European Union (EU) is a dreamland for entrepreneurs across the globe for its endless possibilities and connected nature which provides any venture registered under the EU to operate and trade freely within 21 member countries presenting a huge market for their products or services.
For many, it’s a distant and unattainable dream restricted by their current nationality and lack of investment needed to build a venture in the EU.
What if we said all of it was possible for just $113?
As unrealistic as it may sound, the proposition is truly available and has been present for almost 6 years since Estonia opened up its e-Residency program for non-Estonians on 1st December 2014.
Azerbaijan and Lithuania have followed Estonia to consider e-Residency for non-citizens but provide fewer benefits compared to the Northern European country. Today we will explore how e-Residency is provided in Estonia and how it benefits anyone who wants to be an EU e-Resident.
What is an e-residency?
An e-Residency application that costs just $113 (€100) allows you to set up a location-independent Estonian and EU virtual organization that has no physical infrastructure in the country or anywhere in the world.
An e-residency grants you a unique digital ID that helps you;
Establish and run a company online with no regional executive with unrestricted access to all EU member nations.
Conduct your banking online e.g. make electronic bank transfers
Have access to international payment service providers
Digitally sign documents (annual reports, contracts) within the company as well as with external partners
Verify the authenticity of signed documents
Encrypt and transmit documents securely
Declare taxes online
While there are several countries like Germany, Spain, the Czech Republic and Mexico which offer freelance and long-term visas aimed at the digital nomad, who prefer to work remotely traveling across the globe, the Estonian e-residency is the first of its kind.
How do you apply?
All you have to do is fill out the online application form. Once you do, the Estonian Police and Border Guard will do a background check. Once your application is approved, you’ll be able to choose where you want to pick up your e-Residency kit with your digital ID card. You can select one of the 38 Estonian embassies and consulates around the world, or you can go to a Police and Border Guard Station in Estonia.
Estonian e-Residency Kit with digital id card
An e-Residency kit contains a digital e-residency card, a USB-enabled digital ID card reader and an envelope with a number of PIN numbers to be used with your e-residency card.
Once your digital ID card arrives at your chosen pickup location, you’ll need to personally collect it. In order to do this, you’ll need to show valid travel documents for your country of nationality and submit your fingerprints for verification.
Validity and Renewal
An Estonian e-Residency is valid for 5 years and can be renewed for the same initial charge of $113 as early as 3 months from the end of validity.
Setting up a Business
Setting up a virtual business in Estonia is a 5-step process that involves but is not limited to getting a virtual legal address, securing an Estonian contact person (this person is not in any way involved in the workings of the company), set up banking and hire any other service providers your e-enterprise might need.
The Estonian state fee to register your company online is $214.60 (€190). The country offers one of the least personal and business tax rates in the world at 20%. There are no taxes if you choose to use the revenues for internal expenses.
Success stories
The Estonian e-Residency program has benefited numerous global entrepreneurs who chose the country as their gateway to the EU.
e-Residency is not for?
The e-Residency kit simply allows you to operate a digital business based in Estonia. The card does not carry any photographs and cannot be used for travel or immigrate. Traveling to Estonia will still require you to have a Schengen visa.
