Frequently Asked Questions

Drop us an email if you couldn’t find an answer to your question

FAQ

Digital Estonia Membership


Do you provide an online portal?

Monthly administrative works (accounting, tax reports etc.) of your company is easy as sending a single email per month that’s why we do not provide an online portal for your company’s administrative works at the moment, however for our members who still would like to share their invoices, expenses receipts and similar companies documents with us via online portal, we will provide an online membership account in 2018.

Besides your company’s administrative works, we focus on your entrepreneurial growth and success of your business. This is the main passion what drives us! In accordance with our main passion, we will have different types of online solutions where you’ll find opportunities to learn from worldwide entrepreneurs and from amazing minds in so many different fields! In that way, you’ll both find incredible online tools that will help you to establish and run your business online at the same time develop your personal skills in so many different areas.

How can Digital Estonia Consulting help me?

Digital Estonia helps you to register your Estonian company online in one business day and take care of the entire monthly and annual administrative works of your company, therefore, you can benefit from managing your EU based company online with your digital e-residency card without staying physically in Estonia.

More importantly, we take care your digital business setup end-to-end. We work closely with our clients to setup their digital businesses and make them ready to run without any technical error. All of our solutions are customized for each business.

Your entrepreneurial growth and your business success is also important for us. To this end, we are planning to bring amazing contents to your fingertip in the close future where you can find P2P support, motivation, success stories, and pieces of advice for different industry experts, new knowledge and a lot more from top entrepreneurs and personal growth authors.

What is the purpose of Digital Estonia Consulting?

We provide online tools to entrepreneurs’ worldwide to establish and run their businesses outside the borders and bureaucracy without any hassle. In that way, we transform the opening of  a business from complexity and bureaucracy to few clicks and transparency.

Is there any country restriction to work with Digital Estonia Consulting?

No. Digital Estonia consulting is working with entrepreneurs all over the world.

If I establish my Estonian company with Digital Estonia Consulting, can I also work with other service providers?

Yes of course. If you are not satisfied with any of our business services and want to work with a different service provider, we can help you to find a new service provider. There are amazing companies in Estonia that provide great services in specific areas.

Does Digital Estonia Consulting has any control over my company?

You will have 100% full controls over your company via secure authentication and digital signing. Thanks to Estonia and the blockchain technology, you can sign and transfer your company’s official documents, make legal partnerships, use online banking for transferring money and do all the governmental works with your digital ID card 100% securely and privately.

Digital Estonia consulting is your authorized representative and officially has the right to submit your accounting and tax reports to Customs and Tax Board and communicate with the local governmental institutions on behalf of you if they want to contact  your company for some reasons.

Can I close my company if my business does not go well as I expected?

Yes, you can. But it is not as fast as opening a company. It is a process and you will close your company successfully at the end of the process. There are several conditions needed for starting this process. (i.e. no company debt to external parties)

FAQ

e-Residency & ID Card


How does e-Residency work?

The Republic of Estonia is the first country to offer e-Residency, a government-issued digital ID available to anyone in the world. E-Residency offers the freedom to easily start and run a global business in a trusted EU environment.

Once you applied and get your e-Residency card (=Digital Estonian ID Card) you will be able to use this personalized ID card on your computer with an ID card software and an ID card reader for doing official works online in Estonia  irrespective where you are in the world!

With your Estonian ID card, you have considerable access to the following;

  • Establish your company online
  • Manage accounting and tax works online
  • Be the full owner of your company
  • Sign and authenticate documents
Can I establish a company without e-Residency?

Yes, you can establish your company in Estonia without e-Residency card but in that case, you should visit Estonia and complete your company’s process on notary! (Belgium, Finnish, Latvian or Lithuanian Mobile ID owners can still do online process without need to visit Estonia)

Please contact us for further inquiries.

How do I use the ID card?

Electronic use of the ID-card is your key to a wide range of online services (e-services). The Republic of Estonia guarantees the electronic identity, therefore allowing you to communicate with government agencies, make electronic transactions and much more with your ID-card.

You can get all the information about ID card on here: https://www.id.ee/index.php?id=30470 

FAQ

Establishing a company


What type of company can I establish with Digital Estonia Consulting?

We are registering a ‘Private Limited Company (OÜ)’ for our members. A private limited company is a company that has its share capital divided into privately limited company shares. A private limited company is liable for the performance of its obligations with all of its assets, but a shareholder is not personally liable for the obligations of the company. The minimum nominal value of a share is 1 EUR and the share capital must be a minimum of 2,500 EUR. If the founders are private persons and the share capital is less than 25,000 EUR, they can decide whether to pay their share when establishing the company.

