Estonia’s e-Residency program offers entrepreneurs around the world the opportunity to establish and manage a location-independent business within the European Union. This digital identity allows non-Estonians access to Estonian services such as company formation, banking, payment processing, and taxation. Here’s a comprehensive guide on how to set up a company in Estonia using e-Residency.
6 Easy Steps to Register Your Business in Estonia
1. Apply for e-Residency
What is e-Residency? Estonian e-Residency is a government-issued digital identity available to anyone in the world interested in managing a location-independent business online. It allows for easy access to Estonia’s advanced digital infrastructure.
Steps to Apply:
- Visit the official e-Residency website.
- Complete the online application form, providing necessary identification documents such as a passport copy.
- Pay the state fee (currently €100).
- Wait for the background check to be completed (usually takes about 30 days).
- Once approved, you will receive a notification to collect your e-Residency kit (digital ID card, card reader) from your chosen pick-up location, typically an Estonian embassy or consulate.
2. Choose a Company Name and Check Availability
Choosing a Name:
- Your company name should be unique and comply with Estonian business naming regulations.
- It must include an indicator of the company’s legal form (e.g., OÜ for a private limited company).
Checking Availability:
- Use the e-Business Register to check if your desired company name is available and does not conflict with existing registered names.
- It is advisable to have a few alternative names in case your first choice is unavailable.
3. Obtain a Legal Address and Contact Person
Legal Address:
- A legal address in Estonia is mandatory for your company registration. This can be a physical office or a virtual office address provided by a service provider.
Contact Person:
- If you do not reside in Estonia, you must appoint a local contact person. This person, typically provided by virtual office service providers, will handle official correspondence with Estonian authorities.
Providers:
- Many e-Residency service providers offer packages that include a legal address and contact person services. Popular providers include LeapIN, 1Office, and Xolo.
4. Register Your Company Online at the Company Registration Portal
Using the e-Business Register:
- Visit the Company Registration Portal.
- Log in using your e-Residency digital ID.
- Fill out the online registration form with details such as company name, legal address, contact person, and share capital (minimum €2,500 for a private limited company, though it does not need to be paid up immediately).
- Submit the application and pay the state fee (typically €190).
Processing Time:
- Company registration is usually completed within 1-5 business days.
5. Receive Confirmation
Confirmation Documents:
- Once the registration is complete, you will receive a confirmation email with the company registration code and other relevant documents.
- These documents will be accessible through the e-Business Register portal.
Digital Signatures:
- All company-related documents can be signed digitally using your e-Residency card, ensuring secure and efficient business operations.
6. Open a Bank Account
Choosing a Bank:
- Opening a business bank account is essential for your company’s financial transactions.
- Options include traditional Estonian banks like LHV and SEB, as well as fintech solutions such as Wise, Payoneer, and Holvi, which cater to e-residents.
Application Process:
- Some banks may require a physical visit to Estonia, while others can be done entirely online.
- Prepare necessary documents such as proof of identity, company registration certificate, and a business plan.
Financial Statistics:
- Estonia’s banking sector is highly digitalized, with over 99% of banking transactions conducted online, reflecting the country’s commitment to digital innovation.
Conclusion
Estonia’s e-Residency program provides a streamlined, efficient process for establishing and managing a company within the EU. From applying for e-Residency to opening a bank account, each step leverages Estonia’s advanced digital infrastructure to support global entrepreneurs. By following this guide, you can navigate the process smoothly and take advantage of the numerous benefits Estonia offers to digital entrepreneurs.
Contact OnDemand International for more information.
