The Real Country 4.0 — Estonia's e-Residency: What Can You Actually Do With It Besides Photocopy It?
Let me review this (in my usual sloppy and slightly snarky style). It's here — Estonia's e-Residency program. You can now open a company and a bank account without ever setting foot in Estonia. Want to see what a truly digital "Country 4.0" looks like? Here's a real example.
If you don't know what Estonia e-Residency is, go read up first: https://e-resident.gov.ee/
Shortly after Estonia opened up the e-Residency program, a fintech startup called Holvi followed suit, branding itself as "Banking for Makers and Doers" (meaning talkers need not apply). Initially, it was only available to Estonia e-Residents with residency status within the European Union — so even though I hold Japanese residency, I was left out.
But the latest update? They've opened it to applicants from every country! And if you open an account now, you even get a Business Mastercard thrown in.
Setting Up a Company in Estonia
As for the process of setting up a company in Estonia — once you've received your e-Residency, it's not that complicated. The only real question is whether you have the capital to do it.
Here's a rough overview of the steps, as outlined by the Estonian government:
- Apply for e-Residency
- Get a registered address for your company — you can rent a virtual office online
- Register your company — it's similar to registering a company anywhere. Prepare the usual documents, but the special part is you don't need to sign wet copies. You verify your identity digitally using your e-Resident card for a Digital Signature
- Pay the government registration fee (around €100) and wait for confirmation. Done!
That said, some people might find all the paperwork overwhelming. Even though Estonia has made it as easy as a tap on your card reader, there are now services that handle the entire setup for you, like Leapin.eu.
If I get the chance — I'm still looking for the right business idea — or if Estonia ever allows personal bank accounts for e-Residents, I'll definitely give it a try.
They've really made it so much easier. Not like some countries that keep making things harder while taxes keep climbing...
Notes
- Corporate/personal income tax in Estonia is a flat rate of 20%
- Companies registered in Estonia enjoy standard Eurozone tax benefits
- To open a bank account, you need an e-Resident card (which requires a background check and an in-person interview at an embassy — Estonia's consulate in Thailand can't issue them yet, so you'll need to make an effort. I picked mine up in Tokyo). You also need to have a registered company with sufficient capital, and pass a background check. They don't hand things out carelessly like some developing countries do.
UPDATE: LHV Bank in Estonia now offers account opening via video call. When I get a chance, I'll try it out. Storing some money in euros sounds like a good idea. https://www.lhv.ee/en/videoidentification