Estonia is one of the three Baltic states located in northeastern Europe. Throughout the last two decades, the country has transitioned its government into a modern democracy and its economy toward free markets. Estonia has also worked hard to establish itself as a high-tech centre and become a leader in the IT sector. The country fulfilled these goals by establishing a digital society, dubbed e-Estonia, putting all services online, and substantially integrating technology into its educational system.

As a result, it's no surprise that Estonia is attracting many internet startups from across the globe. Regardless of where you live or work Estonia is a great option to consider for registration as a digital Entrepreneur. This article will guide you through everything you need to know about joining thousands of other online business owners worldwide and establishing your online business in Estonia.

Six Easy Steps to Establishing Your Business in Estonia

1. Acquire All Necessary Items and Documents

You’ll need to have certain documents on hand before get you started. These include the following:

· A digital duplicate of your country's equivalent of a government-issued ID card.

· a digital image in the style of a passport

· A motivation letter describing why you are applying for an e-residency, your previous business ventures, and your future ambitions.

· A Visa or MasterCard can be used to conduct international online transactions.

2. Submit an e-Residency Application Online

The next step is to apply for an e-residency online. You will need to provide all of the relevant paperwork described above and pay a cost of €100 if you choose a pick-up location (within the country) or €120 if you choose a pick-up location outside of the country. You can apply to become an Estonian e-resident using this website.

3. Wait For the Application to be Approved

Before your application is granted, the Estonian police and border guide board will undertake a background check on you using your government-issued ID card. They may contact you for further personal information. Be patient, as this process could take up to 30 days.

4. Get your Digital ID Card

You will receive an email notification when your application has been approved and you have been given an e-residency. Your fingerprints will be taken, and you will be given a card reader as well as your digital ID card. The original and copies of all documents provided online must thereafter be presented to the Estonian embassy in your country.

5. Register Your Business

Once you've been awarded an e-residency, you can use your digital ID card to register your digital business on this website. It's worth noting that you'll have to provide a valid Estonian address for your business. If you know someone living in Estonia, you could potentially ask their permission to use their address; if you don't, you can easily utilise an online legal address service.

6. Pay the Share Capital

After registering your company, you'll have to pay the share capital. The minimum share capital required to form a limited liability company is €2,500. If the share capital is less than €25,000, and you aren't ready to pay that when the company is formed, you can choose to defer the payment.

However, you must do so before making any dividend payments, and you are personally accountable for your company up to the amount of unpaid share capital. Simply deposit the amount into your company's bank account and label it "payment of share capital" when you're ready to do so.

Advantages of Setting up an Online Business in Estonia

Let's take a look at some of the advantages of establishing an internet business in Estonia.

1.e-Residency

To start a business in Estonia, you don't have to live there. As a freelancer living outside of the EU, this e-residency can open possibilities by allowing you to access the European Union's single market. However, you should note that having an e-residency does not grant you the ability to live and work legally in Estonia or other European Union member states.

2. e-Business Register

Estonia's e-Business Register is a sophisticated and secure technology that allows entrepreneurs to register a new business online in a few minutes rather than going to a notarisation or other authority.

You can use the e-Business registration to create a new company online, update information in the business register, publish yearly reports, maintain political party membership lists, and conduct thorough research on other businesses. When forming a business in Estonia, non-Estonian nationals can use the e-Residency program to access the register and use digital solutions. The e-Business Register makes establishing a business and filing documentation such as annual reports simple and fast for users from anywhere.

3. e-Banking

You may simply use commercial banking and payment service providers like PayPal from wherever you are.

4. e-Bureaucracy

All managerial and administrative processes can be carried out from anywhere in the world. You can use this service to sign documents, transfer documents securely, and declare taxes online.

The Wrap Up

Estonia has establish itself as a high-tech centre and a leader in the IT sector, attracting a huge number of internet startups from all over the world. As a digital Entrepreneur there are many benefits to obtaining e-residency in Estonia. E- Business Register, e-Banking, and e-Bureaucracy are just a few of the advantages of registering your digital business in Estonia.

How to Apply For e-Residency and Register your Digital Business in Estonia