12.12.2022

Estonia’s e-Residency program – what does it consist of?

Kancelaria Prawna

Entrepreneurs thinking of starting or expanding their business on preferential terms should consider the Estonian market. Why? Thanks to the e-Residency program, which has been operating in the country for almost 8 years, running a business is extremely easy. 

What does the e-Residency program consist of? 

The e-Residency program offered by the Republic of Estonia gives simple and secure access to digital services, enabling so-called “hand-offs” of various kinds of matters (relevant to entrepreneurs) via the Internet. Thus, it is a convenient way to do business regardless of the physical location of the company. The e-Residency can be described as a “digital ID card” issued by the Estonian authorities to non-citizens of this Baltic country, giving access to a range of Estonian e-Services.

How is the qualification process for the e-Residency program?

The registration procedure is carried out almost entirely remotely, and the decision to grant an e-Residency card with proper completion of formalities is made within a month. One of the conditions for qualifying for the program is the need to operate a company in the European Union; this means that the program is open to entities that have registered their business in the community. What steps should an entity interested in obtaining e-Residency take?

  1. One should apply online via the Estonian Police and Border Guard application website.
  2. The next step is to visit one of the Estonian diplomatic missions or a point of the Estonian Police and Border Guard to pick up a card confirming the acquisition of E-Residency.

After receiving the E-residency card, the entity can perform formal operations, related to the day-to-day management of the company. Thus, this is an extremely simplified process relative to other models for establishing a business.

Wrong assumptions about the e-Residency program

It is worth remembering that e-Residency and residency are two completely different concepts. One refers to where a person is obligated to pay taxes, and the other is the name of a government program and technological solution. Therefore, before proceeding with the qualification process, it is important to consider that e-Residency:

  • is not a citizenship, tourist visa, nor does it guarantee entities permanent physical residence in Estonia,
  • nor does it affect international obligations such as taxes. Entities using the e-Residency program are obliged to pay taxes in the country where they physically operate,
  • Estonia is a country with one of the most trusted business environments in the world, so the e-Residency program should not be compared to an “offshore system”; nor was it created to exploit so-called “loopholes.”
  • activities qualified and conducted under the e-Residency program are not, by definition, a “virtual company.”

Summary

Doing business in Estonia – thanks to the e-Residency program – is much simpler relative to other countries and fully secure due to the easy and transparent qualification process. KWKR Konieczny Wierzbicki and Partners Law Firm is also a member of this program, providing legal services in the field of relocation of business activities to Estonia.  We encourage you to take advantage of our support.

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By subscribing to our newsletter, you consent to the sending of information by e-mail on important events in the field of law, legislative changes and the activities of the Law Firm.

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The administrator of your personal data is KWKR Konieczny Wierzbicki i Partnerzy S.K.A. with headquarters in Krakow, ul. Kącik 4, 30-549 Krakow. Your data will be processed for the purpose of sending our newsletter. You have the right to request access to your personal data, their copies, rectification, deletion or limitation of processing, as well as the right to object to the processing and to lodge a complaint with the supervisory authority. More details can be found in our Privacy Policy.