How to Start and Manage an
E-Commerce Company in Estonia: Easily Trade on Amazon and Shopify

Nov 17, 2021 · 6 min read

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E-commerce is among the most popular reasons to start a company in Estonia. That’s why we’ve decided to cover why Estonia is a great place to start your company for online sales and how Enty can streamline the whole lifecycle of your e-commerce company from its incorporation to regular maintenance.

Starting a Company for E-commerce Trading

Each year billions of people purchase goods using online platforms. E-commerce platforms keep developing, engaging even more sellers, and it’s not going to stop.

So, if you want to trade physical goods around the world, most commonly, there are just two ways to make this happen. You can build up the system by yourself: accept and process the payments on your website, collect and pack products, send them via delivery services, and so on. Or you can delegate some tasks to one of a bunch of well-known e-commerce platforms and ease up the logistics.

Amazon and Shopify might be a great help but some issues will still take place. Which country to choose for incorporation, how to get a VAT number and manage taxes without extra payments, how to file statements, and handle accounting properly. Let’s take a look at these issues.

Is Estonia Suitable for Trading on E-commerce Platforms?

We’ve covered the benefits of running different types of businesses in Estonia and the e-commerce sphere is not an exception! So, how can you benefit from setting up an e-commerce business in this country?

Firstly, the Estonian e-Residency program will let you open and manage your own company without visiting the country. Also, you’ll have full access to OSS and IOSS schemes that will let you cooperate with EU-based customers with simplified VAT rules.

There are also dozens of other benefits in Estonia like convenient taxation, highly digitalized government services, and affordable banking. These conditions are extremely important for e-commerce companies.

How to Start and Manage Your E-commerсe Business in Estonia: Step-by-Step Explanation

Step 1. Get an e-Residency and incorporate an online company

If you have an Estonian e-Residency card, it’ll take just one day to incorporate a company with Enty. If you don’t have an e-Residency card yet, it will take up to one month to do that. Learn more about e-Residency and swift incorporation with Enty from our article.

Step 2. Open a bank account, get a VAT number, and join other programs

Sounds quite challenging, yeah? But no worries, everything is included in Enty’s subscription. Our team will prepare all needed documentation to open a bank account. With our Corporate Secretarial services, you’ll be able to obtain VAT number, join OSS or EORI programs easily.

Take into account that becoming VAT-liable is a must. Without it, you won’t be able to participate in the OSS scheme and simplify the process of taxation for your company.

It’s true that Amazon helps its sellers with VAT compliance but it won’t cover all needs of your company. That’s where Enty will help, — we know how to help with all VAT-related questions. And such services are included in Enty’s subscriptions. But let’s not get ahead of ourselves, as we’ll cover accounting-related questions a bit later.

Read More about Running a Business in Estonia:

VAT is among the most important questions from our clients. We’ve tried to answer the most frequently asked questions and help you figure everything out easily.

Estonian e-Residency has become a widely-known program with thousands of members. Today, we would like to determine what exactly the e-Residency is, who might benefit from it.

Company incorporation with e-Residency is the easiest way to get your company up and running. Here, we've focused on what Digital IDs are, and how they work.

Step 3. Connect your business to an e-commerce platform

Once your company is legally ready to operate, you can set up your workflow on the most suitable e-commerce platform. But during the process of implementation, such platforms can request a utility bill or rental contract from your company.

We’ll help you with that, too! Our team will help you prepare the necessary documents with ease. You’ll provide an e-commerce platform with the document and your account will be ready to go. Congrats — now you are ready to trade!

Step 4. Accounting for E-Commerce Companies

As a VAT payer and OSS participant, you’ll have to prepare reports on a monthly or quarterly basis (depending on a country). It means, that our Pro plan suits your needs best, as we’ll cover your monthly accounting in Estonia. At the same time, Enty allows you to handle invoices. Just issue them on a platform, mark them as paid and data will be reflected in the accounting reports.
Enty’s accounting solution is quite simple for e-commerce companies. Just download the sales report from your e-commerce platform. Upload this statement for a needed period to Enty, and will take care of the rest! Also, our client team is always ready to help — we’ll instruct you on the matter of proper trading to simplify your accounting workload.

If any corporate matters arise, you’ll be able to care of that using Corporate Secretarial Services on Enty. Basically, you will be able to focus on trading, while Enty will take care of the rest.

Notice, if all transactions were processed with a single bank account and a single VAT number, we’ll count them as one document!

What if I Still Want to Trade Online All by Myself?

So, if you’re looking to trade all by yourself, Estonia is suitable for you, too! Using the services of online payment solutions, you can streamline your payment workflow. Such services will provide you with a statement about transactions, so our automated accounting will work for you the same way as we explained above. Just choose a provider that has an integration with your bank, and Enty will take care of the paperwork.

So, as you see, starting an e-commerce company may be challenging but Enty will help you ease up the processes. Use a single platform to incorporate a company, streamline paperwork of your company to run all significant parts of your business from a single interface. Issue and manage your invoices, take care of accounting, and handle vitally important corporate tasks.

Explore free features of Enty right now and manage your company with ease!

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