Among other possible ways of starting a company, obtaining a shelf company in Estonia, attracts by the simplicity of entire process. ‘Buying a company’ on its own sounds like something hassle-free, right? Let’s look at this way of starting business more in-depth.
Existing companies are indeed advantageous to buy. Since they have already existed on the market for some time, ready-made companies are suitable investments. Before purchasing an Estonian company, every entrepreneur needs to be aware of nuances and familiarise himself with the company’s background to make sure everything required has been completed.
We want to cover these aspects along with the advantages of obtaining an existing company. But let’s go through basics first.
Characteristics
Ready-made companies are inactive corporate organisations that have passed state registration and have all the necessary details to implement their activities.
Be aware that ready-made companies do not have a VAT number and bank account as all corporate accounts must be closed by their previous owners. Shelf companies do not have any debts. Therefore, before purchasing a ready-made/shelf company, the potential buyer will be provided with all relevant documents confirming the company’s history and that the current company has no debts or financial obligations.
However, an existing company has a registration number, and, therefore, it allows a buyer to start doing business immediately. Moreover, ready-made companies have filled annual reports for the past year.
Another great addition — the possibility to change the name of the company during the re-registration.
Accordingly, ready-made companies must have a transparent history; in that way, purchasing a ready-made/shelf company should be a balanced decision to protect you from unreasonable risks.
Still, Wisor Group OÜ kindly notes that despite all the facts mentioned before, the purchase of a ready-made/shelf company does not simplify the paperwork, the process of obtaining a loan or opening an account with an Estonian bank. The time spent on re-registering a ready-made business will not differ from the time of setting up a company from scratch.
Advantages
Along with legal nuances, the process of buying a shelf company results in good additions.
Company with a history
A company with history will add credibility to your business. The number of years that the company has been on the market can provide advantages in the business projects you carry out. Some government agencies and financial institutions insist that a firm be registered for a certain period before tenders are allowed. If the company’s turnover is an important criterion, then we are happy to offer turnkey solutions.
Reputation
Besides, it is easier for the owners of a re-registered ready-made/shelf company to attract investments, since companies with history and turnover seem to be a more reliable investment. Also, building business relationships with banking institutions and suppliers usually comes first when buying a company of this type. The established reputation of an enterprise is undoubtedly essential when concluding deals, searching for new partners, and can also influence the decisions of potential investors or partners.
Trustworthiness
A ready-made/shelf company with a history in the business register will contribute to a more professional image and, therefore, appear worthy of service providers’ trust. According to research, clients prefer companies that can demonstrate longevity because they seem to be credible and instil confidence that the company owners have experience in the relevant field. A ready-made company will give the impression that it has existed for a long time and will give the client confidence that they can use your services.
All in all, Estonia is favourable place for doing business, and no matter how you decide to start your business — by obtaining a ready-made company, we are here to help.[/vc_column_text][/vc_column][/vc_row]
At the time of cryptocurrency rise, an alternative investment fund is indeed one of the most convenient structures for collective investment. We explain why.
An alternative investment fund is a legal entity or a pool of assets that includes the capital of several investors for the purpose of investing it in accordance with a specific investment policy of the fund in the interests of the respective investors and their common interests.
The fund must have a Fund Manager. The Investment Funds Act regulates the creation, establishment, and management of investment funds.
The basics
Let’s look at the cryptocurrency fund structure.
So, crypto investment fund consists of two legal entities:
Fund Manager – OÜ
The Fund Manager is a company whose primary and permanent activity is managing one or more funds. The Fund Manager can manage a fund created or established in accordance with the Investment Funds Act. To work as a Fund Manager, a person must be licensed to operate and register their activities with the Money Laundering Data Unit (FIU) with the provisions of Part 5 of the Investment Funds Act.
Limited Partnership Fund (LPF)
Participants of the Limited Partnership Fund are at least one full member (General Partner), the Fund Manager, and at least one investor (Limited Partner).
It is not necessary to register an investor (Limited Partner) when the fund is initially established.
