship generally receive a residence permit for 2 to 5 years with their first application.
Company Development and Business 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 is supportive of investors. Great developments are seen in the country, especially in the field of technology and software. When a business is done in Estonia, it creates job opportunities for people in the country.
