Among the most notable personalities in the world are Mukesh Ambani, Bill Gates, and Barack Obama. And they all have something in common. Apart from their hefty net worth, be it Ambani or Obama, they all have an e-residency of Estonia. But it is not exclusive to the world’s elites; entrepreneurs can register their firm and run their European company from any corner of the world.
Estonia is the first country in the world to offer a digital residency, which offers a unique digital identity to those who sign up. This provision allows founders and entrepreneurs to set up and run their firm from Europe for under Rs 60,000. Moreover, the entire process would take less than a day, and once applied, your Estonian e-residency card will be available in 4 hours at the Estonian Embassy in India. In 2019, Mukesh Ambani set up shop in Estonia as Reliance Jio entered the European market as a part of the country’s effort to attract high-profile investors.
What is Estonian e-residency?
The Estonian e-residency is founder-friendly and startup-positive. The European country has a competitive tax advantage with 0% levied on profits kept inside the company. There is also a 20% cap corporate tax, Value Added Tax (VAT), income tax, and on dividend withdrawal. With no double taxation hassles, Estonia’s e-residency makes it a founder’s haven.
The provisions don’t end here. Estonia also offered free public education, transport, and healthcare. With a population smaller than tech-hub Gurugram, Estonia already has 12 unicorns to its name, with access to VC funding and non-dilutive government grants.
Registering for Estonia’s digital resident is ideal for tech founders, firms targeting the European market, and those looking to go global. As per reports, more than 2000 tech entrepreneurs are already registered as Estonia’s newest e-residents.
E-residency vs Citizenship
It must be noted that there is a stark difference between digital residency and gaining physical citizenship in the country. While the borderless operation allows e-residents to manage their firm online 24/7, the personal tax residency rules of their home country still apply.
How to apply for Estonia’s digital residency?
Documents needed: A government-issued, valid passport, digital passport-style photograph, a motivation statement, and a CV
Application process: Applicants need to fill out an online form and pay a maximum of Rs 15,000 state fee, and choose a pickup location
The process also involves a thorough background check from the Estonian Police and Border Guard. There is an e-resident kit that collects your fingerprints and conducts other digital verification. The digital residency is valid for five years, which is up for renewal upon expiry.