A Limited Partnership Fund is a foundation established as a Limited Partnership under the Investment Funds Act. The provisions of the Commercial Code of the Republic of Estonia apply to its establishment, operation, and liquidation.
The Limited Partnership Fund can manage its property or enter into a Management Agreement with the Fund Manager. Only a Fund Manager who is licensed to operate under the Investment Funds Act can act as a Limited Manager of a Limited Partnership Fund or a General Partner of a Limited Partnership Fund that manages its assets.
According to the Estonian government, there are two types of alternatives funds operating in Estonia — AIF with a limited number of investors and AIF with no limit set for a number of participants.
Why start an AIF
Alternative funds are beneficial structure attracting investors’ assets for the purpose of their future placement. They are the best decision for making collective venture investments, arranging fund investment to stocks, bonds, goods indexes, derivatives, currency, cryptocurrency, real estate and other financial assets. In that way, some of the benefits are:
For the founders of the fund:
The total investment in the fund can be up to 100 million euros.
The term for creating an investment fund starts from 2 months.
For investors:
No minimum investment threshold.
The possibility of investing in cryptocurrency.
Other advantages of registering a crypto investment fund:
Lack of investment diversification requirements
No requirements for initial capital
Low cost of establishment and maintenance
The possibility of creating legally separate sub-funds
Simple application process and its fairly quick consideration
Possibility to operate in self-governance (subject to the consent of regulator)
Opportunity to create umbrella funds with numerous entities that allow managing of different asset groups according to an individual investment policy
No tax deduction while paying out dividends and capital gains taxes
Investment manager’s services are exempt from VAT
Lack of complex reporting to the regulator
Due to AIF operating as a natural person, a fund could benefit from numerous agreements on avoiding double taxation concluded between Estonia and other countries.
Fund registration process
As we already mentioned, cryptocurrency fund registration is not a difficult process. It consists of the following steps:
Registration of the alternative fund management company, the fund manager (AIFM). You can easily do it using your e-Resident card, or by the power of attorneys, or by a visit to Estonia
Registration of the fund’s management company with the Estonian Financial Supervisory Authority (EFSA)
AML license from the Financial Intelligence Unit (FIU), which usually takes up to 60 days
Registration of the fund. Once you succeeded with the first step, this process takes up to 5 days.
Wisor Group OĂś provides assistance in registering alternative investment funds in Estonia. We accompany and assist our clients in managing investment and financial structures starting from idea discussion and until the project’s launch. Any collaboration usually starts with a consultation where we discuss main principles and decide on the future company’s structure. During the next stage, we are preparing a legal opinion on the subject of the fund’s activity and making a circulation map for registration. Preparations usually take up to 3 months.
If you are planning to start a business in Estonia, you need to pay attention to the accountancy of your company as all companies and branches of foreign companies operating in Estonia are subject to accounting. Below is an overview of what accounting representing in Estonia.
Accounting is an integral part of doing business on behalf of an Estonian company. Its purpose is to keep records and obtain an overview of the company’s economic performance and financial state. Accounting for each company must comply with government-set standards for the results to be comparable and understandable.
BASIC REQUIREMENTS FOR THE ORGANISATION OF ACCOUNTING
Each company must prepare and submit an annual return to the Commercial Register for the previous year by June 30 of the current year.
All business transactions must be recorded in accounting programs.
All business transactions must be documented.
Accounting should provide a reliable, objective, and comparable view of the company’s financial situation, performance, and cash flows.
All accounting documents must be kept in the archive for at least 7 years.
OPENING BALANCE SHEET
First, you should prepare an opening balance sheet that lists your company’s assets, liabilities, and share capital before you start an economic activity.
ACCOUNTING POLICIES AND PROCEDURES
Procedures for maintaining internal accounting should be developed at the beginning of the activity.
Internal accounting procedures should:
Describe the required chart of accounts with a description of the content of these accounts.
Regulate the procedure for documenting and recording transactions.
Establish circulation and storage of primary documents.
Regulate the maintenance of accounting registers.
Reflect income and expenses in the profit and loss statement.
Describe the inventory, assets, and liabilities of the company.
Determine the accounting policy, reporting procedure and other accounting.
