Starting a business in the wrong country can be very costly and it could make your business operations less smooth. When starting an online business, you must run a tight ship, you cannot afford to have bottle necks, simply because the barrier of entry is so low that anyone can come in andattack your position in the marketplace.
Estonia is a country that gave us Skype, TransferWise, Taxify, Pipedrive and many other startups, has been an emerging digital powerhouse for the past several years.
You can easily start a business in just a few hours, from the comfort of your home – no matter where you’re at in the world.
Estonia allows you to get e-residency and register your corporation in the country.
The most sought after business entity is OÜ, a private limited company. The tax rate is 20% but it only applies to the dividends and distributed profits. If you keep the capital in the company, you’ll be charged 0%. That’s right, zero percent.
Fixed monthly costs of the company are roughly 79 euros and that includes tax filing andaccounting.
There will be an additional one-time fee of 350 euros for state filings and e-residency. The minimum share capital is 2500 euros, which can be deferred to as long as 10 years, as long as you don’t set your registered share capital to over 25 grand, in that case you gotta pay it immediately!
The Estonian company COMPANY IN ESTONIA OÜ lets you easily estonia company registration and apply for a business bank account in the country.
You’ll have to physically show up at the bank to get the bank account opened (theytypically use LHV Bank), but it’s a routine process and they’ll take care of everything in advance.
If you don’t want the hassle of flying to another country just yet, you can set up a Transferwise account and use that as a virtual bank account so you can get started ASAP. As far as payment gateways go, you’ve got Stripe, PayPal, 2checkout and many othersat your disposal. Receiving money shouldn’t be a problem if you’ve got an Estonian private limited company.
Estonia is a great option for freelancers and contractors, as well as consultants whoare looking to keep it simple with the tax filings and accounting and want to get startedimmediately.