E-Residency in Estonia

Start, run and grow an EU company easily and securely with your e-residency Digital ID.

E-Residency of Estonia is a government-issued digital identity which gives global entrepreneurs remote access to the world’s most digital country.

After signing up, e-residents receive a starter kit containing a digital identity card that allows them to:

• Establish an EU company 100% online;
• Access a wide range of e-services such as digital signatures, business banking, and online tax filing;
• Remotely run a business from anywhere in the world with minimal bureaucracy.

These materials were prepared in cooperation with the Estonian e-residency team of the Estonian Republic, responsible for managing and developing the program. Attached to this case study you can find materials that will help introduce the system, how it operates and what are the main benefits: general information on e-residency, a one-pager overview, and a video series about e-residency.

Accessibility and ease of use

You can apply for e-residency online: you’ll need a scan of your passport and a photo. Once approved, the physical e-residency card is usually delivered within about a month — you’ll need to collect it from one of the pick-up locations (an Estonian embassy or a dedicated collection point).

The e-MTA online tax portal is available in English, removing the language barrier for foreign entrepreneurs. Estonia also has double tax treaties in force with more than 60 countries, which simplifies international tax planning.

A useful tool for online management

99% of government services in Estonia are available online, 24/7. For an e-resident, that means almost every company action can be handled without leaving home — you can read more about how secure and transparent this way of doing business is on the official e-Residency portal. In particular, you can:

• register a new company in less than an hour;
• change management and the ownership structure;
• change the company name;
• change the amount of share capital;
• transfer shares between shareholders;
• apply for licenses and permits.

A few examples

Solution for transfer of shares

Companies with a share capital of at least €10,000 can amend their articles of association to remove the requirement for notarial certification of share sales. For an e-resident, that means the commercial registry record is updated within a few days or less — no notary visit and no need to be physically present in Estonia.

If your company needs to arrange a share sale or transfer without a notary, we can prepare and carry out the whole transaction: share transfer without a notary.

Company liquidation: two options

There are two ways to close an Estonian company, and e-residency makes both easier.

The standard liquidation procedure is the classic route: appointing a liquidator, publishing an official notice, waiting out the creditor-claims period, preparing the liquidation balance sheet, and finally being removed from the commercial registry. All of these steps can be handled remotely thanks to e-residency. More on this service: company liquidation (standard procedure).

Liquidation via merger is a faster alternative for a company’s sole owner: instead of the standard procedure, the company is merged into the owner’s personal assets through Estonia’s e-notary system. All you need is a stable internet connection and your ID-card reader with your PIN codes.

Example: instead of publishing a notice and waiting out the creditor-claims period under standard liquidation, the owner completes the merger remotely using e-residency — and the process takes considerably less time.

More on this service: company liquidation via merger.

Grants

The Estonian Business and Innovation Agency (EAS) offers several support programs, some of which are available to companies registered through e-residency too:

• Prototron — equity-free funding of up to €35,000 for green-tech and cleantech projects;
• Tootearenduse toetus (product development grant) — a developmental grant of up to €500,000.

More on the options available to startups in the e-residency startup one-pager.

Final words

Overall, e-residency is an invaluable tool for anyone who wishes to start and run a business remotely using modern technologies to lower costs related to business and save time.

The examples above are just an illustration of how e-residency simplifies specific processes. In practice, its uses are much broader and cover a wide range of business needs. We’re ready to support you at every stage — whatever your goal.

Magrat is an official e-Residency Marketplace partner with a high rating and hundreds of client reviews. We also hold the ERK quality mark — an independent industry accreditation held by only a small number of Estonian accounting firms — and are ranked among the TOP audit and accounting companies by the business publication Äripäev.

If you’re considering e-residency for your business, or you’re already an e-resident and want to know what’s possible, get in touch with us — we’ll help you find the right solution.