Internal accounting rules are binding and individual for every company.
CHARTS OF ACCOUNTING
Estonian companies can choose between two types of income statement schemes. In Chart 1 of the income statement, business expenses are divided by the nature of expenses (for example, material costs, labour costs, depreciation deductions). This way is often used by smaller companies that do not need to assort costs by function.
In Chart 2 of the income statement, operating expenses are assorted by function (e.g. cost of goods sold, advertising costs, general administrative expenses). Chart 2 is usually more difficult to implement because all business expenses require a decision about which business function they are associated with. Certain costs (for example, labour costs) must be apportioned pro-rata across the various functions. The profit statement based on Chart 2 gives a better overview of the costs of various functions of the company, while the distribution of costs by function is subjective.
The choice of the appropriate chart for the profit statement should be based on which division gives the best idea of ​​the economic activity dynamics. However, if it turns out that the chart’s current choice has not justified itself, you can switch to another chart. It should be borne in mind that when moving from one chart to another, comparable indicators of the previous period must also be adjusted retrospectively (following the new method).
An entity is also required to indicate in its internal accounting procedures whether it is a micro, small, medium, or large company since there are significant differences in accounting policies and reporting forms depending on the business category.
METHODS OF ACCOUNTING
There are two systems for accounting firm transactions in Estonia – accrual and cash accounting. Accounting in Estonian companies is on an accrual basis, but sole proprietors (FIEs) can account on a cash basis. In the case of accrual accounting, transactions should be recorded as they occurred, regardless of whether the related funds were received or disbursed.
FINANCIAL YEAR REPORT
The financial year of the company is 12 months. In most cases, the fiscal year is a calendar year (from January 1 to December 31). Still, a company charter or other document that regulates its activities may also set a different fiscal year according to the accounting entity’s operating cycle. In exceptional cases, the financial year may be shorter or longer than 12 months but not longer than 18 months.
COMPANY MANAGEMENT REPORT
The management report provides an overview of the company’s operations and the circumstances that have played a decisive role in assessing the financial situation and business activities, significant events in the financial year, and the expected development directions in the next financial year.
If at the end of the financial year the capital of the company does not comply with the requirements of the Commercial Code (that is, it is negative), then the management report should describe the actions that are being taken to ensure the stability of the enterprise in the future, if such has not yet been taken.
For accounting entities subject to audit, the management report must include the main financial ratios for the financial year and the previous financial year and the methodology (formulas) for their calculation.
ANNUAL REPORT
Another mandatory requirement for every company in Estonia is the submission of an annual report.
AUDIT OF ESTONIAN COMPANIES
An audit or review of the annual financial statement aims to increase the reliability of your company’s financial information in the eyes of investors, shareholders, and the public.
Liabilities
 If the company is to be audited, the annual report must be accompanied by a certified/sworn auditor’s report. An audit of an annual report is mandatory for accounting entities, the annual report of which must include at least two indicators of the financial year that exceed the following conditions:
Income/profit from sales – 4,000,000 EUR
Total assets at the reporting date – 2,000,000 EUR
Personnel of the company – 50 people
Also, an audit of an annual report is mandatory for accounting entities, in whose annual statements at least one of the indicators of the financial year exceeds the following conditions:
Income/profit from sales – 12,000,000 EUR
The total amount of assets at the reporting date – 6,000,000 EUR
The number of personnel is 180 people
An audit of annual accounting is mandatory for:
All public limited liability partnerships with more than two shareholders
Local authority
A state accounting institution
Legal entities governed by public law
Political parties and companies receiving funding from the state budget
Organisation of audits
 An independent appraiser carries out the audit, that is, a certified auditor or an audit firm. The Board of the company appoints an auditor, determines the number of auditors, payment terms, and the deadline of full powers. The appointment of an auditor requires their written consent. Before the audit, it is necessary to conclude a contract with a natural person included in Estonia’s list of certified auditors.
Liability of the parties
 The certified auditor must keep confidential the information obtained during the audit and is liable for damage caused by violation of their duties arising from their professional activities.
It is important to remember that a certified audit report does not relieve the Management Board from liability for the accounting report’s content.
