Opening and running a company in another country, particularly in Europe, offers a number of advantages. You can more efficiently manage your tax obligations, for example. A European company is also beneficial when selling to European customers as there is more trust, plus the process of completing transactions is simplified. There are other benefits too, including some that are unique to Estonia. With an Estonian e-residency, you can open a business in Europe to realize these benefits, but how can it make the actual running of your business easier?
Of course there are more obvious benefits of the Estonian e-residency system than running a business. Firstly it allows non-EU nationals to get a legal status in a European country to open businesses, make investments, hold assets, and more. It is also inexpensive. You don’t even have to visit Estonia to get the e-residency.
What are the additional benefits of an e-residency though? Is it really worth anything once you have established your company in Estonia and opened a bank account? Will the card gather dust at the back of a drawer in your desk, or will it help you in other ways?
Modern Structures for Modern Businesses
Your Estonian e-residency is just as valuable after you form your company as it is before. This is because Estonia is one of the most digitally advanced countries in the world. It was a leader in embracing online ways of working, and today it is one of the most advanced e-societies on the planet.
As you know, online is location neutral so, in theory, it is possible to run a business from anywhere. If you have experience with business law in other countries you will know the practicality of this is much different to the theory. Not in Estonia though, so long as you have an e-residency.
With an e-residency it really is possible to run a company from anywhere in the world. Your country of residence could be Russia, China, or anywhere else, and you can stay in those countries while operating in Estonia as if you were actually there in person.
This is because an Estonian e-residency acts like a digital authorization and verification tool. It means you can carry out essential business tasks like:
- Managing a bank account – to accept payments from customers, pay suppliers, and generally manage your finances
- Signing documents – with an e-residency you can digitally sign documents. For example, you can sign a contract with an Estonian management company or service provider from anywhere in the world, as long as you have internet access.
- Managing tax affairs – the whole Estonian tax system is online, so you can manage your tax efficiently from anywhere. This includes taking advantage of the Estonian corporation tax delay rules, which effectively mean you don’t pay any tax at all in certain situations.
When you combine your e-residency with online tools like email, video conferencing, VOIP, collaboration tools, and document sharing services, you can run a business as efficiently as if you were in an office in the center of Tallinn.
Of course, you should come to Estonia if you can. It is a beautiful country and a great place to do business. It has a favorable tax system, an educated workforce, low operating expenses, and a stable economy. Your e-residency will help when you are in Estonia almost as much as it will when you are abroad.
The main point is that you are free to choose. This sort of flexibility is exactly what modern companies, business owners, and entrepreneurs need to stay ahead of the competition and fully exploit opportunities in a fast-paced and ever-changing world.
The Estonian e-residency system was the first in the world, and it has changed or enhanced the way many non-Europeans do business in Europe. It can do the same for you.