What is Estonian e-Residency and how you can take advantage

31/07/2017 What is Estonian e-Residency and how to take advantage of it?
| LeapIN
Articles ❯ What is Estonian e-Residency and how to take advantage of it?
What is Estonian e-Residency and how to take advantage

of it?
https://www.leapin.eu/articles/e-residency 1/23
31/07/2017 What is Estonian e-Residency and how to take advantage of it? | LeapIN
By Avo Alender | Last updated: July 3, 2017
The Basics:
When you sign up for Estonian e-Residency, you receive a government-issued

smart ID card that provides digital identification and authorisation. That way, you
can digitally sign important documents, access secure services, and make
secure transactions -- even if you don't live in Estonia.
For example, e-Residency would allow an Indian entrepreneur to establish an

Estonian company that he runs from Singapore to serve clients based in
Germany. He'd also be able to use his digital signature to sign contracts with
customers throughout the European Union. All of it would be done online,
remotely, and completely hassle-free.
Estonia (Eesti) is a small country in Northern Europe that sits south of Finland,
across the Baltic Sea from Sweden, just north of Latvia, and just west of Russia.
It's estimated that 1.3 million people call this country home, which makes it one
of the least-populous member states of the European Union, Eurozone, NATO,
OECD, and the Schengen Area. The official language is Estonian, and the capital
-- which doubles as the country's largest city -- is Tallinn.
More importantly, though, Estonia is the world leader in digital governance and
a founding member of Digital 5 (D5), a global network of leading digital
governments. In fact, in December 2014, Estonia became the first country in the
world to introduce the concept of e-Residency.
What does that mean?

As the name suggests, e-Residency gives foreigners the ability to apply for a
secure digital residency in Estonia, even though they don't actually live there.
e-Residency in 2 minutes, Kaspar Korjus (Program director of e-Residency)
How does it work?

e-Residents are given a digital ID card that contains a special chip. This card
enables them to use Estonian public and private sector services and resources,
sign documents remotely, and encrypt files.
The security and simplicity of Estonia's e-Residency program has become a

success story all over the world. Media outlets swarmed as soon as the program
started allowing people to sign up to be notified of an official launch. Within 24
hours, people in 168 different countries signed up for an official notification.
Then, when the formal application process actually began, more than 6,000
people applied.
Edward Lucas was the first e-Resident of Estonia (image: e-estonia.com)
So far, some of the world's biggest names are among the list of Estonian e-
Residents -- including Japanese Prime Minister Shinzō Abe, former Apple
evangelist Guy Kawasaki, and Timothy Draper from the venture capital firm
Draper Fisher Jurvetson.
While e-Residency is a new concept, the idea of a government-issued digital ID

card is not. In fact, Estonians have been using these cards for more than a
decade. Since Estonia is often called "e-Estonia" because of its technological
advances, it made perfect sense to expand this digital ID service to the rest of
the world. By extending virtually every public and private sector transaction to
people in other countries, Estonia has created long-term value in the idea of
secure digital identities, especially when it comes to commercialized Platform-
as-a-Service (PaaS).
The motivation behind e-Residency is simple -- to create

a country without borders.
"What we aim to do is to create a worldwide virtual business environment,

where people from both the developed and developing countries can easily
become entrepreneurs and start doing business anywhere in the world. Physical
national borders and restrictions will no longer present an obstacle. You can
start a business, open bank accounts, make transactions, sign contracts and
even declare taxes, all on your computer," said Kaspar Korjus, Estonian e-
Residency Program Director.
The main goal of the e-Residency program is to make life and business
significantly easier for freelancers, digital nomads, business owners,
international partners, and any other non-resident who has a relation to Estonia.
Whether you want to start a business, expand your business, make investments,
or study in the European Union, Estonian e-Residency makes it possible -- and
simple.
As an e-Resident, you'll be able to:
Establish and run a company online

