E-Residency: the Easiest Way to Start and Manage an Online Company

E-Residency: the Easiest Way to Start and Manage an Online Company

What is Estonian e-Residency?

Estonian e-Residency is a government-issued Digital ID that enables you to start and run your company remotely using all Estonian e-governance services and avoiding a lot of bureaucratic issues.

Launched in 2014, the program has proven to be highly successful. Up to April 2022, over 90.000 people from 140+ countries became e-Residents.
Over 90.000 people from 140+ countries
became e-Residents

E-Residency: Key Takeaways

  • E-Residency is a special type of digital ID that lets you log into government websites, verify your identity, and digitally sign documents;
  • The main purpose is to let you incorporate an EU-based online company remotely;
  • With e-Residency on hand, you’ll be able to incorporate a company with Enty in a day (explore the process in this article)
  • Apart from the incorporation, e-Residency will ease up the process of obtaining VAT, MOSS, EORI, filing accounting reports, and other processes;
  • It gives you no right to travel to Estonia or any other country and gives no benefits in getting a visa or permanent residency;
  • E-Residency is issued in a form of a plastic card that can be installed on your devices via a special card reader to verify your actions on government websites;
  • You can apply for e-Residency online here, but to receive your e-Residency kit, you’ll have to visit a special pickup point personally (find the list of pickup locations here);
  • It might take you up to 2 months to obtain the card

E-Residency Doesn't Make You an Estonian Tax Resident

PERSONAL TAXATION: Even if you already received an e-Residency, your personal tax stays in the country in which you are a tax resident. Being an e-Resident doesn't make you an Estonian tax resident and doesn't exempt you from double taxation, except for the countries featured here.

CORPORATE TAXATION: In regard to companies, a simple rule applies — a company is a tax resident in Estonia if it is incorporated under Estonian law. Right after the incorporation, companies will be automatically recorded into the taxpayer's registry and there is no separate registration as Estonian taxpayers, except for VAT purposes.

How to Apply for Estonian e-Residency Card

Explore the thorough instruction in this article.

Step 1. Collect Documents for Application

In order to submit an application, an applicant will need to prepare:
  • A scan of your government-issued ID (travel document issued in English)
  • Passport-size photo (.jpeg format)
  • Information about business activity and motivation statement
  • CV (or a link to social media like LinkedIn)
  • Your bank card to pay the fee

Step 2. Submit Your Application

As soon as documents are collected, you can start filling out the application itself. Usually, the procedure doesn't take longer than 30-40 minutes. Also, during this step, you should complete the payment (state fee - 100 EUR, delivery fee - 20 EUR) and wait for the email from the Estonian Police and Border Guard Board.

Step 3. Application Review

As soon as you submit your application, the review process will begin. Normally, the review of an application takes 3-8 weeks. Sometimes the Estonian Police and Border Guard Board may request additional information, which may increase the processing time. If the application is approved, your e-Residency kit will be printed and sent to your pickup location.

Step 4. Collect e-Residency Kit

Once your e-Residency card is ready, you will be invited to the chosen pickup location to collect your e-Residency Kit.

Please note that only the owner of the company can pick up the e-Residency card, it can be done only in person, as you will submit your biometrical data. And also prepare your ID document.

Now you have your e-Residency card on hand, let’s explore how you can use this card to ease up your daily business routine.

How to Use Your Estonian e-Residency Card

Explore the thorough instruction in this article.

Step 1. Unpack and plug in your e-Residency Card

In order to use the card, you will need:
  • A computer with the USB port
  • The card and card reader (both provided in the e-Residency kit)
  • A set of pin codes

To set up your digital signature, you will need to plug your ID card into your computer using a card reader. Connect the card reader with the card to your computer.

Step 2. Install the software and explore it

1. Make sure your ID certificates are activated
Follow the link and enter your card number starting with letters (please, type in the number of your card, not a personal code).

2. Install the DigiDoc App and Web browser extensions
DigiDoc4 is the desktop application used to sign documents in different formats. While web browser components are used to authenticate and sign into different online services of the Estonian government. The signature created in the app will be valid anywhere in Estonia.

3. Log in to the e-Business Register
After you complete the steps above, you can try to log in to the e-Business Register.

In the case of any trouble, explore our full step-by-step article on this matter
Helpful Resources:
Congratulations! Your e-Residency card is ready to be used! Now to can simplify your admin workflow in Estonia highly. Let’s explore how this card will let you incorporate a company in a day!

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