Legal opinion: what is it? What cases require the preparation of legal opinions? Does it need to include anything? The Answers are ready.
The legal opinion contains an in-depth explanation of a specific issue or aspect of the customer’s business. During the implementation of the transaction or launch of the project, a Legal Opinion is prepared solely for the customer to minimize the risk of violating the Law and to fully comprehend the coming stages. If you are planning to take any legally significant action in a particular jurisdiction under consideration, you should seek an independent legal opinion from an attorney or lawyer on that issue.[/vc_column_text][/vc_column][/vc_row][vc_row height=”auto” css=”%7B%22default%22%3A%7B%22margin-top%22%3A%220%22%2C%22padding-top%22%3A%220%22%7D%7D”][vc_column css=”%7B%22default%22%3A%7B%22margin-top%22%3A%220%22%2C%22padding-top%22%3A%220%22%7D%7D”][vc_column_text css=”%7B%22default%22%3A%7B%22margin-top%22%3A%220%22%2C%22padding-top%22%3A%220%22%7D%7D” el_class=”padding”]
PREPARATION OF LEGAL OPINIONS IN CERTAIN CASES
To determine which permits and licenses are needed to start a business
IP rights are transferred in intellectual property transactions
Mergers/acquisitions involving international companies
In foreign jurisdictions, venture capital can be tricky
In order to conduct crowdfunding campaigns
To assess the legal risks associated with financial transactions
Whenever securities are transacted across borders
If an investment transaction is concluded
Investment transactions abroad require Due Diligence
The launch of an initial coin offering or security token offering
A cryptocurrency exchange is one of the first things to consider when launching a cryptocurrency project
During the course of Forex Brokerage or Forex Dealership
It is guaranteed that you will receive a detailed analysis and an objective opinion of a qualified Lawyer/Attorney by ordering a Legal Opinion.
FEATURES OF PREPARATION OF LEGAL OPINION
Legal Opinion customers expect complete clarity from their legal opinions and count on the accuracy and reliability of their legal analyses and legal risks. An appropriate Legal Opinion should be clear in its wording, certain in its initial circumstances, and include unambiguously interpreted conclusions that reference the legislation of the country in which the project is being implemented.
Providing a Legal Opinion cannot replace legal support. Ordering the Legal Opinion will not lead to the parties receiving the algorithm for implementing the project or carrying out the transaction independently.
WHAT TO INCLUDE IN LEGAL OPINION
Background Information
Legal Opinions normally include data pertaining to the transaction, project, or documents associated with the Legal Opinion. As well as a description of the applicable law, depending on a customer’s jurisdiction, this section also contains information about the legal relationships.
A review of documents was conducted and inquiries were made
As part of the preparation of the Legal Opinion, this section highlights the process and results of the review of the submitted documents. The company’s governing body’s minutes and transaction documents are generally included.
A description of a document includes a statement regarding whether originals, projects, or copies of these documents have been examined. Additionally, when preparing a Legal Opinion, the Lawyer/Attorney submits a request to the Companies Registration Office, the Tax and Customs Department, and other regulatory authorities as necessary and records the results. Analysing the customer’s documents and summarizing the results of their study is done in this part of the Legal Opinion.
Observations
In the third section, the customer of the Legal Opinion can find answers to questions he or she may have. Legal conclusions and legal analyses are presented in this section. An opinion is categorised depending on the number of reservations it carries. Transactions may require varying reservations. Lawyers/attorneys also present recommendations in this part.
You can define your legal rights clearly with a legal opinion and avoid costly future litigation. Obtaining a Legal Opinion is imperative in dealings with foreign counterparts, and if more than one jurisdiction is involved, it is necessary to hire foreign lawyers or attorneys to assist with the matter.
Introducing our service Search for business partners in Estonia. We will help you find reliable partners in Estonia interested in buying your goods or ordering services to start your business in Estonia.
If you already have an Estonian company but has not yet established relations with suppliers (manufacturers)/buyers of specific goods, or it might be that you have just set up a company and would like to develop it, you don’t need to be there alone.