Conduct your banking online (e.g. make electronic bank transfers)
Have access to international payment service providers
Digitally sign documents (e.g. annual reports, contracts) within the
company as well as with external partners
Verify the authenticity of signed documents
Encrypt and transmit documents securely
Declare taxes online
You can read more about Estonian government and infrastructure powered
services & benefits here .
As more people have come to realize the value in e-

Residency, the program has continued to grow.
As of June 16th, 2017, over 20,200 people from 140 countries have applied for
e-Residency -- and 19,254 of them have already received their e-Residency
digital ID card. A whopping 1675 of them have established a new company in
Estonia, and there are more than 3256 Estonian companies in total that have at
least one e-Resident owner or board member.
(Source: e-Residency dashboard)

For 2016-2017, the goal for new e-Residents has been set at 60,000, and targets
for the future have been set even higher. In fact, back in 2014 when the program
first launched, Estonian Government CIO Taavi Kotka announced an ambitious
goal -- to have 10 million e-Residents by 2025.
The closer reality comes to meeting that projection, the better it is both for
Estonia's private sector and for e-Residents too. After all, the more e-Residents
there are as potential customers, the more attractive the e-Residency platform
will be for the private sector -- and the more interest there will be to develop
services on the platform.
Some private companies have already dived into the e-Residency world. Startup
companies Fundwise, Funderbeam, and Teleport introduced their cooperation
with the e-Residency platform. And, Nasdaq has announced that Estonia's e-
Residency platform will be facilitating a blockchain-based e-voting service .
How can you apply for Estonian e-Residency?
All you have to do is fill out the online application form. Once you do, Estonian
Police and Border Guard will do a background check. Once your application is
approved, you'll choose where you want to pick up your digital ID card. You can
select one of the 38 Estonian embassies and consulates around the world, or
you can go to an Estonian Police and Border Guard Station.
Once your digital ID card arrives at your chosen pickup location, you'll need to
personally go get it. In order to get it, you'll need to show valid travel documents
for your country of nationality and submit your fingerprints for verification.
Ready to start the process?
1. Read more from the official e-Residency website at https://e-

resident.gov.ee/ .
2. Go to https://apply.gov.ee . There, you'll find an online application form.

You'll need to upload your photos, describe your purpose for applying,
and pay the 100 euro e-Residency state fee.
3. Once your application has been submitted, you'll need to wait about 10
business days for the background check to be completed.
4. After you verify your identity at the pickup location, you'll get an e-
Resident starter kit which contains your digital ID card and a smart card
reader.
The whole process should take two to four weeks, depending on the pickup
location you choose and the number of waiting applicants.
Available pickup locations, as of June 2017:
');" >
(Source: https://e-estonia.com/e-residents/apply/)
What happens once you receive your digital ID card?

You'll be able to digitally identify yourself -- meaning that you can digitally sign
documents, authenticate documents, and encrypt documents -- for three years.
You'll be able to enjoy all of the convenience and ease that Estonian residents
have been taking advantage of for a decade!
Just remember, your Estonian e-Residency card is not a physical ID card, and it
can't be used as a travel document. Also, your e-Residency will not grant you
citizenship, tax residency, residence permit of rights, or entry into Estonia or the
rest of the European Union.
But why would you want to run your business in Estonia in the first place?
Just as you might switch your traditional bank to one with a modern and easy-
to-use mobile app like Monese or Number26, we here at LeapIN (together with
the the Estonian public sector) share the vision that you'll benefit greatly from
switching your business to a country with minimal bureaucracy, fewer
administrative hassles, and an infrastructure that is easy to use remotely.
Specifically, you'll get:
A presence in the EU single market, you will be a trusted member of the

