It’s impossible to imagine modern life, including business, without Internet, that is why various start-ups, launched in the Internet, are very popular. Against the backdrop of other countries providing an opportunity to start a business in the IT sphere, Estonia shows up. This country is one of the most developed not only in the Baltics, but also in the whole Europe. Peculiarity of the republic is its reputation of the ideal country for work in the IT sphere. An example of Internet popularization is given from the very top – almost all state bodies work online and due to this you don’t need to leave your home in order to meet public officials and resolve various issues.
Estonia doesn’t have rich mineral deposits or large manufacturing plants, that’s why the economy had to be developed “in a virtual way”, which means through the IT sphere. Legislation of the country is very liberal and it attracts a lot of investors from all over the world. In this case narrow economic base is a plus and not minus, because it’s possible to start a business here, but think globally from the very beginning – consider its entrance into other markets. A huge advantage of this situation is the fact that the country is a member of the European Union.
These circumstances make IT in Estonia one of the most promising spheres of activity, and the state from its part makes everything possible to support the interest by adopting new laws. The country has recently become almost a leader of the whole world in use of Internet in all spheres – its digitalization achieved extraordinary levels. Every year hundreds of startups are launched here and they become successful and generate huge profits to their founders. The main example is considered to be Skype, which has been developed here.
IT in Estonia: Reasons for Success
Estonia has one of the most stable and prosperous economies and not least due to the development of services in the IT sphere. In fact, a digital country has been created in this country and it allows opening a business staying abroad. It’s enough to outline point by point why Estonia is a true paradise for the IT sphere, as all advantages are obvious:
1. Mass digitalization of the country
Applying to state bodies, filing tax declarations and even elections may be held via Internet here.
2. Stable financial and taxation systems
For already many years economy of the country has been demonstrating a steady growth, thus proving the trustworthiness of banks. Also, taxes in Estonia are much lower and more liberal in comparison with other EU countries.
3. Electronic residency
Even foreigners can get an ID card conforming this status and citizens of the country obtain it when they reach 15 years of age.
4. Registration of a company within 48 hours
Conditions provided for entrepreneurs allow launching any business within one-two days or a week maximum.
5. Remote access
Physical presence in Estonia is not necessary for registration of a company. All issues may be resolved online. You just need to have an ID card confirming electronic residency.
6. Developed business infrastructure
It’s very easy for IT company to open an office in Estonia, because such services are provided in many specialized centers, which meet all modern requirements to such buildings.
7. Human resource
A great number of highly qualified specialists with extensive experience in IT sphere reside in the republic. At that salary of such employees is lower than that in the European Union.
These are the main reasons making IT in Estonia very popular. This fact is confirmed by large amount of investors, who launch their startups in this country every year.
IT perspectives in Estonia
Though Estonia achieved great results in the sphere of expansion and popularization of IT during the last years, the government of the republic and its residents are not ready to rest. For example, the only obstacle to launch a business for foreigners having an ID card was personal presence in the country for registration of an account at a local bank. Government and parliament have already adopted laws revoking this rule and starting from autumn this year all these procedures can be completed online. According to certain analytical data, there will be about 10 millions of electronic “Estonians” by 2025. Such figures did not go unnoticed and other countries adopt the practices, thus, soon in many regions of the world e-residents can appear.
But regardless of rates of implementation of e-residency in other countries, they will have to try hard in order to achieve the level of modern Estonia. That is why as for now this Baltic republic shouldn’t be afraid of competition in attracting investments in the IT sphere and continue its development in the chosen direction. Considering many good decisions made during the last years, further positive changes will happen soon.