Doing market research on your own could be exhausting and time-consuming, and searching for stakeholders is indeed long processes full of nuances. In that case, we advise consulting a professional.
The specialists of the Wisor Group OĂś will find the best import or export contractors for you, hold preliminary negotiations on your behalf in order to get the best commercial offer from the supplier/buyer and draw up a contract basis. Based on many years of experience and knowledge of the Estonian market, Wisor Group OĂś offers the service “Search for business partners in Estonia”.
Determining factors of mutually beneficial cooperation:
In order to shorten the lead time and the time spent, you need to provide a detailed and clear description of the company’s goals and objectives and your projection of international cooperation.
You need to provide the characteristics of goods and the supplier you are searching for. The goods shall be described so that the specialists of the Wisor Group OĂś can clearly identify them while searching. You also need to provide a description of the potential supplier (company size, performance, company age, and whether the supplier shall be the manufacturer of the goods). It is necessary to indicate the search region, i.e. a country or a group of countries. The more specific is the initial task, the more likely we will find the right supplier.
Characteristics of the most appropriate contractor (supply region, size and market standing of the company, etc.).
Quantitative characteristics of cooperation (scope and time of delivery).
Exploring what is apostille, and in what case you need to take care of it.
The notarised translation of documents (legalisation) of a company includes several specific formal procedures for making a document valid in another country. The fundamental rule of legalisation is that a sworn translator shall only perform it in an issuing or executing country.
The legalisation of documents issued in one country aims to make them valid and appropriate for state bodies of another country.
We offer sworn translation/apostilisation of the following documents:
Certificate of incorporation
Articles of association
List of shareholders/beneficiaries
Before sending documents by mail, we will email you the scanned documents of the company.
APOSTILLE
Apostille is an international certificate, comparable to notarisation in domestic law, suitable for presentation on the territory of countries that recognise this form of legalisation. Apostille stamp is placed on originals and copies of documents.
The Apostille is sufficient to confirm the document’s validity if the agreement is applied between two countries. It eliminates the need for double certification by the sending country and then by the receiving country.
Most European countries do not need an Apostille and only require sworn translations of corporate documents.
Public documents issued in:
Belgium
Ireland
Italy
France
Denmark
Russia
Latvia
Lithuania
Ukraine
Poland
are accepted in Estonia without an apostille and must be notarized/certified only.
The package of documents consisting of whether non-apostilled/apostilled documents with sworn translations in English will allow you to apply for opening an account with a foreign bank for your Estonian company or carry out transactions on behalf of the Estonian company in other countries.
Please visit the following page for more information.
Wisor Group OĂś offers full support on all stages of developing your business, and offer a variety of services, including accounting services in Estonia.[/vc_column_text][/vc_column][/vc_row]
Within six months after the end of the financial year, each company registered in Estonia shall submit an annual report to the Commercial Register. Annual reports are intended to give shareholders and other interested people information about the company’s activities and finances. The annual report shall be drawn up in Estonian and Estonia’s official currency (Euro).
Annual reporting is mandatory for all companies registered in Estonia, even for companies with no activities during the financial year. A company shall submit the annual report within six months after the end of the company’s financial year. Thus, if your financial year ends on December 31, you must submit the report no later than June 30 of the next year.
You should complete all accounting procedures before drawing up the annual report.
The annual report’s mandatory components include the management report on the company’s activities, the balance sheet, the company’s profit and loss statement, and the company’s capital statement.
STAGES OF PREPARATION OF THE AN ANNUAL REPORT
Preparation of annual accounts
Preparation of a report on the activities of the enterprise
Approval of the annual report
WHAT TO INCLUDE
Filing of the annual report includes the following steps:
Drawing up a proposal for the distribution of profits or coverage of losses for the financial year
Submission of an annual report for approval
The annual financial statements must contain up-to-date and truthful information about the financial situation, financial results, and cash flows of the accounting organisation. The annual report consists of the main reports (balance sheet, profit and loss statement, cash flow statement and statement of changes in equity) and annexes.
