Solutions for digital nomads
The number of people globally, who prefer borderless life-style and do not want to be limited by physical borders, increases year by year. These people are also known as digital nomads. They are using information and communication technology (ICT) for doing their work and it allows them to live location-independent lifestyle.
Businesses which does not require strong connection with one specific country are growing year by year. Take for example IT developers, Independent business consultants, Copywriters, Translators, SEO experts, etc. – all of these professions do not require strong physical presence in one place. These are people who can work with their customers either from beach in Thailand or mountain peek in Italy as long as there is internet connection. Once you have chosen such lifestyle, you need to consider one important detail – how will you manage your remote, location independent business? First step, obviously is to decide whether you will register as “self employed” entrepreneur or establish a company? Whatever of these two options you choose, usually there will be some hassle with paperwork and long procedures with accountancy, invoicing, creating new contracts, etc. In case if person chooses to incorporate a company, he always has to consider following things:
- Location of business – where is the best place for my remote business; how much taxes will I have to pay; will my partners have no problems with signing a contract with such a company;
- Incorporation process – company registration; bank account opening; share capital; registered address;
- Then follows administrative support – accountancy; local assistance (since company will be managed remotely); every – day operations – such as signing new contracts.
Estonia – digitally advanced country in North of EU – has developed state-of the-art solution for digital nomads worldwide: e – Residency. e-Residency provides digital nomad with an access to Estonian e-services. Which in fact means that person is able to incorporate and manage location independent company 100% remotely.
For some parts of the world, e-Residency opens the door to entrepreneurship career to those, who cannot do so in their home countries because of the restricted or missing access to digital services or unsecure identities. In most cases GATE TO BALTICS recommends to customers to apply for e-Residency if they are interested in company formation in Estonia.
E-Residents are able to digitally sign documents and contracts, verify the authenticity of signed documents, encrypt and transmit documents securely, establish and administer a company in Estonia online, conduct e-banking and remote money transfers, access online payment service providers. Application processing period is 30 days. After the background check has been completed, person is notified by e-mail whether his application is approved. If person has been granted e-Residency, he is invited to pick it up from his chosen location – which usually is Estonian Embassy.
Estonia’s amended Commercial Code which came into force since January 15, 2018 requires legal representative for all Estonian companies managed from abroad. At the same time it confirms that the management board does not have to reside in Estonia to manage the company. Estonian companies are required to have registered address in Estonia. GATE TO BALTICS OÜ is licensed service provider in Estonia and is legally allowed to represent digital nomads’ location independent company as a legal representative and provide them with Registered office addresses. In our opinion the best option for digital nomad is to obtain e-Residency card and establish private limited company (OÜ) with share capital of EUR 2500. Company incorporation process is extremely fast and convenient when compared with other EU jurisdictions.
After person has received e-Residency card, he just has to find the most suitable local service provider who could be legal representative of his company and provide him with the registered address (we, obviously, recommend GATE TO BALTICS). From that point it will take digital nomad not more than 3 business days when he will have his location independent company from one of the most digitally advanced countries in European Union – Estonia. Small remark about share capital – it does not have to paid all in advance – one can choose rather to pay it during company incorporation or within one year from company registration.
Once you will have your location independent EU company, obviously you will need a bank account to start your business operations. At the moment it is complicated to open bank accounts in Estonian banks if you don’t have a strong physical relations with Estonia – local business partners, employees, etc. and local presence is required. We would recommend in the beginning of the business to open your IBAN account in one of our partner payment service provider organizations and start your business right away. After a while, when you will have a strong track record of your company and will have developed network of customers / suppliers worldwide, including from Estonia, we will be happy to assist you with bank appointment in Estonia and your trip to lovely Tallinn.
Last step to start your location independent business is accountancy. And your role, as a digital nomad in this, is very simple – just to know that it exists and GATE TO BALTICS will handle all the rest. You would need to upload or send by e-mail your sales / purchase invoices along with bank statements and your accountant would deal with filings and reports. And with state of the art e-governance system in Estonia, you would be up to date about all the filings and tax payments, because you could follow – up them in official website of Estonian tax administration.
GATE TO BALTICS pricing is based on honest and transparent approach – no hidden fees.
- Service fee for assistance to obtain e-Residency, prepare online petition for company registration, provide you with detailed information about corporate environment in Estonia and assist with remote account opening in payment service provider institution is EUR 400,00.
- Price for Legal representative and registered address is EUR 350,00.
- State fee for company registration – EUR 190,00.
- State fee for e-Residency application – EUR 100,00.
- Accountancy usually depends on transaction amount, therefore we can provide an example – company with total of 15 incoming / outgoing transactions per month, does not have any employees on payroll, not registered for VAT would have to pay EUR 50,00 per month.
- Total: 400,00 + 350 + 190 + 100 = EUR 1040,00.
Considering the quality of services, which one could receive, we would say that it’s a bargain! If we managed to raise your interest, feel free to contact us for more detailed information!