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Digital CEO: The Beginner’s Guide to Owning a Fully Remote (Tax- Competitive) Business in Estonia

Filip Stankovski May 5, 2019

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For many entrepreneurs, the costs and bureaucratic nightmare that comes 2ith starting a business can be a hassle that challenges even the most optimistic entrepreneur. In many countries, starting a business requires filling out a bunch of forms, paying more taxes, and long wait times as things get approved.

Imagine if you were in a country where this process was as simple as filling an online form and a few clicks. Picture yourself paying a small fee to start a business, paying a flat tax no matter how big your profits are, and could handle your taxes for the entire year right from the bathroom (if you wanted to)?

Welcome to Estonia.
Estonia is a country with a very unique program that could be attractive to digital nomads and remotepreneurs. It’s also one of the most revolutionary ideas that the modern world has ever seen.

 

INTRODUCING E-RESIDENCY.

 

What is E-Residency and How Does it Help Remote Entrepreneurs?

E-residency is a novel program, created in 2014, by Estonia which gives (almost) anyone from the world the ability to access Estonia’s government services. These services include starting a business, business banking, getting documents signed from anywhere, and even fill prescriptions if you happen to be in the area with a few clicks.

(Note: There a few things that you need to be physically present for, including marriage or divorce. )

The reason e-residency in Estonia is so promising is because it allows remote entrepreneurs the opportunity to remotely manage a business in the EU market without dealing with numerous forms, paperwork delays, or high taxes.

If you are an entrepreneur in a country with a lengthy business setup process or without access to PayPal, Estonia might be just the thing you’re looking for.

What are the Benefits of E-Residency in Estonia?

  • Very easy & fully remote business setup: In Estonia, a business can be set up one of 5 business entities (as well as sole proprietorship) in about 3 hours with international and multi-payment banking options set up as well.
  • Comprehensive Business Set-up: Entrepreneurs can set up a business on their own or access a service provider who can help with getting the entire process started quickly
  • Competitive, stress-free taxation: No corporate tax or tax on retained and reinvested profits. Complete your taxes online in as little as 3 minutes.
  • Transparent government services: Through X-Roads, Estonian government services are 95% transparent meaning that you can view your tax payments, view where those payments went, and contact a government official within a few clicks

Alright, how do I become an e-resident and start a business?
Become an E-resident of Estonia

  1. Everything begins with the Estonia’s E-residency website. (20-minute process). You will need the following:
    – Government-issued ID
    – Photo
    – Motivation Statement
    – 100 euro payment
    – Pickup location (*Be aware that you have to pick up your digital ID for e-residency from a pick-up location on this map or Estonia.)
  2. Your application is sent for processing, including a background check.
  3. Once approved (You’ll get an email), you can pick up your digital ID and begin accessing services. (Note: You may need to download software to access some services, like digital signature, right from your laptop)

Start a business in Estonia

  1. Become an e-resident and get your digital ID
  2. Get an Estonian address. (Visit LeapIn for a guided walkthrough which includes setup of your bank account and payment card. Taxes and accounting are handling by LeapIn.)
  3. Check for your business name here.
  4. Set up your company structure. (Note: Estonia offers the ability to run a one-person business where you are the employee and board member if you need that option..)

Important Cautions
While having an (almost) completely hassle-free global online is a great perk, it’s important to mention that Estonian e-residency is not a permanent residency. In other words, you are not an Estonian resident. You are global citizen accessing Estonian services through their e-residency program

What does that mean?

Who is the E-residency Program best suited for?
The e-residency program is best for digital nomads who is best suited for two kinds of entrepreneurs:

  • Global nomads/digital freelancers who want a fully remote business with low taxes
  • Entrepreneurs who want access to better payment and tax options outside their country

Where can I get more information?
Get more information here: http://e-residency.gov.ee/

 

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Author

Filip Stankovski

I'm a top rated sales freelancer on Upwork and Level 2 Seller on Fiverr. I believe that the new entrepreneurs are remotepreneurs and the purpose of the podcast is to teach people how to adjust to the new future of doing business - REMOTELY!

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