What must be included in the report depending on the company scale:
Micro-enterprise
According to the Accounting Law, micro-and small-scale enterprises can prepare an abridged annual report consisting of at least two main reports – a balance sheet and a profit statement as well as up to 3 annexes. The micro-enterprise can (optionally) prepare an abridged or full annual report. Therefore, a micro-enterprise that uses the abridged annual report option is not required to prepare a management report.
Small-scale business
The abridged annual report of a small-scale company is drawn up in accordance with the Estonian financial reporting standard. It consists of two main reports: a detailed balance sheet and an income statement as well as up to 9 annexes. The small business also undertakes to prepare a management report.
Medium-sized and large enterprise
The annual report is drawn up either in accordance with the requirements of the Estonian financial reporting standard or in accordance with the requirements of the International Financial Reporting Standards (IFRS): a management report, 4 main reports, and an average of 15 annexes. A full annual report is required for medium-sized and large companies as well as non-profit associations and foundations.
COMPONENTS OF THE ANNUAL REPORT
1. Balance sheet and income statement
The balance sheet reflects the financial situation (assets, liabilities, and capital) of the accounting entity at the end of the financial year. The income statement is a statement of income and expenses and reflects the economic results for the reporting period.
2. Statement of cash flow
This report reflects the cash flow for the reporting period (receipts and payments of cash). The indication of receipts and payments for the reporting period occurs by grouping them in accordance with their purpose for financial, investment, and commercial activities.
3. Statement of changes in share capital
This report reflects changes in the equity of the company during the reporting period. The financial statements include contributions to the share capital and distributions to owners, profit or loss, the effect of changes in accounting policies, increases and decreases in provisions, and other transactions that impact entries in equity.
4. Attachments
The number of attachments to the annual report depends on the specifics of the company, but you should definitely include:
Specification of the financial reporting standard, on the basis of which the annual accounting report was prepared
The accounting policy used in preparing the annual report
Clarification of material items of the main reports and their changes during the reporting period
Other significant circumstances related to the entity’s financial situation, performance, and cash flows
Wisor Group OĂś provides assistance in drawing up an annual report for non-operating companies and preparing an annual report for operating companies, as well as other accounting services.
It was announced in December 2014 that Estonia had introduced a new concept called e-Residency, which has allowed online business owners to start their own companies. Let’s examine how an e-Residency can help you form a company.
The e-Residency program has many benefits, which includes easing the lives and businesses of freelancers, business owners, and international partners. It is possible to establish or expand a business in the European Union, make investments, or study there with an Estonian Electronic Residency.
THE CONCEPT
The Estonian government issues electronic residency cards so that Estonians can access e-government services and conduct business online. An e-Residency is available to non-citizens of Estonia who want to access Estonia’s e-services and the European Union, but do not have a permanent residence on its territory.
Several government ministries and institutions support Estonia’s e-Residency program in an effort to improve its digital infrastructure and business climate. Because Estonia is part of the EU, e-Residents can also access e-services across the whole continent.
The e-Resident ID-card does not confer Estonian citizenship and does not allow entry into the EU, although it looks like one. Tax exemptions are also offered for e-Residency.
Thanks to Estonian e-Residency, digital entrepreneurs can operate their businesses in the EU from anywhere in the world. The program has led to the creation of more than 14,000 Estonian startups from 170+ countries as of October 2020. A state fee of 100 to 120 euros is required with the application, which must be paid remotely. The e-Residency kit is issued personally to the applicant by a point of issue approved by the program. Wisor Group OÜ provides its clients with an e-Residence card as one of its services.
KEY FACTORS AFFECTING THE FORMATION OF COMPANIES WITH AN EC-RESIDENCE
The creation and management of businesses entirely online
Management and creation of global companies
Verification and signature of documents in digital format (contracts, annual reports)
Secure and encrypted transmission of signed documents
Online banking is available from a bank in Estonia
The general accessibility of information about Estonian companies on the Internet enables Estonia to maintain a transparent and reliable business environment on the Internet. Among the information available to the public are financial statements, owner information, and contact information.
WHO BENEFITS FROM E-RESIDENCY?