Until the whole sum has been paid, the founders are personally liable for the obligations of the company up to the amount of the missing contribution. A private limited company must have a management board – a directing body that represents and directs the private limited company. The management board may have one member or several members and they must be ordinary persons with active legal capacity without the obligation to hold shares from the company.

If more than half of the board members do not permanently reside in Estonia, the company must give the Commercial Register a contact name and address in Estonia where necessary documents can be sent. The foreign owner must give the Commercial Register his/her address and e-mail address. Although not mandated by law, a private limited company may have a supervisory board if prescribed by the Articles of Association. An auditor, who can be prescribed by law or Articles of Association, is mandatory when the company surpasses certain threshold values in terms of turnover, number of employees and asset value.

Can I establish and manage my company without visiting Estonia?

You can complete the entire process by using your e-Resident digital ID card. You do not need to visit Estonia to setup a company.

Can I establish a company with multiple founders?

Yes, you can. Our solutions are 100% customized for our members.

What is the function of local representative (authorized contact)?

If you are the single owner and board member of your company registered in Estonia, and if you do NOT reside within European Economic Area (the European Union + EFTA members Iceland, Liechtenstein, and Norway) or Switzerland, you are required to appoint a local contact (legal or private person) to receive procedural documents in Estonia. The contact acts as a messenger whom Estonian authorities can approach to deliver official documents/messages to you, sharing neither legal power nor responsibility for the actions of your company.

Can I establish a company without any service provider?

In accordance with the official requirements for the local authorized contact and a legal address, you do have to cooperate with a local service provider.

Do I pay any kind of fines to Estonia in case my company does not work?

No, you will not be fined if  your business does not run as expected!

FAQ

Opening a Bank Account


What is the process of opening a bank account?

You can establish your company fully online without visiting Estonia; however, all the local banks are still looking for a face-to-face meeting before opening a business account for their clients. It is expected in 2018 that they will transform this physical evaluation to an online process  in order to make it easier for e-Resident entrepreneurs from all over the world.

Digital Estonia is partnering with all the local banks in Estonia and making sure your appointments get ready before you arrive in Tallinn. Once you apply for opening your business bank account on the branch, the bank authorities will confirm/decline your application in accordance with your business details. But as we are trying to reduce the potential risk for our members, we usually discuss with them their business details before making an appointment for them.

Is there any other different solution than opening a bank account?

There are alternative options (Transferwise Borderless, Holvi) that you can benefit from, same as using a business bank account. These solutions enable receiving and sending money, 100% online and without the need to visit Estonia. You can easily open an account from these service providers online and start to send and receive money with your IBAN that is generated by these providers.

What is Transferwise borderless account?

It is a multicurrency electronic money account that gives you European IBAN, American account number, Australian account number and British account number. You can benefit from the Transferwise borderless account at the first phase of your business. Please check all the details on their website.

What is Holvi online banking?

Holvi is an amazing solution and has launched an IBAN for e-Residents for them to log-in and manage their bank operation on Holvi account. For now, it only allows you to do business with SEPA Countries. If your transactions will be in outside of the European Economic Area Zone, you might be still need traditional bank account. Please check their website for more information.

FAQ

Start-ups


Do you have a legal support during funding process?

Yes, we help you to connect with great lawyers and advisors who are our network partners.

What is start-up visa?

The Estonian Startup Visa is meant for non-EU startup founders who wish to come and be a part of one of the smallest but liveliest startup communities in Europe as a founder. Under the Startup Visa program, a startup is defined as a business with the goal to develop and launch an innovative and repeatable business model with great global growth potential, which also contributes significantly to the development of the business environment in Estonia. With this program, founders from outside of EU can find a chance to move their start-ups to Estonia with a special Visa for one year long! During this one year, they can grow their businesses, establish their companies and convert their Visas to temporary residence permit that is given for 2-5 years by Police and Border Guard Board.

Do I need to establish a company before applying for start-up visa?

No, you do not need to establish a company for applying for start-up visa. If you have a company, you have a chance to apply for temporary residence permit up to 5 years rather than applying for 1-year Schengen Visa.

Why do I need to apply for start-up visa?

For growing your business in Estonia that has a busy, supportive and a startup community eager to welcome more ambitious individuals and startups. Top-notch e-services, great ease of doing business, ideal testing ground, low levels of bureaucracy, entrepreneurial people and high quality of life at a low cost are just some of the keywords describing Estonia and why it is a great country to run a startup in – with the highest startups per capita ratio in Europe to show and prove it.

