Guide to opening an international business online in Estonia
Communication Team
Communication Team

November 03, 2022

Share

Guide to opening an international business online in Estonia

If you have been thinking of launching a business in the EU, there could not be a better time than now. Estonia has emerged as one of the most promising business destinations in recent years, offering an excellent environment for entrepreneurs, easy accessibility to finance, a growing economy and a favourable tax regime.

One of the best things about starting a business in Estonia is that you can do so completely online. Thanks to its E-residency programme, new entrepreneurs or small business owners do not need to set up any physical offices or hire employees to run an international business in the EU– all you need is access to the internet and your business can start operating from anywhere in the world!

What is E-residency and why should you consider it?

E-residency is a government-backed programme that allows foreigners to start and run their own businesses in Estonia with minimal hassle. Entrepreneurs who qualify for E-residency can use the country's digital infrastructure to do business from anywhere in the world. The advanced digital infrastructure of Estonia – including fast broadband, e-government services and a strong digital economy – makes it an ideal location for companies looking to operate online.

In fact, the country has been rated as the third most technologically advanced nation in the world along with Denmark and South Korea. Even the most dreaded corporate headaches can be managed online – not to mention taxation and legal requirements. All of this makes Estonia an irresistible choice for business owners seeking a hassle-free e-business platform, access to a large pool of skilled workers and an excellent infrastructure.

How to get started with opening a company in Estonia

If you are ready to get started with your business journey in Estonia, there are a few things that you need to do first. Firstly, you will need to apply for E-residency and provide the necessary documentation. After applying and being accepted into the program, you will then be able to start setting up your company online using e-resident services.

In addition, it is always advisable to consult a professional advisor when starting any business venture – this is particularly true for companies operating in international markets where different laws may apply than at home. Finally, make sure not to forget about taxation in Estonia – as a business owner, you will need to account for both personal and corporate income tax in Estonia.

How to become an E-resident

Becoming an E-resident is not difficult – all you need is to meet certain eligibility requirements and apply for the programme. In order to be eligible, your business must be legal in Estonia and you must have a valid bank account there (that’s where wamo comes in!). The process is pretty straightforward and can be completed in just a few simple steps.

Step 1: Gather your documents

First, you will need to gather all of the documentation necessary to prove that your business is legal in Estonia. This includes:

  • A copy of your government-issued ID
  • A passport-style digital photo
  • Motivation statement
  • Visa or Mastercard

Step 2: Submit your application

Once you have gathered all of the necessary documentation, you can submit your application online. Along with your application, you will be paying an application fee, also known as the Pay State Fee, of €100-120.

Step 3: Application review

Estonian Police & Border Guard Board will conduct an initial verification of your documents. If everything looks good, the board will issue you an E-residency kit.

Step 4: Opening a bank account in Estonia

Once you have received your business licence, it is important to open a business account in Estonia in order to start banking with Estonian-based companies. You can do this by visiting any Estonian bank and requesting an account be opened for your company, alternative to a bank is to choose a financial provider like wamo, Wise, N26 etc. that can provide business-oriented financial services. The bank account opening fee will vary depending on the bank, but it is usually around €100-300. Alternatively, if you don't want to go through the hassle of opening bank accounts or dealing with the bureaucracy of traditional banks altogether, you can also open a fee-free business account with wamo that is much faster and cheaper to maintain.

How to open an online business account with wamo?

As mentioned earlier, there are multiple ways you can open a business account in Estonia. As a small business owner or new entrepreneur, there's a possibility that you might have to struggle to open a business account in traditional banks due to the stringent and often long application procedures. It's important to have several options open to you so that you can find the account that is right for your business.

wamo can be one such option for you. With its easy-to-use and user-friendly online procedure, wamo makes it easy for business owners of all sizes to open an account, manage their finances and stay in touch with their bank accounts. Once you've registered for a business account with wamo, the team will connect you with one of their account representatives who can help you with the account opening and other related procedures.

Established as a holistic financial management platform, wamo was designed to help business owners take control of their finances and grow their new international businesses. Note that, wamo is not a regular bank but an EMD agent of Railsbank and is regulated by the Bank of Lithuania and the Financial Conduct Authority (FCA).

Opening a business account with wamo is easy and secure and will just take 10 minutes. All you need to do is download the wamo business app from Google Play or the App Store and zip through the streamlined application process which will get you up and running in no time.

Wamo.Io LTD incorporated and registered in the United Kingdom under the company registration number 12352849 and the operational office of which is at WeWork, 199 Bishopgate, London EC2M 3TY. Wamo.Io LTD (Firm Reference Number 922901) is an EMD agent of PayrNet Ltd which is an Electronic Money Institution authorised by the FCA under the Electronic Money Regulations 2011 (EMR’s) with Firm Reference Number 900594.

Wamo Solutions Ltd is registered under the Laws of Malta with company registration number C97355 and registered office at Dragonara Business Centre, 5th Floor, Dragonara Road, St. Julians STJ 3141, Malta. Wamo Solutions Ltd is an EMD agent of UAB “PAYRNET” which is authorised by the Bank of Lithuania under the Law on Electronic Money and Electronic Money Institutions (authorization code LB001994, license reference 72).

The wamo card is issued pursuant to licence from Visa. UK issuance is conducted by PayrNet Ltd and EU issuance is conducted by UAB PayrNet. wamo operates the wamo.io website and the app. wamo is not a bank, the current account is an e-money account. Issuance of Electronic Money and payment services is provided by PayrNet Limited. The Financial Services Compensation Scheme does not cover electronic money products. No other compensation scheme exists to cover losses from your electronic money account. Your funds will be safeguarded in one or more segregated bank accounts with a regulated third party credit institution and not lent out, which gives you protection against insolvency, in accordance with the provisions of the Electronic Money Regulations 2011.

© wamo 2022, all rights reserved wamo & the wamo logo are trademarks and trade names of wamo technology Limited and may not be used or reproduced consent of the owner