A company with Estonian e-Residency

A Step-by-Step Guide to Launching Your Company

Estonia’s e-Residency program offers entrepreneurs around the world the ability to establish and manage a company digitally within the European Union, regardless of physical location. In this article, we’ll outline the step-by-step process to becoming an e-resident, establishing your Estonian company, and effectively growing your business.

1. Become an e-Resident

To become an Estonian e-resident, you must apply online by completing an application form on the official e-Residency website or through dedicated service providers like Virtual Office in Estonia. The application fee is €150, and processing typically takes between 3 to 8 weeks. Once approved, you’ll pick up your digital ID card from the nearest Estonian embassy or pickup location, granting secure digital access to Estonia’s extensive e-services.

2. Choose Your Service Providers

Once you’ve received your digital ID card, the next step is choosing trustworthy service providers to support your business activities. Common services needed include accounting, tax advisory, registered address, and contact person services. You can explore dedicated packages like the comprehensive Starter Package or tailored accounting services designed specifically for e-residents launching their first business.

3. Register Your Company in Estonia

With your digital ID card in hand, you can easily register your company fully online. The registration process usually takes between 15 minutes and an hour. You can conveniently complete the process via specialized company formation services. The state fee for company registration is €265.

4. Set Up Business Banking Solutions

The next essential step is opening a business bank account. As an e-resident, you have several banking options, including traditional Estonian banks or fintech solutions like Wise, Paysera, and Revolut, which offer fast and flexible account management options. Keep in mind that traditional banks like SEB, Swedbank, or LHV typically require a strong connection to Estonia and often necessitate in-person visits.

Additionally, to stay reachable in Estonia, you might consider acquiring an Estonian SIM card.

5. Grow Your Business and Explore Investment Opportunities

Estonia boasts a vibrant startup ecosystem. As an e-resident entrepreneur, you can participate in various funding opportunities and accelerator programs such as Ajujaht, Latitude59, and sTARTUp Day, which offer access to investors, mentorship, and networking opportunities within the innovative Estonian startup community.

Advantages and Disadvantages of Estonian e-Residency:

Pros:

Easily start and run your business entirely online, location-independently.
Gain access to the European Union market and Estonia’s advanced digital infrastructure.
Convenient fintech banking solutions tailored to digital entrepreneurs.

Cons:

E-Residency does not provide the right to reside or work in Estonia physically.
Opening an account with traditional Estonian banks can be challenging and may require physical presence.
Possible tax obligations in both Estonia and your country of residence—consulting tax advisors is strongly recommended.

Conclusion

Estonian e-Residency is an excellent opportunity for entrepreneurs seeking digital flexibility and access to the European business market. Before you get started, carefully assess your business needs, choose the right partners, and clearly understand your responsibilities as an e-resident entrepreneur.