Digital nomads can start and run paperless businesses while travelling
Freelancers now have access to the European Single Market
Become a startup founder and gain access to clients
As a digital entrepreneur, you can enter the European Single Market without unnecessary bureaucracy.
Digital entrepreneurs have a clear advantage with an e-Residency since they are not tied to any particular location. The ability to move abroad without having to re-establish your business is now possible with Internet access, which allows remote management of your business more than ever.
Due to the vastness of the European market, your business will have new opportunities. You can register an EU company without physically attending with an electronic resident card. Paying online is done through PayPal, so you do not need a local director to run your business.
The software on your computer now allows you to start an online business. It is possible to sign, authenticate, encrypt, and send documents digitally. It is also possible to make tax declarations online. With the European Single Market now open, you’ll be able to move your capital around the continent.
Take part in globalization now. Our service providers can better understand your needs by collaborating with e-Residents around the world. Your company will be able to grow at an unlimited rate as an e-Resident.
THE PROCESS
Applying for an Estonian digital identity can be done through the e-Residency in Estonia website. This form only asks for the very necessary information, with a few questions. An explanation of motivation and a digital photo must also be included in the submission. This is also the time when pick-up locations will be requested.
Review processes typically take 4–5 weeks to complete. If additional information is needed, an email will be sent to you while the background check is being conducted. After you have applied for and been approved, you will normally receive your e-Residency kit in two to five weeks.
e-Resident cards can be picked up to six weeks after you apply, and only you are allowed to pick them up. A selection can be made between the Estonian Embassy and the Estonian Consulate in the country. Upon receiving your card, you must pick it up within six months. Upon receiving your e-Resident card, you will be required to provide your fingerprints in order to authenticate and verify your identity. A kit for e-Residency cannot be provided to the other party by the Estonian embassy or consulate.
Over the years, Estonia is coming to the forefront of attention as the European entrepreneurial hub. As this happens for a good reason, our company is happy to shed some light on the advantages of the Estonian business ecosystem.
Which European country welcomes aspiring entrepreneurs? What country economy is the friendliest for doing business? — at a certain point, every entrepreneur faces a choice of where to start his business in the European Union.
Speaking of the Estonian business environment it would be hard not to emphasise the country’s advanced business infrastructure as well as the economic freedom the Estonian government gives to entrepreneurs.
The recent start-up “bloom” taking place in Estonia represents those very favourable conditions of the Estonian business environment. The sustainability of the market and friendly regulations attracts both smart people and smart money. As Estonia is a part of the EU, entrepreneurs could take advantage of EU funding and banking, which mean good chances for developing a business.
The most digitalised country
Do you know that Estonia hosts both European and NATO cybersecurity centres? It is not hard to guess that Estonian digital society can provide unlimited opportunities for entrepreneurs. One of the greatest examples expressing the progressivity of the country is the innovative e-Residency programme.
It’s human nature to keep looking for routes to make life way easier. In 2014 Estonia introduced an e-Residency programme.
Here’s a quick sum-up of what e-Residency is:
What?
Simply put, e-residency provides a digital ID to users; thereby, allows them to log into different online services in Estonia, such as online banks and government portals. The primary mission is to make it possible to set up and run an EU-based company 100% online. It is, therefore, enables entrepreneurs to run a business remotely.
Why?
Not everyone needs an e-residency. But it will be efficient in case you want to start and run a business in Estonia, where 99% of services are available online.
E-Residency will help those who are not Estonian citizens but want to invest in the Estonian market.
How?
Don’t follow a difficult path and join more than 80,000 people succeeding in company development with an e-residency. Apply on https://eresident.politsei.ee/.
Exploring the tax system
Another, we say, the most important aspect when choosing a location for a business is taxation. Estonia offers the world’s most favourable and transparent tax system without progressive taxes.
In Estonia, corporate income tax is 0% and there is no need to pay any corporate tax at all. It is necessary to pay taxes while distributing company profit — salary or dividends, to shareholders.
Some exceptions could take place depending on the specifics of the business, so we strongly recommend consulting Wisor Group OÜ business service provider to determine tax obligations.
