Benefits of registering a company in Estonia

With so many countries to choose from to set up your company, it can be tough to know where you should settle. Each country has its own advantages and disadvantages, making it a balancing act when trying to decide which one is right for you. For example, when it comes to setting up a company, not all countries are equal. Some have taxes so high they will leave you bankrupt; others are so bureaucratic that they’ll make your hair turn white before your first cup of coffee has finished brewing. For anyone who is just starting out as an entrepreneur or businessperson, the process of registering your company can seem like another unnecessary hurdle that may complicate your life even more than it already is. However, companies have different legal needs depending on where you live and what kind of business you operate. Therefore, for most people the benefits of registering a company in Estonia more than compensate any difficulties with the administrative process.

1. Estonia is a digital leader

If you’re able to look past the administrative procedures and put yourself in the shoes of a digital entrepreneur, you’ll be able to see why Estonia is a great choice for your company. Estonia has a strong and growing tech sector, with a focus on e-commerce and online services. When it comes to the digital world, there are no other countries that can compete. The government has invested a great deal in making the country a digital leader, with the Internet being present in all aspects of daily life.

2. There are no tax surprises

In Estonia, corporate tax on undistributed profits is 0%. That allows you to reinvest in your business an additional 20% of the funds received.

3. You’ll enjoy ease of doing business

One of the most significant benefits of registering your company in Estonia is the ease of doing business. This is partly due to the fact that Estonia is an EU member state. You’ll have access to a nearly unlimited market, which makes it easier to break into the global market. Furthermore, being an EU member state means that you’ll have access to a single market, which means that you won’t have to worry about different customs regulations and taxes when you sell your products both domestically and internationally. The EU is home to nearly 500 million customers, and you’ll be able to tap into this huge market through Estonia. You’ll also find it easier to hire people and attract investment because Estonia is an attractive country for other businesses to do business with. The World Bank ranks Estonia as having the second highest ease of doing business out of all the countries in the world. This means that you’ll be able to get started with your company quickly and easily, making it easier to expand your operations and hire new employees.

4. Company registration is fast and easy

Another huge benefit of registering your company in Estonia is that the process is incredibly easy. You can register your company with the company registry online, and it will take you only a few minutes. You don’t even have to physically be in Estonia to set up your company; you can do so from anywhere in the world. Once your application has been processed, you’ll receive your company registration card, which will prove that you are the legal owner of the company. Once you’ve registered your company, you’ll receive an ID number, which you can use when applying for government benefits and incentives. You’ll also receive an E-tax card, which is the Estonian equivalent of a social security number.

5. Establishing a legal presence in EU

Another significant benefit of registering your company in Estonia is that you’ll be able to establish a legal presence in the EU. This means that you’ll be able to hire staff, submit VAT returns, provide health insurance to employees, and obtain an EU business license. You’ll also be able to open a bank account, sign contracts, and pay taxes. Having a legal presence in EU makes it easier for people to do business with you. They’ll be able to rely on the fact that your company is legitimate and has procedures in place to ensure that it operates legally and ethically.

Summary

In summary, when you’re deciding where to register your company, there are many factors to consider. Estonia has a lot to offer, making it a great choice for those who are just starting out. The country has low taxes, is a digital leader, and is an easy place to do business. Furthermore, registering your company in Estonia will enable you to establish a legal presence in the EU, making it easier for you to do business.