How does Digital Estonia Consulting help me to get funded?

If you are an early-stage start-up company and looking for funding to grow your business, you can freely fill your business details on the forms that we deliver to you and we will try to connect you with our network investors if their applications criteria are matched with your conditions.

FAQ

Stripe


Can I collect my customer’s payment online to my Estonian bank account with Stripe?

Currently, Stripe does not work in Estonia but we are working to solve this problem via alternative banking platforms for e-Resident entrepreneurs.

Some other alternative solutions are: PayPal, Braintree, Adyen, and SecurionPay

If you have further  questions, please let us know.

FAQ

Cash Transactions


Do you support cash transactions?

Yes, we do support cash transactions once you fulfill a number of given factors. We need to learn specific details of your business before we confirm.

FAQ

Receive Funds & Taxes


How can I receive funds from my company?

There are three ways to receive funds from your company; 1- Dividends 2- Board Member Salary 3- Employee Salary

You can freely decide or combine any these possibilities, also you can keep all your incomes in your business bank account without paying any corporate taxes. This is one of the unique benefit of Estonian tax system.

For more inquiries, please contact us.

What is the tax rate on dividends?

Your company’s income tax (CIT) is only charged on distributed profits. It means that as long as you keep your incomes on your company, there won’t be any CIT applied. If you distribute your incomes outside of the company, flat 20% CIT is applied for the distributed amount of your income.

What is VAT and how does it work?

The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. Conversely, imports are taxed to keep the system fair for EU producers so that they can compete on equal terms in the European market with suppliers situated outside the Union. VAT rate is 20% in Estonia (in general) though it might not be applied in all situations. Digital Estonia accounting department cares of all the details about your company’s VAT.

Do I have to be a VAT payer?

We will inform you after learning about your business details. In case you have to be a VAT payer, Digital Estonia will help you to get a VAT number. Your Estonian VAT number will be automatically available in VIES (http://ec.europa.eu/taxation_customs/vies/)

FAQ

Residence Permit & Living in Estonia


Can I live in Estonia with e-Residency card?

No, e-Residency ID card does not give you permission to live in Estonia if you are a non-EU citizen. To live in Estonia, you have to apply for a temporary residence permit and there are several conditions stipulated by Police and Guard Border Board for having a physical living permit in Estonia.

What do I need to do in order to live in Estonia after establishing my company?

There are several conditions on ground for those who applied for living permit in Estonia from your company, if you are a non-EU citizen. Please contact us so that we can give you more details after considering your applications. To learn all the details on how to apply for temporary residence permit, please check the official site: https://www.politsei.ee/en/teenused/residence-permit/tahtajaline-elamisluba/

Where can I apply for a temporary residence permit for living in Estonia?

If you fulfill all the conditions for the applications for a temporary residence permit, you can easily do it at any of Estonian Embassy in your home country.

Do I have a work permit if I get a temporary residence permit?

Yes. All the residence permit types provide work permit in Estonia.

Can I work in different EU countries with my Estonian residence permit?

No, you cannot work! All the temporary residence permit types give you a chance to work ONLY in Estonia. It is not possible to work in different EU countries, with Estonian temporary residence permit.

FAQ

Offline (Traditional) Business


Can I establish a company with Digital Estonia Consulting if I have an offline business?

Yes, you can. We are checking all of your business details during application process this gives us the option to understand your needs and considering what value we and Estonian online services can give to your business.

What is the advantage of establishing a company in Estonia, if I have physical good sales in a foreign country?

In most cases, there is little advantage to establish your company in Estonia if you are in a physical good sales business, in foreign countries (especially outside of EU). But if you are trading with Europe or in EU Countries or looking for export/import activities with Estonia, please contact us for other business details.

FAQ

Direct Sellers / MLM Partners


Is there any advantage for me to establish my company in Estonia?

If you are a Partner of EU based MLM companies and officially receives your commissions to your European business bank accounts, Estonia might be a great place for you to establish and manage your company online and use the advantages of unique tax and low-cost administrative options.

How does the process work for me?

You will establish your company online and open your Estonian business bank account and after that, you will ask for your official commissions to your Estonian business bank account from your MLM Company’s HQ. Digital Estonia accounting department will care for the rest!

Do you have a question?


Drop us a message or an email for any kind of questions.
We try to answer all enquiries within 24 hours on business days.
We apologize for any kind of delay.
support@digitalestonia.com