More major additions
Apart from advanced infrastructure allowing to manage business remotely, and the opportunity to reduce taxation legally, Estonian legislation offers even more to facilitate business thriving.
Some other advantages of having a company in Estonia:
Founders and Board members may be non-residents of Estonia (there is no need to have a local Director).
There is no mandatory condition to pay a salary to the company’s director and there are no salary requirements.
There is no need to contribute the authorised capital when establishing a company.
In the case of doing business in Estonia, a Board member has the right to apply for a residence permit for up to 5 years.
Possibility to purchase transport and real estate in the ownership of an Estonian company without taxes.
Summing up, Estonia is a country with a good reputation within the European Union. Estonia welcomes startup companies by offering vast possibilities for doing business, and it will be a reasonable decision to become a part of the Estonian business environment.
Wisor Group OĂś kindly reminds everyone to weight the arguments carefully and are always happy to assist you in every matter regarding starting a company in Estonia.
The specialists of Wisor Group OÜ will be happy to assist you with company registration in Estonia.[/vc_column_text][/vc_column][/vc_row]
Company in Estonia OĂś introduces the bright sides of Amazon stocks.
While mass media is riddled with updates on Amazon physical store opening around the world, we find it relevant to go through the key advantages of online trading on Amazon. Over the years, e-commerce has swiftly taken over the modern business market. And there are several reasons for that.
Amazon, founded by Jeff Bezos in 1994, referred to as the world’s most influential economic and cultural force is the world’s largest online marketplace. The brand versatile logo hasn’t changed since 2000, whilst the big brand itself has indeed transformed the world’s economy, thereby contributing to the development of online trading.
So, let’s consider under which circumstances it is worth to start selling on Amazon whether building your online store.
The problem of the choice
Plenty of e-Residence holders at the beginning of the online trading journey wondering if they should have an in-house platform, or it is more reasonable to offer goods on Amazon.
The development of your own trading platform is relevant as long as the brand is already known on the market. When it comes to launching a brand-new company and fresh product, it is worth the money and time to join the existing marketplace. And later, in the case of company success, an entrepreneur begins to invest in building oneself an online platform.
This decision is explained by the need to test market demand, and if relevant, it also provides an opportunity to consider possible variants to stimulate the demand.
Why to choose Amazon
Without a doubt, in the next stage, every enterprising business person would have questions regarding which platform to choose. Speaking of Amazon advantages, we highlight the sustainability of big brands. Time-tested Amazon has firmly established itself on the market becoming a standard among online trading platform; therefore, joining Amazon enables a businessman to shape the market in a way. And that’s something incredible inherent in nowadays online trading.
On top of that, selling goods on Amazon simplifies the process of reaching potential clients. If a company decides to represent its product on such a popular platform as Amazon is, buyers won’t have to look for a specific company using search engines. Instead, while looking for a product, they are most likely to come across the same product on the most popular online store.
Amazon engages more than 180 million users in a month and offers a huge range of more than 500 million goods. This represents another big advantage of trading online on Amazon — a multi-million client base. Amazon users from all over the world are looking for products in a variety of fields. Also, the loyalty and trust of Amazon clients, resulting in higher conversion rates, increase trafficking while maintaining low cost. Cost- and time-effectiveness in this case, comparing to another way of starting own online store, is evident.
e-Estonia: why to go online
Turning to the friendly nature of online trading conditions, we should consider the vast opportunities Estonia offers to entrepreneurs.
As the European enterprising hub and concurrently the world’s most advanced digital society, Estonia is a perfect place for starting an online-based business. Innovative programmes such as e-Residence, as well as open access to funding including EU finances, attract more and more entrepreneurs.
Smart people and smart money — well-describing characteristics of Estonian business environment. Estonian relatively small market is full of talents and ambitions. Starting a company in an enthusiastic environment contributes to its successful development.
More about the advantages of having business in Estonia here.
Putting together, where to open an online business rather than in the world’s most digital country? The answer is clear.
Wisor Group OĂś is happy to help by offering a wide range of services for those who intend to trade on Amazon in Estonia.[/vc_column_text][/vc_column][/vc_row]