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5 simple steps to start a remote EU business

May 12, 2023

Running a remote EU business has become increasingly popular in recent years, thanks to advances in technology and the rise of the digital economy. Estonia, a small country located in Northern Europe, is a leading example of this trend. Its innovative e-Residency program allows individuals from all over the world to establish a digital identity and access Estonian online services.

In this post, we will explore how to start a remote EU business in Estonia with Estonian e-Residency, including the benefits, steps, and tips for success.

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Step 1: Apply for Estonian e-Residency

The first step in starting a remote business in Estonia is to apply for Estonian e-Residency. The application process is straightforward and can be completed online. You will need to provide personal and business information, pay the application fee of 120 euros, and wait for your e-Residency card to be processed and delivered to your chosen location.

Once the e-Residency has been granted, make an appointment online to collect it in your closest pick-up location. Make sure you have the same ID with you that you used in the application. After receiving the e-Residency kit, you can move on to the next step – starting a remote business in the EU.

Step 2: Establish a company in Estonia

Once you have received your e-Residency card, you can use it to establish a company in Estonia. This can be done online through our portal with the our help. You will need to provide information about your company, such as its name, address, and shareholders. The contact person and address are provided by us.

register a remote eu company e resident nomad business solutions

You can choose from several types of companies, including limited liability companies and sole proprietorships. The whole process is very straight-forward and takes about 5-10 minutes to complete. The confirmation of your new firm being established should come through either on the same or next day.

Step 3: Open a bank account

To run a business in Estonia, you will need to open a bank account. This can be done remotely with the help of your e-Residency card. Estonian banks are known for their efficiency and reliability, and they offer a range of services, including online banking and payment processing. Opening a bank account in a physical bank requires further ties and visitation to Estonia.

Since the main goal of Nomad Business Solutions’ is to make e-residents lives easy. This is why we work together with Wise (formerly Transferwise). Opening a Wise account is the simplest way to get your business bank account sorted quickly and in the simplest manner.

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Step 4: Register for taxes

As a business owner in Estonia, you will need to register for taxes. This can be done online through the Estonian Tax and Customs Board. You will need to provide information about your company's revenue, expenses, and employees. Estonia operates on a unique tax system known as the "territorial principle," where only distributed profits are subject to corporate income tax at a flat rate of 20%.

As an e-resident running a business in Estonia, you are obligated to file tax returns and pay taxes on your Estonian-sourced income, including profits earned from your business activities. Estonia has signed numerous double taxation treaties with other countries to prevent the same income from being taxed in multiple jurisdictions. E-residents who do not reside in Estonia and earn income solely from outside the country are generally not subject to personal income tax in Estonia.

Since every business has diferent circumstances, we strongly advise to speak to tax specialist. At Nomad Business Solutions, we can advise on all matters relating to this and provide you with expert guidance and support on all other matters relating to Estonia’s e-residency program.

See more here.

Step 5: Manage your EU business remotely

With your Estonian e-Residency card, you can manage your business remotely from anywhere in the world. You can access Estonian online services, such as the Business Register and Tax and Customs Board, and use them to file reports, pay taxes, and communicate with customers and suppliers. You can also hire local service providers, such as accountants and lawyers, to help you manage your business.

remote eu business becoming e resident nomad business solutions

Tips for running a remote EU business

1. Stay up to date with Estonian regulations and laws: Estonia has a unique legal and regulatory system, and it is important to stay informed about the latest developments and changes that may affect your business.

2. Use Estonian online services for invoicing and accounting: Estonian online services, such as e-invoicing and e-accounting, are highly efficient and can save you time and money in managing your finances.

3. Consider hiring a local service provider: If you are unfamiliar with the Estonian legal and regulatory system, or if you need help with administrative tasks, consider hiring a local service provider to help you navigate the process.

4. Build relationships with other e-residents and local businesses: Building relationships with other e-residents and local businesses can help you expand your network and create new opportunities for growth and collaboration.

Benefits of running a remote business in Estonia with e-Residency

Running a remote business in Estonia with Estonian e-Residency offers several benefits, including:

1.Easy and efficient online access to Estonian online services

2.Access to the European Union's single market

3.Competitive tax rates

4.Low administrative and operational costs

5.A reliable and secure business environment

6.Flexibility and convenience in managing your business remotely

7.Access to a vibrant community of e-residents worldwide for networking and collaboration opportunities.

start a remote eu business register company nomad business solutions

Running a remote business in Estonia with Estonian e-Residency offers many benefits, including easy access to online services, access to the European Union's single market, competitive tax rates, low administrative and operational costs, a secure business environment, and flexibility and convenience in managing your business remotely.

By following the steps outlined in this post and staying informed about the latest developments in Estonian regulations and laws, you can successfully run a remote business in Estonia and take advantage of all the opportunities it has to offer.

Apply for an e-residency and register your EU company with us. Visit our website or contact us on the Nomad Business Solutions website here.

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We are Katlin and Marie. We own and run Nomad Business Solutions. A business dedicated to helping entrepreneurs and business owners achieve their dreams of expanding throughout Europe with ease. Earlier years We were born and grew up on the small island of Saaremaa. The largest island in Estonia, famous for, among other things, its […]

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