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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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