E-Residency is a transnational digital identity for all world citizens interested in establishing a trusted location-independent company entirely online. E-Residency is building a new digital nation, powered by the Republic of Estonia.
E-Residency is a digital identity which enables to incorporate and administrate an Estonian company entirely online. E-residents will receive an e-Residency card (digital-ID card) with an USB card reader, which can be connected to one’s computer. E-Residency Digi-ID kit includes also pin codes, which are used for digital signatures and to decrypt/encrypt documents, which is useful when sending confidential information by e-mail. E-Residency card also enables its holder access in various Estonian administrations online. In this way e-residents can run their business online from anywhere in the world, which is interesting for ’digital nomads’ who work and travel, as well as international freelancers and expats.
Anyone in the world can apply for e-Residency and about 99% of applications are approved. To apply e-Residency is very simple and the application can be filed entirely online in the following link*: https://apply.gov.ee/
In the e-Residency application you can choose the pickup destination among various countries and the process for applying the card is estimated as a short 30-day process. The state fee is €100 fee for e-Residency and it covers the cost of background checks and administration, but the use of Estonia’s advanced digital infrastructure is provided with no fee and no automatic tax obligations. Anyway, when incorporating in Estonia as a foreigner, one has to check personal taxation matters due to one’s country of residence, keeping in mind that personal taxation and company taxation are two different concepts.
While establishing an Estonian company as an e -resident, it is also possible for citizens of EU member states to apply for a bank account entirely online with help of the Holvi online banking account service. Which means that acquiring a banking account does not necessarily require physical presence in Estonia for e-residents. In case, the company needs a traditional bank account in Estonia, we can assist with opening the business account in the banks with branches in Estonia, Tallinn. Keeping in mind that the client has to visit the Estonian bank at least once, before achieving account access. This is due to the present European banking Directives, which establish that the bank has to know its clients. If You need to have Your business account in another country, you will need to present proper bank account authorisations for Estonian Administrations.
E-Residency does not require address in Estonia, but when incorporating a company in Estonia, the company must hold an official business address in Estonia. If one does not have a business address in Estonia, it could be achieved by business service providers / virtual office service providers. E-Residency team has listed some of them on their website: https://e-resident.gov.ee/run-a-company/#Business_services
On the other hand, one has not to confuse e-Residency with a permit to stay physically in Estonia. E-residency does not provide citizenship or physical residency in Estonia.
The main value is that e-Residency can be used to establish a global EU company, which means it could be run online from anywhere in the world and can easily conduct business globally.
*If You find any difficulties applying e-Residency, do not hesitate to contact us for help.
Legal and Tax Advice for e - residents
We provide our clients Legal and Tax services. Many of our clients are contemplating whether they should establish their business abroad. As Legal and Tax experts, we advise our clients on where they should establish their business, taking in account the type of business activities they are conducting, their personal residency, their future goals and other significant matters. Tax matters are an important factor when considering the correct place to establish a business, but it should not be the only consideration.
On the Legal side, we provide our clients several types of consultation, these include - but are not limited to – drafting contracts, helping with negotiation’s, drawing up Terms and Conditions; Privacy Policies, Company By-Laws, partner agreements, Intellectual Property filings among other Legal needs of our clients.
With e-Residency, it is easy to establish a company in Estonia, but if the owner of the company does not reside in Estonia, there without doubt will be Tax matters to consider. We provide an initial Tax consultation for those interested in establishing their business in Estonia, and more complex international Tax consultation and planning for those who have already established a business in another country than their tax residency.
When a person is about to establish a business abroad there are two types of Tax concepts to consider. One is company’s taxation and the other is the personal taxation. These can be difficult to understand, but with our help your tax question will be answered.