Start, run and grow an EU company easily and securely with your e-residency Digital ID.
Information provided with the partnership of the e-residency team!
Magrat OÜ, your SFAI partner in Estonia, is happy to introduce the Estonian e-residency program, the gateway for your clients to do business remotely across the EU and the world.
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 – Annex 1
– Onepager about e-residency (general information) – Annex 2
– Onepager about e-residency (for startups) – Annex 3
With e-residency doing Business with Estonian Company is easy – anyone from anywhere can register a company without being physically present, and in record speed.
To learn about getting started with e-Residency we offer looking into the video series prepared by the Estonian e-residency team – link
Magart OÜ, as a partner of the Estonian e-residency program, would also like to share personal experience with the system and how it benefits our clients.
1. Accessibility and ease of use
One of the main advantages of e-residency is how easy it is to get started. The application for e-residency card can be submitted online and requires only a valid passport scan and photo. The application itself can be filled out personally or with our assistance should there be any questions.
The e-residency card can be then picked up in about a month in many different representation offices in Estonia across the world – link.
The benefits of incorporating in Estonia with e-Residency also include the following advantages:
- The Estonian tax authority’s online portal (e-MTA) is user-friendly and available in English.
- Forms for filing tax returns are online and available in English.
- Tax authorities provide quick answers to user queries and have a dedicated email for non-residents (nonresident@emta.gov.ee).
- Estonian have signed and ratified around 60 double tax treaties with countries across the world in order to avoid double taxation!
2. A useful tool for online management
In Estonia most services are available online, from starting your own company to managing it, filing taxes, applying for licenses and much more. E-residency is a key to this e-state system. Estonia and e-Residency provides a secure and transparent business environment, where 99% of government services are available online, 24/7!
Setting up a company can take less than an hour and many of the clients of Magrat OÜ, established their successful businesses without the lengthy process of gathering and filing large volumes of documents and also without the need of traveling personally to Estonia. Furthermore e-residency allows to retain full control of the company, without relying on local providers for every action that must be taken. This element of control, that comes without any additional costs or time consuming procedures is something that allows the e-residency system to stand out in the world.
There are very few things that can’t be done with Estonian e-residency and the team of Magrat OÜ has used this as one of the key elements in many solutions for the needs of our clients, such as:
- Making changes to the management of the company;
- Changing the company name or articles of association;
- Increasing or decreasing the share capital of the company;
- Changing the company corporate structure;
- Selling shares of the company;
- Applying for licenses or operating permits.
3. A few examples
We would like to also give a few examples, on how e-residency was used to help create an effective solution for our clients.
Solution for transfer of shares
Attracting investors is a key factor for many new businesses. Investors often wish to obtain partial ownership in the business they invest in, by obtaining shares of the company. This requires for a quick and efficient method of adding new shareholders that is not based on the lengthy procedures via a notary.
Here, the Estonian legislation works well in conjunction with the e-residency system, to provide a suitable solution. With a share capital of 10000 EUR an Estonian company is allowed to amend its articles of association and forfeit the requirement for the notarial certification of selling of shares. This option can be paired up with another legal concept of the Estonian legislation that allows the Estonian company to own its own shares.
As a result, the Estonian company can simply sell its own shares to an investor for an agreed price and the changes in the registry can be made by a board member of the company using his e-residency card, with the changes appearing in the registry in a few days or less.
Faster company liquidation
Sometimes the client may wish to close down his company due to the changes on the market, the recent COVID situation being the primary example. It should be noted, that even during the pandemic e-residency had proven its worth as it allows one to manage the company online, a feature that allows one to remain in a quarantine or temporary isolation, yet retain control of the business.
But if a person still decides to close down the company, even here, e-residency can be extremely helpful. Instead of a usual and somewhat lengthy company liquidation procedure, a single company owner can simply merge the company with his own personal assets.
This procedure is much faster and cheaper when compared to the regular liquidation and can be performed online using Estonian e-notary system, that allows to perform the procedure with a notary via an online call, where documents are signed using the e-residency card. All this requires is a stable internet connection and the ID-card reader with your PIN codes.
4. Grants
Estonia is also looking for people willing to start new, modern business in Estonian and there are many programs, offering grants and support to startups with high potential, including:
- Estonian Business and Innovation Agency offers grants to startups as well as practical training and workshops facilitated by experts in the field. Their grants are divided into various difficulty levels and target areas, offering# attractive funding opportunities for enterprises at any stage.
- Prototron funds innovative business ideas in the green and cleantech sector with packages up to €35,000 in equity-free funding. In addition, a company also receives expert mentoring and the opportunity to participate in Prototron’s incubation program. It’s a great way to kick off your successful business journey.
- “Tootearenduse toetus” is a grant developed to encourage businesses to invest more in development, resulting in new competitive products and services and increased international sales. You can receive up to €500,000 to cover staff costs and purchase services for product development, materials, and equipment.
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.
E-residency is available regardless of location, accessible, easy to use, useful in almost any element of corporate management of Estonian companies. It is safe and allows one to retain a full level of control and personal involvement in the business.
Start, run and grow an EU company easily and securely with your e-residency Digital ID.