You can hear this expression from a lot of people around you: "Register a company in Estonia, pay less tax." Why do you tell Estonia? Since the e-residency (digital citizenship) services are very common and it is very easy to set up a business in Estonia with this program. You can make a lot of transactions on the internet; you can even pay taxes. 

There are also benefits to income tax. So, will you really have a benefit (tax, commission, expense, etc.) when you set up a company in Estonia to do business in your home country? 

E-citizenship in Estonia 

Actually, all official transactions-including voting-other than title deeds and marriage/divorce transactions in Estonia can be made exclusively online via an e-government system.

E-citizenship also grants us the right to enter into this system as if we are an Estonian resident and an electronic signature officially recognized in Europe. 

First of all, e-citizenship, which was introduced to foreigners without a particular reason, began to be used regularly, particularly in two fields.

The first is to open a bank account in Estonia and the second is to set up a company in Estonia with an e-citizenship, which is the main focus of this post.

Apart from these two, e-citizenship will benefit you if you already have a connection with Estonia or need to use government facilities such as notary operations. 

Documents Needed For The Establishment Of A Company In Estonia 

  • ID information 
  • Contact information 
  • Passport information 
  • Photo (4x5 cm) 
  • Business plan if the application reason is to establish a company 
  • Additional information (social media accounts, eg: LinkedIn) 
  • Things to consider in the application
  • 120 € state fee must be paid at the time of application. 

It may take 1-2 months for your application to be reviewed and approved. 

When your application is approved, they will notify you by e-mail and you will go to the Estonian Consulate in person and with your passport to collect the "Welcome" kit, which contains the Digital ID (ID card) and the USB device to link your Digital ID to your laptop. 

You will install the correct program on your device and enable your Digital ID with the pin included in the kit and validate all of your official online purchases.