European Union business community
Access to international payments providers like Google, PayPal etc
A trusted and transparent business entity that has been incorporated

through a simplified setup process
Access to a simple and fair tax system -- 0% corporate income tax as long
as you keep your profit earned in the company or reinvest it into growing
your business.
Full remote control – secure access to your bank and company data via
e-Residency, location independently
Paperless administration
Digital signature and encryption tools that come with a guaranteed high
level of security
In a world where businesses, people, and money can move around with relative
ease, having a competitive tax code has become even more important to
economic success. According to the latest figures released by the US-based Tax
Foundation, Estonia has the most competitive tax system in the OECD
(International Tax Competitiveness Index Rankings ) and shares a place at the

top of list for Internet Freedom.
Estonia has a unique income tax system where corporate income tax is charged
on profit distribution (i.e., dividends) only, and is capped at 20%. As long as you
keep your profits within the company, you will not have to pay any corporate
income taxes. And, Estonia has a flat 20% tax on individual income that does not
apply to personal dividend income.
Ready to reap the benefits? LeapIN can get you started!
Here at LeapIN, we believe that all of the benefits and features we've talked
about can be even better -- by packaging them into one hassle-free solution for
a competitively-priced monthly fee. And, of course, there are no hidden costs or
surprises!
We will select the best components of the Estonian/European Union ecosystem

for your needs, glue them together with our magic, and create a self-service
based, highly automated company management solution that's powered and
secured by Estonian e-Residency.
Our target customers are freelancers, digital nomads, and distributed teams in
need of a way to run their businesses remotely. As work shifts from full-time to
free agent employment, and as global cross-border employment increases, our
focus is on setting up a trusted micro-business with a simplified company
structure, minimal hassles, no paperwork, and seamless accounting that's based
on your revenue model.
Features when starting your micro-business with LeapIN include:
Having a company in the European Union

Bank account & payment card
Secure online banking
Accounting, taxes & compliance handled by LeapIN

Support for global app stores
Support for payment gateways & bulk invoicing
VAT number
LeapIN online self-service
Check out our Feature page for more detailed description of features when
setting up your business with LeapIN, or choose a suitable Price plan to get
started.
Got curious?
Check if your desired company name is still
available
Type your dream company name here…
TWITTER FACEBOOK LINKEDIN
Recommended articles:
Estonia's plan for anyone to be a citizen, Why you should be an e-resident of Estonia
digitally
All You Need to Know About Estonia’s E- e-Residency makes it easy for
Residency Program Singaporeans to do business in the EU
LEAPIN BUSINESS SERVICES OÜ · LÕÕTSA 8, TALLINN 11415, ESTONIA · INFO@LEAPIN.EU
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31/07/2017 What is Estonian e-Residency and how to take advantage of it?

Articles ❯ What is Estonian e-Residency and how to take advantage of it?

What is Estonian e-Residency and how to take advantage

By Avo Alender | Last updated: July 3, 2017

When you sign up for Estonian e-Residency, you receive a government-issued

For example, e-Residency would allow an Indian entrepreneur to establish an

What does that mean?

e-Residency in 2 minutes, Kaspar Korjus (Program director of e-Residency)

How does it work?

The security and simplicity of Estonia's e-Residency program has become a

Edward Lucas was the first e-Resident of Estonia (image: e-estonia.com)

While e-Residency is a new concept, the idea of a government-issued digital ID

The motivation behind e-Residency is simple -- to create

"What we aim to do is to create a worldwide virtual business environment,

As an e-Resident, you'll be able to:

Establish and run a company online

As more people have come to realize the value in e-

(Source: e-Residency dashboard)

How can you apply for Estonian e-Residency?

Ready to start the process?

1. Read more from the official e-Residency website at https://e-

2. Go to https://apply.gov.ee . There, you'll find an online application form.

Available pickup locations, as of June 2017:

What happens once you receive your digital ID card?

Specifically, you'll get:

A presence in the EU single market, you will be a trusted member of the

A trusted and transparent business entity that has been incorporated

(International Tax Competitiveness Index Rankings ) and shares a place at the

Ready to reap the benefits? LeapIN can get you started!

We will select the best components of the Estonian/European Union ecosystem

Features when starting your micro-business with LeapIN include:

Having a company in the European Union

Accounting, taxes & compliance handled by LeapIN

Type your dream company name here…

TWITTER FACEBOOK LINKEDIN

LEAPIN BUSINESS SERVICES OÜ · LÕÕTSA 8, TALLINN 11415, ESTONIA · INFO@LEAPIN.EU

TERMS PRIVACY TOP

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