It goes without saying: 10 obvious things on incorporation in Estonia
We help entrepreneurs open a company in Estonia and maintain their back-office, thus we know things. But when you’ve heard about Estonian jurisdiction for the first time, you don’t expect answers like ‘of course’, ‘naturally’, ‘obviously’ asking whether Estonia is good for doing business.
Here is a brief summary that will help you quickly fill the informational gap on starting a company in Estonia and taking a decision.
So, what else is a back-office? The most common answer… is pain. In this article, we tell why SME entrepreneurs spend so much time and money managing their back-offices and still feel confused, and Enty fixes the problem.
Estonia is wicked cool for running a company, you say?
Estonia is one of the smallest EU member states, but Estonians created a competitive advantage in their country by developing the business environment. Estonia now provides almost all public services online and developed a strong startup ecosystem. Taxes are pretty low and it’s not a ‘shady jurisdiction’.
E-Residency is worth mentioning separately. This program allows foreigners to start a company in Estonia fully remote and use e-government services to run the business. Estonian jurisdiction fits a lot of industries from sole proprietors in DevOps to dropshippers and many others.
E-Residency, what is it, and what is eaten?
E-Residency is a program launched by the Estonian government in 2014. It’s a kind of offer: Estonia enables foreign entrepreneurs to open and run an Estonian company fully remote, and in return, entrepreneurs pay taxes and contribute to economic and technological development.
E-Residency is also a digital ID [card] issued to members of the program. It’s the only thing you need in physical form. You apply for the program and pick up your card at the closest point. Then you insert a card into your laptop, open a company via Enty in one day and get access to all Estonian e-gov services.
As a private, I’m a non-resident of Estonia. What company can I open?
Both locals and non-residents most commonly open an OÜ (LLC). This type of company is the fastest and easiest to start, it allows you to earn income and pay taxes. You can open OÜ online with e-Residency or through a notary.
I want to open a company with an e-Residency. What is the procedure?
[Previously: you’ve applied and got your e-Residency kit]. You go to enty.io, register, and enter the basic info about the future company. Next, you sign the documents online with your digital signature and submit an application.
The procedure is simple and automatized. It takes around half an hour of entering data and click. If needed, our client managers will help during the procedure. You can also get an idea of the procedure in detail from this article.
How can I do it without an e-Residency?
There is a possibility to open a company in Estonia through a notary – still remotely. As a rule, it’s a more expensive and stuffy option, but in some cases, it may be quicker than waiting to receive an e-Residency card.
I also need to open a business bank account, right?
Yes, you do need a bank account for your Estonian company. Most of our clients prefer fintech providers to traditional banks – it's faster and cheaper and allows you to manage a company’s cash flow. We will help you choose a fintech provider for your company, prepare docs and open an account.
It takes a lot of money to open a company in Europe, isn’t it?
Not in the Estonian case! Let’s count together: e-Residency application and delivery (€120), Company incorporation (with an e-Residency of €350, fee included), and Bank account opening (from €0 to €100). That’s in total 500-600 euros for a start. Check the costs of running a company here.
Estonia makes every effort to simplify and reduce the cost of starting a company, so in comparison with other countries, incorporation here is cheaper and faster. And also you can always check enty.io for great promos and get a discount on opening and managing a company in Estonia.
It takes a lot of time to open a company in Europe, isn’t it?
Not at all! Get an e-Residency in 1 month, and open a company with an e-Residency in a matter of days. Opening a company through a notary is for up to 2 weeks. Take some extra time for the preparation of docs on your side and the opening of a bank account (from 3 days).
That’s in total 1.5-2 months, simply and completely online.
Anything else I need to know before opening a company in Estonia?
Firstly, you will need a legal address and contact person, that’s a so-called virtual office in Estonia. This service is included in all paid subscriptions on Enty.
Also, all companies must submit yearly accounting report. Enty can easily cover that as well.
It still looks pretty complicated. Could you help me?
It’s our mission, man! We have already registered 500+ Estonian companies. We believe in the automation of routines and thus have reduced manual work during the procedure of opening a company to a minimum. Still, customer care is our strongest point, and we will guide you through the opening procedure and stay here to help you get rid of back office stuff.
There are some tricky things in managing the company in Europe such as issuing invoices, getting a VAT number, filing accounting reports, and withdrawing dividends. But we have an awesome subscription that enables you to manage all processes from one Control panel.
